Hybris Whitepaper omniCommerce

7/29/2019 Hybris Whitepaper omniCommerce

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1Dierentiated Commerce: The OmniCommerce Imperative

Contents

Creating One Experience for Customers 2

Brand Consistency 2

Real-Time System Of Reference 2

Continuous Customer Engagement with Mobile 3

Open Foundation 4

OmniCommerce Maturity Model 4

Services 5

Lifecycle 5

Global 6

Localized 6

About hybris 7

Differentiated Commerce:The OmniCommerce Imperative

How the Convergence of Digital and PhysicalCommerce is Driving the Future of Commerce

Physical and digital commerce are converging at an incredible pace driven byhighly connected customers who demand experiences that adapt to their modeof purchasing and shopping. This opens the door for a new imperative known as

OmniCommerce, which favors a customer-centric approach over channel-specificprocesses. Success in commerce now depends on real-time views of customers,inventory, and data to build an intimate understanding of their commerce behavior.Implemented correctly, an OmniCommerce business model and platform boostsorder amounts, optimizes lifetime customer value, and fosters gains in loyalty andcustomer intimacy.

Emerging commerce technologies that are robust, flexible, scalable and channelagnostic are enabling companies to capitalize on the physical and digital conver-gence, and deliver a differentiated commerce experience.

This paper explores how OmniCommerce enables businesses of all types and sizesto keep up with today's highly demanding customers and describes growth oppor-tunities that are available through embracing a new way of conducting commerce.


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must distinguish itsel consistently wherever a customers

engage the brand and companies are investing heavily and

changing business models to respond to that change.

In the retail industry, this change in customer relationship is

being acknowledged (see let side o the gure below). Silos

are out, brand consistency is in. Brands need to be consis-

tent across all physical branding elements: in-store signage,shel labels, catalogs, and product displays; their digital coun-

terparts: product content, visual assets, price and promotions

on own sites and marketplaces; and across all accessible via

smartphones, tablets, PCs, and kiosks.

Real-Time System Of Reference

Customers now demand immediate response, want oers

served up when they want them, and expect companies to be

responsive to their preerences, not just their purchase history.

Just as brands want a single view o their customer, the cus-

tomer wants a single view o them; including products, pricing,

promotions (even comparisons to a companys competitors!),

inventory availability at preerred locations, their own orders

and their recorded preerences.

How businesses respond to these demands are key in determining

the winners in commerce. Even though these requirements are

seldom supported, even in part, by legacy commerce platorms,

companies need not ace a daunting rip and replace systems

approach; instead, companies need an integrated system o

reerence that sits above traditional transactional and less agile

systems o record, such as ERP. An integrated system such as

this shares the required inormation in real-time at the point

o need to the customer, sales associate or ulllment person.

It also is a workhorse which synchronizes with older, legacy

systems around basic transaction elements, and can provide

much richer customer engagement without requiring immediate

displacement o established systems.

Creating One Experiencefor CustomersIn moving rom channel-centric business models to one where

customers can expect a relevant, contextual and consistent

experience across every channel, companies need a single

commerce technology platorm that:

Enables brand consistency, in terms of the context of

underlying assortments, offers, promotions content and

policies, across all customer touchpoints

Provides a real-time system of reference that enables

single views of product, pricing and promotions, inventory,

orders and customers

Incorporates mobile as essential for continuous customer

engagement

Is built on an open foundation that easily integrates legacysystems as well as emerging touchpoints and experience-

focused technologies

All o these platorm unctionalities are needed to achieve optimum

levels o customer engagement and commerce eectiveness.

