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SAP for Retail
Industry Briefing
Book
Comments and questions: rae.leyshon@sap.com
Edition 2
January 2012
Legal disclaimer
All information in this industry briefing book is provided under NDA
The information in this document is confidential and proprietary to SAP and may not be disclosed without the
permission of SAP. This document is not subject to your license agreement or any other service or subscription
agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related
presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation
and SAP's strategy and possible future developments, products and or platforms directions and functionality are all
subject to change and may be changed by SAP at any time for any reason without notice. The information on this
document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This
document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied
warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational
purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this
document, except if such damages were caused by SAP intentionally or grossly negligent.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
and
SAP for Retail
TransformationRun Better
Proof Points Strategy
Solutions
Innovations
Drivers
Take away
Comments and questions: rae.leyshon@sap.com
© 2011 SAP AG. All rights reserved. 4
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
What does “Run Better” mean for a retailer?
Average customer/
basket spend
Customer satisfaction
rating
EBIT/operating income
Margin contribution
Market share
Product availability
Sales per square
foot/meter
Same store/like-for-
like sales
 Coop
 Index Living Mall
 Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 5
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Inventory
days of supply
Revenue per employee
($ 000s)
31 best
Large disparity between the best and the rest
$354 best
Source: SAP Value Engineering data 2011
 Coop
 Index Living Mall
 Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 6
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Revenue per employee
($ 000s) - Food
Revenue per employee
($ 000s) - Softlines
$525.3 best
Large disparity between the best and the rest
$353.7 best
Source: SAP Value Engineering data 2011
 Coop
 Index Living Mall
 Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 7
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
The best are leading the way
-70%
order to
delivery lead
time
75%
improved
inventory
performance
41%
increase
in average
purchase
value
 Coop
 Index Living Mall
 Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 8
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Basel-based Coop Group
wanted a leading position in
the Swiss online food retail
market. It launched
coop@home – a full-range
supermarket accessible
through the Internet and
mobile devices, such as
iPhones.
41% increase in average purchase value
22% higher revenues on coop@home
Built extendible IT backbone for further online
shops
Integrated existing IT system
SAP CRM blended perfectly with existing
landscape
Orders managed without manual processing
and unnecessary steps
 Coop
 Index Living Mall
 Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 9
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Index Living Mall is the
largest specialty mall in
Thailand, providing high-
quality home furnishings and
accessories. In order to gain
advantage in the fiercely
competitive retail market, it
needed to transform its vision
for superior customer service
into reality.
-19% reduction of days in inventory
-70% reduction in order to delivery lead time
Gained real-time visibility into complete
inventory cycle across the supply chain
Met customer demand with real-time
price updates for promotion campaigns
Enhanced order fulfillment through
real-time inventory availability check
Improved warehouse efficiency
Built extendible IT backbone for further online
shops
 Coop
 Index Living Mall
 Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 10
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Chico‟s operates 1,225
boutiques and outlets through-
out the United States and has
direct-to-consumer channels
for each brand.
When the company‟s disparate
legacy systems didn‟t support
their integrated high-growth
strategy, Chico‟s looked to
SAP to standardize business
processes, increase efficiency,
and facilitate store growth.
Increased business transparency to
support operational decisions
Gained deeper business intelligence
insight to support sales and merchandising
decisions
Raised value of reports with a single
version of data
75% Improved inventory performance
-50% Reduced time needed for financial
close
 Coop
 Index Living Mall
 Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 11
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Innovation drivers in the retail industry
Increasing customer demands and intensified competition
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 12
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
„Real‟ real-time
Consumers always
connected
Real-time
transparency of all
transactions
One-to-one
marketing and
customer connection
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 13
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Mobile imperative
Improves decision
making and
increases
productivity across
the enterprise
Delivers on customer
expectations with
superior service at
every touch point
Expands customer /
employee interaction
and increases loyalty
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 14
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Globalization and consolidation
New integrated
business models
across geographies
and channels
Global expansion
with local
assortments
New sourcing and
distribution
strategies to respond
to fast-buying
behavior across all
retail segments
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 15
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Price and margin pressures
Competition and
siloed channel
operations have
shrunk profitability
levels
Culture of
promotional activity
exists at expense of
margins
Optimized local and
personalized pricing
strategies required
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 16
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Customer personalization
Targeted one-to-one
offers that develop
loyalty
Optimized shopping
lists with
suggestions based
on product affinities
to help customers
Engage with
customers to help
refine product
selection
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 17
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Without SAP
Business Challenges
Transformation
Without SAP
SAP‟s Value
With SAP
• Merchandising is disjointed
with planning and
merchandising processes
unable to react effectively to
the needs of the customer
• Marketing has difficulty
bringing relevant and timely
promotions to customers
• Supply chain struggles to
balance inventory to match
customer demand
• Store and channel
operations cannot deliver
service required at sales
locations
• IT has visibility constraints
across disparate business
functions
Contract
Manufacturer
StoresDistribution
Center
Customer
Merchandising and Marketing
Store and
Channels
Supply Chain
IT HRFinance
Supplier
© 2011 SAP AG. All rights reserved. 18
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
With SAP
Unified and simplified business processes
Contract
Manufacturer
StoresDistribution
Center
Customer
Merchandising and Marketing
Store and
Channels
Supply Chain
IT HRFinance
Supplier
• Merchandising seamlessly
delivers new and relevant
assortments from real-time
customer insight
• Marketing increases loyalty
and margins with real-time
experiences across all
customer touch points
• Supply chain optimizes
inventory levels with real-time
visibility and integrated
planning and execution
• Store and channel
operations increases margin
and customer satisfaction with
efficient service matching
customer needs
• IT standardizes data with
unified and simplified
processes that transform the
retail enterprise
Transformation
Without SAP
SAP‟s Value
With SAP
© 2011 SAP AG. All rights reserved. 19
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Customer Insight
360 degree customer
insight to plan and
execute targeted
merchandise
assortments, pricing and
promotion strategies
SAP unique capability SAP unique capabilitySAP unique capability
Customer Interaction Customer-Driven Supply
Network
Improve product
availability and
customer service with
real-time visibility to
planning and execution
Interact with customers
by their preferences to
build loyalty and
maximize new sales
opportunities
Retail Without Boundaries
We help retailers transform their business with unified and
simplified processes across channels, business models and
customersTransformation
Without SAP
SAP‟s Value
With SAP
© 2011 SAP AG. All rights reserved. 20
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions for retail
Solutions
 Supply Chain
 Finance
 Store and Channels
 HR
 Merchandising and
Marketing
 IT
 Operations
SAP delivers
comprehensive,
integrated solutions
for all business areas
in retail
Supply Chain Finance
HR OperationsIT
Merchandising
and Marketing
Store and
Channels
© 2011 SAP AG. All rights reserved. 21
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions for merchandising and
marketing
Bring relevant and differentiating assortments to market
 Shopper Insight and Analytics
Turn information into insight with real-time granular
level information
 Product and Store Lifecycle Management
Enables fast entry and maintenance of all product
and store master data
 Interactive Customer Lifecycle
Management
Improve holistic view of customers with both retailer
and customer updates of customer master data, to
maximize customer value
 Merchandise and Assortment
Improve effectiveness of end-to-end business
planning with fast and seamless introduction of new
and relevant assortments
Merchandising
and Marketing
Supply Chain Finance
HR OperationsIT
Store and
Channels
Solutions
 Supply Chain
 Finance
 Store and Channels
 HR
 Merchandising and
Marketing
 IT
 Operations
1 | 2
© 2011 SAP AG. All rights reserved. 22
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions for merchandising and
marketing
Bring relevant and differentiating assortments to market
 Integrated Product Development
Maximize speed of products to market with an
accurate source of consistent data
 Lifecycle Price Management
Create, maintain, analyze and optimize base pricing,
and maximize price optimization strategies
throughout the lifecycle of the product
 Cross Channel Marketing and Promotions
Management
Leverage customer buying behavior and preferences
to exceed customer expectations with relevant
marketing campaigns
 Real -Time Customer Personalization
Deliver real-time suggestions and offers based on
product availability tailored to the preferences of the
customer
Solutions
 Supply Chain
 Finance
 Store and Channels
 HR
 Merchandising and
Marketing
 IT
 Operations
Merchandising
and Marketing
Supply Chain Finance
HR OperationsIT
Store and
Channels
1 | 2
© 2011 SAP AG. All rights reserved. 23
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions for store and channels
Deliver personalized customer service
 E-Commerce and Catalog
Build customer loyalty and increase sales with mobile
personalized e-marketing and e-commerce that helps
customers find the best products/services
 Multi Channel Order Management
Allow purchase and return from any channel,
providing one consistent and unified face to the
customer
 Store and Point of Sales
Deliver in-store experience that delights customers
and meets brand promise with fast cash taking,
employee schedules to customer demand, manage
inventory and mobile assistance
 Cross Channel Customer Service
Effectively manage all customer after sales contact
to continue the personalized experience and grow
loyalty
Solutions
 Supply Chain
 Finance
 Store and Channels
 HR
 Merchandising and
Marketing
 IT
 Operations
Merchandising
and Marketing
Supply Chain Finance
HR OperationsIT
Store and
Channels
© 2011 SAP AG. All rights reserved. 24
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions for supply chain
Manage profitable and synchronized demand and supply
 Integrated Demand & Replenishment
Planning
Balance inventory ownership with customer service
to achieve accurate and flexible replenishment and
allocation.
