October 14-16, 2014 • Chicago, Illinois

Anabelle Pinto

The Changing Role of the Store Associate in an IoE World

© 2014 Cisco and/or its affiliates. All rights reserved. 3

Anabelle PintoGlobal Director, IoE Consumer Business

Sectors

Retail, Sports and Entertainment

Retail Trends in an IoT World

© 2014 Cisco and/or its affiliates. All rights reserved. 4

The Market Trends and Changes

IoT impact on Retail vs. other industries

Industry Expert Panel

“The Changing Role of the

Store Associate”

Agenda

5 Key Opportunity Areas For Retailers

Supply Chain/

Logistics

$2.7 T

Employee

Productivity

$2.5 T

Asset

Utilization

$2.5 T

Cisco Confidential

$14.4 TRILLION*

The Internet of Everything has the potential to grow global

corporate profits by 21% in aggregate by 2022.

Source: Cisco CCS, 2013

Market Outlook: 2014 - 2022

Innovation

$3.0 T

Customer

Experience

$3.7 T

10% CAGR in consumer experience solutions

investment through 2017

By 2017, technology investment in marketing and

advertising will increase by 50%

By 2016, 50% of retailers will invest in supply-chain

reengineering to meet today’s consumer demands

Disrupting the Retail Business Model

US Retail Sales Insightsprepared for Cisco Retail Vertical Executives

September 2014US Census Data

Data Definition & Context

US Census Bureau Data: Monthly/Annual Data compiled by Govt; published mid-month.

Definition of 'Retail Sales’ An aggregated measure of the sales of retail goods over a stated time period, typically based on

a data sampling that is extrapolated to model an entire country. In the U.S., the retail sales report is a monthly economic indicator

compiled and released by the Census Bureau and the Department of Commerce. The report covers the previous month, and is released

about two weeks after the month-end. Comparisons are made against historical data; year-over-year comparisons are the most-reported

metric because they account for the seasonality of consumer-based retail.

Census Bureau Inputs derived from 13 Retail Type Categories, noted below:-Motor Vehicle & Parts Dealers -Gasoline Stations -Non-Store Sales1

-Food & Beverage Stores -Building Materials, Garden -Miscellaneous Stores

-General Merchandise Stores -Clothing & Accessories -Furniture Stores

-Food Services, Drinking Places -Health & Personal Care -Sporting Goods, Hobby Store

-Electronic & Appliance Stores

Retailer Sales Data: Data from publicly available Financial ReportsWalmart, Target, Kmart/Sears data under Census Bureau Data----General Merchandise Stores

Home Depot, Lowes, Minards data under Census Bureau Data---Building Materials, Garden

1 Internet Sales in “Non Store Sales Category”

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011r 2012 2013

US Total Retail Sales 1993-2013US Census Bureau Statistics

Sporting Goods, Hobbies, Book, Music

Electronic, Appliance

Furniture & Home

Misc Retail Outlets

Clothing, Accessories

Health & Personal Care

Building Materials, Garden

Non Store Retail

Gasoline Stations

Food Service, Drinking Outlets

Food Beverage Stores

General Merchandise Stores

Motor Vehicle, Parts

$ millions

US Consumers spent +$5 Trillion in 2013up 4.48% YOY

Motor Vehicle, Parts22%

General Merchandise

Stores12%

Food Beverage Stores17%

Food Service, Drinking Outlets

10%

Gasoline Stations

8%

Non Store Retail 4%

Building Materials, Garden

7%

Health & Personal

Care4%

Clothing, Accessories

6%

Misc Retail Outlets

3%

Furniture & Home

3%

Electronic, Appliance

2%

Sporting Goods, Hobbies, Book,

Music2%

1993

Motor Vehicle, Parts19%

General Merchandise Stores13%

Food Beverage Stores13%

Food Service, Drinking Outlets

11%

Gasoline Stations

11%

Non Store Retail 9%

Building Materials, Garden

6%

Health & Personal Care5%

Clothing, Accessories5%

Misc Retail Outlets2%

Furniture & Home2%

Electronic, Appliance

2%

Sporting Goods, Hobbies, Book, Music

2%

2013

$2,153,095,000 $5,087,550,000

1993 To 2013 Bigger (inflated) Dollars, Same Stuff…Note: Internet…Gasoline

What you sell

is constantly

changing

Who you

sell to is

fragmenting

When & how

you engage

is evolving

How you

deliver

is changing

Cisco Confidential

Retailers are faced with Four Simultaneous Transitions…

© 2014 Cisco and/or its affiliates. All rights reserved. 12

SVP, Store Ops SVP, PCI & Data Security CMO, SVP OmniChannel

Key Business Imperatives

Labor optimization in light of high

turnover

Secure retail premise, prevent

theft / shrink

Improve customer service levels

Reduce operational costs while

growing top line sales

Key Business Imperatives

Mitigate risk and safeguard

customer data from security

breaches / attacks

Maintain secure user device

network access

Implementation of legislated

requirements impacting data

security, maintain compliance

Key Business Imperatives

Consistent OmniChannel

experience

Enhance customer experience,

increase satisfaction and

drive loyalty

Increase offer conversion and

grow average basket size

Key Metrics

Same-store sales and

profit goals

Minimizing turnover rate

Customer experience,

customer service

Key Metrics

Intrusion prevention

Compliance with regulations and

mandates

Data protection, loss

Key Metrics

Brand value

Customer experience,

satisfaction, loyalty

Market share, top line growth

Who is Being Impacted By IoE Transformation?

