2014 European Big Data Analytics for Retail 2013 North American SSL Certificate Technology Innovation Award Product Leadership Award

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1 INSERT COMPANY LOGO HERE 2014 European Big Data Analytics for Retail 2013 North American SSL Certificate Technology Innovation Award Product Leadership Award Frost & Sullivan 1 We Accelerate Growth

2 Contents Industry Challenges... 3 Technology Attributes and Future Business Value of OrderDynamics... 4 Conclusion... 6 Significance of Technology Innovation... 7 Understanding Technology Innovation... 7 Key Benchmarking Criteria... 8 The Intersection between 360-Degree Research and Best Practices Awards... 8 Research Methodology... 8 About Frost & Sullivan Frost & Sullivan 2 We Accelerate Growth

3 Background and Company Performance Industry Challenges Following the turbulent era of the dot-com bubble in the mid to late 90s, companies were beginning to develop Internet-based storefronts and were the pioneers of ecommerce. Brick-and-mortar retailers tried to discover a practical way to move their businesses online without getting sucked into the bubble s impending burst. The online retail industry is led by Amazon, and retailers must constantly scramble to adjust to ever-more demanding consumer expectations no matter how seemingly unreasonable, such as sameday delivery via drones in as little as 30 minutes. Retail companies need analytics tools that aid in making swift business decisions. Frost & Sullivan forecasts that the technological advancement of big data analytics will be immensely disruptive over the next ten years. It is expected to be as impactful as the personal computer in the 1980s, the Internet in the 1990s, and social media over the next 10 to 15 years. Processing complex business scenarios that are either highly impossible or at the very least impractical for the human brain to process instantly, big data analytics is currently used to identify key performance indicators to measure the success of business output. Amazon s Jeff Bezos states that instead of solely analyzing business outputs the financial results of business decisions it would be more efficient to focus efforts on making intelligent and controllable business inputs, or business decisions. Though retail businesses are capable of making better future judgments based on outputs, it is often the inputs which can prevent the revenue-fouling scenarios in the first place. Here are some key industry challenges that need to be addressed: Breaking away from channel fixation: Big data solutions need to synthesize metrics from all areas of a business marketing, pricing, merchandising, customers and inventory into an omni-channel output, allowing them to track the selling brand and products as well as individual channels. Fulfill disruptive customer expectations: Few solutions can tell a person what action to take or monitor in near real-time. Retailers need actionable business intelligence that they can use immediately to remain amendable to changing customer expectations and purchasing trends. Innovate: Though big data analytics is a huge market, it is difficult for participants to differentiate themselves from each other. Innovations are necessary to attract market attention and build customer rapport. Offer a decisive tool with a holistic view of customer s business: Existing tech giants have the huge pools of analysts to digest and interpret retail data for customers, but they lack guidance to enable swift decision making at the moment. Frost & Sullivan 3 We Accelerate Growth

4 Business leaders need actionable business information that allows them to make informed decisions that immediately increase revenue. Retail customers of big data analytics need tools that put them ahead of problems affecting operations and revenue growth without trying to interpret spreadsheets and create new key performance indicators after revenue has already been lost. Allowing retailers to remain as dynamic as their customers, the added flexibility and rapid responsiveness will allow them to compete with the trendsetters. Technology Attributes and Future Business Value of OrderDynamics OrderDynamics is a creator of decisive, dynamic, actionable big data and software solutions that are critical for retail success. Current industry tech giants may provide a wealth of thorough analysis on an extensive range of markets; however, OrderDynamics takes a more agile, intimate approach that they call intelligent commerce. The Dynamic Action solution allows business leaders to know specifically what is selling or overstocked, where inventory should be allocated between ecommerce and brick-and-mortar stores, which customer groups are the most valuable and how to shift marketing plans, pricing and even imagery onsite to ensure the best customer experience and most profitable business decisions. Ultimately, business leaders need to know what decisions will make them or save them - money now. Instead of reacting to the outcome of retail operations, OrderDynamics puts decision makers ahead of business problems directly related to profitability order management, marketing waste, customer loyalty and inventory optimization. Product Impact on the Industry The ability to analyze big data in near real-time as it pertains to all areas of a retail business, across all storefronts via online ecommerce or traditional brick-and-mortar is a significant technological advancement. Live factors that are inhibiting operations can be detected immediately; Dynamic Action will not only detect and notify the user, it will also recommend a best practice solution to fix the issue. This is a significant improvement over conventional big data analytics solutions, where scores of analysts are remotely evaluating data after the fact, and can only recommend actions to take for future operations. With Dynamic Action, the customer can instantly free up the operational hazard that is locking up revenue generation. The product impact for business leaders is significant, as they will no longer need to feign omnipresence by using impractical data after the fact. Big data analytics is an enormous global industry that is currently the next phase of transformational advancement; however, most market players have quite a difficult time distinguishing themselves from their competition. The major players are able to employ a huge workforce to analyze past and present business data to solve complex industry problems on a grand scale. Dynamic Action takes this a step further as it makes actionable recommendations for a more controllable input side of individual businesses Frost & Sullivan 4 We Accelerate Growth