 Procure to Pay
Efficiently manage the complete retail procurement
to payment cycle of items for non-resale items.
 Integrated Sourcing and Buying
Reduce total cost of goods sold by sourcing as
efficiently as possible.
 Supply Chain Execution
Drive logistics, based upon a single view of customer
demand, across all channels and maintain visibility to
all costs of operations to make necessary
adjustments.
Solutions
 Supply Chain
 Finance
 Store and Channels
 HR
 Merchandising and
Marketing
 IT
 Operations
Merchandising
and Marketing
Supply Chain Finance
HR OperationsIT
Store and
Channels
1 | 2
© 2011 SAP AG. All rights reserved. 25
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions for supply chain
Manage profitable and synchronized demand and supply
 Manufacturing Planning and Execution for
Private Label and Local Production
Design, define and then monitor all phases of
product manufacturing from component sourcing
through to production tracking and quality
management
 Lean Manufacturing for Private Label and
Local Production
Design, define and then monitor all phases of
product manufacturing
Solutions
 Supply Chain
 Finance
 Store and Channels
 HR
 Merchandising and
Marketing
 IT
 Operations
Merchandising
and Marketing
Supply Chain Finance
HR OperationsIT
Store and
Channels
1 | 2
© 2011 SAP AG. All rights reserved. 26
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions for finance
Maximize financial opportunity
 Manage Financial Performance
Manage financial and operational performance to
help with accurate insight into costing, improved
financial planning and forecasting
 Treasury and Financial Risk Management
Ensure enough liquidity to fund business operations
 Manage Enterprise Risk and Compliance
Provide continuous monitoring of key risk indicators
to compliance to strategy
 Payables Management
Streamline invoice-to-pay processes and improve
vendor relationships
Solutions
 Supply Chain
 Finance
 Store and Channels
 HR
 Merchandising and
Marketing
 IT
 Operations
Merchandising
and Marketing
Supply Chain Finance
HR OperationsIT
Store and
Channels
1 | 2
© 2011 SAP AG. All rights reserved. 27
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions for finance
Maximize financial opportunity
 Receivables Management
Improve accounts receivables management with
sophisticated credit analysis, streamlined debt
collection and seamless integration
 Consume to Cash in High-Volume
Business
Run efficient end-to-end solutions for high volume
industries such as retail, with built-in industry best
practices
 Accounting and Financial Close
Run accounting and financial close processes faster,
more accurate, more compliant and less costly
Solutions
 Supply Chain
 Finance
 Store and Channels
 HR
 Merchandising and
Marketing
 IT
 Operations
Merchandising
and Marketing
Supply Chain Finance
HR OperationsIT
Store and
Channels
1 | 2
© 2011 SAP AG. All rights reserved. 28
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions for human resources
Focus on the effectiveness of your most valuable resource
 Core HR and Payroll
Enable organizations to support and automate
processes across the entire employee lifecycle from
hire to retire for a global workforce
 Workforce Planning and Analytics
Help organizations to better plan workforce related
needs and associated costs, enables ongoing
measurements of performance indicators and metrics
 Talent Management
Enable organizations to attract, recruit, appraise,
develop and retain the best talent available
 Time and Attendance Management
Enable organizations to optimize workforce utilization
through efficient work schedule/roster creation,
ensure capture and calculation of time-related data
Solutions
 Supply Chain
 Finance
 Store and Channels
 HR
 Merchandising and
Marketing
 IT
 Operations
Merchandising
and Marketing
Supply Chain Finance
HR OperationsIT
Store and
Channels
© 2011 SAP AG. All rights reserved. 29
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions for information technology
Improve the efficiency and speed of decision making across
the company
 IT Service Management
A full-blown service desk function with optional
integration into SAP Business Communication
Management with diverse reporting options
 IT Portfolio and Project Management
Provide transparency to IT portfolio, projects and
resources. Help streamline portfolio processes and
standardize project management
 Application Lifecycle Management
Efficiency and Value along the Application Lifecycle
from Design, Transition and Operation
Solutions
 Supply Chain
 Finance
 Store and Channels
 HR
 Merchandising and
Marketing
 IT
 Operations
Merchandising
and Marketing
Supply Chain Finance
HR OperationsIT
Store and
Channels
© 2011 SAP AG. All rights reserved. 30
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions for operations
Efficient and sustainable operational execution
 Sustainability Reporting and Analytics
Sustainability Reporting and Analytics delivers
strategy-aligned sustainability execution across the
entire business landscape via transparency,
optimization and stakeholder engagement
 Real Estate Lifecycle Management
End-to-end real estate lifecycle management with full
integration to ERP Financials
Solutions
 Supply Chain
 Finance
 Store and Channels
 HR
 Merchandising and
Marketing
 IT
 Operations
Merchandising
and Marketing
Supply Chain Finance
HR OperationsIT
Store and
Channels
© 2011 SAP AG. All rights reserved. 31
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Customer centric and innovation driven
SAP‟s strategy for retail companies
Solution Innovations
Technology Innovations
Delivery Innovations
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 32
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solution innovations for retail companies
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Innovations
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
1 | 2
© 2011 SAP AG. All rights reserved. 33
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Technology
• Mobility
• Business analytics
• In-memory computing
• On demand
Delivery
• Rapid-deployment
solutions
• Customer co-innovation
• Ecosystem
Future
Continued investment in retail solutions
SAP‟s vision is to provide real-time, unified and simplified processes across
channels, business models and customers
Slide shows selected Items only . See Industry Roadmap for complete view
2Partner
Recent
Sales/POS Analytics
Promotion Management
Loyalty Management
Mobile Infrastructure
Market Sentiment Analysis2
In-Store Merchandising and
Inventory Management
Loss Prevention
Planned
In-Memory Consumer Activity
Repository & Analytics
In-Memory Retail Planning
Forecasting & Replenishment
Promotion + Integration
Sourcing (OP and OD)
Warehouse Management
Web Channel
Mobile Marketing
Future
In-Memory Retail Predictive
Applications
Retail Analytics
Integration of Channels and
Harmonized User Experience
Mobile Retailing
Supply Chain Execution Hub
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Innovations
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
1 | 2
© 2011 SAP AG. All rights reserved. 34
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Supply chain
 Accurate and flexible forecasting and
replenishment solutions that effectively
and profitably balance inventory
ownership, inventory strategy and
customer service
 Plan all phases of product creation
from design and component sourcing
through production tracking and
quality management
Merchandising and marketing
 Targeted loyalty programs that
address the needs of the customer
