the impact of modern identity management systems on retail industry
DESCRIPTION
Presented at: Middle East Retail Forum: Reinventing Retail Growth in the Middle East. 28 – 29 October 2013 | JW Marriot Marquis Hotel | Dubai | UAE.TRANSCRIPT
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Our Vision: Provide an integrated and advanced personal identity management system that contribute to the transformation of the government and the economy and promotes security and global competitiveness of the UAE.
Partners in Building UAE’s Security & Economy
Retail Industry Impact of Identity Management Middle East Retail Forum: Reinventing retail growth in the Middle East 28 – 29 October 2013 | JW Marriot Marquis Hotel | Dubai | UAE.
Presented by Dr. Ali M. Al-Khouri
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• Introduction
• Changing Face of Retailing
• Identity Theft
• Modern Identity Management Infrastructure
• Concluding Remarks
Agenda
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Agenda • Introduction
• Changing Face of Retailing
• Identity Theft
• Modern Identity Management Infrastructure
• Concluding Remarks
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Introduction
• World is metamorphosing!
• New economies.. All industries impacted..
• Retail industry is in the throes of out growing the conventional merchandising ..
• Paradigm shift in consumer behavior from an analogue to digital has not only affected the mode of sale, but also the marketing modes, and all dimensions around it..
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• Immense impact of digitalisation
• Human paradox: more time with own selves.
• Internet and Mobility: reclusive while being omni-present on social networks.
The Retail and Marketing Transformation
Marketing
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Where are my Customers? The Market Place is Crowded
The customer is every where.. It is now how to find him? Value perception ? Is changing.. No longer in a store, or a mall! National Economy Gratification: Needs fulfillment and managing customer journey experience, navigation, help, website browsing.. Etc.. It is not like wearing a shoe, and looking for size!
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Where are my Customers? The Market Place is Crowded
The customer is every where.. It is now how to find him? Value perception ? Is changing.. No longer in a store, or a mall! National Economy Gratification: Needs fulfillment and managing customer journey experience, navigation, help, website browsing.. Etc.. It is not like wearing a shoe, and looking for size!
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The Retail and Marketing Transformation The nature of technological developments is disruptive
Retailing
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Agenda • Introduction
• Changing Face of Retailing
• Identity Theft
• Modern Identity Management Infrastructure
• Concluding Remarks
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Who are my Customers ?
Behavioural patterns
Big data..
Electronic trail that is available ..
Potentially the entire 7.1 Billion population on the earth constitute the customer base.
Studies: more retailers are going global to capture a larger share of the $1.4 trillion e-commerce market.
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Who are my Customers ?
Behavioural patterns
Big data..
Electronic trail that is available ..
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Identify my Customer ? Big Data technologies:
The next frontier for innovation, competition, and productivity, but?
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DNA of Your Customer Experience?
Identity management Need to Knowing
customers
Attracting and Retaining Customers
customers are driven by a set of emotional values..
Colin Shaw
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Hierarchy of Emotional Values Pyramid of 4 clusters.. Relationship building
Identity management Need to Knowing
customers
Source: Colin Shaw: The DNA of Customer Experience: How Emotions Drive Value
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Hierarchy of Emotional Values Pyramid of 4 clusters.. Relationship building
Identity management Need to Knowing
customers
Source: Colin Shaw: The DNA of Customer Experience: How Emotions Drive Value
Retailers need to know the customer
more closely
and more personally
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Do you know your Customer ? Boston Retail Partners Survey 2012
32% North
American retailers remain
unable to identify
their customers
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Agenda • Introduction
• Changing Face of Retailing
• Identity Theft
• Modern Identity Management Infrastructure
• Concluding Remarks
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Risks of Identity Theft
Identity fraud in US retail industry
POS: credit cards,
goods returned, etc Online: number 2..
not knowing customers enough is fraught with risks and prone to frauds
Online-channel frauds cost merchants $3.10 for each dollar of fraud losses
Identity fraud rises for 2nd consecutive year - Overall identity fraud incidence rate and total fraud amount by year
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Data Breach Multifaceted Threat to Retailers ..
Shocking number.. Pushing things under the carpet.
Poor security
Data is being breached Using some data to conduct
transactions
with 1 in 4 data breach victims suffering identity
fraud in 2012.
Increase in Fraud rate among data breach victims outpaces increase in overall fraud rate
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Tablet ad Smart Devices Security Most susceptible to fraud
Tablet Owners more than 80% more likely than all other consumers to become fraud victims - Fraud incidence by ownership of Tech Products
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Chip-N-Pin and Remote Payment Fraud a crime on the rise in 2013
Agreement if I contained the fraud..
We may have an increase the sale ..
Channels of where
the fraud has accrued.
authentication at the POS will help merchants avoid the charge-backs and fees to financial institutions
help to curtail the not-inconsequential 18% of fraud losses resulting from this fraud
type.
% of fraudulent transactions attributable to channels among merchants accepting specific channels
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Merchants Community General acceptability of fraud, and little done to mitigate it!
General acceptability of fraud.. Little been done to mitigate it
Loosing opportunity
Inevitablity acceptance: input to defining risk appetite Loss of opportunity:
largest sector to loose heavily: small and medium establishments
Attitudes toward fraud by large e-Commerce, and Merchants
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Challenges in containing POS and Remote Fraud? Need of fast Checkout at Retail ..
Top challenges in controlling international fraud in 2012 & 2013
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Agenda • Introduction
• Changing Face of Retailing
• Identity Theft
• Modern Identity Management Infrastructure
• Concluding Remarks
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UAE National ID for Verification of Customer ID
The need for a mechanism to ascertain the
identity
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UAE Identity Management Infrastructure Advanced Authentication Capabilities
On-Site and Remote secure and trusted transactions.
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UAE Identity Management Infrastructure Advanced Authentication Capabilities
accorded all Identity Based Services
match-on-card and match-off-card features & it facilitates Validation, Verification and
Authentication of an Identity.
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UAE eTrust Centre: Validation Services
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Online Validation
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What does this translate into?
Out of band: what every we use outside the
transaction, it is considered out of bank..
Transaction channel and
authentication channel are totally different.. OTP is out of band..
National Validation Gateway ensures that not only are Identification processes made seamless, enhancing service delivery, but also
vastly improve business processes leading to strong bottom lines.
unique identification capabilities, enables retailers
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Identity Management Infrastructure Potential Benefits to UAE Economy
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Supporting Mobility Smart Devices Usage The upcoming features of the UAE ID Card
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Agenda • Introduction
• Changing Face of Retailing
• Identity Theft
• Modern Identity Management Infrastructure
• Concluding Remarks
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Need to Change the Mental Map of how
Business should be Performed!
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Dimensions of eBusiness Performance
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Dimensions of eBusiness Performance
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Digital Economy: Critical Considerations
To capitalise on the growing digital economy, we need to consider:
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Conclusion Identity Management is main vehicle for building sustainable economies
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UAE Validation Gateway: Your opportunity to explore http://vg.emiratesid.ae
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Thank you Dr. Ali M. Al-Khouri
Director General | Emirates Identity Authority | UAE www.emiratesid.ae | [email protected] |
Read our recent research from: http://www.emiratesid.gov.ae/ar/media-center/publications.aspx
@DrAliAlKhouri