Brand Consistency

Establishing consistent brand messaging and dierentiation

is becoming more dicult as consumers develop impressions

about brands rom inputs and infuencers outside a marketers

control, such as social communities, orums, and product

ratings and reviews. Further, companies traditionally have

been able to oer distinct channel (whether physical or digital)

assortments, prices, and promotion policies while remaining

in-step with individual channel competitors. But customers are

orcing a change: they dont see channels; thereore, a brand

Crosschannel Opportunities "Very Important"The Opportunity Dened Customer vs Product

Create a single brandidentity across channels

Leverage customersknowledge and inormationassets across channels

Use the digital channels toprovide rich content aboutour products and services

Use the digital channels tobuild a sense o "commu-

nity" around our Brand

Allow the customer topurchase, take delivery, orreturn the product throughthe channels o their choice

Improve operationalexecution across allchannels

Allow inventory allocatedor one channel to be usedor another channel'sulllment

Winners Others

85 %

74 %

74 %

82 %

79 %

69 %

70 %

79 %

74 %

57 %

58 %

74 %

56 %

50 %

Omni-Channel 2012: Cross-Channel Comes o Age 2012 Benchmark Report RSR Retail Systems Research Nikki Baird and Brian Kilcourse, Managing Partners June 2012


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This means rich support or both, internally and externally

sourced product content, access to large data stores o

structured and unstructured data, and unied order processes

that synchronize with underlying ulllment and supply chain

systems. It also means that ulllment moves beyond channel

silos. As shown in the right side diagram page 2, retailers see

the need or seamless channels, either to save the sale in

the case o a stock-out in a store, or ulll a sale made online.

Continuous Customer Engagementwith Mobile

According to Mobile Commerce Forecast, 2012 to 2017, by For-

rester Research1, the exponential growth o mobile commerce

is transorming customer shopping habits. The report ound

that mobile retail and travel spending increased by 80 % in

2011 and is projected to more than double by the end o 2012.

It also shows that retail represents mobile commerces astest

growing category, generating $ 25 billion in 2017.

There are 3 major roles or mobile in an OmniCommerce

uture:

Provide a touchpoint or on-the-go customer when they

want to research, decide, and locate products and services

Bridge all possible touchpoints or continuous on-line and

o-line engagement with customers

Open commerce pathways that are time and location

aware but gated by person or machine

Mobile devices can enable and accelerate competitive intensity;

they weave together your ofine and online customer activity

but also position your competitor only a click away.

1 Forrester Research, Inc., August, 2012.

Consumers Now Expect

OmniCommerce Capabilities

Recently, hybris commissioned a survey o more than 500

consumers in the U.S., across income levels and ages,

with an equal distribution o genders. The survey oundthat shoppers now routinely expect that their avorite

retailers will be accessible to them anytime, anywhere,

via any channel:

Almost hal (45 %) o respondents indicated that

in-store pickup options or online purchases were

most important.

Nearly a third (28 %) o consumers selected in-store

returns or online purchases as most valuable.

Source: hybris 2012 Order Management Consumer Survey

E-Commerce Site Integration in IR 500

Source: Social Commerce IQ: 8thBridge, December 11, 2012

Implication? Future commerce platorms must connect easily to evolving applications and networks as there will always be a

rising star in any given year, just as many o the hot brands engaged their customers on Pinterest or the rst time in 2012.

As Facebook seeks to translate its social media users into a social commerce users, some relative newcomers, like Pinterest,

have received more avorable ratings. Forrester Research noted, user receptiveness to product marketing on Pinterest is

about double (42 %) that o Facebook (22 %) in useulness or product discovery. Regardless o which is more eective in social

commerce, integration to social media and social commerce sites are oten required or todays brands. The chart bellow

illustrates how mainstream integration such as sharing via social media has become. It also highlights how relatively new

platorms such as Pinterest and Facebooks Custom Open Graph gain adoption quickly in todays market.

Ratings &Reviews

77 %

Like Button onProduct Page

64 %

Twitter ShareButton

61 %

Pin It Button

51 %

Google+Button

36 %

Facebook Logineither Websiteor Social App

12 %

Facebook SocialExpression(Custom OpenGraph)

4 %

WebsiteSocial App

4 %


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OmniCommerce Maturity ModelIn a relatively short period o time, commerce has seen signicant changes and advancements rom traditional selling strategies o thepast decades. It has moved rom big box ormats (stack it high and let it fy) that streamlined supply chains and economies o scale to

drive down prices (while simultaneously expanding assortments), to Internet-only models without a physical component but with equally

ecient supply chains ocused on personalized delivery o individual orders.