 Integrated promotions management
for fast execution of targeted offers
 Financial and assortment plans
driven across channels and
geographies from same top line goals
Corporate operations
 Advanced labor scheduling to match
employee hours and skill to customer
demand
 Next-generation employee self-
services to improve usability and user
acceptance
Store and channels
• Targeted customer pricing combined
with efficient and fast order creation
• Extensive catalog management to
deliver personalized information
through e-mail Web campaigns
• Connect all stores, franchise
operations, and customers over an
array of devices
Selected solution innovation
Available today
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Innovations
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 35
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Selected solution innovation
Loyalty management
Program
Management
Reward Rules
Management
Processing
Engine
Membership
Handling
Loyalty API
Connectivity
Sales Order
Integration
Interaction Center
Integration
Web Channel
Integration
Program Design & Setup Program Execution
CUSTOMER INTERACTION CHANNELS
LOYALTY MANAGEMENT SOLUTION
 Plan and execute channel customer loyalty programs
 Consistently treat customers well throughout the organization
 Build customer loyalty by sharing interaction history across channels
Partner
Management
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Innovations
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 36
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP Promotion Management for Retail
Offers complete support for planning promotions, forecasting their performance, and creating a
closed-loop promotions process by integrating with execution systems.
Business benefits:
Greater promotional effectiveness by creating
more profitable and timely promotions
Enhanced efficiency by providing tools to
generate targeted promotions for all sales
channels
Improved productivity by supporting better
collaboration among marketing merchandising
and advertising.
Business capabilities:
Insightful analytics drives a comprehensive
promotional strategy to improve financial
performance
Automated workflow facilitates collaboration
between key stakeholders
Consumer centric promotions targeted at
specific geographic markets
One database of product information and
offers
Selected solution innovation
Promotions management
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 37
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP Forecasting and Replenishment
Provides automated capabilities for demand-driven synchronized inventories along the supply
chain to help improve in-stock positions and reduce cost. The next release will provide more
sophisticated functionality for DC replenishment and usability improvements.
Business benefits:
Reduction of purchasing and logistical costs
Increased forecast accuracy leads to better
results
Improved traceability of automated processes
Reduced total cost of ownership through
better integration with SAP ERP for Retail
Improved accuracy of promotional forecasts
Better usability for increased efficiency
.
Selected solution innovation
Forecasting and replenishment
Business capabilities:
Sophisticated capabilities for truck load
optimization
Forecast improvements (statistical
enhancements and improved visibility)
More detailed information regarding
automated calculation steps
Enhanced connectivity of SAP F&R with SAP
ERP for Retail, e.g. source list integration and
transit stock consideration
Additional time-dependent data for
promotions
Improved user interfaces
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 38
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Merchandising and marketing
 In-memory planning to increase the
effectiveness, speed and accuracy of
planning assortments
 In-memory customer segmentation for
analysis of high volume customer data
 Consumer activity repository to
effectively capture and analyze
consumer behavior in real-time
Corporate operations
 E-invoicing with digital signatures
 Mobile applications for employees,
managers, and HR business partners
 Collaborative disclosure management
Store and channels
 State-of-the art business-to-consumer
Web channel that integrates marketing,
services, and stores
 Personalized mobile shopping
experiences with mobile marketing
 Enhancements in point of sale
Supply chain
 Improved data enrichment, simulation
and analytics in Spend performance
management
 Transportation management for freight
forwarders and shippers
 Rapid deployment solution for global
available-to-promise check
Selected solution innovation
Road map
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 39
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Selected retail innovation
Example of redefining retail processes
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Mobile
Cloud
On Premise
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 40
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Technology innovation
On DemandAnalytics
MobilityIn-Memory
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 41
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Merchandising
and Marketing
Supply Chain
Store and
Channels
Corporate
Operations
 Detailed visibility and
risk identification
across supply chain
 Real -time response
by allowing
simultaneous
consideration of
constraints and
restrictions along the
entire supply network
 Real-time sales
information to assess
current risk of out-of-
stock or out-of-shelf
situations.
 Leverage sales
data from all
channels to
understand
customer buying
patterns and drive
profitable
promotions
 Increased insight
into consumer
behavior, mobile
and web channel
decision activity.
• Run profitability analysis
at single product or
customer level
• Improved internal
accounting and decision
making
• Control cost in real-time,
faster cost allocation
• Enable timely and
accurate reporting of
financial and operational
performance
• In a flash general ledger
reporting
• Balance risk and
opportunity
 Advanced velocity of
merchandise insights
available across all
channels
 Time-phased assortment
planning available by
product, store and
customer integrated to
ordering and
replenishment processes
 Real-time what-if cluster
and product optimization
integrated to assortment
planning
 Market basket insights
that provide merchandise
and assortment guidance
Details Details DetailsDetails
SAP in-memory computing for retail
Opportunities for the business
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
Customer co-innovation:
© 2011 SAP AG. All rights reserved. 42
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Opportunity for the business In-memory enabled innovations /
HANA use cases
Capability enabled by
HANA version
 Gain detailed consumer
insights to provide a
differentiating and personalized
shopping experience
 Consumer Activity Repository
Enable retailers to effectively capture and
analyze consumer behavior in real-time
and make informed decisions.
HANA 1.0 SP3
 Obtain detailed visibility and
alerting of sales performance
across all channels
 Sales Analysis for Retail
Provide advanced visibility and alerting
capabilities to Merchants and Store
Operations teams regarding sales
velocity, promotional impact, product
performance etc across all channels
HANA 1.0 SP3
• Enable flexible, high-
performance retail planning
 In-Memory Planning for Retail
One high performance data source
supporting strategic, merchandise, store
and assortment level planning.
