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Make Impactful Real-Time Decisions with Capgemini’s Retail Apps. May 15, 2013 – Orlando, FL. Introductions. Mike Price Capgemini, North America Practice Leader, SAP Business Analytics and Technology e. michael.r.price@capgemini.com m. +1 (770) 601 6471 . Erik de Veer

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Presentation Transcript
introductions
Introductions

Mike Price

Capgemini, North America

Practice Leader, SAP Business Analytics and Technology

e. michael.r.price@capgemini.com

m. +1 (770) 601 6471

Erik de Veer

Capgemini, Global Sector Consumer Products & Retail

Global Leader, SAP Retail and Fashion Solutions

e. erik.de.veer@capgemini.com

m. +31 6 1502 7845

@erikdeveer

agenda
Agenda
  • Background and Introductions
  • Retail Business Challenges
  • What are Extreme Applications for Retail?
  • Examples:
    • Market Basket Analysis
    • Mark Down Management
    • Next Best Action, Targeted Promotions
  • Q&A
the challenge of combining customer d emand product availability and margin to remain c ompetitive
The challenge of combining customer demand, product availability, and margin…to remain competitive
mega trends driving transformation in the retail industry
Mega Trends drivingTransformation in the RetailIndustry…

Increased Importance of Health and Wellbeing

Increased Impact of Consumer Technology Adoption

Increase in Consumer Service Demands

Increased Urbanization

Increasing Spread of Wealth

Aging Population

Impact of Next-Generation Information Technologies

Growing Consumer Concern about Sustainability

Shifting of Economic Power

Scarcity of Natural Resources

Increase in Regulatory Pressure

Rapid Adoption of Supply Chain Technology Capabilities

new customer behaviors require real time insight
New customer behaviors require real-time insight

New heartbeat in category management and merchandising

Customers are ‘competitor savvy’ and other offers are just a click away

Personalized offers require dynamic promotions

Retail is always on, 24/7

Social and mobile commerce are the new norm

Maintaining margin and profitability

Omni-channel requirements

and capabilities (i.e. click/collect)

Digital

Data growth and the combination of structured/unstructured data

BYOD

Marketing paves the way

for IT

general product overview
General product overview

Market Basket Analysis

Next Best Action

Markdown Management

  • Extreme Applications for Retail
  • Powered by SAP HANA
  • Real Time Sales Analysis / Extreme POS Analysis
how it all comes together extreme applications module interactions
How it all comes together: Extreme Applications module interactions

Articles in current basket/ loyalty ID of customer Mr. X

Articles

Margin

Time

POS

MARKET BASKET

ANALYSIS

Article affinity analysis

Buying patterns

Nextbest promotion for customer Mr X

Promotion rules

EXTREME POS

NEXT BEST ACTION

Articles

Prices

Inventory

Tim/Season

POS

Current and past sales trends

MARKDOWN

MGMT

Next Best Article for customer Mr X

Forecasted stock end of season

Improve sales, profitability, and customer loyalty

Optimize combined sales and promotions to increase profitability

Improve markdown strategy to optimize stock and profitability

IN REAL TIME

high level solution architecture
High-level solution architecture

Users

PC, Mobile, Tablet

Usage

Retail

Xtreme

Apps

SAP BI4

BI, Reporting

HTML5

Integration to websites

BI

HANA

Database

Database & Analytics

R on HANA

Statistics

SLT

SAP Replication

Data Services

Non-SAP data load

Loading

SAP systems

non-SAP systems

Social Media

Sources

Addresses both SAP and non SAP data sources

No constraints with SAP legacy systems: technical neutrality

slide13

Market Basket Analysis

Do you want to grow basket size and overall profitability by identifying products that drive drag-along sales?

… intoactionableresults

… turn Terabytes of POS data …

How to …

As a merchandiser, I want to gain insight into which products are often purchased together and with which combined margin to help stores with up-selling and cross-selling

Cross-selling and up-selling by placing products with high affinity together

Optimized promotion management

  • Affinity analysis based on POS data provides insight in which products are often sold together
  • Margin and sales analysis support optimized promotion planning for associated products
example of market basket analysis
Example of Market Basket Analysis

437

USA

2013

01

West

01

Belts

05

markdown management
Markdown Management

Do you want to ensure your markdown strategies are meeting your financial goals?

… turn Terabytes of POS data …

… intoactionableresults

How to …

Markdowns are planned more efficiently and more profitable

As a merchandiser I want to gain insight in which articles will have surplus stock at the end of the season given rates of sale at different prices

  • Store inventory data and forecasting algorithms predict surplus quantities at season’s end
  • Historical sales data provides insight into previous markdown effects
  • Price elasticity information and margin analysis supports markdown planning
markdown management example
Markdown Management Example

West

SS13

USA

Belts

USD

USD

USD

USD

next best action customer targeted promotion
Next Best Action,Customer-targeted promotion

How to make sure you increase your customers’ loyalty so that they continue to buy in your stores rather than at your competitors’?

… turn Terabytes of POS data …

… intoactionableresults

How to…

Customer loyalty number is entered in one of the customer contact channels, e.g.

smartphone app, webchannel, store clerk

The customer gets a promotion that fits his or her needs

  • Based on buying patterns promotion rules are created.
  • Based on customer loyalty information, a buying pattern is checked against promotion rules to see if there are suitable promotions available
make impactful real time decisions
Make Impactful Real-Time Decisions…
  • To Better Engage with Technology-Enabled Consumers
  • - The Consumer in the Driver’s Seat
  • To Help Optimize a Shared Supply Chain
  • - Collaborate Differently, Compete Differently
thank you
Thank you!

Mike Price

Capgemini, North America

Practice Leader, SAP Business Analytics and Technology

e. michael.r.price@capgemini.com

m. +1 (770) 601 6471

Erik de Veer

Capgemini, Global Sector Consumer Products & Retail

Global Leader, SAP Retail and Fashion Solutions

e. erik.de.veer@capgemini.com

m. +31 6 1502 7845

@erikdeveer