Omni-channel: Towards a Seamless Customer Experience Across Physical & Digital Channels
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1 Omni-channel: Towards a Seamless Customer Experience Across Physical & Digital Channels Steve Bratt CTO and President Standards Development and EPCglobal GS1
2 Outline GS1: The Global Language of Business The business world is changing Growth of Web commerce What is Omni-channel? Extending the Global Language of Business to enable omni-channel What s next? 2
3 Outline GS1: The Global Language of Business The business world is changing Growth of Web commerce What is Omni-channel? Extending the Global Language of Business to enable omni-channel What s next? 3
4 Our Purpose & Beliefs Our vision is a world where things and related information move efficiently and securely for the benefit of businesses and improvement of people's lives, everyday, everywhere. Our mission is to be the neutral leader enabling communities to develop and implement global standards providing the tools, trust and confidence needed to achieve our vision. Sectors: retail, healthcare, transportation & logistics 4
5 GS1 standards: Used every day, everywhere in over 1 million organisations in multiple sectors in close to 150 countries ~ 5 billion barcode scans / day by big multinational chains by small corner shops by world-famous brands by doctors by individual craftsmen 5
6 GS1 standards drive supply chain efficiency Source: IBM/Consumer Goods Forum Global Scorecard 6
7 Some of the world s best-known companies sit on our Board... and more 7
8 Outline GS1: The Global Language of Business The business world is changing Growth of Web commerce What is Omni-channel? Extending the Global Language of Business to enable omni-channel What s next? 8
9
10 Outline GS1: The Global Language of Business The business world is changing Growth of Web commerce What is Omni-channel? Extending the Global Language of Business to enable omni-channel What s next? 10
11 Diverse patterns of growth in Web sales around the world Consumer-to-consumer sales = 70% of total in China 11
12 Online commerce only represents 10% of all commerce 12
13 Outline GS1: The Global Language of Business The business world is changing Growth of Web commerce What is Omni-channel? Extending the Global Language of Business to enable omni-channel What s next? 13
14 A Demand-Chain Story Etsy Custom Barcode tshirt UPC: $
15 Globally, online will outpace offline sales growth by 3-5 X Much of offline sales will be influenced by online research Global retail sales online vs. offline USD billions 18,001 1,104 CAGR Percent ,161 Online sales 10, , In-store sales 10, , In US, nearly 50% of in-store sales will be influenced by online research SOURCE: Forrester Research (2011) 15
16 Shopping more intelligently and across channels Google Retail Advertising Blog: October 2012
17 Om ni chan nel is rethinking all aspects of a company s business processes with a constant focus on providing a seamless consumer experience across physical and digital channels 17
18 What do analysts think? Example: Buying a dress in the omni-channel world Digital s Disruption Consumer Goods and Retail, Nov 2012, Boston Consulting Group 18
19 What do business leaders think? Omni-channel presence is delivering a much more seamless experience all across the board in one clear message - Karen Katz, CEO of Neiman Marcus Group, 2011 I can t overstate how mobile is changing how we interact with our consumers, we have to embrace these changes Joel Anderson, CEO of Walmart We will continue to see a convergence of the digital and physical world. Those who conquer that trend will be market leaders. - John Phillips, SVP Customer Supply Chain and Logistics, Pepsico, Inc. The world s largest store in every pocket - McKinsey Digital has been a catalyst for everything in the company - Angela Ahrendts, CEO of Burberry, now with Apple Starting with the Internet and moving into today s connected mobile devices, people have more information and purchasing choices than ever before. Customers use technology in every facet of their lives, including in how they shop. This is increasingly disruptive to retailers. - Mike McNamara, CIO, Tesco 19
20 Primary role of digital selling channels (e-commerce, mobile, social) Survey of major companies RSR Research: June
21 Outline GS1: The Global Language of Business The business world is changing Growth of Web commerce What is Omni-channel? Extending the Global Language of Business to enable omni-channel What s next? 21
22 New: GS1 Digital Initiative Omni-channel is our initial focus Why? Disruptive evolution in GS1 s core sector of retail Business needs are being identified by industry A natural extension of GS1 standards will empower supply-side and demand-side business processes 22
23 GS1 s traditional focus Supply Chain Ecosystem Physical world Linking the supply-chain Stops at the beep 23
24 We should engage the customer in however he or she chooses to shop with us. I want to break those silos down internally in my own organization and make sure that we are doing one thing and that is putting the customer at the center of all of our decisions. - Terry Lundgren, Chairman, President, and CEO of Macy s, December,
25 The omni-channel ecosystem 3PL s Market places Online Pureplays Brick/Mortar Webpages Non-linear Linking physical & digital worlds, inside & outside of business Consumer-centric 25
26 GS1 System - Extended to Digital U S E R E T U R N S Extending GS1 identification & description standards to reduce friction in information flow between physical & digital business & consumers former silos This will empower omni-channel 26
27 GS1 Identification and Data for the Web Embedding the GS1 standards into web pages Benefits for business Increase search visibility Connect data across silos, connect to consumers Sell more stuff Benefits for consumers More efficiently search for, compare and share information about products Buy more stuff; share experiences 27
28 EPC/RFID electronic tagging Omni-channel requires accurate inventory Benefits for business and consumer Use of EPC-RFID at item-level boosts inventory accuracy up to over 98% Right product - right place - right time Less out-of-stock more product availability more sales Adoption is growing rapidly, especially in apparel Huge potential for other high-value items (jewellery, electronics, defence ) 28
29 GS1 Source Mobile scanning to get accurate, trusted product data Benefits for business Brand-verified data in a secure environment Meet needs of retailers, regulations, consumers Benefits for consumers Find product data that can be trusted Match against preferences, diet, etc. 29
30 Selected other, potential projects* being considered for the GS1 Digital Initiative Web Data Authentication Category Hierarchy Linking Products across Social Media Digital Products (music, games, etc) Consumer Privacy epayments ecoupons ereceipt Store-based e-fulfillment Returns/Reverse Logistics Integration across Supply Chain Guidelines for on-line retailers 3D Printing * Compiled from McKinsey and GS1 Community 30
31 Outline GS1: The Global Language of Business The business world is changing Growth of Web commerce What is Omni-channel? Extending the Global Language of Business to enable omni-channel What s next? 31
32 32 Everything on the Internet not necessarily a separate Internet of Things People Products Sensors Actuators Services Knowledge Privacy/Security. Cisco
33
34 Resources on omni-channel retail Tough Choices for Consumer Goods Companies McKinsey, December Omnichannel Alchemy Boston Consulting Group, October Integrated MultiChannel Retail CapGemini, Digital Disruption and retailer opportunities Bain and Company, Nov Digital Shopper Relevancy Report CapGemini, July E-Commerce nad Consumer Goods Booz and Company, November The Reciprocity Principle Boston Consulting Group, The New Omni-Channel Approach to Serving Customers Accenture, Digital s Disruption of Consumer Goods and Retail Boston Consulting Group, November Omni-channel Customer Experience Webcredible, Nov Your Customer s All-channel Experience CapGemini, May
Omni-channel: Towards a Seamless Customer Experience Across Physical & New Digital Channels
Omni-channel: Towards a Seamless Customer Experience Across Physical & New Digital Channels Steve Bratt CTO and President Standards Development and EPCglobal GS1 Outline GS1: The Global Language of Business
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