How to implement omnichannel architecture

Retail Transformation for CIOs: How to Build Architecture to Support Omnichannel Services

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Ismael Ciordia

Chief Techonology Officer @ Openbravo

▪ Openbravo Co-founder

Today’s Presenters

Xavier Places

Product Marketing Director @ Openbravo

Salil Godika

Chief Strategy Officer @ Happiest Minds

▪ Happiest Minds Co-founder

▪ Retail Industry Group Head

! Challenges ! How to build architecture ! Insights from Happiest Minds Survey Report

of US Retailers ! Action plan and Key Takeaways ! Q&A

Agenda and Goals

Speed

Convenience

Personalization

© 2015 Openbravo Inc. All Rights Reserved

… makes retailers live in the

“L World”

Lack of Vision and Strategy…

! Single View of Customer ! Single View of Product ! Channel-agnostic Order Management ! Superb In-store Shopping Experience ! Enhanced Web and Mobile Shopping Experience ! Real-time Insights ! Scalabiltiy and Flexibility to Accommodate Future Needs

Key Business Goals for the Architecture

Key Architecture Differentiators

Search

Buy

Fulfil

Deliver

Pay

Return

! A service oriented architecture for easier introduction and deployment of new services and higher granularity for decoupling the different shopping steps

! Focus on channel integration standardization for rapid introduction of new channels

! Highly interoperable for rapid integration with multiple back ends and external systems

! Mobile-enabled and Cloud-ready for higher business agility and scalability

Services Layer

A Layered Architecture that adheres to SOA principles

Omnichannel Services including:

! Foundational services like security or loggin ! Services for new channel UI creation ! Business Services like Customer account information, Customer purchase history, Product reviews, In-store stock visibility, Payment… ! Services Orchestration to support cross-channel scenarios like:

! Buy Online – Pick-up in the Store ! Buy Online – Home Delivery ! Buy Online – Return in the Store ! Reserve Online – Pick-up in the Store ! Store fulfilment

Third Party Integration Services that standardise integration with external systems like 3PL,external loyalty platforms…

Assisted and Unassisted channels:

! Store ! Website ! Mobile application ! Kiosks

! Call Center ! Social ! Price comparison sites Channels

Omnichannel Services

Corporate Business Applications

HTTP(S), REST, SOAP

Third

Pa

rty

Inte

gra

tion

Se

rvic

es

Business Logic Layer

Data Persistency Layer

Front End Layer

Data

Third

Pa

rty

Syst

em

s H

TTP

(S),

RE

ST,

SO

AP Services Orchestration

+ Processes, Governance, Policies, Standards, Tools

Master Data Set for Consistency Across Channels

Customer Data Product Data

Pricing and Promotions

Data

! Build a single central repository with all customer data and interaction across channels

! Build a single central repository for managing, structuring and displaying product information consistently across all channels

! Build a single central repository for managing, pricing, offers and promotion information

! Define processes, governance, policies, standards and tools that work together to ensure data quality Services Layer

Channels



HTTP(S), REST, SOAP

Third

Pa

rty

Inte

gra

tion

Se

rvic

es



Front End Layer

Data

Third

Pa

rty

Syst

em

s H

TTP

(S),

RE

ST,

SO


Flexible Fulfillment for Ultimate Customer Convenience

Order Management

System

! Provide real-time stock availability across all channels

! Support definition of business rules for flexible fulfillment strategies, including minimize shipments, prioritize stockroom locations, ship from closest store or ship from location with highest availability

! Support cross-channel scenarios, including returns

! Enable store fulfilment

Services Layer

Channels



HTTP(S), REST, SOAP

Third

Pa

rty

Inte

gra

tion

Se

rvic

es



Front End Layer

Data

Third

Pa

rty

Syst

em

s H

TTP

(S),

RE

ST,

SO


Mobile POS for Superb In-Store Shopping Experience

! A responsive design web solution or a device-dependant application according to business needs

! Assisted sale and inventory visibility capabilities to influence customer decision everywhere in the store

! Support for offline operations

! Open to integrate technologies like mobile payments or localization technologies (RFID, beacons)

! Very easy to integrate POS to become a single repository of data from multiple in-store data sources

Services Layer

Channels



HTTP(S), REST, SOAP

Third

Pa

rty

Inte

gra

tion

Se

rvic

es



Front End Layer

Data

Third

Pa

rty

Syst

em

s H

TTP

(S),

RE

ST,

SO


Easy Search and Buy for Better Online Experience

Provide “frictionless” online experience

! Mobilized website ! Show and filter by store stock visibility ! Show product catalog navigation (images, video…) ! Show product reviews and allow to enter reviews ! Ensure cart persistency across devices (start in mobile and recover it later from desktop) ! Integrate payments ! Offer different check-out options

Services Layer

Channels



HTTP(S), REST, SOAP

Third

Pa

rty

Inte

gra

tion

Se

rvic

es



Front End Layer

Data

Third

Pa

rty

Syst

em

s H

TTP

(S),

RE

ST,

SO


Consolidated Reporting for Higher Performance Visibility

! Consolidate multiple channel into a single repository that can be drilled down into

! Embed analytics into business applications for faster adoption

! Evaluate mobile analytics

Analytical Data

Services Layer

Channels



HTTP(S), REST, SOAP

Third

Pa

rty

Inte

gra

tion

Se

rvic

es



Front End Layer

Data

Third

Pa

rty

Syst

em

s H

TTP

(S),

RE

ST,

SO


Data sources

Backoffice Client

15

Front end Layer

Services Layer

Business Layer

Persistence Layer

Action Handlers

Datasource Services

Web Services JSON / XML

Data Access Components

Data Agents

Business Components

Business Workflows

Business Entities

Cross-cutting infrastructure layers

Sec

urit

y

Op

era

tion

al M

an

ag

em

en

t

Co

mm

un

ica

tion

s a

nd

Me

ssa

gin

g

POS Client

Hardware Manager

Channel Service

Openbravo Commerce Suite Layered Architecture

16

Cloud-ready Mobile-enabled Interoperable Orchestrated Truly Modular

▪ Lower costs and achieve higher agility enabling you to run lean on your IT investment.

