@Iv_Rodriguez
Smart Retail: The Power of Technology
Ivan Rodriguez | BDM Smart Signage
6th April 2017

52%
OF COMPANIES WILL NOT EXIST IN
THEIR CURRENT FORM IN 2021
Fujitsu Digital Transformation Report (2017)

Netflix didn’t exist 10 years ago, but in 2016 has
closed with more than $8000M of turnover, and
is the largest provider of video content in the
world.
When companies ignore changes and do not
follow market trends, the result is
catastrophic. It happened to Blockbuster who
did not foresee how a disruptive agent could
wipe it from the map.
One way or another it will happen to us, and
it’s not good idea to wait for the disruption
come and react later.

RETAIL SITUATION
Retail and consumer industry PWC http://www.pwc.es/es/publicaciones/19-encuesta-mundial-ceos/assets/ceos-retail-y-consumo.pdf
45%About things that
will grow in 2017
52%Are concerned about
the pace of
technological change
58%Forced to reduce
social and
environmental
impact 62%Concerned about
the complex supply
chain
Looking at this survey of retail
concerns, it is surprising to see
that only 22% are concerned
about the security of personal
data.

EXECS RECOGNIZE THE CHANGE
Retail Forum 2017 http://www.retail360.es/retail-forum-2017-en-madrid/
"I want us to stop talking about digital and
physical retail as if they're two separate
things. The customer doesn't think of it that
way, and we can't either“
CEO Doug McMillon | Wallmart
“We want to bring technology to life in the
store […] We know what’s in the aisle and
what the mobile shopper has told us and fuse
all that data”
CIO Chris Hjelm | Kroger
“Connect the digital & physical and provide a
unified, trusted customer experience from
the Tesco stores to the customers’ homes”
CTO Edmond Mesrobian | Tesco
“The more we can make our stores as
interesting as our online experiences, the
more we are going to benefit in the future.”
CEO Terry Lundgren | Macys

CONSUMER SPENDING
Retail in Europe 2016 GFK https://www.gfk.com/fileadmin/user_upload/dyna_content/ES/documents/RETAIL_EUROPEO_2016.pdf
Per capita purchasing power index Increase Percentage of Retail Spending

RETAILERS SUFFER HUGE LOSSES!
(1) Avery Dennison, 2010 (2) WWD-Lifestyle Monitor, Motorola Retail Shopper Study 2010 (3) The Global Retail Theft Barometer, Avery Dennison, 2010
70%Abandoned the
purchase process due
to excessive time spent
at checkout(1)
40%Of stock registered at
computer systems of
retail stores is not
accurate (1)
30%Of shoppers who
abandon purchases go
to another store (2)
35%Traditional antitheft
systems only address
customer theft, while
employee theft accounts
for over 35%(3)
Deploying different technologies at the point of sale can help to reduce
these losses.

PURCHASING PROCESS
The physical store has a great importance in the buying process.
Consumers want to see the product, touch it, feel it ... But who doesn’t
look for information about a product online? Or compare prices?
Showrooming vs Webrooming http://www.piensaenmarketing.com/showrooming-webrooming-comprar/
Physical store + Technology = 21st century purchase process

COMPETITIVE KEYS
Retail Forum 2017 http://www.retail360.es/retail-forum-2017-en-madrid/
DISCOVER CUSTOMER INTERESTS
For that it is essential to listen to and use the
information generated in the back end to
improve processes and products
CUSTOMIZE THE INTERACTION
Accompany customers, create products with
them. Become a social business
BUILD WOW EXPERIENCES
Apply neuroscience, work on the user
experience and emotions, surprise yourself
with design and turn your shopping
experience into a memorable act
WORK WITH THE BACK-END
To avoid wasting the work of the Front-end
try to achieve a unique and fair stock, practice
click & collect, e-tailing and ebooking, reduce
lead times and of course use an always
mobile strategy

COMPETITIVE KEYS
SEEK LOYALITY
Practice gamification and immediacy using
the mobile phone, avoid shortages and be
effective
TRANSFORMATION TOOLS
The aim is to achieve agility, security,
flexibility and capacity. Use fast and secure
digital payments. Use Analytics to learn about
consumer habits with Data Governance and
Data Management.
USES TECHNOLOGY AT POINT OF SALE
Artificial Intelligence, Smart Data, Augmented
reality, instant messaging, IoT and RFID.
TRACK YOUR EMPLOYEES
It drives the digital leap to be
hyperconnected, with an agile culture and
above all listen to them, they are in
continuous contact with the customer
Retail Forum 2017 http://www.retail360.es/retail-forum-2017-en-madrid/

