Smarter Retailing

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Smarter Retailing

• Dilip Popat
• Managing Director, EMEA Retail Industry

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Agenda

• Retail Challenges
• Smarter Retailing Initiative and Next Steps
• Why Microsoft?
• Approach to Realizing Smarter Retailing
• Customer Evidence 
• Conclusion

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Todays Retail Enterprises Face Complex
Challenges
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IT Expectations Do More With Less
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Microsoft In Retail
Our Top 5 Priorities
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Microsofts Enterprise Strategy
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Microsoft Smarter Retailing InitiativeThe
Vision, Strategy And Blueprint For Enabling The
Next Generation Of Retail Innovation
Blueprint
Strategy
Smarter Shopping
Vision
We will facilitate integrated innovation at the
edges of the retail enterprise and enable
enterprise retail solutions that allow our
customers to be agile in an ever-changing
landscape
Enable retailers to fundamentally change the
rules of the game through visionary technology
leadership
Smarter Selling
Smarter Operations
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This New Model Has Significant Implications For
The Customer, The Retailer, And For The Use Of
Technology
Exchange of value Customer provides personal
information to a retailer in exchange for
enhanced service
Informed shopping Customers have the
information on hand to make informed, educated
decisions
Customer-controlled shopping experience
Customer defines the shopping experience
(low/high touch, in/out, info gathering,
collaborative). Retailer is attuned to the
desired experience and responds accordingly
Illustrative Customer Implications
Illustrative Retailer Implications
Information-enabled associates Available
customer and product information at time of need
to help achieve the goal. The associate is the
conduit of information versus the knowledge source
Contextual information Retailer provides
content that enhances and differentiates the
experience in the store. (i.e. interactive
displays, kiosks)
Process impact New business processes will
emerge that shift the activities of store
operations personnel towards anticipating and
reacting to business events
Content management In- store wireless
solutions will need to deliver product and
related context information on demand to any
device on the store floor
Shift from batch to real-time Retailers will
use technology to sense the environment, analyze
information, generate insight, and enable
reaction in real-time
Cross-channel profile engine Identify,
retrieve, and make available relevant customer
profile and product information from disparate
data sources across the enterprise
Illustrative Technology Implications
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Microsoft provides consumer-centric,
store-centric, and enterprise-centric retail
solutions using a common integrated platform.
Consumers
Supply Chain
Store
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Connecting Consumer Interaction And
Decision-making With Enterprise Information And
Capabilities
Smarter Selling
Smarter Operations
Smarter Shopping
Store Inventory Management Services
In-Store Promotion Services
Store Labor Management Services
Store Management Services
Reports and Metrics Services
Customer Interaction Services
Sales Services
Channel Coordination Services
Store Experience Services
Customer Insight Services Data and Tech
Management Services Analytic Services
Real Time Services Location Services
Central Office Integration Services
Information
Execution
Infrastructure
Legacy
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Establishing The Base Will Enable Future
Innovations That Drive Value With Reduced Net
Incremental Spend
Solutions for the Future

• RFID Consumer Experience
• Completely Wireless

• Customer Identification
• Targeted Selling
• RFID Shrink, Out of Stock
• True Multi-Channel Capabilities
• High-speed Access
• Multimedia Approach

• Kiosk
• Wireless Access Points
• Business Intelligence
• CRM
• Self Checkout
• RFID Operational Efficiency
• Associate Devices
• Appliance Devices

• Standards Adoption
• Integration Across Disparate Applications
• Real-time Retailing
• Persistent store connections
• XP Embedded/WEPOS
• CE.NET
• SQL Server
• Windows Server 2003/XP Pro

Smarter Shopping
Smarter Selling
Integrated Innovation Future
Integrated Innovation Phase II

Integrated Innovation Phase I
Base Infrastructure
Smarter Operations
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EMEA Customer Advisory Board Members
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The main industry issues are driving Microsofts
Retail strategy

• Operational excellence
• Real-time customer relevant information
• Implement Point of Service concepts
• Fully integrated multi-channel

Industry Issues
Improving Customer service and multi-channel
strategy

• Real time process oriented
• Highly dependent on high value consulting to
  improve efficiency
• Demand driven inventory management

Improve supply chain / maximize inventory
productivity

• Global integration of supply chain
• Use of emerging RFID technology

Integration across the supply chain with vendors

• Ability to provide employees with smart tools
  to improve product knowledge
• Easy to use / workflow based systems

Employee recruitment and retention

• Ability to deliver consistently across the world
• Integration of multiple formats and systems
  across the world
• Need to differentiate
• Provide agility to implement new business
  applications faster

Industry Consolidation and Global Expansion
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...and driving Microsofts FY06 priorities
Industry Issues
Microsoft Priorities
Point of Service
Improving Customer service and multi-channel
strategy
Multi-channel Retail
Improve supply chain / maximize inventory
productivity
Supply Chain Management
Integration across the supply chain with vendors
Employee recruitment and retention
Enterprise Collaboration
Industry Consolidation and Global Expansion
Business Intelligence
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Next Big Bets in Smarter Retailing
Point of Service
Supply Chain Management
Enterprise Collaboration
Business Intelligence
Multi-channel Retail
Base Architecture
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Vision to Execution
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Executing On The Smarter Retailing Initiative
System Integrators
Consumers
Integrated Innovation
Retail Enterprise
Corporate
Stores
ISVs and OEMs
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Getting close to our PartnersEMEA Retail Partner
Advisory Board Members
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Customer Success

• Access and analyze real-time POS data
• Over 50 more fraud cases detected

• Windows XP embedded on 28000 POS Lanes

• Multi-channel integration using Windows XP
  Mediacenter
• Easy shopping using the remote control

• Music Download service on a end to end MS Platform

• Build and manage central data warehouse
• For the first time were actually on top of the
  business

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• Its ultimately all about an agile, competitive,
  seamless and knowledge-based Retail enterprise
  with
• Better connections to and deeper relationships
  with customers
• More empowerment of employees
• Tighter integration with business partners
• Microsoft has the Retail vision and solutions to
  
• Allow Retailers to innovate where it really
  matters
• Maximize IT value to address the needs of
  customers
• Implement best-in-class solutions, along with our
  business Partners

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www.microsoft.com/smartretail