The New Age of Engaged Retailing

Consumerization of IT has blurred the lines between physical and online retailers. Consequently, the focus now is on how retailers can integrate technologies like Mobility, Analytics and Social into their Omni-Channel Commerce platform. This is critical to understand customer needs at every stage of the purchase cycle more deeply and engage appropriately across channels to make a tangible impact on business results. This whitepaper examines the theme of ‘Engaged Retailing’ and relies on our experience built through partnering with retailers. What is Engaged Retailing? Personalized • Sustain revenue growth with future- ready Omni-Channel business Today’s connected world is at the stage where a consumer hails a cab using a GPS enabled mobile • Integrate applications for consumer app and is informed about their waiting time that also tracks the cab’s progress status. All these connect and satisfaction facilities are available to the consumer at the cost of few clicks. Similarly, more such examples can Convenient be drawn from the food, beverages and entertainment industries. ‘Engaged Retailing’ focuses on how the shopping experience needs to evolve in the context of the customers’ preferences and • Allow Omni-Channel order fulfillment eventually maximize value for both the customer and retailer. • Improve merchandising efficiency and operations Personalization, Convenience and Value continue to be the big pillars of a retail consumer’s Value decision making. Technology can help retailers take the jump to aid a consumer’s decision • Lower TCO making. However to identify what is required and implementing it requires a well-crafted • Enable managed services model roadmap, which blends an understanding of business context as well as that of technology • Rationalize license costs platforms. Emerging Omni-Channel Commerce platforms offer a sound foundation in terms of enabling data capture, transaction and order interoperability across multiple interfaces such as web, mobile, POS and kiosk, enabling a seamless cross channel connected environment. However, progressive retailers need to go beyond this to integrate other technologies and applications such as Search, Mobility, Analytics and Social to enable a more complete A good Omni-Channel customer engagement roadmap at each stage of the shopping cycle. Some of the key steps Commerce platform provides in this roadmap are – Seamless Shopping, Fulfillment Flexibility, Single View of the Customer the foundation for seamless and the Responsive Retail Enterprise. CIOs will also need to pay attention to the operations cross channel access and and technology issues that enable a fast first-time right enablement of the ‘Engaged Retailing’ agenda. fulfillment, on which value added solutions can be Seamless Shopping built to achieve the desired The single most direct driver of enhanced shopping convenience, Omni-Channel platforms shopping experience. enable the store and customer to interact across devices, at various stages of purchase cycle seamlessly. Today a consumer starts research on the mobile, pursues it on the web, experiences at the store and completes the purchase through any one of these channels. The expectation is to have seamless product information, availability, service, promotion and loyalty experience at all touch-points. A larger Mobility strategy with the right platforms and apps portfolio is often integral to achieving the desired experience. Omni-Channel System Online Store | Mobile | Shop | Catalogs | Fulfillment Flexibility Kiosk | Social | Call Centre Order fullfillment flexibility is now a must-have. Consumers expect to order online, pick up Channel Management from store or warehouse, buy at the store, deliver at home or any combinations of these that suits the particular purchase occasion. Research reveals customers value convenience in Business Services terms of a preferred time or place of delivery more than even speed of delivery. Omni-Channel Core Commerce Platforms Commerce platforms enable portability of orders and single view of inventory. However, often it also requires a clear shift in business mindset to achieve truly integrated operations. Data Source Integration

Engaged Retailing Roadmap Stage Seamless Shopping Fulfilment Flexibility • Single store: Online, Mobile, store presence and connectivity • Channels: Store, Online, Kiosk, • Customer record visibility: Online, Center In-store, Center and Service • Integration: Sales Orders, Focus • Cross channel inventory information Customer Information and shopping cart • Cross-channel inventory access, • Shopping assistance: In-store, order placement and fulfillment , Call Centre • Omni-Channel Commerce • Omni-Channel Commerce • Mobility • ERP Technology • CRM • Warehouse Management • ERP • Mobility • Customer Loyalty • Customer convenience Benefits • Share of wallet • Cross-channel traffic