MARKETING
Su principal objetivo es saber qué quieren comprar los consumidores,
cuando lo quieren comprar y qué precio están dispuestos a pagar por ello
MARKETING
The main objective is to know what consumers want to buy, when they
want to buy it and what price they are willing to pay for it

MACROTRENDS
HYPERPERSONAL SPHERE
Hololens, Mobile, Tablet
CUSTOMER CENTRICITY
Durable and trustful relationships
TECHNOLOGICAL MEGATRENDS
Big Data, IoT, AI, BYOD, SaaS, VR,
AR, MR
DIGITAL TRANSFORMATION
Reformulation of strategic
proposals. Transformation of the
value chain

EMPOWERED CUSTOMER
Competitive Strategy in The Age Of The Customer
“The best advertising is done by satisfied customers” - Philip Kotler

SALES PROCESS
STOP SELLING,
START TEACHING
“How you sell is more important
than what you sell”
Provides
insight
“Commercial
Teaching”
Offers
products that
the client
doesn’t even
know exist

ADVERTISERS
Internet Trends 2016 Code Conference http://www.kpcb.com/internet-trends
The opportunity for Mobile is enormous

ADVERTISING
“Half the money I spend on
advertising is wasted; the trouble
is I don't know which half.“
John Wanamaker
(1838 – 1922)
CURRENTLY 85 - 90%!!!

SOME ANSWERS…
My marketing
budget is
getting less and
less
There is no
transparency. I
do not know
what I'm buying
when I contract
advertising
I don’t trust
measurement
systems
We have low
conversion rates
These are the usual answers in the face of a lack of transparency and
reliable data on which to base their actions

THE CAUSES
Generalized collapse of
demand generation
through traditional
mechanics
• Consumers are becoming
increasingly impervious
• Traditional techniques have
become less and less effective on
the Internet due to saturation and
factors such as ad blockers
• Increased competition hinders
differentiation
Customer analysis and
profiling has been
trivialized
• People no longer see a
fundamental value to integrating
socially into a group. We want to
be treated as unique and special
individuals
• The promise of segmentation and
relevant communication based on
trivial interests and factors such as
age or gender are having poor
results

TRADITIONAL SEGMENTATION IS
NOT VALID

TRADITIONAL SEGMENTATION
EXAMPLE

WOMEN BETWEEN 55 AND 65
YEARS WITH A HIGH AND
RESIDENT ECONOMIC LEVEL IN A
GREAT CITY

SHOULD WE OFFER THE SAME
PRODUCTS OR SERVICES?

BUT NOT ONLY THAT

THE SAME PERSON IN DIFFERENT
SITUATIONS IS A DIFFERENT
CUSTOMER WHO ACTS
DIFFERENTLY AND DEMANDS
DIFFERENT SERVICES

MAN BETWEEN 45 AND 50 YEARS,
MARRIED AND WITH CHILDREN.
EXECUTIVE IN A BIG COMPANY

DOES HE LIKE THE SAME HOTEL IN
THESE THREE SCENARIOS?

Everything that is not relevant to the user and adapted to his
individual profile is intrusive and therefore rejected
Eye-Tracking Heatmaps Reveal Where People Really Look http://uk.businessinsider.com/eye-tracking-heatmaps-2014-7?r=US&IR=T

IS COMMUNICATION RELEVANT
OR ANNOYING?
We have switched from Broadcast without privacy to the Internet | Desktop with private
environments and finally to Mobile and IoT in intimate surroundings

According to Relevance Theory (Deirdre Wilson and Dan Sperber), the
search for relevance is a fundamental feature of human knowledge from
which speakers tend to take advantage.
An input is relevant to a person when their processing in the context of
a series of previously available assumptions produces a positive
cognitive effect, such as responding to a question he had in his head,
increasing his knowledge about a certain subject, resolve a doubt,
confirm a suspicion or correct an impression that has turned out to be
wrong.