HANA 1.0 SP3
• Predict consumer buying
patterns and behavior
 Affinity Insights (PIO service)
Advanced basket analysis providing
detailed understanding of individual
shopper transactions and correlations to
seasonal, weekly, daily patterns
 Consumer Demand Forecasting
HANA 1.0 SP3
Future
Legend  Current Solution SAP HANA  Planned Solution SAP HANA  Future
Back
SAP in-memory computing for retail
Merchandise and marketing use cases
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 43
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Opportunity for the business In-memory enabled innovations /
HANA use cases
Capability enabled by
HANA version
 Establish a responsive supply
network to reduce costs and
manage risk across the network
more efficiently
 Flexible Shipping/Purchasing and
Spend Analysis
HANA 1.0 SP3
 real-time transparency of
potential out-of-stock and
service level issues creates the
opportunity to react rapidly and
solve issues.
 On Shelf Availability Analysis
Analysis of real-time sales information to
assess current risk of out of stock or out
of shelf situations.
HANA 1.0 SP3
• Simultaneous consideration of
constraints and restrictions
along the entire supply network
provide the opportunity to re-
plan the flow of merchandize
and react on customer demand
 Integrated Demand Planning
 Warehouse Analytics
 Transportation Analytics
Future
SAP in-memory computing for retail
Supply chain use cases
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Legend  Current Solution SAP HANA  Planned Solution SAP HANA  Future Back
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 44
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Opportunity for the business In-memory enabled innovations /
HANA use cases
Capability enabled
by HANA version
 Define customer target groups
for more efficient promotions
and marketing events.
 High volume customer segmentation
Drives a substantial lift in targeted
marketing campaign effectiveness.
Support further segmentation via the
alignment of customer attributes and
detailed SKU level sales data.
HANA 1.0 SP3
 Increase sales and provide
personalized shopping
experience.
 Omni-Channel Analytics
Deliver deep insights on consumer
spend and buying behavior by shopping
channel
Future
SAP in-memory computing for retail
Store and channels use cases
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Legend  Current Solution SAP HANA  Planned Solution SAP HANA  Future Back
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 45
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Opportunity for the business In-memory enabled innovations /
HANA use cases
Capability enabled
by HANA version
 Control cost in real-time, faster
cost allocation
 Enable timely and accurate
reporting of financial and
operational performance
 In a flash General Ledger
reporting
 Flexible vendor open items reporting
(Creditor): List of open and cleared items
by vendor / creditor
 Flexible open item reporting (New
General ledger)
New General Ledger line item reporting
HANA 1.0 SP3
 Run profitability analysis fast
and on single product or
customer level
 Improved internal accounting
and decision making
 Profitablity Analysis (CO-PA) HANA 1.0 SP3
 Balance Risk and Opportunity  Advanced Profitability Planning and
Analysis
HANA 1.0 SP3
Legend  Current Solution SAP HANA  Planned Solution SAP HANA  Future Back
SAP in-memory computing for retail
Corporate operations
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 46
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Merchandising
and Marketing
 Offer personalized
promotions and
services that will
result in increased
customer loyalty
 Increase store visits
by using location-
based features
 Create superior
experience with
mobile couponing
(m-couponing), fully
integrated with point
of purchase
Store
Operations
 Augment staff
productivity through
enhanced store
processes and task
mgt
 Educate staff on
new products,
promotions and
services
 Provide store
managers all
information and
processes needed
to increase
efficiency
Customer
Interaction
 Increase
customer reach
with mobile
catalog browsing,
ordering, and
store pickup
 Improve customer
experience with
mobile checkout
 Mobile store price
and availability
information
 Reduce costs with
mobile (POS)
Corporate
Operations
 Give executives
instant insight to
information
necessary for
effective decision
making
 Provide instant
information at the
speed of business
with mobile KPI
reporting and
business analytics
 Streamline
internal approvals
IT
 Manage and
control corporate
information
though a secure
infrastructure on
every device
 Build your own
mobile application
Details DetailsDetails DetailsDetails
Mobility for retail
Opportunities for the business
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 47
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Mobility for retail
Merchandising and marketing use cases
Opportunity for the business Mobility-enabled innovations Capability enabled by
 Create superior experience with
mobile couponing, fully
integrated with point of
purchase.
 Mobile couponing (Service)
 Mobile couponing redemption at POS
(Service)
 Sybase 365 mobile
CRM offering
 Future build potential :
“CRM-related loyalty
management”
 Increase sales and customer
loyalty by providing a
personalized shopping
experience.
 Mobile marketing
Provides real-time interaction and
location-based services with the
consumer throughout the buying
lifecycle. This process creates a
personalized approach which influences
consumer behavior, drives traffic and
increase average spend.
 Planned solution
(prototype available)
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future Legend  Current Solution  Planned Solution  Future Back
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 48
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Mobility for retail
Store operations use cases
Opportunity for the business Mobility-enabled innovations Capability enabled by
 Augment staff productivity
through enhanced store
processes and task
management
 Mobile in-store inventory management
 Real-time inventory information
 Complete visibility of any type of
goods movement
 Different work lists
 Immediate updates to inventory and
financials for goods receipts,
movements, and issues
 Mobile task management
Task assignments and control of all
activities through mobile devices
 Future build potential
on Sybase Unwired
Platform
 Future build potential
on Sybase Unwired
Platform and Mobile
Workflow
 Educate staff on new products,
promotions and services
 Training module access
New merchandise attributes readily rolled
out corporate-wide
 Future build potential
 Provide store managers all
information and processes
needed to increase efficiency
 On shelf availability
 Mobile workforce scheduling
 Interview assistant
 Mobile in-store merchandise
management
 Provides store managers with insight and
store associates user friendly enquiry tool
 Future build potential
on Sybase Unwired
Platform
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future Legend  Current Solution  Planned Solution  Future Back
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 49
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Mobility for retail
Customer interaction use cases
Opportunity for the business Mobility-enabled innovations Capability enabled by
 Increase customer reach with
mobile catalog browsing,
ordering, and store pickup
 Mobile commerce
Full access to common data and
common processes across all channels
 Future build potential
 Improve customer in-store
experience with mobile checkout
 Mobile self-scanning
Customer able to use own device to scan
items and initiate a checkout
 Mobile payment (Service)
Customer able to use own device to pay
 Future build potential
 Sybase 365 mobile
Payments
 On-device charging
(planned)
 Increase customer satisfaction
with mobile access to store price
and availability information
 Price and inventory check
Checking merchandise prices and
information via scans or minimal key
entries, any time, any place, any channel
 Future build potential
 Reduce costs by bringing mobile
POS to every staff device
 Mobile POS
SAP Point-of-Sale application delivered
on a retailer-owned mobile device.
