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Managing your checkout zone:
    Evaluating different technologies in the market and maximizing
                              productivity

                                Andrius Kalašinskas
                     Store Business Consultant, New Vision Inco

                                  November 16th 2011 Tallinn




NCR SelfServ ™ Checkout Partner
Agenda


•   Introduction
•   Checkout zone management: today’s challenges
•   Evaluating of technological solutions
•   Store capacity modeling: what it is?
•   Summary




    NCR SelfServ ™ Checkout Partner
New Vision Inco as a joint venture founded in 2010 between:
                         New Vision

                              Established in 1993
                              Provides technologies, system integrations and services
                              exclusive for retail industry
                              24/7 basis service network with multilanguage helpdesk
                              190+ employees
                              Revenue 9 mln EUR 2010 (11 mln EUR 2008)


                           Alessandro Santalucia

                          •       20 years experience in NCR Corporation at various top
                                  management positions, recently Europe Channel Sales
                                  AVP
                          •       Driven many of most successful Self-checkout projects
                                  in Europe
NCR SelfServ ™ Checkout Partner
New Vision is #1 in Retail IT and #12 among Baltic IT&T
        companies
Reference clients of New Vision




   NCR SelfServ ™ Checkout Partner
New Vision Inco - overview

Quick facts

•   100% dedicated for self-service in retail
•   Strategic partnership with NCR in Finland, Russia and Baltics
•   Local consulting and technical resources
•   Integration and development in Vilnius
•   Office locations
     –   Finland: Hyvinkää
     –   Russia: St. Petersburg
     –   Estonia: Tallinn
     –   Latvia: Riga
     –   Lithuania: Vilnius
• Part of New Vision group



    NCR SelfServ ™ Checkout Partner
New Vision Inco - overview

Product portfolio




    Consulting                              Technology                    Services


                                     - NCR SelfServ checkout     - Technical design
- Self service
                                     - Datalogic Self scanning   - Integration
Strategy
                                                                 - Prototyping
- Impact
qualification                                                    - Installation in stores
- Impact realization                                             - Customer services

   NCR SelfServ ™ Checkout Partner
Strategic partnership with NCR in Finland, Russia and
        Baltics
NCR Corporation

                                     3,000+ Locations
       At a Glance                   110 Countries – NCR Direct
NYSE: NCR                            90 Countries – Distributors & Service Partners
Number of Employees:
22,400                               13,000+ NCR Services People
                                     78,000+ Repair Parts SKU’s Managed
 Revenue:                            712 Field Parts Stocking Locations
 $4.6 billion
                                     126 years of retail technology innovation
                                     40 years of global self-service leadership


       More than $400 billion in annual commerce and 23 billion consumer self-service
             transactions are processed globally using NCR products and services

   NCR SelfServ ™ Checkout Partner
Delivering focused practical experience

Consulting part

• A business transformational project                       Revenue

• Ensuring that project meets or exceeds business results expected
  (utilization, customer satisfaction, ROI, …)              Margin

• Methodologies and tools
• Cross-Europe Industry best practice                        Cost
• Digital Pilot
           Store observations
           Store capacity modeling
           Business impact evaluation
• Implementation: make it work



                              Getting maximum from the Investment

   NCR SelfServ ™ Checkout Partner
Delivering focused practical experience

Consulting part

   Self-service project - a business                            Revenue

   transformational project
   Implementation: make it work                                 Margin

   Getting maximum from the Asset
   NCR Methodologies and tools                                   Cost
   Cross-Europe Industry best practice




  Ensuring that project meets or exceeds business results expected (utilization,
                           customer satisfaction, ROI, …)
   NCR SelfServ ™ Checkout Partner
Checkout zone - Point of Costs in the store


• Infrastructure
   POS hardware                                       7 tills supermarket
   Software
   Scales
                                   ~8000 EUR            ~56000 EUR
   Mounting
   Checkout desk
   Other infrastructure
 • Running annual maintenance
 • Shrinkage
 • Valuable store space
 • Administration
 • Labour cost