In the diagram below, the horizontal arrow under the pyramid depicts traditional physical relationship sellers on the let retailers,

distributors, and manuacturers who operate brick-and-mortar stores, branches, wholesale warehouses, or distribution centers.

Some may also use printed catalogs or direct sales personnel targeting consumers and businesses. On the right are newer, digital,

e-commerce or m-commerce enterprises that dont have many physical assets, stores, or branch locations. These include web-based

digital properties, kiosks, and television-based shopping channels where customer interaction is 100% virtual.

As internet penetration has ramped up, there has been movement upward and across this continuum as traditional brands have trans-

ormed more narrow channel-centric models into multi-channel, cross-channel orms to dierentiate themselves using combinations

o physical commerce and digital commerce such as buy online, pickup in store (BOPIS).

However, physical and digital businesses now need to move beyond multi-channel and cross-channel ormats, and disparate technology

platorms. In order to secure their position one o the commerce leaders o tomorrow, companies must dierentiate their commerce

oerings by implementing an OmniCommerce business model.

Selling VehiclesPh sical Di ital

OneExperience

ChannelCentric

CommerceDifferentiation

Omni-Commerce

Multi/Cross-Channel

Traditional

OmniCommerceTMMaturity Model

- Store/branch- Catalog/Flyer- Sales Reps

- Website- Mobile- Kiosk

- BOPIS- Endless aisle- Customer

linkage

- Services- Lifecycle- Localized- Global

Evolving

Open Foundation

OmniCommerce strategy requires a strong and open oundation

that consists o two key elements:

Native support by the commerce platorm or all physical

and digital touchpoints

Ease in connecting to new and legacy external applica-tions, networks, and data stores

A common core that seamlessly executes across a variety

o rapidly evolving devices, orm actors, and selling tools is

essential to serving customers in the manner they demand.

Many location-specic technologies were built or standalone

operation with periodic updates. Endpoints, such as point-o-

sales devices or a sales reps order book, are now migrating

to new, end-to-end processes and platorms.

Ease o connecting is also key to the next generation o commerce

platorms, whether it is integrating with older enterprise systems

or linking with ast evolving technologies. When customers dis-

cover a compelling experience through a new technology, their

pace o adoption and that o sellers can be extraordinary, as

happened in Social Media with Pinterest. Supporting both legacy

and emerging technologies requires commerce platorms to

have open, fexible architecture built on modern technology.


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Services Oering high-touch personal services to

customers, staves o commoditization.

Liecycle Greater ocus and interaction on the customer

journey throughout the entire product liecyle.

Global Compelling revenue growth opportunities liebeyond most companies home markets.

Localized Capturing customers across every stage o

the purchase liecycle and serving up highly personalized,

interactive and localized experiences.

Services

Commerce based on high-touch personal

services (such as call center, concierge

shopping, etc) oers companies a path to

combat the commoditization o productsresulting rom e-commerce transparency

and site prolieration. Brands can bundle

services to dierentiate products warranties, installation,

subscriptions, automated replenishment orders, design services,

remote video chat, among others. For some industries, such as

mobile telecomm providers, Maintenance Repair and Operations

(MRO), and Do-It-For-Me in home improvement, the service oer

can be key to a sale.

Oten, the services oered may not have a discrete price; rather

they are part o a total customer service experience as custom-

ers are supported with sales associates armed with technologies

Services Market as an Untapped

Opportunity

According to the U.S Bureau o Economic Analysis, $ 10.7

trillion o the $ 15.1 trillion produced in 2011 went toward

personal consumption, o which goods contributed just

under a quarter, or $ 3.6 trillion (split among non-durable

goods at 16 % and durable at 7 %). However, more than$ 7 trillion in services was produced in 2011, reaching

46 % of GDP.

