EMPOWERING RETAIL & CONSUMER GOODS

Xenia Giese

Industry Solution Executive

Retail & Consumer Goods

Xenia.Giese@microsoft.com

Künstliche Intelligenz, Smart Stores

und das Internet der Dinge im

Handel

17.05.2018

Agenda

Our World – Digital Economies

Our Retail Approach – Industry Pillars & Solutions

Transformation in Retail with – Artificial Intelligence, Internet of Things and Smart

Stores

3

ENGAGE YOUR

CUSTOMERS

to provide relevant

service that

increases loyalty

EMPOWER YOUR

EMPLOYEES

to deliver

differentiated service

and maximize

growth

Embracing disruption is essential to sustaining a competitive advantage in retail

8

OPTIMIZE YOUR

OPERATIONS

to build an agile,

insight-driven

organization

TRANSFORM

YOUR PRODUCTS &

SERVICES

and create new ways

to deliver value

Our Focus Areas and Products

EMPOWER YOUR

EMPLOYEES

to deliver

differentiated

service

ENGAGE YOUR

CUSTOMERS

to deliver

differentiated service

OPTIMIZE YOUR

OPERATIONS

to evolve forecasting

and react faster

TRANSFORM

YOUR PRODUCTS

and deliver new value

to customers

Data & AI

Apps & infrastruct.

Business applications

Modern workplace

Microsoft 365 (Office 365, Windows

10, Enterprise Mobility + Security)

Dynamics 365 (Retail Operations, Sales, Customer Service, Marketing, Field Service, Talent, LinkedIn)

Azure (Azure IaaS, Azure Stack, Azure IoT Suite, Windows SQL Server, Azure Data

Services, Azure Security & Management, Visual Studio)

Azure (AI Compute, AI Frameworks, Advanced Machine Learning, Cognitive Services, Data Platform, Bot Framework,

SQL Server, Azure Data Warehouse, Azure Data Lake, Azure Cosmos DB, Power BI)

12

Smart Stores, AI und IoT im Handel

12Seamless Checkout

Amazon Go JD.com Alibaba Hema

Autonomous StoresBingo Box/ Auchan Moby/ Wheelys Alibaba Tao Cafe

Self ScanningSam‘s Club Albert Heijn Kroger

13

Whitepaper:Smart Store & IoT im Handel

13

• Whitepaper des EHI Retail Institutes und Microsoft

(erschienen März 2018)

• Warum ein Whitepaper?

• Klärung der Terminologie

• Feststellung des Ist-Zustandes

• Inspiration und Ausblick liefern

• Frühe Ergebnisse:

• Händler bringen IoT Technologie bisher nicht mit Smart Stores in Verbindung

• Term „Smart Store“ wird hauptsächlich assoziiert mit autonomen Filialen,

automatisiertem/ Seamless Checkout und v.A. Kunden-gerichteter Technologie

• Das Potential von IoT Technologie, um Backend-seitige Smart Store Prozesse

zu optimieren wird noch nicht ausgeschöpft

Whitepaper Download:

https://aka.ms/SmartStore

Amplifying human ingenuity with intelligent technology

Artificial

Intelli-

gence

Machine

Learning

Deep

Learning

Artificial Intelligence

15

Internet of Things

15

16

Komponenten eines Smart Stores

16

• Durch den Einsatz von „Internet of Things“ (IoT)-

Technologie werden Dinge „smart“.

• Ein „Smart Store“ ist eine Filiale, die durch IoT

befähigt oder „smarter“ wird.

• Artificial Intelligence (AI) ist dabei ein wesentlicher

Bestandteil zur Analyse der Daten und Prognose von

Maßnahmen.

18

Customer Smart Store & IoT Journey

18

In-StorePre-Store Post-Store

Retail App

PURCHASE

Boots $

BUY

CLICK &

COLLECTRetail App

20%OFF

NEW!

Blue

Green

White

INTERACTIVE

KIOSK

Retail App

Other

colors

available

ORDER PICKUP

Employee App

$

Retail App

$

$

$

TOTAL: $$$

Twitter

Love these

shoes!

#Retailer

19

Customer Smart Store & IoT Journey -References

19

In-StorePre-Store Post-Store

Retail App

PURCHASE

Boots $

BUY

CLICK &

COLLECTRetail App

20%OFF

NEW!

Blue

Green

White

INTERACTIVE

KIOSK

Retail App

Other

colors

available

ORDER PICKUP

Employee App

$

Retail App

$

$

$

TOTAL: $$$

Twitter

Love these

shoes!

#Retailer

➔Microsoft Innovations Day - Handel und Konsumgüter in neuem LichtMontag, 4. Juni, Microsoft Münchenwww.aka.ms/innovationsdaymit dabei: Aavamobile + implexis, Bing, Coureon, Instore Solutions, MAC-ITS, Mishipay, Myfavorito, Neal Analytics + Microsoft Services, Neuroflash, Orbis, PTC, Scanblue, Sitecore, Sys-Pro, TransparencyOne, Wunder.AI

➔Smart Store & IoT Whitepaperwww.aka.ms/SmartStore

➔Microsoft Retail & CG Innovations Newsletterxenia.giese@microsoft.com

➔Microsoft in Retail & CGLearn more on Retail Industry Website

Thank You - Danke!

