Market Overview: Mobile Point Of Service Solutions For Retail

For: ebusiness & Channel Strategy Professionals Market Overview: Mobile Point Of Service Solutions For Retail by Adam Silverman, September 9, 2013 Key Takeaways Mobile Point Of Service Is Rapidly Being Implemented In The Retail Store With the desire to offer a richer customer experience as well as improve associatefacing operations, retailers are rapidly implementing mobile point of service, either in full deployment or as a pilot. Seventy-nine percent of retailers plan to implement mpos by 2015. Finding And Implementing The Right Solution Involves An Array Of Choices Midmarket and enterprise mpos vendors are generally grouped into two buckets: existing POS solutions that offer mpos extensions and point solutions that integrate with a variety of back-office systems. All solutions vary in capability, integration time, and pricing. Significant Operations And Technology Challenges Exist Many retailers fail to operationalize mpos solutions in their retail stores, leading to low usage and unrealized benefits from mpos solutions. Retailers should thoroughly consider both customer and associate needs and implement processes and procedures that take into account the needs of these two constituents. Generating Positive ROI Is Not Guaranteed Even Though Mobile Adoption In Retail Stores Is Growing Although many retailers want to improve the in-store customer experience, the reality is that most retailers that have implemented mpos struggle to show a quantifiable ROI based on improved customer experience alone. Instead, retailers are implementing mpos to improve store efficiency and to leverage various omnichannel fulfillment initiatives. Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA Tel: +1 617.613.6000 Fax: +1 617.613.5000 www.forrester.com

September 9, 2013 Market Overview: Mobile Point Of Service Solutions For Retail Despite Rapid Adoption Of mpos Solutions By Retailers, Business Objectives Remain Uncertain by Adam Silverman with Peter Sheldon, Zia Daniell Wigder, Carrie Johnson, and Rebecca Katz Why Read This Report Over the past decade, as retail sales have shifted from physical stores to digital channels, traditional storebased retailers have been struggling to compete with the endless aisle and low prices found online. With the adoption of mobile devices, the lines between the digital and physical worlds are blurring, providing retailers with opportunities to harness their digital capabilities and infuse them into their physical stores. Increasingly, retail professionals are turning to mobile point of service (mpos) technology to help bolster customer engagement, lower store expenses, and improve the efficiency of sales-related functions. mpos deployments are not without challenges, however, and ebusiness, store operations, and technology executives must work together to select an mpos solution that can play well with existing back-office systems, adapt to rapid change, and meet the expectations of a new breed of the connected shopper. Forrester undertook a detailed analysis of 10 mpos solution providers targeting midmarket and enterprise-size retailers. Table Of Contents 2 3 9 13 13 In-Store Mobile Integration Is Rapidly Growing Implementing The Right Solution Involves An Array Of Choices Be Aware Of Pitfalls, And Set Expectations Across The C-Suite recommendations Think Strategically About Your Needs; Then Quickly Execute And Learn Supplemental Material Notes & Resources Forrester interviewed 10 vendor companies, including CrossView, Epicor Software, Fujitsu, GlobalBay, Micros, NetSuite, Oracle, Starmount, SAP, Toshiba Global Commerce Solutions, and four US omnichannel retailers Related Research Documents Welcome To The Era Of Agile Commerce July 19, 2013 Powering The Agile Store June 5, 2013 The Forrester Wave : Point Of Service, Q2 2012 February 7, 2013 2013, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email clientsupport@forrester.com. For additional information, go to www.forrester.com.

