Leadership in retail innovation. Carsten Wulff

Leadership in Retail Innovation Carsten Wulff, LS Retail

• LS Retail • The rise of the omni

consumer • Trends and challenges in

retail • LS Retail Innovation • The 4 most important

conclusions

Easier Simpler Faster

www.LSRetail.com

Solutions platform:

Our solutions are based on the Microsoft

Dynamics ERP platform

Leadership:

LS Retail is the Global ISV of the year in 2015 on

Microsoft Dynamics

Go to market:

Strong co-operation in development, marketing

and training

“LS Retail has been a valued partner for Microsoft Dynamics for many years and they are a great ambassador of business solutions from Microsoft. They consistently deliver customer success through their reliability and capabilities around Microsoft Dynamics. We look forward to many more successful years together.” Neil Holloway Corporate Vice President, Sales & Operations Microsoft Business Solutions * ISV: Independent Software Vendor

Microsoft – Close Cooperation on a global basis

Global partner network- StrongPoint since 1998

220 certified partners in 75 countries with a unified

partner agreement 20 localization partners

Over 3.500 companies with over 50.000 stores

operating 120.000 POS terminals in

120 countries

Client Options

Financial Management

Business Intelligence & Reporting Advanced CRM E-Commerce

Sales & Marketing

Purchasing Buying & Merchandising

System Administration Retail Admin

Supply Chain & Logistics

Retail Admin POS

Financial Management

Stock Management

Key

Store Front

Core MS Dynamics

Partner IP

3rd party ISVs Component

LS Retail

Head Office Store Back Office

Safe & Cash Management

EOD Statement Processing

Special Orders

Price & Promotion Management

Sales Reporting & Analysis

Gift Card and Coupon Management

Member & Loyalty Management

Sales Commission

Product Information Management

Store Allocation & Replenishment

Open-to-Buy

POS Management

Staff Management

Flexible POS

Pay & Take

Special Orders

Member Loyalty & Capture

General Ledger

Cash Management

Cost Accounting

Purchase Ledger

Sales Ledger

Fixed Assets

Auto Bank Reconciliation

Budgets Cash flow Forecasting

Intercompany Consolidation

Customer & Contact Management

Segmentation and Campaign Management

Inventory & Pricing

Order Processing

Supplier & Contact Management

Supply Planning

Inventory & Costing

Order Processing

User Roles & Permissions

Document Management

User Roles & Permissions

Document Management

Receipt & Shipment Planning

Receiving & Put-away

Picking & Shipping

Stock Housekeeping & Control

Stock Receiving & Picking

Enhanced Movement Reconciliation

Account & Contact Management

Workflow & Case Management

Marketing & Campaign Management

Excel Based Reporting

SQL Server Reporting Services

Auto Invoice Matching

Enhanced DC & Store Replenishment

Enhanced Mobile Warehouse

3rd Party Carrier Integration

Gift Receipt & Gift Card Processing

EFT (Verifone PAYware OCIUS)

Retail Analysis Cubes

Content Management

B2B / B2C Web Frontend

Responsive Design

Enhanced Security

Enhanced Document Management

Enhanced Document Management

Mobile Warehouse Management

Packing & Shipping Management

Stock Transfers

Mobile Stock Management

Analysis and Alerting

Windows Client

Web / SharePoint Client

Tablet Client

Co

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Some of our retail customers

United Kingdom 16 Locations & 25 POS

8 Countries 61 Locations & 263 POS

Brazil 4 Locations & 4 POS

Spain 48 Locations & 77 POS

Denmark 63 Locations & 100 POS

5 countries 86 Locations & 213 POS

Spain, Portugal 91 Locations & 209 POS

Worldwide 180 locations & 205 POS


Belgium 90 Locations & 170 POS

4 Countries 59 Location & 1,150POS

Denmark 120 Locations & 377 POS

Canada 729 Locations & 729 POS

Worldwide 838 Locations & 1,531 POS

Worldwide 158 Locations & 412 POS

Sweden 156 Locations & 871 POS

United States 14 Locations & 91 POS


UK 39 Locations & 463 POS

United Arab Emirates 795 Locations & 925 POS


Dubai 10 Locations & 60 POS

UAE 350 Locations & 350 POS

Some of our hospitality customers

Philippines & India 48 Locations & 62 POS

Iceland 24 Locations & 24 POS


Philippines 260 Locations & 517 POS


Portugal 25 Locations & 44 POS

Scandinavia 57 Locations & 85 POS

3 Countries 223 Locations & 760 POS

India 102 Locations & 106 POS



Nigeria 50 Locations & 250 POS

9 Countries 300+ Locations & 1,300 POS

http://www.nordicphotos.com/info.asp?X=4&Y=4&gallery=a&page3=1&Nr=1134

The Omni Channel Consumer

The old purchase path

The Change to the Omni Channel Consumer 2005 – people gathered outside Vatican at the death of Pope John Paul II

The Change to the Omni Channel Consumer 2013 – people gathered outside Vatican at the first apperance of Pope Francis I

The Omni Channel Consumer

The new purchase path

Mobile retailing

a rapidly growing business that is expected to approach $640 billion in annual global sales within just a few years

Faster retailing

speed to market, speed to response, speed to deliver

Experience retailing

which takes shopping and adds entertainment, emotion, deeper engagement — and sometimes even an entire environment.