MILLENNIALS
New generations boost personalization and digitization

CONSEQUENCES
In response, advertising
investment is constantly
increasing…
Nowadays, for an equivalent investment, advertising only
creates 33% of the demand it generated 20 years ago

TECHNOLOGIES
MEASUREMENT
VISUALIZATION
DATA ANALYSIS

MEASUREMENT
By 2021 they hope to have tracking and personalization of information
Zebra Technologies study (Survey to 1700 executives in Retail) http://www.mediapost.com/publications/article/296686/96-of-retailers-ready-to-change-for-iot.html
79%Individually
customized store
visit
75%Know when specific
customers are in a
store
75%Real-time location-
based and customer
assistance alerts
71%Alert when a customer
is in a parking lot to
pick up an online
order
96% of the sector is ready to adopt Internet of Things
technologies in the next 5 years

The main use of it is labeling and
tracking products
• Inventory
• Product location
• Thefts reduction
• Queue reduction – Checkout
RFID

ARTIFICIAL VISION
The main use is tracking people
• Scene analysis – Opportunities To See
• Heat maps – Traffic
• People detection – Who’s watching?
• Tracking – What are they looking at?
• Rating – Gender, age, mood

RADIO ANALYTICS
The main use is to track people through their mobile phones
• Heat maps – Traffic
• Recurrence
• Time at shop
• Rating – By type of mobile device
• Captive portals
• RRSS information
• Traffic data information

VISUALIZATION
DIGITAL SIGNAGE
• LCD monitors
• LED
• Projectors
• E-INK (Price tags)
• Mobile
The main difference of Digital
Signage is that we control what
and when we emit content

ARTIFICIAL INTELLIGENCE
DATA- 1ZB in 2009 vs 44ZB in 2020
BIG DATA - 37% of data in Cloud in 2020
HARDWARE - SPARC M7 10.000.000.000 transistors
MATURATION– Predictive data and optimization

Su principal uso es el etiquetado y seguimiento de productos
h/t JieTanghttp://keg.cs.tsinghua.edu.cn/jietang/

ARTIFICIAL INTELLIGENCE
SPEECH RECOGNITION
ARTIFICIAL VISION
EMOTIONAL ANALYSIS

Watson Personality Insights https://personality-insights-livedemo.mybluemix.net/

TECHNOLOGIES IN RETAIL
How far do you want to go?

DIGITAL TRANSFORMATION
This is to rethink a business, to make it more efficient, to promote what
has been learned, to innovate, to think critically to draw up a new
roadmap and, above all, to focus on the customer

PEOPLE + TECHNOLOGY
Change of mindset of the leaders
of the organization
Technology as a tool for change

Changes generate doubts and uncertainty, and this
transformation needs a person to lead the process
THE LEADER

THE EMPOWERED CUSTOMER
“It is no longer enough to
satisfy your customers. You
must delight them”
Philip Kotler

IBM Amplify 2015 The Future of Customer Engagement Now https://www.slideshare.net/IBMExpOne/customer-analytics-now-its-personal
78%
Trust the
recommendations
86%
Use multiple
purchase channels
40%
Look at products on
their Smartphone in
the physical store
75%
Believe companies
lie in ads
4~5x
Multichannel
customers spend
more than average
58%
Are more conscious
of price than a year
ago
80% 8%
CEOs think they offer
better customer
experience
Customers agree

We live in "the age of customer". It’s he who chooses the moment, the
place and the channel; But it’s the companies that have to be able to
offer a satisfactory experience, from any point of contact.
Each of these links should be used to understand it better using artificial
intelligence, big data and the most advanced automated selling systems.
A customer-centric strategy is not possible without an employee-
centered strategy

PROCESSES
They are the gears that start the business mechanism.
Big Data, Business Intelligence or Artificial Intelligence, are focused on obtaining conclusions and improvements.

DIGITAL TRANSFORMATION
Global study by Fujitsu, where analyze the digital transformation https://goo.gl/hZgDa1
52%Believe that they
will not exist in their
present
form
98%Consider that their
organization is already
undergoing change
92%Think they need to
evolve into
digitization
75%Say that their sector
will change in the
next 5 years
The search for new ways to make the knowledge and experience come
from the use and acquisition of a new way of working.

