How to scale up a traditional ERP e-commerce portal to meet today Omni Channel demands

1. Omni channel retail solution for a traditional ERP system
Nikhilesh Mahakur; 2014.

2. Multi- channel to Omni - channel
The need of the hour?
Customers expect Omni-channel experiences today.
Customer shopping habits demand disruptive
technology enablers
An integrated channel experience would provide
flexibility
Scaling up existing Multi-channel framework for Omni-
channel commerce

3. BUSINESS
PROCESS
FEASIBILITY
SOLUTION
SCOPE
RECOMENDATIONS GTM PLAN
1. Detail existing
business process
2. Define new
business process
to be introduced
3. Impacts on
existing process
4. Operational
process
5. Business Impact,
known risks
6. Build business
case for ROI
1. System and
existing
architecture
2. Gap Analysis
3. Tool and product
assessment
4. Contracts and
licensing
assessment
5. Impacts and
Risks
1. Identify key
needs
2. Define scope of
solution and
architecture
3. As Is and To be
states
4. Dependencies,
Issues and Risks
1. Solution scope –
systems and
tools
2. **Cost
Estimations
3. ** Resource
profiles and
planning
1. Define timelines
2. Business process
changes
3. Training and
knowledge
transition
4. Construction,
design and
testing
5. Beta release
6. Risks and
mitigation
7. Digital marketing
campaign
8. Go-Live
** Cost estimates & Resource planning are not provided as a part of this proposal.
(A. Tools, licensing fees B. custom development C. Maintenance D. Resource costs E. Travel and Subsistence expenses F. Salary, contractor and
sub contractor Fees)
Solution approach

4. Business process definition
 Elicit detailed requirements
 Define BPA /As-Is and To Be processes, requirement specifications
 Impact analysis and Gap analysis required
 Understanding of operations and business processes to define new
processes for Omni-channels
 Business case to be created to justify the ROI
Feasibility analysis
 Feasibility study of the current framework for scalability
 Identify gaps and provide solutions for mitigation
 Identify need for tools and external solutions, review existing contracts and
licensing
 Risks and impacts – proposed framework

5. The “ As-Is” state : Multi-channel capabilities
ERP
system
HR
FINANCE
PROCUREMENT
DEMANTRA
DEMAND
PLANNING
INVENTORY
MANAGEMENT
WMS
SEIBEL CRM /
Loyalty
POS
POS
CART
WISHLIST

6. ERP as an option
 ERP software is more scalable with advanced processing capabilities.
Software designed for the industry can work for a one store retail
location and a multi store chain. As the one retail location begins to
multiply, most solutions can scale with the customer business and help
profitability.
 The e-commerce system has to have accurate, up-to-date product
choice, avail­ability and pricing information. That brings it into the
realms of ERP.
 Due to quicker and reliable ERP tools, retailers will continue to hold less
inventory in hand resulting in increased cash flow and profitability.
 Accurate information on the inventory available: specifically quantity
and location, is the critical building block of the “capability to promise”
an accurate delivery date.
 Minimal customization with custom built or pre existing integration
pipelines will help us address scope and interface with external systems
on a need basis.
 The existing ERP system adds value for us to scale up to address
Omnichannel needs

7. Scope of solution : “To-Be” the Omni-channel way
 Customer and loyalty
management across
channels
 Inventory visibility across
channels
 Order fulfillment across
channels
 Customer wish list and
purchase history across
channels
 Customer Analytics
 Promotions across channels
 Social Media (SMAC)
 Mobile solutions
Enhancement of existing ERP system and portal to provide Omni cannel
capabilities :

8. Recommendations :
Omnichannel Trends
 Omnichannel as the norm
 Rise of the mobile wallet
 Personalized in store experience and
personalization online
 Highly integrated technology in brick
and mortar stores
 Rise of mobile businesses
 Loyalty and beyond – reinvention
 Relationship marketing to drives sales
and marketing strategies
The pressures of consumerization continue to disrupt many enterprises, forcing them to
change their traditional business processes and operational models with a need for focus on –
 Personalization
 Enhanced customer service
 Big Data
 Digital business model
Customer
Stores
Associates
Ecommerce
Mobile
Commerce
External
touch points
Social
Commerce
Catalogs
Call Center
 Customers need for speed to grow
further in 2014
 Higher investment in big data and
customer analytics
 Privacy concerns to rise with big
data
 Impact of social media on product
decisions
 Continued growth in emerging
markets

9. UNIFIED BUSINESS LOGIC LAYER
CLIENT PRESENTATION LAYER
UNIFIED DATA LAYER
WISHLIST
PROCUREM
ENT
INVENTORYFINANCE
HR WMS
DEMAND
PLANNING
CARTPOS
CRM
UI COMPONENT
ORCHESTRATION
MODULE
SYSTEMS OF ENGAGEMENT
( PORTAL, BRICK & MORTAR, MOBILE
APP, TABLET, CALL CENTER)
REPORTING
DIGITAL
MARKETING /
CAMPAIGNS
Recommended architecture
ecommerce
Portal
Merchandisi
ng

10. The New Era of Customer Loyalty Management ~
Opportunities to Create Profitable Growth
Seibel CRM with Loyalty ( in-house capability)
Key wins :
 integrates well with SAP & ERP solutions
 custom development for scaling up to meet cross channel programs