Market Overview: Mobile Point Of Service Solutions For Retail 2 In-store mobile integration is rapidly growing Since ecommerce began in the mid-1990s, ebusiness leaders have been at the forefront of leading their business strategy across digital channels. With the rapid adoption of connected devices, both consumers and retail store associates are now armed with tools that give them options to enhance the shopping experience digitally. These trends have challenged the ebusiness leader to think less about managing channels and more about facilitating customer engagement across all touchpoints, including in the retail store. One technology for improving customer engagement within the retail store is through mobile point of service. Just a few years ago it was commonplace to describe these systems as point of sale applications: a system that simply scans merchandise and takes payments in the store. As consumers began to crave a deeper engagement with their brand of choice, the cash register has been replaced with a service application, able to facilitate a myriad of interactions between the customer and the associate. By enabling associate-facing devices to facilitate engagement and improve service, retailers have a new tool in mobile point of service to help them attempt to increase conversion, drive engagement, and streamline store operations. While the ROI around mpos integrations is elusive, retailers are nonetheless consistently investing in mobile point of service (see Figure 1). Forrester data shows that: The overwhelming majority of retailers plan to implement mobile point of service by 2015. Nearly 40% of retailers have implemented mpos or have a pilot program in place today, and 79% plan to integrate mpos by 2015. 1 This adoption of mobile technologies in-store highlights the rapid pace of innovation occurring in the physical retail store. More than half of retailers plan to implement a mobile payment solution by 2015. Nearly 30% of retailers currently have implemented a mobile payment solution, while 61% plan on deploying a solution by 2015. 2 Although these numbers are substantial, retailers today are taking a wait and see approach to determine which mobile payment ventures take hold. Most retail sales will still occur in a physical store. Although mcommerce and ecommerce sales are growing at a faster rate than traditional store sales, the majority of retail sales will still occur in a store environment. 3 By 2016, 0.8% of retail sales will occur via mcommerce and 9.1% of retail sales will occur via ecommerce.

Market Overview: Mobile Point Of Service Solutions For Retail 3 Figure 1 By 2015, 79% Of Retailers Will Have Rolled Out An mpos Solution Which types of technologies are you planning to implement, and where are you in that timeline? Implemented Some stores Pilot in progress Implementing in 1-2 years Implementing in 2-3 years No plans E-receipts 15% 7% 8% 15% 33% 22% Mobile point of sale (mpos) 6% 8% 23% 20% 22% 22% 4% Chip and pin (Europay, MasterCard, and Visa [EMV]) 5% 5% 16% 27% 43% 4% 2% 4% Virtual payments 13% 33% 45% Near field communication (NFC) 5% 9% 11% 29% 45% Touchless payments 5% 5% 14% 37% 39% Base: 41 retail loss prevention executives (percentages may not total 100 because of rounding) Source: NRF Retail Loss Prevention Survey 2012 101821 Source: Forrester Research, Inc. implementing THE RIGHT SOLUTION involves an array of choices Embarking on a mobile point of service solution requires clear objectives in order to sift through the myriad of technology and integration options now available to retailers. Five strategic questions must be addressed upfront: 1. What solutions are most appropriate for your business? Enabling mpos can take on different flavors of integration depending on the category your business is in. For instance, apparel sales associates might find it awkward to take a sale on the floor, as they may not have access to security tag removal devices or bags. Convenience outlets may favor quick payment solutions at the cash register or even self-checkout options rather than enable associates to take a sale on the floor. Big-box electronics retailers may embrace more of the productivity applications of mpos such as inventory look-up, allowing the associate to access inventory in other locations or distribution centers. Regardless of the technology used, a customer- and associate-centric approach to the solution is paramount to achieving success.