 NCR SelfServ ™ Checkout Partner
Checkout labor challenge in Baltics
                                                                       In Vilnius alone biggest retail
Troubles finding personnel to handle checkouts
                                                                       chains has shortage of
                                                                       around 300 store staff.
• Second wave of emigration
     –   2010 highest emigration during recent years                    IQ Economist, November 5th
                                                                                            2011
     –   In 2010 almost 90 000 people in Lithuania alone
     –   Part of people prefer minimal income from government
     –   Working age population part is getting lower
•   Cost of finding new cashier increases
     –   People with no experience
     –   High costs of trainings
     –   Salaries expectations grows
     –   Impacts on service levels in the stores
     – Some retailers increased salaries or wage structure
•   Cashiers is the largest payroll position in the organization
         Focus on productivity and automation of simple tasks is a way to successfully
           meet the challenge and even increase customer service in the same time.

    NCR SelfServ ™ Checkout Partner
Good news that technology is here and mature

Self Checkout                        Market update
                                     •   NCR SelfServ Checkout continutes to growth
                                             EMEA NCR SSCO Install Growth

                                         22000
                                         20000
                                         18000
                                         16000
                                         14000                              Stores
                                         12000                              Lanes
                                         10000
                                          8000
                                          6000
                                          4000
                                          2000
                                             0




                                                   D
                                                  04



                                                  06



                                                  08



                                           20 010
                                                 05



                                                 07



                                                 09


                                                YT
                                               20



                                               20



                                               20
                                               20



                                               20



                                               20

                                               2
                                             11
                                     •   15%+ annual growth up to 2016 (Greg Buzek)
                                     •   Approximately 35% of transactions are completed
                                         using self-checkout in Europe

   NCR SelfServ ™ Checkout Partner
Adoption of self-service expands

Latest patterns

• In September TESCO announced
  massive NCR SelfServ checkout
  rollout in Eastern and Central
  Europe countries
    – More self checkouts in more stores
      than any other supermarket in
      Poland
    – First self-checkout arrival to Czech
      Republik, Slovakia and Hungary
   Different approaches continues to
   be trialing and researched
    – Tunnel, transformational checkout,
      Mobile phone self scanning,
      Internet and store shopping mix, …


   NCR SelfServ ™ Checkout Partner
Retailers Decision Dilemma

Shall we do self-checkout?


    Maybe better to buy
          stores                                      Lets Give it a Try


                                                                       We don’t know the
  Will customers use                                                         ROI
   it? How many?

                                                                           Which Stores?
                                                                            How Many?


  Will it pay for itself?

    Retailers need objective and measurable way to evaluate alternatives, know business
                                                                  What about
                               There are different
                     impacts to make a decision and maximize the results.
                                                                      shrinkage?
   NCR SelfServ ™ Checkout Partner   technologies..
Owning business results of the IT investment from the
         beginning
Digital Pilot
• Process that helps you determinate:
     –   Optimum technology and number of units
     –   Best Configuration(s)
     –   Likely utilization
     –   Likely labor impact
     –   Best approach to trade-offs
     –   Expected ROI(s)
• By Modeling stores using actual data :
     – Comparisons to extensive stores data base
     – Varying possible scenarios to avoid
       ineffective solutions                    Digital Pilot
     – Identify the scenarios most likely to    - Store observations
       produce optimum results                  - Store capacity modeling
     – Accurately Predicted Outcomes –          - Business impact evaluation
       Benchmark for Managing

    NCR SelfServ ™ Checkout Partner
Owning business results of the IT investment

One way ot another?

                           The Other Way – the Hard Way
                                                                  ??????
                            See                    Do A
   Pilot                               Adjust                      More
                           What                    Few
   Store                              the Pilot                  Iteration
                          Happens                  More
                                                                     s

              The “Digital pilot” Way – Faster, Easier, Better


                Digital              Validation         Full
                 Pilot                 Store          Roll-Out



   NCR SelfServ ™ Checkout Partner
It is all about the results.. for Business!