TECHNOLOGIES
OMNICHANNEL
HYPERSEGMENTED
CONTEXTUALIZED

PSFK Future Of Retail 2017 https://www.psfk.com/
HEAR + NOW Concept created by:
Carrot.is
(With modifications for Original)
The Challenge:
Original regardless of its physical retail, needs to
improve its key point of differentiation –
personalized customer service.
THE SOLUTION:
HEAR + NOW is an AI-enabled, in-ear platform for
retailers looking to enhance their customer service.
The system helps direct Customer Service
Representatives to where they are needed most and
supplies them with on-demand Access to inventory,
product information and supplemental
opportunities to cross-sell via e-commerce.

OBSERVATION
01
A couple arrives at the store,
just as they enter, a monitor
informs them that there is a
Wifi available so they can
connect for free, also if you
access the Wifi, your
experience in store will be
more personalized.
They decide to access the Wifi,
and they log in with their
Facebook account, it is easier
and they also offer a discount
of 5% on any purchase that
same day.
Technology:
• Radio Analytics
• Cameras with face
recognition
• Microphones with speech
recognition and transfer to
text
• An AI system with key
word detection
HELP
02
Through existing store
technologies, the system
detects that the couple has
been standing in front of a
sofa for an extended period
of time.
The Artificial Intelligence
system alerts a vendor to
help them.
The seller comes with a
headset and a Tablet to
answer their questions.
PSFK Future Of Retail 2017 https://www.psfk.com/

INTERACTION
03
The Artificial Intelligence
system is detecting keywords
in the couple conversation,
and is offering answers to the
seller.
The seller, tablet in hand,
receives information about
the material that the sofa is
made from, a personal
finance, delivery times and
options for the same product
in other colors.
The AI has detected phrases
such as "it will be genuine
leather?", "it's expensive, we
can not afford it", "we need it
now, we can not go on any
longer with the sofa we have",
“the color does not convince
me ".
OMNICHANNEL
04
The AI has not detected all the
questions, and the seller
makes a direct voice query:
"Do we have it available in 3
places instead of 2?". The AI
responds by voice and with
information in the Tablet that
the product is not in stock at
store but they have stock
online, and that they can
manage the order from the
Tablet itself.
PSFK Future Of Retail 2017 https://www.psfk.com/

SELLING,
UP-SELLING
AND CROSS-
SELLING
05
The couple has decided to buy
the sofa and to take finance to
do it.
It is an expensive piece, and
the seller takes advantage to
offer insurance on the product
as well as additional products
such as a small coffee table
that fits in the same style.
These products have been
proposed by AI.
BACK-END
06
The questions and answers
generated in the interaction,
feed the database of the
product and this particular
customer.
This conversation will improve
the products, the sales process
and the production.
PSFK Future Of Retail 2017 https://www.psfk.com/

NEW REGULATIONS, NEW RULES
The General Data Protection
Regulation (GDPR) imposes new
rules on organizations that offer
goods and services to people in
the European Union (EU), or
that collect and analyze data
tied to EU residents, no matter
where they are located.
• Enhanced personal privacy
rights
• Increased duty to protect data
• Mandatory reporting of
breaches
• Significant penalties for non-
compliance

ETHICS

CONCLUSIONS
• Retail is changing rapidly
• Change needs leaders with global vision of the company
• Technologies are tools in transformation
• The consumer rules, the strategy must be centered on him
• Proposals have to be individualized, we can not treat clients as part of
a collective
• E-commerce is another channel, it cannot be differentiated
• The mobile is the protagonist for the interaction in stores
• Data can greatly improve processes
• Ethics in business will be more important than ever

• Architecture Design
• Cloud Infrastructure. Azure, SoftLayer.
• Artificial Intelligence as a Service. IBM Watson, Microsoft Cognitive
• Hardware AV. LG, NEC, Peerless, Samsung, Sony, Vision, Vogel's ...
• Sensorization. RFID, Beacons
• Network infrastructure. Radio Analytics with Cisco Meraki
• Cameras with face recognition. Axis, Cisco, Logitech
CREATION OF WORKING TEAMS

THANK YOU
@Iv_Rodriguez
#MaverickSmartRetail
No one knows what the retail will look like in the future, these are
some ideas supported by data of what could happen.
We are in a fascinating time. There are big changes coming and no
one knows how this will end, we just know that everything is
changing and our attitude towards change will mark our result.