5 operations. OrderDynamics engineered a big data analytics solution for retail that is unlike any other solution in the market. Scalability thru Visionary Innovation It is impossible to future-proof anything in the information and communications technology field; however, OrderDynamics took all the necessary steps to prepare for future market trends and technological breakthroughs. Fostering a philosophy of retail specialty and agility, OrderDynamics develops solutions that are segmented. This allows the company to adapt according to what the customer needs, terminating what does not work and enhancing what does. Operating their suite of retail products which includes an enterprise commerce platform, order management systems, in-store point-of-service application, and Dynamic Action big data analytics solution as cloud-based software as a service (SaaS) further eases agility and management of the company s services. Dynamic Action itself is a novel SaaS, and was designed from the beginning for applicability and scalability. SaaS solutions are engineered at the foundation for democratization, to support either small-medium businesses or large global enterprises. OrderDynamics prides itself on its flexibility to a constantly shifting industry, and engineers its services around: speed, capability, and interconnectability. OrderDynamics is used by over 90 customers from San Francisco to Paris, in both European and North American markets. The company is able to address the specific needs of businesses big or small, business-to-business, or business-to-consumer, but focuses heavily on the enterprise-level retail market. Brand Loyalty Drives Customer Acquisition The company decided in August of 2014 that the name ecommera did not accurately capture what it wanted to achieve, and instead took on the name of OrderDynamics an order management system business that it acquired in June of The concept of Dynamic Action was born when the company was founded in 2007, though the solution itself would not be launched until The company believes that the order, is the moment of truth, and therefore the perspective of Dynamic Action was built around that. Frost & Sullivan believes that this brand alignment both positions and labels the company to be a serious player in the big data analytics industry, and a leader in the retail order management systems software market. Dynamic Action saved a high-end retailer from missing the delivery dates of VIP frequent customers for orders they have placed, totaling $75,000 which otherwise would have been locked up in held status. Another retailer was able to identify a merchandising problem and recover over $200,000 in lost sales opportunity due to high demand products not being adequately stocked. In a marketing scenario, a retailer was able to identify a potential $425,000 in revenue. Frost & Sullivan 5 We Accelerate Growth

6 One of the greatest success stories of Dynamic Action belongs to retailer Brooks Brothers. In the first week of utilizing the Dynamic Action solution from OrderDynamics, Brooks Brothers was able to identify $2.3 million in potential revenue. Dynamic Action is so critical to Brooks Brothers, that they save an average 140 hours in analysis work each week. Dynamic Action customers have experienced, on average, a 21% profit increase. The company s success stories with major retailers, and analyzing over $12 billion in online orders from more than 90 retailers operating across 33 countries, is a testament to its customer service excellence. Financial Performance OrderDynamics is a successful company in order management and big data analytics for retailers worldwide. Over the past three years, the company has enjoyed an impressive compound annual growth rate of 43%. The company has generated a total of $48 million in the 2013 fiscal year alone, enjoying a year-over-year growth rate of 169%. OrderDynamics is recognized as a profitable company; therefore, it raised $41 million in Series C funding investment firms West Coast Capital, Frog Capital, eplanet Capital, WPP, and WTI. OrderDynamics not only demonstrates how to implement a technological innovation into a practical solution, it also understands how to perform as a successful company. Conclusion Big data analytics is the new transformational phase of information systems technology, but unmet needs are leaving retailers indifferent. Retailers need solutions that empower them to get ahead of revenue-hurting business scenarios OrderDynamics does just that. With Dynamic Action, business leaders gain practical business omnipresence. This disruptive new business model positions OrderDynamics as the David amongst an industry of Goliaths; with the Dynamic Action product being that infamous stone. With its strong overall performance, OrderDynamics has earned Frost & Sullivan s 2014 Technology Innovation Award. Frost & Sullivan 6 We Accelerate Growth

