Retail at Hyperspeed

Ray MajorRetail World Conference + Tradeshow

13th-14th May 2013

Melbourne, Australia

 

How the Internet of Everything is permanently changing consumer behavior in

turning the retail world upside down.

 Adapt or Die

WHY NOW ?

Long wave Economic Cycles

Railway, Steel1830-1880

Electrification1880-1930

AutomobilesPetrol

1930-1970

TechInfo. / Comm

1970-2010 Bio/nanotech

2010- 20xx

Impact on Retail:• Gen. -> Dept. Store• Mass Distribution• Catalogs

Impact on Retail:• National Brands• Chain Stores• Lights• Refrigeration

Impact on Retail:• Supermarkets• Shopping Centers• Indoor Mall

Impact on Retail:• Scanners• Analytics• Category Killers• Internet redefines

retail• 70% on-liners

make purchase

Confluence of Technology• 2005 – Big Data• 2006 – Mass text• 2010 – HTML 5• 2010 – iPad• 2012 --Internet of 

Things• 2015-- Internet of 

Everything

The Road Ahead – Technology Convergence and the impact on Retail

Memory and SpaceWi-Fi and Network

Mobile AccessDatabase Technology

Internet

Today’s Priorities

84% of mobile users keep their device within 10 feetat all times.

“Phones” move from discrete solution to an assumed part of daily life.

Stops being a technology --

becomes “embedded”

“assumed”

and “integrated”

99% of the physical world is not connected to the internet

The internet of EVERYTHING

The Internet of Everything connects the Physical World to the Internet

Using Microsensors, everyday objects become connected and intelligent

Decisions happen in real time and in the background

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

0

10

20

30

40

50

The Internet of Things

50,000,000,000 things connected by

2020

More connected devices

 than people on earth

Big Data

o By 2015 o 1 Zettabyte of data will

flow over the internet

o By 2020oData Production up 44

foldo B2B and B2C internet

transactions = 450 billion per day

Earth 

Pluto 

Stack of books 20 times

“Real-time” becomes “Real-time”

o There are more mobile devices than people on earth

o By 2016 –oMobile Speed increases 9 foldoMobile Traffic increases 18 foldoHome Network speeds increase 20 fold o video calling increases 25 fold

o By 2020, anyone can broadcast anywhere, to anybody – on any device.

The real value lies in the connection of People, Processes, data and things.

A&M market needs fresh-

fishI need 

another pair of shoes

They’ll be home any 

minute with fish, light the 

Barbie

The service technician is on his way

Lower the prices on carrots, we 

have too many

Smart World 2023

• Missed or unidentified sales opportunities

• Inefficient geographic selling

• Inflexible product lines

• Lost sales due to shifting competitive pressures and poor timing

• Little holistic assessment of a customers wants and needs

Today’s Retailing Challenges

Today - 2013

I.O.E. applied to BI

IoE Analytic Framework

Identify Design Inform Distribute

Identify at Hyperspeed

Identify

Massive amounts of new data

Data from Consumers impacts brand awareness and cache’

1. Scan2. Track3. Rate 4. Review

Consumerare Empowered in Real Time

Retailing occurs in real time

Design at Hyperspeed

Identify Design

Most companies BICRM

POS

CRM

POS

Not Easy

xYour Business Intelligence Assets

Cluster Analysis

Simulation Modeling

Regression Analysis

Descriptive Statistics

Prescriptive (what actions should be taken)

Prediction (What might 

happen)

Forecasting (What might happen)

Monitoring (what’s 

happening now)

Analysis (why did it happen)

Analytic Continuum

High

Low

Com

plex

ity

Business Value

Reporting (what 

happened)

Behavioral Questions “Who are my best customers?Where do they live?What is their most likely next purchase?

Quantity Questions How much inventory do we need to carry?What stock levels will be left at the EOM?What will Sales finish at this year?

Optimal Outcome Questions (potential outcomes based on complex interactions)How can we achieve the best outcome?What is the impact of a cold winter on our business?

Inform at Hyperspeed

Identify Design Inform

Situational Intelligence

Geo-location based analysis

Context Aware Application

Natural Language Queries

Predictive AnalyticsHalo Source

Business Intelligence Systems

Distribute at Hyperspeed

Identify Design Inform Distribute

Distribute at Hyperspeed

Distribute

New Retailing - Big Data and Personalization

• Bridge between online and Brick-and mortar

• SEAMLESS SHOPPING EXPERIENCE

• Personalization• Recognize who you are• Personalized promotional offer• Knows your favorite fit and size• Match transaction to buying patterns• Issue incentive

Expert Advice

Personal Shopper

Hyperspeed Cross-sell

• Missed or unidentified sales opportunities

• Inefficient geographic selling

• Inflexible product lines

• Lost sales due to shifting competitive pressures and poor timing

• Little holistic assessment of a customers wants and needs

• Increased sales from real-time market assessments and reactions

• Increased selling from location-based selling

• Increased sales from better use of internet driven segments

• Increased sales by directly tying pricing to current selling situations to customer ability to pay

• Increased sales from improved coordination with other products and services

Potential of the Internet of Everything

Today - 2013 Tomorrow - 2023

Retail at Hyperspeed

Ray MajorRetail World Conference + Tradeshow

13th-14th May 2013

Melbourne, Australia

 

Thank You !