Building the Future of Intelligent Retail
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Toni Townes-Whitley, CVP, Microsoft Industry
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Building the Future of Intelligent Retail
- 1. Building the future of intelligent retail Toni Townes-Whitley CVP, Microsoft Industry
- 2. The mindset to lead through Digital Transformation
- 3. Our opportunity in retail “A mere 20% of respondents are studying the mobile customer journey.” of leaders responsible for digital transformation cite evolving customer behaviors and preferences as primary catalyst.” 55%“When asked about the biggest strategic/growth benefits of AI, 57% … expect that AI will help improve customer experience and support.“ “By 2020, 100 million consumers will shop in augmented reality.” “Retail is at the epicentre of disruption…. Examples are emerging today, but they’ll be mainstream tomorrow, and they’re fundamentally shifting your customers’ expectations.” “ Sources: Forrester, Gartner, Altimeter
- 4. Our opportunity across industries By the year 2020, 1.7 megabytes of new information created every second for every human being on the planet. –Forbes At the moment less than 0.5% of all data is ever analyzed and used. –MIT Technology Review
- 5. Transform products Modern workplace Business applications Applications & infrastructure Data & AI Empower employees Optimize operations Engage customers
- 6. Transform products Modern workplace Business applications Applications & infrastructure Data & AI Empower employees Optimize operations Engage customers
- 7. Carlsberg
- 8. Transform products Modern workplace Business applications Applications & infrastructure Data & AI Empower employees Optimize operations Engage customers
- 9. ASOS
- 10. The case for Digital Transformation 1.8X
- 11. Digital feedback loop Better products drive more adoption and consumption More consumption generates signal to improve products Better product More consumption
- 12. Netflix’s feedback loop ASOS revenue growth Traditional network average Netflix Move to Azure 25% year over year revenue growth
- 13. A culture of transformation
- 14. “What I realize more than ever now is that my job is curation of our culture. If you don't focus on creating a culture that allows people to do their best work, then you’ve created nothing.” Satya Nadella, USA Today March 2017
- 15. Culture eats strategy for breakfast Peter Drucker
- 18. Growth mindset Where we landed
- 19. “Mindset change is not about picking up a few pointers here and there. It's about seeing things in a new way.” Carol Dweck, Mindset: The Psychology of Success
- 20. Diverse and inclusive Where we landed
- 22. Making a difference Where we landed
- 23. Inclusive technology must extend to the more than people around the world with disabilities 1 BILLION
- 25. 53% 2020 total global population connected to the internet in
- 28. Transform products Modern workplace Business applications Applications & infrastructure Data & AI Empower employees Optimize operations Engage customers
- 29. Luxottica
- 30. Roberto Corradini CTO, Luxottica Robert Jozic Director BI & Analytics, SITOS Schwarz Gruppe Mirko Saul Head of Customers Systems Lidl Stiftung & Co.