 Future build potential
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future Legend  Current Solution  Planned Solution  Future Back
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 50
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Mobility for retail
Corporate operations use cases
Opportunity for the business Mobility-enabled innovations Capability enabled by
 Control all reports with role-
based access on the go
 Mobile analytics
At-a-glance summary reporting of key
corporate key performance indicators
(KPIs) for every line of business and
executive
 SAP BusinessObjects
Explorer software
(available now for
iPhone and iPad)
 Streamline approval and
workflow processes and make
faster decisions
 Mobile workflow
Streamlined internal approvals (for
example, purchasing, employee leave,
shift changes)
 Mobile workflow
 Deliver high-quality human
resource services with a lower
total cost of ownership for every
employee
 Mobile Human capital management
(HCM) services
 Employee lookup, travel receipt
capture, time capture, leave request,
approval workflow
 Advanced HCM services
Interview assistant, manager view, team
performance assistant
 Planned solution
 Future build potential
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future Legend  Current Solution  Planned Solution  Future Back
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 51
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Mobility for retail
Information technology use cases
Opportunity for the business Mobility-enabled innovations Capability enabled by
 Manage compliance and
support heterogeneous devices
via one consolidated platform
 Information and device control
 Ability to manage and control corporate
information on every device
 Able to let your associates use their own
smart phones on the job, If you require
 Afaria mobile device
management solution
 Custom build applications on a
single, integrated platform
 Platform for custom-built applications
 Ability to build your own applications to
give you a competitive edge on a single
platform
 Sybase Unwired
Platform
Legend  Current Solution  Planned Solution  Future Back
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 52
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Business analytics retail
Opportunities for the business
Merchandising
and Marketing
Finance Supply Chain
Store
Operations
 Streamline
planning and
budgeting cycles to
reduce cycle time
 Reduce time taken
for period, monthly
and quarterly close
 Enhanced decision-
making with better
information and
standardization of
key business
processes
 Set KPI‟s to
measure the
effectiveness of
supply chain
operations
 Allocate impact of
fuel and fleet
costs across retail
units to determine
item profitability
 Analyze cost and
profitability
information on
retail enterprise
activities
 Analyze
store/department
level sales and labor
hours planning to
efficiently manage
your store
operations
 Improve financial
and sustainability
performance; set
goals to motivate
improvement
• Quickly respond to
changes in
customer demand
• Identify successful
promotions in real-
time to optimize the
shopper experience
• Analyze and
respond to market
sentiment to
maintain loyalty and
build a positive
brand
Details DetailsDetails Details
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 53
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Opportunity for the business Analytics-enabled
innovations/analytics
use cases
Capability enabled by
analytics version
 Advanced analytics and alerting
functionality to coordinate with
merchandising and store
operations to leverage point-of-
sale data for informed decisions
 SAP BusinessObjects
Sales Analysis for Retail
SAP Analytical Application
 Identify which promotions are
successful and best fit for
merchandise mix to correlate with
optimal markdown and pricing
parameters for all channels
 SAP BusinessObjects
Promotional and
Merchandise Insight
SAP Analytical Application
 Mantis Pulse Analytics™ enables
a rich environment for marketing,
HR, product design, and
customer service organizations to
listen, measure, analyze, and
respond to market sentiment
 Mantis Pulse Analytics™
for Retail
Partner Analytical Application
Business analytics for retail
Merchandising and marketing use cases
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Legend  Current Solution  Planned Solution  Future Back
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 54
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Opportunity for the business Analytics-enabled
innovations/analytics
use cases
Capability enabled by
analytics version
 Improve financial planning and
analysis for a more
comprehensive perspective on
business performance across the
enterprise
 SAP BusinessObjects
Planning and Consolidation
SAP Analytical Application
 Integrate, aggregate and analyze
operational and credit risks for a
consolidated view of retailers
exposure
 SAP BusinessObjects Risk
Management for Retail
Custom Application
 Enhanced retail cross –functional
and cross- geographic
collaboration for visibility on sales
and marketing plan execution
 SAP BusinessObjects
Strategy Management for
Retail
Custom Application
Business analytics for retail
Finance use cases
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Legend  Current Solution  Planned Solution  Future Back
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 55
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Opportunity for the business Analytics-enabled
innovations/analytics
use cases
Capability enabled by
analytics version
 A best practice based, pre-built
model for integrated store /
department level sales and labor
hours planning
 SAP BusinessObjects
Store Sales and Labor
Planning
SAP Analytical Application
 Enable companies to maximize
overall net margin and reduce
direct and indirect costs
 SAP BusinessObjects Net
Margin Analysis
SAP Analytical Application
 Align sustainability KPIs to
corporate objectives and risks; to
improve financial and
sustainability performance; and
set goals to motivate
improvement
 SAP BusinessObjects
Sustainability Performance
Management for Retail
SAP Analytical Application
Business analytics for retail
Store operations use cases
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Legend  Current Solution  Planned Solution  Future Back
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 56
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Opportunity for the business Analytics-enabled
innovations/analytics
use cases
Capability enabled by
analytics version
 Supply chain performance
management enables retailers to
measure the effectiveness of
supply chain operations
 SAP BusinessObjects Supply
Chain Performance
Management
SAP Analytical Application
 Allocate the impact of fuel and
fleet costs more accurately
across retail operating units to
determine item profitability
 Fleet and Fuel Management
Cost Containment
Custom Application
 In-depth analysis and alerting of
cost and profitability information
on retail enterprise activities
 SAP BusinessObjects
Profitability and Cost
Management for Retail
Custom Application
Legend  Current Solution  Planned Solution  Future Back
Business analytics for retail
Supply chain use cases
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 57
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
On demand solution for retail
Overview
DetailsDetails
Details
Strategic sourcing, contract life- cycle
management, and supplier management
components
Collaborative decision making
Analytics Contact centre
Details
Sourcing
Bring together people, information, and
business methods to drive fast, meaningful
results
Explore, report, and share data with the
SAP® BusinessObjects™ BI OnDemand
solution
Rapidly reach performance, quality and cost
targets across distributed contact centre
operations
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 58
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
On demand solutions for retail
Opportunities for the business
Opportunity for the business Solution
 To survive in an increasingly challenging global economy,
procurement organizations need to drive sustainable cost
savings, manage contracts efficiently, optimize supplier
management, and deliver rapid time-to-value. The SAP
Sourcing OnDemand solution can help.
Ensure sustainable cost savings
Deliver comprehensive contract management
Gain 360-degree supplier insight
The SAP Sourcing OnDemand solution
comprises strategic sourcing, contract life-
cycle management, and supplier
management components. This subscription-
based solution offers a combination of
software, services, and support that can
empower you to manage the entire strategic
sourcing-to-contract process.
Opportunity for the business Solution
 Companies need teams that work together, sharing and
brainstorming in a structured fashion to drive fast decision
and maintain a record of communication that can be used
to constantly refine and improve decision made. SAP
Streamworks solution an help
 Unite people, information, and business
 Work with the applications you use today including e-mail,
WebEx, and EVERNOTE
The SAP® StreamWork™ application
supports collaborative decision making by
bringing together the people, information,
and business methods to drive fast,
meaningful results.
SAP Sourcing OnDemand
SAP StreamWork OnDemand
Back
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 59
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
On demand solutions for retail
Opportunities for the business
Opportunity for the business Solution
Business Challenges
Limited information that hampers informed decision making
Lack of accessible easy-to-use BI tools for business users
Lack of reports that provide a complete view of the
business
Time-intensive manual processes to consolidate or share
data and create reports, charts, graphs, dashboards, and
visualizations
Explore, report, and share data with the
SAP® BusinessObjects™ BI OnDemand
solution. It‟s a comprehensive business
intelligence solution in a software-as-a-
service model
Opportunity for the business Solution
Contact center solutions are often rigid, and responding
effectively to customer needs taxes your entire organization.
SAP Business Communications Management helps achieve:
Higher customer satisfaction with improved service levels
and higher rates of first-call resolution
Reduced cost with smarter workforce utilization and lower
maintenance costs
Fast time to benefit through an implementation
of fixed scope and price performed within weeks
SAP® Business Communication
Management software is a contact center
solution that helps organizations to rapidly
reach performance, quality and cost targets,
especially in distributed operations.