▪ Gain full freedom to move from Cloud to On-Premise and the other way around as required for your business.

▪ Gain full freedom to select the devices of your choice thanks to a responsive mobile web technology.

▪ Ensure uninterrupted operations thanks to strong offline support.

▪ Integrate easily to leverage previous IT investments or ensure adoption of future technologies and channels.

▪ Leverage existing integration modules like with Magento, Prestashop, SugarCRM and others.

▪ Build on top of an OMS foundation, a must for an unified commerce strategy.

▪ Leverage embedded Business Process Management engine and capacity to define customizable business rules.

▪ Leverage embedded analytics to analyze data from various sources in one single repository.

▪ Gain actionable insights that help automate processes, predict behavior, deliver insights to the right person at the right time.

▪ Easier to adapt and extend. Smoother updates and upgrades with an integrated Module Management Console.

▪ Enable more focus on differentiation and innovation and experiment with confidence.

Informative

Ready to Deliver Omnichannel Services

Leading French Home Furnishings

Retailer

And Already Adopted by Leading Retailers. 3 of Them.

! € 8.2bn in 2014 turnover and 900 stores in 22 countries

! Full Store solution ! Online channel integration

Enhanced shopping experiences with mobile POS to progress in India expansion

and omnichannel strategy.

! Part of Groupe Adeo ! #1 in European DYI retail

with €15bn+ turnover ! Complete integration of all

retail channels for sales growth acceleration

! Support for cross-channel

A new multichannel architecture with a fully operational OMS up and running in 3

months with single view of clients across channels.

! Full store solution ! 300 stores ! 4.000 POS ! +300.000 SKUs ! € 2bn+ turnover

A new store solution for full control of store operations, enhanced shopping experience

and higher fulfillment flexibility.

Key Insights from the Report

retailers have an Omnichannel strategy; But only a fraction have a dedicated senior executive driving it

64%

Insights from Happiest Minds Survey Report of US Retailers

Provide order online pick up in store

<25% offer flexible fulfilment -pick up from store/ ship from store leveraging store network

44%


retailers enable customers to engage across stores, kiosks, web, mobile, social, call center

38%

Deliver a perfect Order 70%

Accept returns seamlessly across ordering channels

57%

Do not offer flexible / more complex fulfillment choices

>75%


Do not have Customer 360 which is core to Omnichannel Personalization

56% Insights from Happiest Minds Survey Report of US Retailers

Provide ‘do not have to repeat’ myself experience, which is a true epitome of what a customer 360 view can enable in a customer service context

16%

Have ‘Save a Sale’ capability – translates to lack of single view of enterprise entities like customer, inventory, product for on-the-floor store associates

15% Insights from Happiest Minds Survey Report of US Retailers

Have KPI/ Incentive structure that allows Omnichannel Attribution for initiatives that cross-over channels (like in store pickup, in-store ordering for home delivery etc.)

18%

Have clearly identified IT security initiatives that are central to Omnichannel strategy

43%


Key IT Investment Areas for Omnichannel Retailers

© Happiest Minds Technologies, 2015


• Omnichannel fulfillment through click and collect enablement for a US retailer

• eCommerce enablement for a large cash and carry retailer • Geo-fencing and i-beacon based communication for a global

clothing retailer • Product recommendation system for a US apparel retailer • Enhanced store associate engagement using gamified BI for a US

retailer

• Personalized recommendation using big data analytics for a leading home improvement retailer

• Integrated retail and cinema platform for a leading European chain • Consumer engagement application for a US toy retailer • 24/7 monitoring SOC services for a gaming enterprise in US • Penetration testing, Vulnerability management, Secure SDLC and

PCIDSS preparedness for an online player

Happiest Minds Retail Our Retail Industry Offerings : Focused around Digital Transformation Mandate

Security and Infrastructure Transformation

Retail Success Stories

Domain

In Store Transforma.on

Omnichannel / eCommerce

transforma.on

Customer Insights & Marke.ng Automa.on

• Customer Experience in Store • Omnichannel experience:

Integrated Promotions and Recommendations

• Associate Enablement and Productivity

• Convergence of e-Commerce, M-Commerce and Store Ordering

• Omni-Channel Customer 360 • Omni-Channel Customer

Feedback • Omnichannel Maturity

Assessment, Strategy and Roadmap

• Customer Segmentation • Campaign and Marketing

Analytics • Personalized Recommendation • Big Data Ingestion and Data

Science as Technology offering

• PoS Security • BYoD and Mobility Security • IT in a box

• Network, Web and App Security • Assessment – Security, Compliance

• Analytics Security i.e. Securing your Analytics platform

• Data Security (PCI 3.0)

Key Takeaways ! Omnichannel has come of age;

Perfect Storm has landed

! Leadership Commitment is crucial

! Stores remain nerve-center

! Big Data and Advanced Analytics – bedrock of Personalization Strategies

! Foundational Capabilities are a must – single view of customer, product, inventory, orders

! Security cannot be an afterthought

How to Start?

Do an Omnichannel

Business Readiness and Architecture Assessment

Web: www.openbravo.com/contact www.happiestminds.com/enquiryform

Email: [email protected] [email protected]

Thank you very much for your attention