- 31. Transform products Modern workplace Business applications Applications & infrastructure Data & AI Empower employees Optimize operations Engage customers
- 32. Schwarz-Gruppe
Editor's Notes
- CARLSBERG June 2017 Carlsberg Group is one of the leading brewing companies worldwide, distributing beer across 150 markets. To get a “fuller 360-degree view” of their customers, the company uses Azure both as a traditional data center and an “innovation platform” for the artificial intelligence it provides, says Etienne Dock, Carlsberg CTO vice president. “We are analyzing what we call ‘the moment of truth,’” Dock says in a video. That means the company wants to know exactly when and how customers decide to drink a beer, so it can “influence that decision at the right time, with the right device, in the right channel.” From <https://blogs.microsoft.com/firehose/2017/06/26/how-carlsberg-group-hops-to-it-with-azure-to-learn-more-about-its-beer-customers/> January 2017 https://blogs.microsoft.com/transform/video/brewing-a-new-age-carlsberg-taps-technology-to-modernize-a-centuries-old-company/ Brewing superb beer requires a medley of subtle ingredients, a careful concoction that eventually fills your glass with golden goodness. Malted barley melds with hops. Then yeast joins the party. Finally, fermentation and filtration fuse the flavors. In a word, collaboration. That harmonious process fueled the research of J.C. Jacobsen, founder of Carlsberg, who tapped science to blend and brew his first batches of lager nearly 175 years ago in Copenhagen. Today, Carlsberg Group is using collaboration on a global scale to quench the thirst of consumers, cater to customers and transform employee interactions. Once a big brand with a small corporate footprint, Carlsberg became the world’s fourth-largest brewery during the past 20 years as it acquired other beer makers, including Kronenbourg. Carlsberg Group now manages 140 beer brands worldwide. However, integrating all of those breweries marked a new business challenge: merging dozens of IT platforms. “We needed everybody to start working together,” said Anders Munck, enterprise architect at Carlsberg Group. “We started this journey changing how people collaborate in this business. That was an initial conversation with Microsoft.” Soon, Carlsberg Group decided to move to Microsoft Office 365, a cloud-based collective of Microsoft Office services. That unleashed a digital transformation across the company, and a crucial pillar of that shift involves business to consumers, said Etienne Dock, chief technology officer at Carlsberg Group. “We are living in a new age. Our consumers are changing the way they want to interact with our brands,” Dock said. “When they come to buy and consume our brands, they need to feel that they have the same kind of experience.” This is truly a merger of the ancient and the now, of tradition and technology. In 1128, monks mashed barley and selected hops to create a beer now sold by Carlsberg as Grimbergen Abbey. Nine centuries later, Carlsberg is using tools, including Azure, to create “the connected bar,” where patrons enter a tavern, are instantly recognized by their consumer data and – based on what’s known about their individual tastes – learn about to the latest beer promotions. The digital evolution also extends across the company. Carlsberg Group spans 40,000 employees in 27 countries. Those employees are equipped with Office 365, using the same cloud productivity services to strip away geographical barriers that could otherwise slow teamwork. Increased mobility among employees allows them to work together to build a brand that’s global, yet caters to local tastes. The company is also in the midst of deploying Windows 10, investing in Surface and exploring Windows Hub. Indeed, the transformation is all about what’s flowing from the taps and pouring from the bottles. “There is a physical relationship between a consumer and the beer,” Dock said. “The whole idea of this physical experience starts way before — in the digital world.” December 2017 Carlsberg and Microsoft Tired of Waiting for Beer Here’s a little-known fact to quench your thirst for beer knowledge: One of the reasons it takes so long to develop new beers is because brewers have to rely on actual humans–and techniques like chromatography and spectrometry–to test liquids and detect flavors and aromas. Carlsberg thinks it’s found a better way. With help from researchers at Aarhus University, the Danish beer-maker has developed sensors that are able to detect differences between beer flavors, the Financial Times reports. Now, the company is teaming up with Microsoft to help interpret that data via artificial intelligence and streamline the lengthy beer-making process. It’s all with aim of reducing the time it takes to develop new brews–estimated to be anywhere from eight to 24 months–by about 30%. Per the FT, Carlsberg’s three-month “beer fingerprinting project,” as it’s called, will kick off in January, with Carlsberg hoping to eventually bring a commercial product to market. The company is spending about $4 million on the effort, with the government-backed Innovation Fund Denmark putting in another $2.8 million. From <https://www.fastcompany.com/40512112/carlsberg-and-microsoft-are-tired-of-waiting-for-beer>