‟

McDonald’s increases revenue with a cloud-based mobile solution

The company saw a huge increase in

customers, and those customers spent 47

percent more. It was all driven at the

device level.”

— Scott Bradley, CEO and founder,Plexure

Watch

L’Oréal delivers personalized beauty experiences globally through the cloud

Sitecore’s experience platform provides a

robust and scalable central framework for

all our brands, regions and countries.”

— Jean-Christophe Sautory, Chief Information Officer, L’Oréal S.A

‟

‟

JJ Food Service accelerates competitive advantage with IOT

You have to keep asking yourself what is

possible, what we can do next. With Azure

Machine Learning, the wow factor is huge.

Customers are amazed that we can

predict so accurately what they need.”

— Mushtaque Ahmed, COO,

JJ Food Service

Watch

Choose a background image that illustrates the

customer’s identity or industry. Use photography from

the customer’s media site, Microsoft brand

photography or licensed stock photography.

Complete the slide notes using the template outline

provided. Include a link to the published case study,

video or related blog article/news story. Optionally, link

to an available video on the slide itself.

Dixons Carphonehelps customers find what they want using Chatbots

“We turned to Microsoft to utilize its

technical expertise, software innovation

and unique bot proposition to develop a

bot tailored to the exact needs of our

customers.”

— Stuart Ramage , E-commerce Director at Dixons

Carphone

‟

MICROSOFT

SERVICES

Business Benefits

• Improved customer experience turning the dial on NPS

• Drive faster convergence on products by understanding the needs of the

customers based on the conversation with Cami

• Potential cross-sell opportunities by personalizing the experience using the

data from the conversational canvases

• Potential to improve sales conversion with customers feeling the

recommended products are meeting their needs versus the traditional sales

process

COOP Italia delivers great customer experiences

Supermarkets will still physically exist in

2050, but they will be transformed into

places where people will go not only to

shop, but also to meet other people and

find relevant information about the high-

quality products they’re looking for.”

— Gabriele Tubertini, CIO

Coop Italia

‟

Watch

Saturn Express Europe’s first checkout-free consumer electronics store

Watch

MediaMarktSaturn is leading by example for

every retailer in the world and puts customer

experience at the forefront of innovation. It’s

a clear path forward to step-up their in-store

journey by bringing the best of the online

checkout experience to the physical store,

using our Scan, Pay and Leave technology.”

— Mustafa Khanwala, CEO

MishiPay

‟

Kroger rolls out Kroger EDGE smart shelf to 200 stores

It's an exciting platform for a lot of future

innovation. For example, as customers

walk down the aisle, it will highlight the

next item for you to pick on your

shopping list.”

— Chris Hjelm, CIO

Kroger

‟

SteigenbergerHotel optimizes service processes with Smartwatch

Using the smartwatch we save several

hours within different operative service

units and can offer our guests more

efficient and better service.”

— Michael Weil, Hotel Manager Operations

Steigenberger Airport Hotel Frankfurt

‟

Watch

Floorsense camera-based customer analytics with smart employee alerts

Mindtree’s Flooresense is a Azure cloud

based intelligent, real-time

recommendation platform that connects

store associate with high potential,

anonymous shopper needing assistance.”

— Sudakhar Shivashankar, GM Product Development

Mindtree

‟

Watch

Products and Services Organization Size Industry Country Business Need

Macy’s uses AI-driven virtual agent to transform online and mobile customer service

Macy’s recognizes that shoppers are increasingly turning to online and mobile channels to browse for

merchandise and make purchases. To optimize the shopping experience, Macy’s enhanced its website with a

virtual agent based on the Microsoft Dynamics 365 AI solution for customer service. With deep connections

to back-end systems, the virtual agent can take action to solve customer issues and transfer customers

seamlessly to a live agent if necessary. The virtual agent is already answering more than one quarter of

customer queries and Macy’s plans to expand it to additional shopping channels.

Customer ServiceUnited StatesRetail140,000 employees

Microsoft Dynamics 365

Microsoft AI Solutions

Liebherr uses machine learning to turn refrigerators into smart appliances

Liebherr and Microsoft are actively

improving these technologies to turn the

newest generation of refrigerators into

smart appliances that don’t just cool your

food but interactively help you with your

food management.”

‟

Watch

Emaar uses Azure AD B2C to drive standardization and Authentication of customers across all assets

Microsoft Azure allows us acceleration,

speed, velocity, to use prepackaged API’s,

webservices, platforms to bring solutions

to market as quickly as possible.”

— Veresh Sita, Chief Digital Officer,

Emaar

‟

Watch

Choose a background image that illustrates the

customer’s identity or industry. Use photography from

the customer’s media site, Microsoft brand

photography or licensed stock photography.

Complete the slide notes using the template outline

provided. Include a link to the published case study,

video or related blog article/news story. Optionally, link

to an available video on the slide itself.