Market Overview: Mobile Point Of Service Solutions For Retail 4 2. What systems will you integrate, and when? For midsize to large retailers, the most significant consideration when implementing a mobile point of service solution is the integration with back-office systems such as order management, merchandise, ecommerce, customer relationship management (CRM), and, of course, your incumbent POS solution. Retailers need to think strategically about exposing the right data to the mpos in order to achieve the vision of a fully integrated mobile point of service. ebusiness professionals will need to carefully consider both customer and associate needs along with other investment priorities when evaluating the scope of integration. 3. How will you operationalize the new solution? Just as important as planning your integration to back office systems is developing and executing a solid operational plan. Considerations such as cash management, device management, bag and tag stations for removing sensors, and customer awareness are key factors in ensuring your mpos investment is a success. Retailers that have indicated low usage of mpos services often cite their own lack of planning around operating these mobile solutions as the cause of low adoption. 4. How will you design the interface for both associates and customers? The smaller form factor, coupled with the lack of physical work space around a traditional register, means user experience leaders must design the interface to be intuitive, fast, and easy to use. Understanding your core strategic objectives for the mpos solution and creating detailed journey maps for both the associate and the customer will allow for an enhanced shopping experience. Simply replicating an existing POS interface or ecommerce checkout workflow or augmenting the mpos interface to handle every conceivable store function can make the device cumbersome and significantly reduce usage. 5. How will you measure success? Some retailers point to increased customer service and sales associate productivity as the reasons for implementing mpos. However, additional benefits include increased customer satisfaction, POS hardware savings, reduction in showrooming, and increased productivity of the sales floor, as traditional POS locations can be converted to showcase more merchandise. Defining your measurement criteria upfront will yield clear and actionable data for the ebusiness executive. Choose A Vendor Based On Your Existing Systems As Well As Future Needs Midsize to large retailers that have executed a mobile point of service project indicate that a top consideration is integrating and serving the relevant data from back-office systems to provide nearreal-time information while maintaining the security and dependability of their point-of-service system. The enterprise data often exists in disparate systems, locked away and unable to deliver on the promise of a fully integrated mobile point of service. Choosing the right type of mpos vendor is a critical step in the consideration of a partner. In our analysis of mpos software providers for midsize to large retailers, two types of vendors emerged:

Market Overview: Mobile Point Of Service Solutions For Retail 5 Existing POS solutions with mpos extensions. Purchasing mpos software from the same vendor that provides incumbent POS solutions will allow retailers to seamlessly integrate with their existing systems. These integrations are often quick, as the mpos solution simply acts as another register, although retailers may need to upgrade their POS infrastructure to the vendor s latest release as a prerequisite to using mpos. Typically all functions that exist in the physical point of service register are also available on the mobile thin client. However, integrating with commerce systems outside of the chosen vendor portfolio is either impossible or requires extensive integration. This solution is best for retailers that have an established POS solution and that wish to deploy additional mobile registers quickly, such as during peak seasons. Point solutions that can integrate with a variety of data sources. These point solutions offer fully functional mpos capabilities that can integrate with a variety of legacy systems but require significant effort and customization to integrate with these systems. Often these integrations connect CRM, order management solution (OMS), and ecommerce functionality, allowing for the associate to move beyond order taking and toward a more engaged shopping experience. A significant drawback for these types of solutions is the time to integrate. Often, these robust rollouts require both the deployment of middleware and development of APIs to open up legacy back-end systems, which subsequently can result in lengthy deployments. In addition to the solution types identified above, some retailers may also consider leveraging their existing ecommerce platform vendor to provide mpos capabilities. Leading ecommerce platform vendors now cite mpos capabilities in their marketing and sales pitches, but ebusiness leaders must closely examine the maturity of these solutions and the implications of this approach, which include reconciling sales that are rung up on an ecommerce-driven mpos with existing store systems. Forrester expects that the ecommerce platform vendors will continue to invest in and evolve their mpos capabilities, and over time these solutions, when combined with an OMS, may become a credible alternative to using an incumbent POS vendor or point solution. Forrester did not formally evaluate ecommerce mpos solutions for this report. Finding The Right Solution Depends On The Specific Needs Of Your Organization To help our clients as they navigate the various mpos software and solution providers, Forrester surveyed the capabilities of 10 leading mpos software providers, all of which have a track record of success in either traditional POS or mobile POS solutions (see Figure 2). These vendors include existing POS solutions with mpos extensions and point solutions.