Some real life examples

•   Tesco
•   Marks and Spencer
•   Sainsburies
•   Asda
•   Dansk Supermarkets
•   Spar Slovenia
•   IKI Lithuania




            Learning from the experience in different retail self-service environments

    NCR SelfServ ™ Checkout Partner
What is value of Doing it Right from the First Time




NCR SelfServ ™ Checkout Partner
Summary


• In contrast to a POS, Succesfull self-service project is a
  “business driven” project
• Mature proven technology is here to help meet market
  challenges
• Self checjout can positively impact productivity in a traditional
  lanes as welll
• Knowing what will be a success in a measurable figures and
  impact to operational and financial results eliminates costly
  erroros, enables effective management and maximizes
  benefits.


   NCR SelfServ ™ Checkout Partner
Thank you!



Contacts:


Andrius Kalašinskas
Phone +370 685 36 292
Email a.kalasinskas@nv-inco.com




  SelfServ ™ Checkout Partner     www.nv-inco.com

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A. Kalašinskas IT Akadeemia

  • 1. Managing your checkout zone: Evaluating different technologies in the market and maximizing productivity Andrius Kalašinskas Store Business Consultant, New Vision Inco November 16th 2011 Tallinn NCR SelfServ ™ Checkout Partner
  • 2. Agenda • Introduction • Checkout zone management: today’s challenges • Evaluating of technological solutions • Store capacity modeling: what it is? • Summary NCR SelfServ ™ Checkout Partner
  • 3. New Vision Inco as a joint venture founded in 2010 between: New Vision Established in 1993 Provides technologies, system integrations and services exclusive for retail industry 24/7 basis service network with multilanguage helpdesk 190+ employees Revenue 9 mln EUR 2010 (11 mln EUR 2008) Alessandro Santalucia • 20 years experience in NCR Corporation at various top management positions, recently Europe Channel Sales AVP • Driven many of most successful Self-checkout projects in Europe NCR SelfServ ™ Checkout Partner
  • 4. New Vision is #1 in Retail IT and #12 among Baltic IT&T companies Reference clients of New Vision NCR SelfServ ™ Checkout Partner
  • 5. New Vision Inco - overview Quick facts • 100% dedicated for self-service in retail • Strategic partnership with NCR in Finland, Russia and Baltics • Local consulting and technical resources • Integration and development in Vilnius • Office locations – Finland: Hyvinkää – Russia: St. Petersburg – Estonia: Tallinn – Latvia: Riga – Lithuania: Vilnius • Part of New Vision group NCR SelfServ ™ Checkout Partner
  • 6. New Vision Inco - overview Product portfolio Consulting Technology Services - NCR SelfServ checkout - Technical design - Self service - Datalogic Self scanning - Integration Strategy - Prototyping - Impact qualification - Installation in stores - Impact realization - Customer services NCR SelfServ ™ Checkout Partner
  • 7. Strategic partnership with NCR in Finland, Russia and Baltics NCR Corporation 3,000+ Locations At a Glance 110 Countries – NCR Direct NYSE: NCR 90 Countries – Distributors & Service Partners Number of Employees: 22,400 13,000+ NCR Services People 78,000+ Repair Parts SKU’s Managed Revenue: 712 Field Parts Stocking Locations $4.6 billion 126 years of retail technology innovation 40 years of global self-service leadership More than $400 billion in annual commerce and 23 billion consumer self-service transactions are processed globally using NCR products and services NCR SelfServ ™ Checkout Partner
  • 8. Delivering focused practical experience Consulting part • A business transformational project Revenue • Ensuring that project meets or exceeds business results expected (utilization, customer satisfaction, ROI, …) Margin • Methodologies and tools • Cross-Europe Industry best practice Cost • Digital Pilot Store observations Store capacity modeling Business impact evaluation • Implementation: make it work Getting maximum from the Investment NCR SelfServ ™ Checkout Partner
  • 9. Delivering focused practical experience Consulting part Self-service project - a business Revenue transformational project Implementation: make it work Margin Getting maximum from the Asset NCR Methodologies and tools Cost Cross-Europe Industry best practice Ensuring that project meets or exceeds business results expected (utilization, customer satisfaction, ROI, …) NCR SelfServ ™ Checkout Partner