SAP BusinessObjects BI OnDemand
SAP Business Communication Management OnDemand
Back
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 60
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Delivery innovations
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 61
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Rapid-deployment solutions
Overview
DetailsDetails
Details
Extended warehouse management Portfolio monitoring
Forecasting and replenishment
CRM marketing
Details
Predefined services for retail
Overview
Point of sale data
Details
ERP connectivity
Details
Opportunity to adopt next generation
warehousing automation techniques
Easy monitoring and decision making support
for operative projects
Decision making support and monitoring
including customer and financial integration
as well as standard analytics
Predefined solutions for sophisticated
Forecasting and Replenishment application
Services and accelerators for master data, mapping
to standard customer/industry message formats
This service is delivered into the customer‟s
system landscape to take and post POS data
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
Starter Pack Fashion & Grocery Retailing
Details
Complete solution package which integrates
specific industry processes
Details
Planning for Retail
Helps retailers define budgets, manage assortments
per channel utilizing real-time what-if demand driven
forecasts
© 2011 SAP AG. All rights reserved. 62
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Extended Warehouse Management
Opportunity for the business Solution
Opportunity to adopt next generation warehousing
automation techniques & achieve continuous
improvement in supply chain execution
Designed for existing SAP ECC customers who
are looking to expand their footprint with SCM
EWM 7.0 with High ROI & Low TCO
 A jump start on the EWM journey with quick
wins and continuous business improvement
 Best practice principle with fixed scope
 A service targeted to small and midsize
enterprises as well as dedicated business
units of large enterprises
Opportunity for the business Solution
This SAP Rapid Deployment Solution provides an easy
monitoring and decision making support for operative
projects running in SAP Project System (PS). Monitoring
capabilities include e.g. financial integration as well as
standard analytics via SAP Business Objects Explorer
and Business Context Viewer.
Portfolio Planning
 Identify Proposals
 Analyze Rick & Rank Proposals
 Create and Approve Budgets
Portfolio Monitoring
 Monitor Portfolio
Project Monitoring
 Initiate Project
 Project Execution
 Implementation Project
Rapid-deployment solutions
Portfolio Monitoring
Back
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 63
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
CRM Rapid Deployment Marketing
Opportunity for the business Solution
This solution provides easy monitoring and decision
making support, monitoring capabilities include
customer and financial integration as well as standard
analytics via SAP Business Objects Explorer and
Business Context Viewer.
Simplify Campaign Management
 Hierarchical Campaign Planning
 Marketing Project Management
 Integrated Execution Channels
Better Support the Sales Force
 Integrated Lead Management
 Automated Lead Distribution
Rapid-deployment solutions
Back
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 64
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Planning for Retail
Opportunity for the business Solution
The SAP Planning for Retail Suite helps retailers with
their core planning challenges and fine tunes channel
specific assortments. Key benefits:
• Closed-loop retail business processes, based on
industry best practices, improve efficiency and
accuracy in merchandise decision making
• Clear visibility across all performance metrics to
support retail performance analysis, re-plans, and
sales performance no matter the number of
channel/stores/sku combinations
• Gain the market insight needed to anticipate new
trends and with one single merchandise planning and
analysis solution convert these insights into actionable
plans that create and fulfill customer demands.
SAP Planning Suite for Retail
 Channel Financial Planning
 Merchandise Planning
 Key Item Planning
SAP Planning Suite for Retail
 Enhanced rules based calculation engine
 Enhanced cell locking capabilities
Rapid-deployment solutions
Back
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 65
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Predefined services for retail
Enterprise Data Warehouse Service for Point of Sale
Opportunity for the business Solution
Reduced implementation cost
 End-to-end preconfiguration
 Focus on core processes – solution to address
customers‟ needs
Speed to value
 Reduced implementation cycles
 gap/fit analysis instead of lengthy design phase
 Rich experience and successful track record with,
and smooth automation of customer-related retail
processes and retail-specific processes
Business-process-oriented approach helps
customers quickly get to a standard configuration
and prototyping.
Meets customers„ needs for predefined solutions yet
still uses the sophistication of the SAP Forecasting
and Replenishment application to meet special
needs
SAP Forecasting and Replenishment
Opportunity for the business Solution
 Helps retailers drive responsive replenishment also
known as advanced vendor-managed inventory
(VMI) for customer replenishment
 Allows companies to drive better decisions with
access to key KPIs such as inventory turns, order
fill rate
 Rapid delivery in typically under 12 weeks
 Traditional license and subscription models
Process steps include B2B data load and correction,
forecasting, and promotion planning, replenishment,
sales order proposal and generation, delivery
Service scope includes services and accelerators for
master data, mapping to standard customer/industry
message formats, reporting content
Back
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 66
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
ERP Connectivity for Point of Sale Data Management
Opportunity for the business Solution
Taking point of sale information from any device and any
location is vital for retailers to get up to date sales and
stock information across their enterprise. This service is
delivered into the customer‟s system landscape to take
and post that POS data to the customers systems.
 Delivery of the coding and objects
 Extensive documentation provided
 Initial 1,5 day workshop session with two
consultants on site for know-how transfer
 Further walk through sessions after
implementation of service on customers system
to complete configuration and set up and make
a run through.
Predefined services for retail
Back
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
Opportunity for the business Solution
 Complete solution pack for fashion retailers which
integrates fashion specific processes
 Complete solution pack for grocery retailers which
integrates grocery specific processes
 Builds a solid foundation and base layer for the
system implementation
 Prototype with pre-configured fashion and
grocery specific scenarios
 Major additional developments to enhance
standard functionality
 Comprehensive documentation material as
well as project proposal
 Internal customer workshop
 Example SBO dashboards on request
Starter Pack for Fashion and Grocery Retailing
© 2011 SAP AG. All rights reserved. 67
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Customer co-innovation
SAP Research Living Labs
The Future Retail Center, located in Regensdorf, Switzerland, and managed by SAP Research Zurich, is a
joint effort between SAP Research and customers, as well as industry and academic partner organizations
to foster research and development in retail and logistics.
SAP Community Network
This online hub supports customers, partners, consultants, experts, and SAP employees. Companies can
find answers to questions and benefit from the expertise of other community members as they develop their
own products.
SAP Regional User Groups (America‟s SAP Users‟ Group – ASUG)
Each global region has an SAP user group and the industry business units meet quarterly with these groups
to discuss current releases, future plans, and workshops to solve customer problems. These user groups
have been in existence for over 25 years.
SAP BusinessObjects innovation center
This interactive online forum lets customers sample SAP technology that is in development. Companies can
download prototype software and offer feedback.
SAP Premier Customer Network
Successful companies that SAP has selected to collaborate and share ideas. Network members participate
in programs designed to cultivate, diversify, and transform ideas into tangible business improvements.