Market Overview: Mobile Point Of Service Solutions For Retail 6 Figure 2 Overview Of mpos Vendors Vendor Product name Existing point of service extensions: Epicor Retail Mobile Store Mobile client Target market mpos clients operating system Delivery Enterprise The Jones Group, Aeropostale ios, Windows On-premises Technology Hybrid Fujitsu GlobalSTORE Enterprise Declined to provide clients Windows On-premises Native Micros mistore/xstore Enterprise Barneys New York, Gucci, Guess, bebe, lululemon athletica ios/ Windows (respectively) On-premises Native Oracle Retail Mobile Solutions Enterprise Limited Brands* ios On-premises Hybrid SAP SAP Mobile POS Enterprise Sephora Windows On-premises Native NetSuite NetSuite Mobile Point of Sale Midmarket Nakajima Windows SaaS Hybrid Toshiba TCxGravity Mid to enterprise Kohl s, Staples Browser-based SaaS N/A Point solutions: Starmount Engage Mid to enterprise REI, Urban Outfitters, Forever 21, Perry Ellis, Unicomer Group ios, Android On-premises or SaaS Native VeriFone GlobalBay mpos Midmarket CrossView CrossView mpos SMB to enterprise Tory Burch, Fifth and Pacific, Coach, C. Wonder, Whole Foods Moosejaw, Halston Heritage ios, Android ios On-premises or SaaS On-premises or SaaS Native Native *Running on Oracle s earlier mpos solution 101821 Source: Forrester Research, Inc. Many Existing POS Solution Providers Now Offer mpos Extensions These solution providers include a range of well-known companies in the commerce technology space: Epicor Software. This enterprise resource planning (ERP) giant s mpos solution includes a thin client that extends physical Epicor Retail POS functionality; a tool called Appbuilder can customize the presentation. The mpos solution can integrate with other Epicor applications such as Epicor Retail CRM and Epicor Promotional Events Management it does not, however,

Market Overview: Mobile Point Of Service Solutions For Retail 7 integrate with point solutions outside of the Epicor product suite. The company is one of the most seasoned in the space, with nearly 10 years of mpos experience and a solid client base. Fujitsu. For retailers that want their mpos device to operate without the need to connect to a store server, Fujitsu offers GlobalSTORE mpos, a fat client that runs on Windows tablet. In addition to a standalone mpos, GlobalSTORE can also operate as a thin client that runs on ios and leverages GlobalBay s front end. Fujitsu offers a modern architecture with a wide range of APIs to connect to various Fujitsu services such as social clienteling and is currently building a packaged integration component connecting Fujitsu s retail POS application with SAP for Retail. One concern is the limited user base for Fujitsu s mpos solution, which may pose some risk for retailers considering the solution. Micros. Micros has steadily augmented its traditional Xstore point-of-service offerings and now provides two mobile solutions for retailers: Micros mistore running on ios devices and Xstore, which runs on Windows based devices. An Android-based mistore application is currently in development. The enterprise mistore application can be customized and integrated with the Micros OCP commerce application, allowing for expanded functionality in the store. NetSuite. A new player in the point-of-service space, NetSuite provides a cloud-based solution that offers a full suite of business applications, including POS and mpos. NetSuite acquired its POS capabilities via the acquisition of Retail Anywhere in January 2013. Since the ink on this acquisition is still fresh, the mpos offering is very young, with only three live clients. Oracle. As part of the larger retail commerce suite, Oracle offers a thin mpos client that extends existing Oracle Retail point of service functionality. The hybrid client application leverages HTML5, allowing the application to port over to a variety of mobile devices. In the near future, Oracle will deploy Oracle Retail Assisted Selling application, a fully functional ipad native selling tool that will combine inventory from both the online channel and the physical store, allowing the associate to leverage the Endeca search engine and ATG catalog. For retailers that do not have the full stack of Oracle commerce products, integration with their mpos solution is still possible as long as their legacy Oracle Retail point of service offering is running in the store. SAP. The SAP POS solution supports an integrated thin client that extends the physical POS functionality on to the mobile device. The default implementation supports Windows CE out of the box, which may not meet the needs of retailers that seek more robust functionality from their mpos integrations. However, SAP does offer robust APIs that allow custom integration. SAP leverages its partner ecosystem to augment its API strategy by offering prebuilt mobile interface applications on ios or Android operating systems. Retailers must license the API access from SAP as well as the mpos client application from a third party, adding complexity to the pricing model.