B2B plus B2C

The spectacular rise o consumer acing internet compa-

nies such as Amazon, Facebook, Google, and other smal-

ler consumer web companies has kept attention on B2C.

Nonetheless, Forrester estimates that by the end o 2013,

customer-acing ront-end B2B eCommerce will reach$ 559 billion, more than double the US B2C eCommerce

at $ 252 billion.

and inormation previously only used in call centers centers

which in turn are becoming robust solution centers that can

operate in both assisted and sel-service modes.

Either way, services can be the deciding actor or the increas-

ingly time-starved customer.

The commerce platorm must enable service oers as it:

Enhances connection to customers during and ater

the product purchase

Simplies the process or conguring, pricing, and quoting

products/service bundles

Oers an extension o the brand relationship that may

be hard or competitors to replicate

Addresses the relatively underserved commerce support

or this huge, complementary market

Lifecycle

Companies today have many models or

managing product liecycles, rom ull

vertical integration to a dedicated ocus

only on manuacturing, wholesaling, or

retailing. But as consumers use social

media and other emerging communi-

cation vehicles to engage with brands,

and as brands begin to collaborate and connect more directly withend-consumers commerce activity is increasingly moving rom

B2B or B2C toward B2B2C.

Differentiating Factors for Greater Growth

Just as there are our core elements or creating one experience or customers, there are our key elements that can can

assist businesses in ampliying their growth and establishing dierentiated commerce:

Services Lifecycle Global Localized


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It is easy to see this transition with established brands like

Amazon soliciting eedback and crowdsourcing digital con-

tent production or their Original Instant Video content or with

services like Kickstarter or Quirky who unction to establish

these engagements with emerging products and startups. Major

brands, who previously sold their products exclusively through

dealer networks and whose websites were ocused on product

inormation, now oer highly interactive brand-ocused experi-ences that allow consumers to purchase rom them directly. The

same sites also now oer consumer-like experiences to their

dealer networks.

Key to moving toward a higher level o active liecycle engagement:

Customers provide input into product design or assortment

Product visual and content assets are shared across web

sites and users generate content

Upstream brand owners increasingly have direct connec-

tions to end customers

This same consumerization is changing the B2B landscape

rapidly: B2B customers expect to be served with the same ease

o access and the same kind o control that consumers are

demanding. So whether you are a business in a B2B setting who

wants upstream control or are vertically integrated and want to

share assets across your operations, the commerce platorm you

choose must support a liecycle view.

Prof. Alex Pentland on Reinventing

Society in the Wake of Big Data

Recently I seem to have become MIT's Big Data guy, with

"Forbes" calling me one o the seven most powerul

data scientists in the world. I believe that the power o

Big Data is that it is inormation about people's behavior

instead o inormation about their belies This sort of

Big Data comes from things like location data off of your

cell phone or credit card, it's the little data breadcrumbsthat you leave behind you as you move around in the world.

as quoted in Edge, December 5, 2012

Consistent, global commerce assets suited or rapid expan-

sion in any country or region

Easy access to key technology support in-country or through

a ollow the sun remote model

Partners who support local greeneld operations, e. g. or

local ulllment, until scale is achieved.

Global growth is becoming one o the astest ways or a com-

pany to capitalize on new sources o revenue, as companies can

establish a commerce presence even prior to a physical location

presence. Nonetheless, eective brand management requires

global consistency. A commerce platorm must enable manage-

ment o languages, pricing, currencies, payments, taxes, product

lines, channels, and delivery methods as well as local customs,

habits and brands that dier rom region to region.