  • 10. Checkout zone - Point of Costs in the store • Infrastructure POS hardware 7 tills supermarket Software Scales ~8000 EUR ~56000 EUR Mounting Checkout desk Other infrastructure • Running annual maintenance • Shrinkage • Valuable store space • Administration • Labour cost NCR SelfServ ™ Checkout Partner
  • 11. Checkout labor challenge in Baltics In Vilnius alone biggest retail Troubles finding personnel to handle checkouts chains has shortage of around 300 store staff. • Second wave of emigration – 2010 highest emigration during recent years IQ Economist, November 5th 2011 – In 2010 almost 90 000 people in Lithuania alone – Part of people prefer minimal income from government – Working age population part is getting lower • Cost of finding new cashier increases – People with no experience – High costs of trainings – Salaries expectations grows – Impacts on service levels in the stores – Some retailers increased salaries or wage structure • Cashiers is the largest payroll position in the organization Focus on productivity and automation of simple tasks is a way to successfully meet the challenge and even increase customer service in the same time. NCR SelfServ ™ Checkout Partner
  • 12. Good news that technology is here and mature Self Checkout Market update • NCR SelfServ Checkout continutes to growth EMEA NCR SSCO Install Growth 22000 20000 18000 16000 14000 Stores 12000 Lanes 10000 8000 6000 4000 2000 0 D 04 06 08 20 010 05 07 09 YT 20 20 20 20 20 20 2 11 • 15%+ annual growth up to 2016 (Greg Buzek) • Approximately 35% of transactions are completed using self-checkout in Europe NCR SelfServ ™ Checkout Partner
  • 13. Adoption of self-service expands Latest patterns • In September TESCO announced massive NCR SelfServ checkout rollout in Eastern and Central Europe countries – More self checkouts in more stores than any other supermarket in Poland – First self-checkout arrival to Czech Republik, Slovakia and Hungary Different approaches continues to be trialing and researched – Tunnel, transformational checkout, Mobile phone self scanning, Internet and store shopping mix, … NCR SelfServ ™ Checkout Partner
  • 14. Retailers Decision Dilemma Shall we do self-checkout? Maybe better to buy stores Lets Give it a Try We don’t know the Will customers use ROI it? How many? Which Stores? How Many? Will it pay for itself? Retailers need objective and measurable way to evaluate alternatives, know business What about There are different impacts to make a decision and maximize the results. shrinkage? NCR SelfServ ™ Checkout Partner technologies..
  • 15. Owning business results of the IT investment from the beginning Digital Pilot • Process that helps you determinate: – Optimum technology and number of units – Best Configuration(s) – Likely utilization – Likely labor impact – Best approach to trade-offs – Expected ROI(s) • By Modeling stores using actual data : – Comparisons to extensive stores data base – Varying possible scenarios to avoid ineffective solutions Digital Pilot – Identify the scenarios most likely to - Store observations produce optimum results - Store capacity modeling – Accurately Predicted Outcomes – - Business impact evaluation Benchmark for Managing NCR SelfServ ™ Checkout Partner
  • 16. Owning business results of the IT investment One way ot another? The Other Way – the Hard Way ?????? See Do A Pilot Adjust More What Few Store the Pilot Iteration Happens More s The “Digital pilot” Way – Faster, Easier, Better Digital Validation Full Pilot Store Roll-Out NCR SelfServ ™ Checkout Partner
  • 17. It is all about the results.. for Business! Some real life examples • Tesco • Marks and Spencer • Sainsburies • Asda • Dansk Supermarkets • Spar Slovenia • IKI Lithuania Learning from the experience in different retail self-service environments NCR SelfServ ™ Checkout Partner
  • 18. What is value of Doing it Right from the First Time NCR SelfServ ™ Checkout Partner
  • 19. Summary • In contrast to a POS, Succesfull self-service project is a “business driven” project • Mature proven technology is here to help meet market challenges • Self checjout can positively impact productivity in a traditional lanes as welll • Knowing what will be a success in a measurable figures and impact to operational and financial results eliminates costly erroros, enables effective management and maximizes benefits. NCR SelfServ ™ Checkout Partner
  • 20. Thank you! Contacts: Andrius Kalašinskas Phone +370 685 36 292 Email a.kalasinskas@nv-inco.com SelfServ ™ Checkout Partner www.nv-inco.com