Market Overview: Mobile Point Of Service Solutions For Retail 8 TCxGravity. Toshiba and IBM have partnered together as Toshiba Global Commerce Solutions, providing a new suite of retail systems. Part of this retail suite is the TCxGravity application, a browser-based POS terminal that hooks into the Sterling Commerce platform, creating one commerce system for the enterprise. Custom integrations are also possible; they are presented via iframe in the interface. This unique solution leverages responsive design and HTML5 to present on any device including a physical POS register or mobile POS device. Even though this solution is new to the market, Toshiba Global Commerce Solutions has inked deals with a few large retailers, highlighting the demand by retailers to seek out enterprise commerce systems that power multiple channels and touchpoints. mpos Point Solutions Have Also Emerged In Recent Years Providers of point solutions include independent players as well as those backed by big names in the technology industry: CrossView. Developed a few years ago, CrossView offers an mpos solution as part of its larger enterprise commerce solution. It has created a middleware platform where commerce applications such as mpos, CRM, OMS, and the web store connect. This means that the mpos solution is inheriting the logic of the enterprise commerce architecture rather than just the logic of an incumbent POS application. Integration of this middle layer requires upfront investment, but it offers flexibility once it is integrated. Along with offering its own POS, call center, and web store, CrossView provides an API platform that connects with a wide variety of commerce applications including IBM WebSphere and hybris (SAP). To stitch this all together, CrossView also provides a full suite of services including design, strategy, and technology integration. GlobalBay. VeriFone s GlobalBay mpos solution is leveraged in many verticals, with a strong presence among fashion retailers. The solution can be seamlessly integrated with the GlobalBay Clienteling, Retailing, and Inventory Management applications as well as with partners Demandware and Fujitsu. GlobalBay can also integrate with other enterprise applications, offering flexibility at the expense of speed-to-market. Because GlobalBay is owned by VeriFone, clients inherit a strong ecosystem consisting of hardware, software, applications, and transaction gateways. Starmount. The Starmount Engage mpos solution offers a service-oriented architecture that allows for integration with almost any back-office application, including CRM, ecommerce, and OMS. Vendor-specific integration adapters are also available for a growing set of common solutions installed in retail, including Oracle, Bazaarvoice, and Adobe. A consideration for retailers is the heavy lifting needed to hook Starmount s Connect platform to the appropriate back-office systems, which requires investment of time and resources upfront. However, once this platform has been implemented, retailers are able to onboard additional capabilities more quickly. Starmount has been very successful in implementing its solution with top-tier retailers.

Market Overview: Mobile Point Of Service Solutions For Retail 9 Be Aware Of Pitfalls, And Set Expectations Across The C-Suite We are in the early phases of mobile adoption in retail organizations, and although many retailers are planning on implementing mpos, risks are significant and can easily minimize the benefits of an mpos integration. The vendor selection is just one step in the consideration set. ebusiness executives, along with their technology, marketing, and store operations counterparts, need to address a handful of additional issues prior to rollout, including: Security. Ensuring payment card industry (PCI) compliance, device security, and enterprise security is paramount when implementing an mpos solution. Incumbent POS providers already adhere to PCI compliance, and their mpos solutions are a good choice for retailers that wish to leverage their existing infrastructure environment. Checkout process. The ability to quickly complete a sale at any location in the store will create additional convenience to the shopper. However this line busting approach might reduce cross-sales, impulse buying, or warranty sales for those retailers who traditionally rely on upselling at the standalone POS. Testing, learning, and educating staff on the best practices for leveraging the mpos capabilities, along with a stellar user interface that prompts the associate to build baskets, are key to success. In addition to staff training, developing processes for bagging products, removing security tags, and cash management are important to spur adoption by customers and associates. Mobile device management. Mobile device management (MDM) solutions provide a scalable infrastructure for the deployment and management of mpos hardware and software, including new software deployment, device configuration, and device data backup. Whether device management is the responsibility of the retail store management or the responsibility of a central IT group, establish clear processes and accountability in order to keep the fleet of mobile devices ready for use. Service-oriented architecture. An elastic infrastructure that leverages a service-oriented architecture (SOA) is a cornerstone in modern application development and is a key attribute for leveraging the robust APIs that mpos vendors are beginning to deliver today. Back-end systems developed with an SOA have the best chance at enabling data from disparate systems in the mpos. This data enablement is needed to provide a complete view of the customer and to power the rich experiences customers seek in retail stores. Device selection. Consumer-based devices such as the ipod or ipad are the most frequently used devices for mpos today, but the frequently changing form factor for these devices can increase the expense of an mpos solution (see Figure 3). The device sled, used to help facilitate bar-code scanning and credit card swiping as well as extend battery life, needs to be replaced when the device form factor changes. Considerations of future functionality specifically around near field communication (NFC) should also be considered when implementing an mpos