- Founded almost two decades ago, ASOS was ahead of its time establishing a fully-online retail presence. The company has a growing customer base of 14 million customers, spanning 230 countries worldwide. Their exponential growth resulted in the need to move beyond a single currency and support multiple languages. This meant building in more agility, scale and efficiency into their tech architecture. Rather than perform a lift and shift migration, the team decided to adopt a cloud-native, microservices architecture from scratch for faster iteration and release of new features. Then they set to work breaking down their monolithic retail app which comprised stateful, intertwined services into core microservices, swapping out functions from the monolith piece-by-piece. As Dave Green explains, core to their approach was the decoupling of their presentation layer from their compute layer. This gave them more freedom to easily add or change features and scale their developer teams to work on multiple features at once. Further, as each service maintains its own state and data, this made it easier to scale the data layer and compute layer independently. Breaking down the monolith and moving core services to the Cloud also enabled them to architect for greater performance and resiliency for their global customer base. This included geo-redundancy across North and West EU regions, where most of their customers reside with a handful of core services sensitive to latency, running in Asian and North American regions. The combined approach with Cloud microservices, paid off on some of their busiest shopping days. This includes Black Friday, where they saw an increase in peak order handling from 9 orders per second using their original monolith retail system to 33 orders per seconds with their Cloud microservices architected system. More in this article in Forbes: https://www.forbes.com/sites/tonybradley/2017/02/24/asos-streamlines-fashion-with-microsoft-azure/#2394103a358f
- Netflix has used its rich customer data to create exclusive hit content, driving more differentiation and better customer satisfaction
- Ultimately, the culture transformation we’re undergoing may well be the most important legacy we leave for the next generation of employees, customers and shareholders of the company. Because it’s that culture that will feed and fuel everything we do in the future. Thank you for your interest. I’m happy to take any questions you might have.
- Peter Drucker once said culture eats strategy for breakfast. We need to know why we do what we do, who are. If we look at these in order of priorities, our culture, taking care of our planet, profits become the outer ring. They are the end result of putting the other two things first. We also know that Companies that have a purposeful mission and are value driven out perform their counterparts by a factor of 12. 73% of employees who work at companies with purposeful missions report being very engaged Listen to how Satya recently described the “centrifugal force” that is our culture…CLICK TO NEXT SLIDE. Simply put, our culture fuels our ambitions as a company. Peter Drucker once said that “culture eats strategy for breakfast.” We need to know why we do, what we do, and who we are. In order of priority is our culture, which leads to taking care of our people and the planet. Profits become the outer ring, and come as a result of putting the other two first. We know that companies that have are value driven mission, perform better, with employees who are more engaged. The culture of a place is what defines the pursuit of excellence. You can look at a company and say “they are doing great things,” but you have to look underneath that and understand the culture, because that is what produces whatever you achieve in terms of greatness. There have to be enduring values at a company, but when it comes to culture, we are focused on developing a learning/living culture. We have anchored on the notion of the growth mindset. Our position should be that every day we will be better than the previous day, as individuals and as a company. That’s what we aspire to at Microsoft.
- So is our culture evolution a top-down affair, or bottom up? Well, as it turns out, it’s a little of both, plus some left to right and right to left, too. As you’ve seen, we started at the top with leader-led communications. But that is not really self-sustaining. We need to create a flywheel effect such that our culture is not dependent on a single person or group of people. Ultimately employees own culture. That’s when it’s real.
- After we took in all this information and data from a lot of different sources, we landed on what really mattered to us. Let’s dive a little deeper. We fundamentally believe that we need a culture founded in a growth mindset. It starts with a belief that everyone can grow and develop; that potential is nurtured, not predetermined; and that anyone can change their mindset. We need to be always learning and insatiably curious. We should try things out and not be afraid to fail. Then we identified three pillars that allow that growth mindset to flourish – and vice versa: obsessing over what matters to our customers; becoming a more diverse and inclusive company; and operating as one company instead of multiple siloed businesses. If we do all of that, then we have the opportunity to make a real difference in the lives of our employees, our customers and in the world around us.
