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Digital Transformation in Retail - The Next Wave June 2016

Digital transformation Conxion event

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Digital Transformation in Retail - The Next Wave

June 2016

Hi, I’m Jo Caudron Active in digital since 1993

Internet entrepreneur involved in 20+ start-ups.

Founding Partner of Duval Union Consulting

@jcaudron [email protected]

We are business consultants for a digital

world.

Our mission is to help organization transform.

@jcaudron

Co-autor of…

A story about Transformation

Sold in 40 countries!

I skipped 50 “disruptive slides” aboutUber, Airbnb, Tesla, …

Digital disruption is real. Expect a smack in the

face…

who is your…

Where did the money go?

1995+MusicPhotographyVideo Rental…

2010+Print MediaTVTravelHR…

2015+RetailHealthcareAutomotiveEducationTelcoFoodFMCGBanking/Insurance…

2020All Safe havens will be subject to digital disruption…

WAVES OF DISRUPTION

Digital Disruption is a story of…

%

This is NOT our story

YOU THEM

We are COMPLIANT! We are a TRUSTED partner!

We have DECADES of experience! We are on SOCIAL MEDIA!

THIS is our story: the substantial minority

YOU THEM

We are COMPLIANT! We are a TRUSTED partner!

We have DECADES of experience! We are on SOCIAL MEDIA!

But your app sucks

I want experience

Uhh..ok

Cheaper AND better service?

Hey this solves my problem!

I don’t want to wait a week

The Tipping Point

YOU THEM

Evolution in digital retail

First generationLow logistics complexity

First generation

Low value Low complexity

Low logistic complexity

High value Low complexity

First generationLow logistic complexity

Evolution in digital retail

First generationLow logistic complexity

Second generationSolving more complex user problems

Second generationSolving more complex

user problems: making decisions

Second generationSolving more complex

user problems: return policy as marketing

Second generationSolving more complex

user problems: fitting at home

Second generationCleaner logistics to handle

delicate products like clothing

Second generationOptimization of logistics

Evolution in digital retail

First generationLow logistic complexity

Second generationSolving user problems

Third generationHigh logistic complexity

Will food retail

accelerate the rest of

the commerce landscape?

Food logistics = High logistic complexity

Cold chain

Complex value chainFood logistics = High logistic complexity

Speed

“sorry, your order has been delayed. We expect delivery in 2-3 weeks”

Reliability

When things go wrong with food it’s very bad!

New business models

New Players

New way of last mile delivery to make

this happen

New way of last mile delivery to make

this happen

IS IT REALLY HAPPENING?

Amazon = online store

Builds the best online

infrastructure

“invents” the commercial

cloud

disrupts the entire storage

and server industry

We know this

> > >

Amazon = online fresh

food

Builds the best distribution

infrastructure

“invents” the commercial

“fresh cloud”

disrupts the entire distribution

and food retail

Now, imagine this…

> > >

It is happening as we speak

When your favorite fresh food can be delivered in 30 minutes,

exactly when you want it customers will expect the same from

Torfs Makro Vanden Borre Coolblue

Gamma Bol.com … you?

Stop talking, start doing!

You’ll need to understand the impact of disruption

You’ll need a strong vision on your

future

You’ll need a plan with real

actions, a Digital Agenda, a

roadmap for the future

You’ll need Digital Leadership

You’ll need to be where the action is

The Classics

Traditional models Traditional channels

The Converted

Traditional models Digital channels

The Digital

New digital models Digital channels

The Ruptured

Just forget everything you know.

IT’S ALL NEW

You’ll need to evolve from a mothership…

…to a modern fleet

IMPACT ANALYSIS NORTH STAR

VISION OF YOUR FUTURE

TRANSFORMATION STRATEGY

ROADMAP

DIGITAL LEADERSHIP & CAPABILITIES ASSESS

TEAMSTRAIN & COACH

ROLL-OUT DIGITAL OFFICE

SET-UP AND ROLL-OUT

CHANNEL STRATEGY

POLICY & GOVERNANCE RUN

RUN DIGITAL OFFICE

CUSTOMER ENGAGEMENT

CHANNELS

REQUIREMENTSPARTNER

SELECTION

PLATFORM DESIGN

RFP CREATION

LAUNCHDEVELOPMENT

BUSINESS/SERVICE/PRODUCT DESIGN TRADITIONAL

BUSINESS MODELPROJECT KICK-OFF

RUN PROGRAM/DEVISION/…

START-UP BUSINESS

START-UP BUSINESS MODEL

START-UP KICK-OFF (FUNDING, INCUBATION)

RUN START-UP (COACHING,

ADVICE)

TRADITIONAL BUSINESS

TRANSFORMATION STRATEGY

SCAN MARKET TRENDS & INTERNAL DIGITAL

READINESS

Hi, I’m Jo Caudron Active in digital since 1993

Internet entrepreneur involved in 20+ start-ups.

Founding Partner of Duval Union Consulting

@jcaudron [email protected]

We are business consultants for a digital

world.

Our mission is to help organization transform.

Digital Transformation in Retail - The Next Wave

June 2016