Innovative retailing

which responds to market disruption with disruptive creativity of its own

18th annual Global Powers of Retailing report, produced by Deloitte Touche Tohmatsu Limited (DTTL)

Megatrends in Retail

Prediction:

65% of the global population will be using a mobile phone by 2015

83% of internet usage will be through handheld devices.

Retailers will need to respond by offering

• Free in-store Wi-Fi

• Mobile-friendly retail websites

• Purchase orders on the Phone

• Click & Collect

• Mobile Loyalty

Mobile Retailing Mobile retailing is expected to continue to grow aggressively

Mobile Retailing

Infographic: Third of markaters reveal their ability to analyse data is poor Posted 1. September 2015 by Samantha Edwards & filed under Data, Digital marketing

• “Fast fashion” (getting runway styles to the stores as soon as possible)

• Limited-time-only products and flash sales to drive urgency and immediate purchase

• Pop-up establishments to quickly get products and services to market and build buzz

• Self-service check-out and kiosks to reduce or eliminate waiting

• Faster delivery by taxi? by Uber? By drones ???

Faster retailing Speed continues to remain an important trend in retail

Faster Deliveries – creating new business

Pop-Up stores

Retailers will continue to explore innovative ways to enhance the buying experience for their customers:

• Social media campaigns

• Events like fashion shows, Cooking shows

• Consistency experience through platforms

• Fast easy and simple shopping experience

• Personalized loyalty programs

• Instore experience

Experience Retailing Retailing is no longer just about the product !

Christopher Bailey, chief creative and chief executive officer of Burberry: “want to create a space where our customers can spend time relaxing and enjoying the world of Burberry in a more social environment.

Experience Retailing

Customers Want Personalization

Recognition

Would switch most of their spend if they were frequently

recognized their previous spend

Customization

Would actively welcome more customized promotions

40 % 40 %

Peter Lewis, Loblaw and Graeme MCcVie, LoyaltyOne at NRF 2014

More retailers are likely to adopt innovative practices, embrace technology, and use it in creative ways:

Borders between retail, wholesale, distribution and production will blurr

Mobile technology

iBeacons

Customer recognition techniques

Interactive commercials

Click and collect

Physical – non-shop shopping

Innovative Retail The retail industry will need to adapt to innovative competition



www.LSRetail.com

Business at risk

Costs

Loss of Sales

Lack of Control

Too Many

systems

Reduce Costs Variant Management Inventory Management Replenishment Staff Management Sell in Season – reduce mark downs

Too Many Systems Inconsistent Data Operations and accounting separate Integration problems with databases Increased Systems management costs

Lack of control

Unclear processes New staff – training Loss Prevention Profit Loss analysis Unrecorded item flow Out-dated data Loss of sales

opportunities Membership/Loyalty Coupons Campaigns “Happy Hour”

LS Retail Challenges in Retail

24

Consumer Behavior

Change in consumer behaviour Always online Better informed

The change in consumer behavior has changed our industry

LS Retail Investment in Retail Innovation

Over 25 M EUR in the last 5 years – LS Nav 2013 Retail & Hospitality

– LS Nav 2015 Retail & Hospitality

– LS Nav Express

– LS First Hospitality

– LS First Forecourt

– LS Omni

Research & development

R&D

Omni-channel – consumer centric

Anywhere +

Anytime

Same Price in all Channels

Customer First

Personalized Marketing

Personalized Loyalty – Customer App

• Personal

• Synchronized e-Commerce &

Mobile App

• Shop

• Offers

• Coupons

• Notification

• Shopping Lists

• History

• Store Locations

Shop

Campaign

Marketing

Benefits

Create Contact

Continuous Loop

Customer loyalty Sales History Sales Interaction Build relationships and confidence Learn Attributes Click and collect

Personal Loyalty Level

Special Loyalty Points Specific Pricing Discount / Price

Gifts Coupons

Published Offers

Offers Marketing Offers Message Email / Mail

Multiple Clubs For Different Customer Groups Multiple Levels… Gold, Silver, Bronze Automatic Up or Down

Point-Of-Sale

• Configurable & Intuitive

User Interface

• Managed At HQ

• Mobile

• Marketing Screen

• Hybrid or Offline

• Flexible Architecture

• Hardware Independent

The 4 most important conclusions about the omni channel consumer from this presentation are

1. The consumer expects the retailer will meet them on their preferred platform

- Stores, E-commerce, loyalty programs, social media

2. Consumer expects products and prices to be the same in all channels

3. Products are available and can be delivered fast

4. Meaningfull personalized loyalty programs and offers

The 4 most important conclusions - consumer

The 4 most important reccommendations for the Retailer from this presentation are

1. Make sure your IT solutions and logistics a prepared for the omni consumer

2. Reduce the number of IT solutions

3. Increase service in stores

4. Make shopping and experience

The 4 most important recommendations - Retailer