Market Overview: Mobile Point Of Service Solutions For Retail 10 solution. These proximity services can help enable mobile currency, and Forrester expects rapid growth of proximity mobile payments, especially as both retailers and consumers begin to adopt the technology needed to enable it. 4 Software architecture. The architecture of the mpos application on the mobile or tablet device is an important factor to consider. The mpos vendors evaluated in this research have taken different approaches in the development of their solutions. Some have platform-specific native apps and others offer browser-based solutions, while some use hybrid containers to enable cross-platform apps. On the one hand, native apps are generally fast and the user experience is well optimized for the device format; however, updating native apps across a large number of geographically dispersed devices can be a major headache. Conversely, web-based solutions and hybrid apps use open web technologies (HTML5, CSS, and JavaScript) so updates can be seamlessly applied anytime, anywhere. Forrester has additional research on this topic that we encourage ebusiness professionals to read. 5 Robust connectivity. Though an obvious consideration, strong Wi-Fi connectivity in the retail store is critical in enabling mpos functionality. Any disruption in connectivity will cause the mpos device to be ineffective, reducing customer satisfaction and lowering associate adoption. As a backup for Wi-Fi, some mpos systems can leverage a speedy 4G cellular connection to transmit orders to a central POS server. However, cellular connections in-store are often spotty and cannot be relied upon to solely power an mpos solution. Offline operation. As retailers invest in mpos and simultaneously scale back their deployment of fixed POS terminals, mpos inevitably becomes mission-critical. Retailers considering an mpos architecture that relies on back-office systems deployed in the cloud or that resides at a head office rather than in-store will have reservations about the consequences of a store connectivity failure. Although 4G cellular networks can provide backup connectivity, these services are not infallible. Subsequently, CIOs will mandate that mpos solutions be able to capture transactions during times when the store may be offline. Back-office integration solutions. As retailers seek to make their mpos a central hub for commerce and customer experience, integrations into multiple back-office systems can take from six to 12 months. To reduce the time-to-market, tackling the list of integrations in phases will allow for rapid deployment within an overarching integration road map. But use caution here, as incomplete solutions that create negative experiences for the associate or customer can be worse than not implementing a solution at all. The business case. mpos is still early in its adoption, and business objectives are unclear. Despite a large number of retailers indicating they plan on implementing an mpos solution, adoption is in early stages and most vendors can point to only a handful of production

Market Overview: Mobile Point Of Service Solutions For Retail 11 implementations. Since these deployments are relatively new, realizing a significant return on investment is challenging, given that the business objectives are often unclear and the technology and operations are still being adjusted for optimum performance (see Figure 4). Figure 3 Mobile Point Of Service Is Heavily Skewed Toward Consumer-Grade Devices If you are utilizing mobile point of sale (POS), which devices are you using in your stores? ipad 43% ipod touch 26% iphone 17% Android tablet device 4% Android smartphone 4% Other tablet device 35% Other handheld/smartphone 4% 101821 Base: 24 retail IT executives who have implemented or are piloting mobile POS (multiple responses accepted) Source: The State of Retailing Online 2012, a Shop.org research survey conducted by Forrester Research Source: Forrester Research, Inc.