© 2014 Cisco and/or its affiliates. All rights reserved. 13IoT Research Findings

© 2014 Cisco and/or its affiliates. All rights reserved. 14

About the Survey

39%

Americas

25%

EMEAR

37%

APAC

1230 RESPONDENTS [blind study]

5%

8%

8%

13%

13%

15%

39%

Metals & Mining

Utilities

Oil & Gas

Retail

Transportation

Public Sector

Manufacturing

18% Midsize 82% Enterprise(500-999 employees) (1,000+ employees)/ 47% IT Execs 53% LoB

and IT managers with OT focus/

© 2014 Cisco and/or its affiliates. All rights reserved. 15

IoE is Transforming the In Store Experience

http://newsroom.cisco.com/press-release-content?type=webcontent&articleId=1292333

Dec 1, 2013

© 2014 Cisco and/or its affiliates. All rights reserved. 16

Most Important Business Drivers of IoT Adoption

1. Demand for Faster Product or

Service Innovation

2. Increased Level of Globalization /

Customer Demand for Better

Experiences

3. Emergence of New Business

Models in Industry

N=1,230 (All respondents)

Retail

1. Demand for Faster Product or

Service Innovation

2. Increased Level of Globalization

3. Cost Pressures

Other Industries

© 2014 Cisco and/or its affiliates. All rights reserved. 17

Most Important Technology Enablers of IoT Use

1. High-speed wireless network

coverage / availability

2. Increasing power of data analytics

tools

3. Cloud computing

N=1,230 (All respondents)

Retail

1. Increasing power of data analytics

tools

2. Better tools for managing

connected devices

3. High-speed wireless network

coverage / availability

Other Industries

47%

48%

N=583 (IT respondents)

5% “Don’t know” 5% “Don’t know”

Retail Other Industries

Today, Retailers Believe Significant Amounts of IoT Data Will Be Processed At the Edge of the Network (e.g., In Stores)

Three years from now, where will most data generated by IoT solutions will be processed?

….OmniChannel

will Reside

Edge(mobile devices, appliances, routers)

35%

60%

Retailers Have Strong Preference for Managed Solutions

Which of the following is your preferred

delivery model for IoT solutions?

Implications

Present day consumer has dramatically different expectations of product, service, delivery, value, and store environment… than just a few years ago

Retail value proposition being redefined

Store is a destination - The Brand experience “is OmniChannel”

Retailers are turning to IoT to solve OmniChannel Transformation:

Increase innovation (highly competitive space)

Create better insights – business growth…buyer behavior

Connected / Smarter Merchandising and Supplier networks

Tap in to “real-time-data”…tailored offers, delivery models, forecasting

Optimize store productivity… and The Store Associate while deliveringa better customer experience…

© 2014 Cisco and/or its affiliates. All rights reserved. 21

Panel of Experts…“The Changing Role of the Store Associate”

© 2014 Cisco and/or its affiliates. All rights reserved. 22

Dinesh SharmaVice President, Product Marketing,

Internet of Things

• Drive thought leadership, awareness and adoption across industries

and LoB’s

• Lead messaging, positioning and GTM plans across the Networked

Economy portfolio

• Over 20 years’ experience in the industry

• Retail IoT Steering Committee Chair

© 2014 Cisco and/or its affiliates. All rights reserved. 23

Kenneth SilayDirector, Technology Research &

Innovation

• Identify, evaluate and select technical innovations that deliver value

by achieving competitive advantage, enhancing the customer

experience and delivering shareholder equity

• Joined in June 2008 as a Manager in the ecommerce group.

• Promoted to Director, Store Technology in 2011

© 2014 Cisco and/or its affiliates. All rights reserved. 24

Paul WolfVice President, Retail / Consumer

Products Practice

• Responsible for strategy, business development, and marketing

within Xerox's ITO (IT Outsourcing) retail and consumer products

industry vertical

• Serves as a subject matter expert in the application of technology

and process within the retail and consumer products industries

© 2014 Cisco and/or its affiliates. All rights reserved. 25

Tim GruverAmericas CTO, Business Transformation

• Focused on prioritizing key Cisco capabilities and solutions to drive

sales growth strategy for the Enterprise market in the Americas

• Former CTO of Microsoft Stores

Dinesh SharmaVice President, Product

Marketing, Internet of Things

Kenneth SilayDirector, Technology

Research & Innovation

Chris WhiteSVP, IoT/IoE Go-to-Market Solutions and

GM, Sports and Entertainment Group

Paul WolfVice President,

Retail / Consumer Products Practice

Tim GruverAmericas CTO

Business Transformation

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