Make Impactful Real-Time Decisions
with Capgemini’s Retail Apps
May 15, 2013 – Orlando, FL
INTRODUCTIONS
Mike Price
Capgemini, North America
Practice Leader, SAP Business Analytics and Technology
e. michael.r.price@capgemini.com
m. +1 (770) 601 6471
Erik de Veer
Capgemini, Global Sector Consumer Products & Retail
Global Leader, SAP Retail and Fashion Solutions
e. erik.de.veer@capgemini.com
m. +31 6 1502 7845
@erikdeveer
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
2
AGENDA
 Background and Introductions
 Retail Business Challenges
 What are Extreme Applications for Retail?
 Examples:
• Market Basket Analysis
• Mark Down Management
• Next Best Action, Targeted Promotions
 Q&A
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
3
Retail Business Challenges
The challenge of combining customer demand, product
availability, and margin…to remain competitive
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
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Mega Trends driving Transformation in the Retail Industry…
Increased
Urbanization
Aging Population
Increasing
Spread of Wealth
Increased Impact of
Consumer Technology
Adoption
Growing Consumer
Concern about
Sustainability
Shifting of
Economic
Power
Scarcity of
Natural
Resources
Increase in
Regulatory
Pressure
Increased
Increase in Consumer
Importance of Health
Service Demands
and Wellbeing
Rapid Adoption of
Supply Chain
Technology Capabilities
Impact of NextGeneration
Information
Technologies
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
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New customer behaviors require real-time insight
Customers are ‘competitor
savvy’ and other offers are just a
click away
New heartbeat in category
management and merchandising
Personalized offers require
dynamic promotions
Retail is always on, 24/7
Social and mobile commerce are
the new norm
Maintaining margin and
profitability
Omni-channel requirements
and capabilities (i.e. click/collect)
Digital
Data growth and the combination
of structured/unstructured data
BYOD
Marketing paves the way
for IT
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
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What are Extreme Applications for Retail?
General product overview
Market Basket
Analysis
Next Best Action
Markdown
Management
Extreme Applications for Retail
Powered by SAP HANA
Real Time Sales Analysis / Extreme POS Analysis
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
9
How it all comes together: Extreme Applications
module interactions
Articles in current
Articles
Prices
Inventory
Tim/Season
POS
Buying
patterns
Article
affinity
analysis
MARKET
BASKET
ANALYSIS
Promotion
rules
Current
and
past
sales
trends
Optimize combined sales and
promotions to increase profitability
MARKDOWN
MGMT
Forecasted
stock end of
season
Improve markdown strategy to
optimize stock and profitability
NEXT BEST ACTION
Articles
Margin
Time
POS
EXTREME POS
basket/ loyalty ID
of customer Mr. X
Next best
promotion for
customer Mr X
Next Best
Article for
customer Mr X
Improve sales, profitability, and
customer loyalty
IN REAL TIME
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
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High-level solution architecture
Users
Usage
PC, Mobile, Tablet
SAP BI4
HTML5
BI, Reporting
Integration to websites
HANA
R on HANA
Database
Statistics
SLT
Data Services
SAP Replication
Non-SAP data load
SAP systems
non-SAP
systems
Social Media
BI
Database &
Analytics
Retail
Xtreme
Apps
Loading
Sources
Addresses both SAP and non SAP data sources
No constraints with SAP legacy systems: technical neutrality
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
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Extreme Retail Applications - Examples
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
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Market Basket Analysis
Do you want to grow basket size and overall profitability by identifying
products that drive drag-along sales?
How to …
As a merchandiser, I
want to gain insight into
which products are
often purchased
together and with which
combined margin to
help stores with up-
selling and crossselling
… turn Terabytes of POS
data …
… into actionable
results
Cross-selling and
up-selling by placing
products with high
affinity together
Optimized
promotion
management
 Affinity analysis based on POS data provides insight in which products are often sold together
 Margin and sales analysis support optimized promotion planning for associated products
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
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Example of Market Basket Analysis
2013
01
USA
437
01
05
West
Belts
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
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Markdown Management
Do you want to ensure your markdown strategies are meeting your
financial goals?
… turn Terabytes of POS
data …
How to …
As a merchandiser
I want to gain insight
in which articles will
have surplus stock
at the end of the
season given rates
of sale at different
prices
… into actionable
results
Markdowns
are planned
more efficiently
and more
profitable
 Store inventory data and forecasting algorithms predict surplus quantities at season’s end
 Historical sales data provides insight into previous markdown effects
 Price elasticity information and margin analysis supports markdown planning
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
15
Markdown Management Example
USA
West
SS13
Belts
USD
USD
USD
USD
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
16
Next Best Action,
Customer-targeted promotion
How to make sure you increase your customers’ loyalty so that they continue
to buy in your stores rather than at your competitors’?
… turn Terabytes of POS
data …
How to…
Customer loyalty
number is entered in
one of the customer
contact channels, e.g.
smartphone app,
webchannel, store
clerk
… into actionable
results
The customer
gets a promotion
that fits his or her
needs
 Based on buying patterns promotion rules are created.
 Based on customer loyalty information, a buying pattern is checked against promotion rules to see if there are
suitable promotions available
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
17
Make Impactful Real-Time Decisions…
To Better Engage with Technology-Enabled
Consumers
- The Consumer in the Driver’s Seat
To Help Optimize a Shared Supply Chain
- Collaborate Differently, Compete Differently
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
18
Q&A
THANK YOU!
Mike Price
Capgemini, North America
Practice Leader, SAP Business Analytics and Technology
e. michael.r.price@capgemini.com
m. +1 (770) 601 6471
Erik de Veer
Capgemini, Global Sector Consumer Products & Retail
Global Leader, SAP Retail and Fashion Solutions
e. erik.de.veer@capgemini.com
m. +31 6 1502 7845
@erikdeveer
Presentation Title | Date
Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
20
About Capgemini
With more than 125,000 people in 44 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2012 global revenues
of EUR 10.3 billion.
Together with its clients, Capgemini creates and delivers
business and technology solutions that fit their needs and drive
the results they want. A deeply multicultural organization,
Capgemini has developed its own way of working, the
Collaborative Business Experience™, and draws on Rightshore®,
its worldwide delivery model.
Learn more about us at www.capgemini.com.
www.capgemini.com
The information contained in this presentation is proprietary.
© 2013 Capgemini – Internal use only. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.