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 68
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Customer co-innovation
Precision retailing and the mobilized consumer
Real-time marketing
Influence the composition and size of the shopping cart real-time in the store
Real-time offer suggestions of special offers and products that match customer needs
Benefits
Increased customer loyalty and satisfaction
Generate additions sales with up-selling opportunities
How
Real-time marketing with in-memory technology and mobile applications
Back
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 69
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Customer co-innovation
Unimarc, Grocery Retailing, Chile
Accelerating business growth by accelerating reporting
Enhancing the value of business intelligence
Benefits
Used preconfigured content to minimize implementation effort
Finished in one week, on schedule
How
SAP NetWeaver Business Warehouse Accelerator
600%
Users with access
to management
information
30%
Increase
customer
satisfaction
500%
Increased
delivery of
sales reports
Back
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 70
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Ecosystem
Consulting and integration
SAP BusinessObjects
Sales Analysis for Retail
to prevent out of stocks
Trilogy Project –
benchmarking across
core processes
Balance labor cost with
excellent service
Link strategy, budgeting,
performance, and
compliance processes
Value-add resellers/development
For more details, see the SAP Communities site on SAP.com: SAP Communities
SAP Paybacks and
Chargebacks by Vistex
SAP Incentive Administration
Social media and market
sentiment analysis
Supply chain modeling
and analytics software
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 71
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Retail without boundaries
Key trends driving future innovations
Innovations
Technology
 Mobility
 Business analytics
 In-memory computing
 On demand
Delivery
 Rapid-deployment
solutions
 Customer co-innovation
 Ecosystem
Future
Solutions
 Road map
 Recent innovations
 Redefining retail
processes
 Loyalty management
 Promotions
management
 Forecasting and
Replenishment
Redefined
customer
interaction
Today 2015
CustomerStore
Web
Mobile
Social
Media
Store
B2COrders
Goods Issue
Customer
New level of
real-time
customer data
Global,
verticalized
supply chain
Merchandising
Marketing
SupplyChain
...
Customer Data
Merchandising
Marketing
Supply Chain
© 2011 SAP AG. All rights reserved. 72
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
References and results
Proof Points
 La Vie en Rose
 Wolverine
 Welspun
© 2011 SAP AG. All rights reserved. 73
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
La Vie en Rose, a leading
Canadian retailer of lingerie
and swimwear, installed
SAP software to support a
centralized data warehouse.
The firm now has the
analytics and reporting
functions it needs to
standardize performance
calculations, enhance
merchandising and
replenishment strategies, and
optimize potential
growth. The new platform has
also increased operational
efficiency and freed up IT staff
to focus on tasks with higher
business value.
Created a centralized source for timely,
accurate data
Replaced manual sales performance
reporting with automated weekly reports
Standardized calculations of performance for
greater accuracy and reliability
Improved accuracy in measuring
effectiveness of marketing and promotional
campaigns
10% Raised conversion rate by 1%,
thereby increasing sales by 10%
95% Reduced manual effort by 95% and
eliminated 20 hours per week of
merchandising
Proof Points
 La Vie en Rose
 Wolverine
 Welspun
© 2011 SAP AG. All rights reserved. 74
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Wolverine World Wide Inc.,
a leading global marketer of
branded footwear and
apparel, wanted to leverage
its wholesale business to
grow its retail operation.
This demanded a solution that
integrates fully with its
wholesale software, the SAP
Apparel and Footwear
application. By implementing
SAP for Retail solutions,
Wolverine has gained the real-
time visibility needed to
increase revenue in all of its
stores.
Higher store revenue and sell-through rate
Multiple currencies and languages supported
Manual tasks by retail staff reduced
Retail store stock outs reduced
Inventory replenished for in-demand styles
Integration with SAP Apparel and Footwear
25% Increase outlet store sell-through
rate
35% Concept store sell-through rate
increased on core products
Proof Points
 La Vie en Rose
 Wolverine
 Welspun
© 2011 SAP AG. All rights reserved. 75
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Welspun Group, one of the
fastest-growing Indian
conglomerates, represents
an amalgamation of
expertise and engineering
excellence in premier pipe
and home textiles. Welspun
India Ltd., the flagship
company of the group and
manufacturer of home textiles
for U.S. retailers, required a
standard way of
communication. To support
fast-paced internal growth,
integrate smoothly with
acquired companies,
and achieve a standard
communication platform,
Welspun India chose
SAP software.
Built an integrated platform to interact with
business partners
Automated and standardized operational
processes
Improved business compliance with legal and
regulatory requirements for different
customers
Increased customer confidence with high
quality of deliverables and business continuity
Allocated resources and minimized IT
administrative and maintenance costs more
effectively, allowing personnel to work on
high-end tasks
60% Increase in order delivery efficiency
20%
to 30%
Concept store sell-through rate
increased on core product
Proof Points
 La Vie en Rose
 Wolverine
 Welspun
© 2011 SAP AG. All rights reserved. 76
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
SAP solutions help retail companies
run better
Strategy
SAP innovations
enable business
transformation
IT value
Orchestration across on premise, on demand and on device
providing flexibility, security and scalability on a single IT
platform.
• Easily consumable through implementable steps
• Quick ROI through rapid deployment solutions (RDS)
• Secure reliable operations tuned for your business
On-DemandMobility Business
Analytics
In-Memory
Computing
Business value
“End to end” processes for multi industry value chains
combining horizontal and industry specific solutions
 Plan and Market better: 360 degree customer insight to plan
and execute targeted merchandise assortments, pricing and
promotion strategies
 Target better: Enhance real-time customer experiences
across all touch points
 Sell better: Interact with customers by their preferences to
build loyalty and maximize new sales
 Supply better: Improve product availability and customer
service with real-time visibility to planning and execution.
 Operate better: Simplify business processes and empower
employees with the right information when they need it
© 2011 SAP AG. All rights reserved. 77
Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points
Take Away
Continued investment in retail solutions that leverage new
technologies to surpass the speed and mobility demands
of customers and employees
Our customers are reaping the benefits and running
better with SAP
SAP helps drive business transformation with real-time unified
and simplified business processes
1
2
3
Take Away
© 2011 SAP AG. All rights reserved.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP
BusinessObjects Explorer, StreamWork, and other SAP products and
services mentioned herein as well as their respective logos are trademarks
or registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal
Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business
Objects products and services mentioned herein as well as their respective
logos are trademarks or registered trademarks of Business Objects
Software Ltd. Business Objects is an SAP company.
Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and
other Sybase products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of Sybase, Inc.
Sybase is an SAP company.
All other product and service names mentioned are the trademarks of
their respective companies. Data contained in this document serves
informational purposes only. National product specifications may vary.
These materials are subject to change without notice. These materials
are provided by SAP AG and its affiliated companies (“SAP Group”)
for informational purposes only, without representation or warranty of
any kind, and SAP Group shall not be liable for errors or omissions with
respect to the materials. The only warranties for SAP Group products and
services are those that are set forth in the express warranty statements
accompanying such products and services, if any. Nothing herein should be
construed as constituting an additional warranty.

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Simplify your Retail business processes with SAP that helps drive business transformation with real-time.