Market Overview: Mobile Point Of Service Solutions For Retail 12 Figure 4 Business Objectives For Mobile Initiatives Are Unclear What are your company s greatest (top five) internal challenges to successfully deploying and managing smartphone and tablet device initiatives? Business objectives for mobile initiatives are unclear Lack of experience in other areas (e.g., design for a smartphone versus a tablet format) Staying up to date on market/customer needs and uses for mobile Working with third parties (e.g., vendors) on mobile initiatives is difficult Obtaining adequate budget for mobile initiatives, including staff Staying up to date on mobile development innovations Finding and hiring IT staff with strong mobile expertise and experience Tight time frames for development, deployment, and ongoing updates Unclear prioritization for enhancements and updates requested by other groups Frequency of platform upgrades requiring app and mobile site enhancements Requirements for app store approval and compliance 10% 40% 36% 36% 36% 31% 31% 31% 29% 24% 60% None of the above 2% 101821 Base: 55 retail IT executives (multiple responses accepted) Source: The State of Retailing Online 2012, a Shop.org research survey conducted by Forrester Research Source: Forrester Research, Inc.

Market Overview: Mobile Point Of Service Solutions For Retail 13 Recommendations THINK STRATEGICALLY ABOUT YOUR NEEDS; THEN QUICKLY EXECUTE AND LEARN Mobile commerce solutions within the retail store are rapidly evolving, with many retailers aggressively pursuing mpos. An enormous amount of knowledge and insight will be generated over the next few years, including a better understanding of the return on investment of mpos. The store leadership team has an opportunity to elevate the store experience through the use of mpos devices. As an ebusiness leader moving forward with an mpos selection process, you should: Ensure your mpos solution meets core needs. Tailor your mpos integration to the needs of your customers and associates while leveraging the strengths of your business model. One-size mpos does not fit all, and strategically creating a solution that exceeds your customers needs while bolstering your existing business model will yield the best results. Expose your data in a scalable way. mpos will improve customer engagement by combining the benefits of a physical interaction with the robust data of the digital experience if data is exposed correctly. Customer, product, promotion, and inventory information made available to both the store associate and the customer will enable the vision of a connected customer. Focus on simplifying tasks first. Deploy initiatives that create efficiencies in store operations first, and then focus on developing strategies and solutions that bolster the customer experience. Today, measurable ROI is easier to define through store efficiencies than through improvements in customer experience. Test and learn, just like your competition. Our data shows a rapid adoption of mpos. Early adopters are learning lessons they will need when mpos and mcommerce sales reach elevated levels and hit mainstream status. SUPPLEMENTAL MATERIAL Methodology Shop.org and Forrester Research annually execute an annual study with online retailers regarding key metrics and areas of focus; this year s study focused entirely on mobile commerce and mobile retail execution. Two surveys were fielded in the late spring and early summer of 2012 and targeted retail loss prevention executives and retail CIOs.

Market Overview: Mobile Point Of Service Solutions For Retail 14 The Shop.org/Forrester mobile surveys resulted in 43 and 82 complete and partial responses from retail CIOs and loss prevention executives, respectively, across a variety of industries, including apparel, footwear, general merchandise, home furnishings, and personal care. Eighty-three percent of the retail CIOs were from multichannel retailers (more than 50% of sales are through stores), and 60% were from retailers with more than 200 stores. Ninety-one percent of the loss prevention executives were from multichannel retailers, and 71% were from retailers with more than 200 stores. Companies Interviewed For This Report CrossView Epicor Software Four US omnichannel retailers Fujitsu GlobalBay NetSuite Oracle SAP Starmount Toshiba Global Commerce Solutions Micros Endnotes 1 Source: NRF Retail Loss Prevention Survey 2012. 2 Source: NRF Retail Loss Prevention Survey 2012. 3 Source: Forrester Research Mobile Commerce Forecast, 2012 To 2017 (US). 4 Source: Forrester Research Mobile Payments Forecast, 2012 To 2017 (US). 5 For more information on mobile development approaches, including native apps versus hybrid containers, see the May 6, 2013, Choose The Right Mobile Development Solutions For Your Organization report.

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