Omni-Channel Solution Allows a Single Integrated Shopping Environment A leading Middle Eastern transit retailer chose to implement a retail Omni- Channel solution that allowed for a single integrated shopping environment across duty-free retail outlet universe, airport lounges and in-flight shopping touch points. A 24X7 operating environment, single loyalty systems and secure multi-currency payment completed a seamless shopping experience. Retailers need to map and solve different use situations, context and environments in which their customers could shop. Omni-Channel Order Fulfillment for Orders Placed through Web Personalized Master Data and Mobile Merchandising A world-leader in hypermarket retailing enabled Omni-Channel order Management fulfillment, allowing web- and mobile based orders to be collected from the Loyalty and Analytics store. The service enhanced store traffic and sales significantly. Promotions Cross-channel fulfillment solutions often involve deep custom engineering efforts to integrate Omni-Channel platforms with existing store and ERP systems, demanding more of your technology teams and implementation partners. Engaged Retailing is based Single View of Customer not just on enabling a superior As customer behaviors change rapidly to seek and transact across multiple channels, understanding this behavior and the underlying core values of the customer is even more shopping experience, but important. Migrating existing customer data from independent multi-channel systems that in capturing more relevant often separate online and store-led POS and CRM data into a single customer data master data and translating them and sustaining this in the new operating environment is a critical task. Extending the usage into customer and business of this data through Analytics and Search to aid product recommendations, offers and centric insights that truly add promotions relevant to the individual customer drives the key value lever for personalization. value to the exchange. Responsive Retailer A key aspect of Omni-Channel strategy is that the volume of data related to customer and operations increases significantly. The data also tends to have more real time actionable elements. It is critical for retailers to make them available for efficient processing for insights that drive business decisions. For example, even as retailers are going global, there is increasing demand to understand local needs and create a customer-centric merchandising and promotion strategy even at the level of a single store. Store-level self-service business intelligence to aid employee decision making can further enhance this approach.

Engaged Retailing Roadmap Single View Responsive Stage of the Customer Retailer • Understanding customer and market trends - 360 Customer master data, online, POS, Social • Merchandising and Inventory • Predicting customer behavior: Management Focus needs, preferences, occasion, • Promotions management basket, churn • Store planning • Personalization: assortment, offers, user experience • Omni-Channel Commerce • Omni-Channel Commerce • Search Technology • MDM • Analytics • Analytics • Social Listening • Superior targeting, ticket size • Store and merchandise Benefits • Enhanced conversion and productivity retention • Operating margins

Omni-Channel Commerce Enables Single View of the Customer A leading European travel retailer merged online and retail channels with an Omni-Channel Commerce platform for a single view of the customer. Superior package search and personalization integrations further enhanced conversion and pricing yield leading to rapid growth web sales within a year. Real value is derived when data that allows for a cross-channel view of the customer is implemented with appropriate tools to personalize value to the consumer

Big Data Analytics Helps Derive Actionable Business Insights on Various Transactional Data A large Asian health and personal care retailer is using a Big Data Analytics platform to derive actionable business insights about operations, merchandising and customer preferences from loyalty and transaction data. The merchandising and promotion decision is completely driven by the insights from the platform. Collecting and converting larger volumes of data into actionable business insights is even more critical in a fast moving connected world. The focus on customer-facing systems needs to be matched with an effort to streamline internal operations and IT ecosystems. Retail continues to be a business driven by the need to maintain high levels of operational efficiency to ensure margins are sustained, especially in the face of price competition from pure-play online models. Leading Omni-Channel Commerce platforms provide a head-start with built in content, catalog, master data and order management features. Once again, going beyond the standard out-of-the-box solutions and ensuring effective management of the IT agenda ensures optimal costs and ROI.

Operations Ecosystem The content, catalog and campaign management features of Omni-Channel Commerce platforms are often new applications that enhance operations efficiency to retailers. However, further extensions and integrations into the wider operations footprint can add significant value. Including vendors in the commerce platform scope and supply chain innovations directly from vendor and ‘drop-ship’ logistics partner systems can take the operations efficiency agenda further.

Technology Backbone Omni-Channel Commerce platforms by themselves offer significant scope for simplifying the application landscape. Investments in the right vendor who can bring expertise to the table are critical to maximize value from industry segment specific solutions. Realizing enhancement through value added new technology-led solutions for customer engagement as outlined in earlier sections also places a higher emphasis on the applications strategy and IT operating model to ensure fast first time right implementation.