- After we took in all this information and data from a lot of different sources, we landed on what really mattered to us. Let’s dive a little deeper. We fundamentally believe that we need a culture founded in a growth mindset. It starts with a belief that everyone can grow and develop; that potential is nurtured, not predetermined; and that anyone can change their mindset. We need to be always learning and insatiably curious. We should try things out and not be afraid to fail. Then we identified three pillars that allow that growth mindset to flourish – and vice versa: obsessing over what matters to our customers; becoming a more diverse and inclusive company; and operating as one company instead of multiple siloed businesses. If we do all of that, then we have the opportunity to make a real difference in the lives of our employees, our customers and in the world around us.
- One thing I want to come back to is this notion of “making a difference.” It comes in many shapes, colors, flavors and sizes. One of the best examples I can share with you of what I mean by this is by calling out a unique program we started last year to find and hire people with Autism, not just because it’s the right thing to do, but because it makes us a better company. The gentleman pictured here is Blake Adickman, who is on the Autism spectrum, and whom we hired last summer. Blake is one of about 30 people on the spectrum we have hired in the past year, and overcame significant challenges and odds to land his “dream job” here at Microsoft. We have made a difference in Blake’s life and that of his family, but without a doubt he and his fellow Autistic colleagues have made a far bigger impact on Microsoft than they could have ever imagined…
- After we took in all this information and data from a lot of different sources, we landed on what really mattered to us. Let’s dive a little deeper. We fundamentally believe that we need a culture founded in a growth mindset. It starts with a belief that everyone can grow and develop; that potential is nurtured, not predetermined; and that anyone can change their mindset. We need to be always learning and insatiably curious. We should try things out and not be afraid to fail. Then we identified three pillars that allow that growth mindset to flourish – and vice versa: obsessing over what matters to our customers; becoming a more diverse and inclusive company; and operating as one company instead of multiple siloed businesses. If we do all of that, then we have the opportunity to make a real difference in the lives of our employees, our customers and in the world around us.
- Computer and internet literacy, familiarity with productivity software, fluency using a wide range of digital devices – these are all essential workplace skills for anyone who hopes to thrive in the 21st century digital economy. For governments, expanding digital literacy can play a key role in promoting social and economic inclusion, improving public safety, increasing civic engagement, and expanding access to public-sector services. And for businesses, a workforce with strong computing skills is essential to building a successful cloud-enabled organization and the foundation for the creation of any innovation-driven industry.
- But there is also a third priority -- It's about Inclusion…. About making sure the benefits of cloud and other innovative technologies are universally accessible and equitably shared - —regardless of gender, abilities, location, or income—and that no one gets left behind. Less than 1/2 globally have an Internet connection <segue> Without intervention, the opportunities digital technology provides could be overshadowed by job losses, income inequality, and increased disadvantages – as data from WEF shows
- After we took in all this information and data from a lot of different sources, we landed on what really mattered to us. Let’s dive a little deeper. We fundamentally believe that we need a culture founded in a growth mindset. It starts with a belief that everyone can grow and develop; that potential is nurtured, not predetermined; and that anyone can change their mindset. We need to be always learning and insatiably curious. We should try things out and not be afraid to fail. Then we identified three pillars that allow that growth mindset to flourish – and vice versa: obsessing over what matters to our customers; becoming a more diverse and inclusive company; and operating as one company instead of multiple siloed businesses. If we do all of that, then we have the opportunity to make a real difference in the lives of our employees, our customers and in the world around us.
- After we took in all this information and data from a lot of different sources, we landed on what really mattered to us. Let’s dive a little deeper. We fundamentally believe that we need a culture founded in a growth mindset. It starts with a belief that everyone can grow and develop; that potential is nurtured, not predetermined; and that anyone can change their mindset. We need to be always learning and insatiably curious. We should try things out and not be afraid to fail. Then we identified three pillars that allow that growth mindset to flourish – and vice versa: obsessing over what matters to our customers; becoming a more diverse and inclusive company; and operating as one company instead of multiple siloed businesses. If we do all of that, then we have the opportunity to make a real difference in the lives of our employees, our customers and in the world around us.