7 Significance of Technology Innovation Ultimately, growth in any organization depends upon finding new ways to excite the market, and upon maintaining a long-term commitment to innovation. At its core, technology innovation or any other type of innovation can only be sustained with leadership in three key areas: understanding demand, nurturing the brand, differentiating from the competition. This three-fold approach to nurturing innovation is explored further below. Understanding Technology Innovation Technology innovation begins with a spark of creativity that is systematically pursued, developed, and commercialized. That spark can result from a successful partnership, a productive in-house innovation group, or the mind of a singular individual. Regardless of the source, the success of any new technology is ultimately determined by its innovativeness and its impact on the business as a whole. Frost & Sullivan 7 We Accelerate Growth

8 Key Benchmarking Criteria For the Technology Innovation Award, we evaluated two key factors Technology Attributes and Future Business Value according to the criteria identified below. Technology Attributes Criterion 1: Industry Impact Criterion 2: Product Impact Criterion 3: Scalability Criterion 4: Visionary Innovation Criterion 5: Application Diversity Future Business Value Criterion 1: Financial Performance Criterion 2: Customer Acquisition Criterion 3: Technology Licensing Criterion 4: Brand Loyalty Criterion 5: Human Capital The Intersection between 360-Degree Research and Best Practices Awards Research Methodology 360-DEGREE RESEARCH: SEEING ORDER IN Frost & Sullivan s 360-degree research THE CHAOS methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often, companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry players and for identifying those performing at bestin-class levels. Frost & Sullivan 8 We Accelerate Growth

9 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Our awards team follows a 10-step process (illustrated below) to evaluate award candidates and assess their fit with our best practice criteria. The reputation and integrity of our awards process are based on close adherence to this process. STEP OBJECTIVE KEY ACTIVITIES OUTPUT 1 Monitor, target, and screen Identify award recipient candidates from around the globe Conduct in-depth industry research Identify emerging sectors Scan multiple geographies Pipeline of candidates who potentially meet all bestpractice criteria 2 Perform 360-degree research Perform comprehensive, 360-degree research on all candidates in the pipeline Interview thought leaders and industry practitioners Assess candidates fit with best-practice criteria Rank all candidates Matrix positioning all candidates performance relative to one another 3 Invite thought leadership in best practices Perform in-depth examination of all candidates Confirm best-practice criteria Examine eligibility of all candidates Identify any information gaps Detailed profiles of all ranked candidates 4 Initiate research director review Conduct an unbiased evaluation of all candidate profiles Brainstorm ranking options Invite multiple perspectives on candidates performance Update candidate profiles Final prioritization of all eligible candidates and companion best-practice positioning paper 5 Assemble panel of industry experts Present findings to an expert panel of industry thought leaders Share findings Strengthen cases for candidate eligibility Prioritize candidates Refined list of prioritized award candidates 6 Conduct global industry review Build consensus on award candidates eligibility Hold global team meeting to review all candidates Pressure-test fit with criteria Confirm inclusion of all eligible candidates Final list of eligible award candidates, representing success stories worldwide 7 Perform quality check Develop official award consideration materials Perform final performance benchmarking activities Write nominations Perform quality review High-quality, accurate, and creative presentation of nominees successes 8 Reconnect with panel of industry experts Finalize the selection of the best-practice award recipient Review analysis with panel Build consensus Select winner Decision on which company performs best against all best-practice criteria 9 Communicate recognition Inform award recipient of award recognition Present award to the CEO Inspire the organization for continued success Celebrate the recipient s performance Announcement of award and plan for how recipient can use the award to enhance the brand 10 Take strategic action Review copyrights and licensing for external usage and banquet seats Coordinate media outreach Design a marketing plan Assess award s role in future strategic planning Widespread awareness of recipient s award status among investors, media personnel, and employees Frost & Sullivan 9 We Accelerate Growth

10 About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan 10 We Accelerate Growth