Engaged Retailing Roadmap Stage Operations Ecosystem Technology Backbone • Catalog and content • Application landscape: management: Online, In-Store rationalization, integration • Marketing campaign • IT operating models: In-house Focus management and outsourced roles, skills and • Vendor management deliverables • Supply chain efficiencies: internal • Infrastructure: Scalability and and external costs • Omni-Chanel Commerce • Business Applications portfolio: • ERP new, legacy Technology • Analytics • Infrastructure: On Premise, • SCM and Logistics Cloud, hybrid • Program and system reliability • Operation reliability and efficiency Benefits • IT project and systems support • Scalability costs

E-Commerce Footprint Helps Expand in the Online Market Buy A large Asian fashion retailer extended their E-Commerce footprint to participate in online market places. A scalable middleware solution integrated multiple 3P E-Commerce portals, vendors, logistics partners and ERP into one flexible automated operation. As retailers evolve to more mature Omni-Channel models, the need to look at applications that leverage and scale the ecosystem of partners and vendors in ways more familiar to online players increases.

Omni-Channel Solution Implementation Supports Digital Business Growth A leading travel retailer chose to implement an Omni-Channel Commerce solution to support digital business growth. A strategic managed services partnership enabled them to gain a scalable talent pool on the new technology and the industry expertise to adapt the platform to their specific business needs, allowing timely implementation of the program. The complexity and strategic business scope of such projects make selection of implementation models and partners a critical factor for success. Experimenting with the Experience: A Mobile Shopping Application

2 Find the most convenient store for your location - near home, on way to office 1 Create shopping lists 3 Check and confirm product availability across locations New technologies can help redefine the shopping experience. 8 Analyze shopping 4 Reach store - The experimental mobile-based trend, loyalty identify product shopping assistance app outlined program status and location in store with budgets for next buy tracker here is a proof of the possible. Most leading retail technology solutions companies are working 7 Share feedback on 5 Scan product bar code product and shopping for information, self billing on a range of next-gen retail experience and check out application platforms in the areas of Mobility, Analytics, Promotions 6 Schedule delivery of and Social Sentiment Analysis items at home as per that retailers can strap on to convenience leading Omni-Channel solutions to maximize their engagement quotient.

Sonata : Retail Services Overview

Sonata Software is a strategic IT solutions provider with a track record of powering business transformation initiatives of some of the most well-known retail enterprises across the globe. The company specializes in applying technologies such as Omni-Channel Commerce and Analytics-driven insights to enhance customer engagement for retailers. SoŶatàs Retail services are anchored on deep technology expertise gained from long-standing partnerships on class- leading solutions such as Microsoft Dynamics AX Retail, hybris, Moovweb, Microsoft Business Intelligence, Hadoop and Azure to deliver superior solutions such Omni-Channel revenue generation and fulfilment, E-Commerce and mobile business enablement, dynamic promotions, personalization, loyalty and IT infrastructure and support services. These capabilities have seen Sonata emerge as a service provider of choice for retailers across Mass Merchandise, Specialty, Apparel, Quick Service Restaurant and Transit Retail segments, including some of the largest global Fortune 100 brands. A unique customer-specific Centre of Excellence model of delivering service to clients has seen Sonata significantly enhance the extent of strategic focus, collaboration, innovation and knowledge management impacting each relationship. A wide range of retail-specific solution assets, proven frameworks, methodologies and a large dedicated retail vertical team, not only ensure quality and reliability but also reduce TCO for its clients. For Retail leadership seeking to drive strategic business advantage with IT, SoŶatàs Most Innovative Partner 2012 focus on the vertical, deep technology capability and commitment to customers make it a partner of choice for translating their vision to reality. ABOUT SONATA SOFTWARE Sonata Software is a global IT services firm focused on catalyzing transformational IT initiatives of its clients through deep domain knowledge, technology expertise and customer commitment. The company delivers innovative new solutions for Travel, Retail and Consumer Goods industries by integrating technologies such as Omni-Channel Commerce, Mobility, Analytics, Cloud and ERP, to drive enhanced customer engagement, operations efficiency and return on IT investments. A trusted long-term service provider to Fortune 100 companies across both the software product development and enterprise business segments, Sonata seeks to add differentiated value to leaders who want to make an impact on their businesses, with IT.

NORTH AMERICA | EUROPE | | ANZ

www.linkedin.com/company/sonata-software www.facebook.com/sonatasoftware www.twitter.com/sonata_software

in f t

For more information write to us at: APS Trust Building, Bull Temple Road [email protected] N. R. Colony, Bangalore - 560 019, India T: +91-80-6778 1999 | F: +91-80-2661 0972 www.sonata-software.com