Localized

Localized commerce revolves around

capturing a customer across every

stage o the purchase liecycle and

using data-driven intelligence to serve

up highly personalized oers based

on GPS-dened customer location or

expressed preerences. It is the ideal

practice or brands interested in achieving a highly integrated lev-

el o OmniCommerce maturity, and can help businesses launch

targeted marketing initiative based on a sharp understanding o

buyer behavior.Global Growth

Global business-to-consumer e-commerce sales will

reach $ 1.25 trillion by 2013, base on a report by the Inter-

active Media in Retail Group (IMRG), a U.K. online retail

trade organization. B2C e-commerce sales in 2011 were

$961 billion, an increase o close to 20 % rom a year ear-

lier Chinas e-commerce sales grew more than 130 % in

2011. The United States remains the worlds single biggest

e-commerce market, IMRG says, ollowed by the United

Kingdom and Japan. IMRG estimates that growth rates in

those countries will be approximately 10 15 % a year.

There is no denying that local is having a transormative impact

on commerce even with niche solutions and social networks o

today. But the right commerce platorm needs to provide not

only a base to or big data insights across multiple touchpoints;

rather, localized commerce should:

Set a context in time, such as a point in a purchase cycle

Provide the context o a product solution or a local market

Aggregate local demand to enable scale eciency or

physical commerce locations

Global

Revenue growth opportunities available

from moving beyond the home market

are so compelling that manufacturers,

brands and retailers cant afford to wait to

make globalization a top priority. The abi-

lity to develop a global in a box template

for worldwide expansion is key to initial and ongoing replication

of global growth. Gone are the days when the assumption was

that an international brand would be a winner by default in a

new country. Given the intensity of market pressures and growth

imperatives, companies need a platform that has:


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7Differentiated Commerce: The OmniCommerce ImperativeVersion: May 2013 Subject to change without prior notice hybris GmbHhybris is a trademark o the hybris Group. Other brand names are trademarks and registered trademarks o the respective companies.

Germany hybris GmbHNymphenburger Str. 8680636 Mnchen

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About hybrishybris helps businesses on every continent sell more goods,

services and digital content through every touchpoint, channel

and device. hybris delivers "OmniCommerce": state-o-the-art

master data management and unied commerce processes that

give a business a single view o its customers, products and

orders, and its customers a single view o the business. hybris'

omni-channel sotware is built on a single platorm, based on

open standards, that is agile to support limitless innovation,

ecient to drive the best TCO, and scalable and extensible to be

the last commerce platorm companies will ever need. Both

principal industry analyst rms rank hybris as a leader and

list its commerce platorm among the top two or three in the

market. The same sotware is available on-premise, on-demand

and managed hosted, giving merchants o all sizes maximum

fexibility. Over 400 companies have chosen hybris, including

global B2B sites Starbucks, W.W.Grainger, Houghton Mifin

Harcourt and Thomson Reuters as well as consumer brandsBridgestone, P&G, Toys R Us, Levi's, and Galeries Laayette.

hybris has operations in 15 countries around the globe.

hybris is the uture o commerce. For more inormation,

visit www.hybris.com

The Future of Commerceis OmniCommerceAccording to B2C Commerce Suites, published by Forrester

Research2, 56 % o businesses are accelerating their invest-

ment in scalable commerce technology platorms, with 18 %

increasing this more than 20 % in 2012. Interestingly, 46 % o

companies are planning to upgrade their commerce platorm

in the next two years a statistic that highlights the industrys

commitment to systems that support an OmniCommerce strategy.

Technology is only one piece o the puzzle. True OmniCommer-

ce maturity can be achieved only i companies display a whole-

hearted commitment to the customer experience across every

aspect o the business. For commerce enterprises, this requi-

res adapting organizational structure to support and champion

this new strategy, and prioritizing the brand over disparate,

channel-specic processes. It also means embracing systems

that oer inventory visibility, real-time inormation and a single

customer view, and adapting emerging technologies that res-

pond to diverse customer needs.

Ultimately, OmniCommerce maturity depends on an agile,

scalable approach and the desire to embark on a business

evolution where the customer truly is the highest priority,

and the sellers core raison d'tre.

2 Forrester Research, Inc., September, 2012.

Documents

Hybris Whitepaper omniCommerce