11. Inventory visibility across channels
Most retailers currently offer or plan to offer, the following
services:
 Buy in-store, return to another store (72%);
 Buy online, pick up in-store (60%);
 Buy via mobile or web site in-store,
Key Findings:
Enterprise Resource Planning (ERP) software systems
continue to become more intelligent as they gather
more information in the warehouse via increased
barcode capabilities. As additional information is
collected and processed, systems are able to provide
retailers with more accurate projections and control of
items.
Retailers are focused on fulfillment execution: omni-
channel fulfillment was rated “very important” by
75% (a 27% increase since 2012)
Eighty percent of retailers say that 360° of inventory
visibility is “very important”
The perceived best opportunity for technology
enablement is in creating enterprise-wide visibility,
but “customer visibility”, “customer insights”, and “a
single customer interaction platform that crosses
channels”, also present huge opportunities.
 ship to home (59%);
 Buy via mobile /web site/in-store/pick up in-store (58%)
 Buy online, return to store (57%).

12. ERP merchandise replenishment processes have greatly improved the retailers
ability to have the right items in the warehouse and available for sale.
Cloud based WMS architecture and Inventory

13. Order fulfillment across channels
Sterling order management system
Key Wins :
 versatile- can handle all channels
 integrates well with Store POS, Online and
mobile channels
With Omni-channel excellence fast becoming a customer imperative, retailers and brands alike are
rushing to operationalize an increasingly complex set of cross-channel order processing and
fulfillment scenarios that are often referred to in aggregate as “buy anywhere, fulfill anywhere”.
52% of retail executives consider Omni-channel integration as a top technology investment
priority.

14. Customer wish list and purchase history
across channels  Existing system supports for web
 Leverage in-house capabilities across other
channels, based on feasibility
 or replace with use of MDM solutions IBM MDM
 Custom development using any db like mongodb
Key Wins :
 Outcome – Personalization & customer profiling
 Target customers with specific promo types based on
spend and shopping pattern

15. Customer Analytics
Omniture site catalyst
Key Wins :
 leader in web analytics and supports all
channels
 these can be used to gain deep insights on
guest behavior,
 they can be used to analyze the guest buying
patterns, lifts etc.
 In addition to this they can implement text
mining and sentiment analysis, market basket
etc for predictive analytics
 can also use tealeaf for the various channels.
 Existing Demantra demand management tool
will continue to be leveraged for forecasting
analytics and dashboard reports
ANALYTICS
ENGINE
ANALYTICS
SUPPORT
CATALOG
MGMT
CUSTOMER
MGMT
ORDER
MGMT
SEO WITH
GOOGLE
SITEMAP
SUPPORT
MARKETING
&
PROMOTIO
NAL TOOLS
WEBSITE
MANAGEME
NT

16. Promotions across channels
 Build a custom promotions engine or a management
center like tool, where all promotions can be setup
either at order level, category level, item level,
stacked etc.
 Capability for on-demand set up of campaigns
 Synchronized promotions across multiple channels
 Custom build engine interfacing with existing Seibel
CRM tool
 Achieving a holistic or what is often called a 360
degree view of each customer relationship is a
prerequisite to delivering personalized and consistent
communication which enhances the retailers brand
with every engagement.
 Using the existing CRM system data promotions and
campaigns can be aimed at customers and customer
segments.

17. Social Media (SMAC)
Facebook, Pinterest and Twitter interfaces (Gamification model)
 Cartwheel is a prime example use Gamification + Social media,
get notifications on your mobile or desktop
 Facebook for any offers, you have the choice to share this on your
time line or leave it, with each purchase you get incremental
points and move up the ladder (Gamification)
 Pinterest - use of rich pins is new in retail industry, the pin has
the price and specs and on clicking the pin you are taken to the
PDP page ( existing merchandising capability will support this).

18. Mobile Solutions
 ipad, ios and android apps,
 native cross platform apps
Key Wins :
 Advanced mobility adds even more customer value to the
shopping process, allowing shoppers to obtain instant access to
information about the products you sell, anywhere and at
anytime.
 Interact with your retail center through their mobile devices.
 Receive relevant offers based on proximity, presence,
preferences and behavior.
Mobility re-defines the shopping experience

20. Go to market plan
 Go Live Timelines and launch
 Peak season and product mix launch plans to
be defined
 Beta Release with an assortment of web only
items for specific stores
 Chain wide roll over of assortment selected for
beta release
 Leverage analytics data for sale statistics
 Training and advisory services with operations
and merchandising teams
 Incorporate learning's from Beta release for
iterations, fixes and value add
 Identify Key risks and propose mitigation
strategy
 Peak season / Launch readiness with a Digital
marketing plan
 Go Live!!
GTM
Strategy
Omni
Channel
Strategy
Improve
Customer
experience
Digital
Marketing
Drive
footprints
cross channel
Drive Sales
&
Increase
Profitability

21. References
 www.retailtouchpoints.com
 http://www.retailtouchpoints.com/retail-store-ops/2869-aligning-inventory-strategies-with-
omnichannel-demands
 www.rsrresearch.com
 Cloud-based WMS Providing Inventory Visibility across the Network (Source: Chainlink
Research)
 www.saleswrap.com
 http://marketing.mckinsey.com
 www.sloanreview.mit.edu
 www.kpmg.com/us/retailindustry
 www.vendhq.com/retail-trends-and-predictions
 www.newgistics.com
 www.latentview.com
 http://www.crmsearch.com
 www.quantumretail.com