  • 1. SAP for Retail Industry Briefing Book Comments and questions: rae.leyshon@sap.com Edition 2 January 2012
  • 2. Legal disclaimer All information in this industry briefing book is provided under NDA The information in this document is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This document is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information on this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
  • 3. and SAP for Retail TransformationRun Better Proof Points Strategy Solutions Innovations Drivers Take away Comments and questions: rae.leyshon@sap.com
  • 4. © 2011 SAP AG. All rights reserved. 4 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points What does “Run Better” mean for a retailer? Average customer/ basket spend Customer satisfaction rating EBIT/operating income Margin contribution Market share Product availability Sales per square foot/meter Same store/like-for- like sales  Coop  Index Living Mall  Chico‟s Run Better KPIs Examples Value potential
  • 5. © 2011 SAP AG. All rights reserved. 5 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Inventory days of supply Revenue per employee ($ 000s) 31 best Large disparity between the best and the rest $354 best Source: SAP Value Engineering data 2011  Coop  Index Living Mall  Chico‟s Run Better KPIs Examples Value potential
  • 6. © 2011 SAP AG. All rights reserved. 6 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Revenue per employee ($ 000s) - Food Revenue per employee ($ 000s) - Softlines $525.3 best Large disparity between the best and the rest $353.7 best Source: SAP Value Engineering data 2011  Coop  Index Living Mall  Chico‟s Run Better KPIs Examples Value potential
  • 7. © 2011 SAP AG. All rights reserved. 7 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points The best are leading the way -70% order to delivery lead time 75% improved inventory performance 41% increase in average purchase value  Coop  Index Living Mall  Chico‟s Run Better KPIs Examples Value potential
  • 8. © 2011 SAP AG. All rights reserved. 8 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Basel-based Coop Group wanted a leading position in the Swiss online food retail market. It launched coop@home – a full-range supermarket accessible through the Internet and mobile devices, such as iPhones. 41% increase in average purchase value 22% higher revenues on coop@home Built extendible IT backbone for further online shops Integrated existing IT system SAP CRM blended perfectly with existing landscape Orders managed without manual processing and unnecessary steps  Coop  Index Living Mall  Chico‟s Run Better KPIs Examples Value potential
  • 9. © 2011 SAP AG. All rights reserved. 9 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Index Living Mall is the largest specialty mall in Thailand, providing high- quality home furnishings and accessories. In order to gain advantage in the fiercely competitive retail market, it needed to transform its vision for superior customer service into reality. -19% reduction of days in inventory -70% reduction in order to delivery lead time Gained real-time visibility into complete inventory cycle across the supply chain Met customer demand with real-time price updates for promotion campaigns Enhanced order fulfillment through real-time inventory availability check Improved warehouse efficiency Built extendible IT backbone for further online shops  Coop  Index Living Mall  Chico‟s Run Better KPIs Examples Value potential
  • 10. © 2011 SAP AG. All rights reserved. 10 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Chico‟s operates 1,225 boutiques and outlets through- out the United States and has direct-to-consumer channels for each brand. When the company‟s disparate legacy systems didn‟t support their integrated high-growth strategy, Chico‟s looked to SAP to standardize business processes, increase efficiency, and facilitate store growth. Increased business transparency to support operational decisions Gained deeper business intelligence insight to support sales and merchandising decisions Raised value of reports with a single version of data 75% Improved inventory performance -50% Reduced time needed for financial close  Coop  Index Living Mall  Chico‟s Run Better KPIs Examples Value potential
  • 11. © 2011 SAP AG. All rights reserved. 11 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Innovation drivers in the retail industry Increasing customer demands and intensified competition Drivers „Real„ real-time Mobile imperative Globalization and consolidation Price and margin pressures Customer personalization
  • 12. © 2011 SAP AG. All rights reserved. 12 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points „Real‟ real-time Consumers always connected Real-time transparency of all transactions One-to-one marketing and customer connection Drivers „Real„ real-time Mobile imperative Globalization and consolidation Price and margin pressures Customer personalization
  • 13. © 2011 SAP AG. All rights reserved. 13 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Mobile imperative Improves decision making and increases productivity across the enterprise Delivers on customer expectations with superior service at every touch point Expands customer / employee interaction and increases loyalty Drivers „Real„ real-time Mobile imperative Globalization and consolidation Price and margin pressures Customer personalization
  • 14. © 2011 SAP AG. All rights reserved. 14 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Globalization and consolidation New integrated business models across geographies and channels Global expansion with local assortments New sourcing and distribution strategies to respond to fast-buying behavior across all retail segments Drivers „Real„ real-time Mobile imperative Globalization and consolidation Price and margin pressures Customer personalization
  • 15. © 2011 SAP AG. All rights reserved. 15 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Price and margin pressures Competition and siloed channel operations have shrunk profitability levels Culture of promotional activity exists at expense of margins Optimized local and personalized pricing strategies required Drivers „Real„ real-time Mobile imperative Globalization and consolidation Price and margin pressures Customer personalization
  • 16. © 2011 SAP AG. All rights reserved. 16 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Customer personalization Targeted one-to-one offers that develop loyalty Optimized shopping lists with suggestions based on product affinities to help customers Engage with customers to help refine product selection Drivers „Real„ real-time Mobile imperative Globalization and consolidation Price and margin pressures Customer personalization
  • 17. © 2011 SAP AG. All rights reserved. 17 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Without SAP Business Challenges Transformation Without SAP SAP‟s Value With SAP • Merchandising is disjointed with planning and merchandising processes unable to react effectively to the needs of the customer • Marketing has difficulty bringing relevant and timely promotions to customers • Supply chain struggles to balance inventory to match customer demand • Store and channel operations cannot deliver service required at sales locations • IT has visibility constraints across disparate business functions Contract Manufacturer StoresDistribution Center Customer Merchandising and Marketing Store and Channels Supply Chain IT HRFinance Supplier
  • 18. © 2011 SAP AG. All rights reserved. 18 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points With SAP Unified and simplified business processes Contract Manufacturer StoresDistribution Center Customer Merchandising and Marketing Store and Channels Supply Chain IT HRFinance Supplier • Merchandising seamlessly delivers new and relevant assortments from real-time customer insight • Marketing increases loyalty and margins with real-time experiences across all customer touch points • Supply chain optimizes inventory levels with real-time visibility and integrated planning and execution • Store and channel operations increases margin and customer satisfaction with efficient service matching customer needs • IT standardizes data with unified and simplified processes that transform the retail enterprise Transformation Without SAP SAP‟s Value With SAP
  • 19. © 2011 SAP AG. All rights reserved. 19 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Customer Insight 360 degree customer insight to plan and execute targeted merchandise assortments, pricing and promotion strategies SAP unique capability SAP unique capabilitySAP unique capability Customer Interaction Customer-Driven Supply Network Improve product availability and customer service with real-time visibility to planning and execution Interact with customers by their preferences to build loyalty and maximize new sales opportunities Retail Without Boundaries We help retailers transform their business with unified and simplified processes across channels, business models and customersTransformation Without SAP SAP‟s Value With SAP
  • 20. © 2011 SAP AG. All rights reserved. 20 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions for retail Solutions  Supply Chain  Finance  Store and Channels  HR  Merchandising and Marketing  IT  Operations SAP delivers comprehensive, integrated solutions for all business areas in retail Supply Chain Finance HR OperationsIT Merchandising and Marketing Store and Channels
  • 21. © 2011 SAP AG. All rights reserved. 21 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions for merchandising and marketing Bring relevant and differentiating assortments to market  Shopper Insight and Analytics Turn information into insight with real-time granular level information  Product and Store Lifecycle Management Enables fast entry and maintenance of all product and store master data  Interactive Customer Lifecycle Management Improve holistic view of customers with both retailer and customer updates of customer master data, to maximize customer value  Merchandise and Assortment Improve effectiveness of end-to-end business planning with fast and seamless introduction of new and relevant assortments Merchandising and Marketing Supply Chain Finance HR OperationsIT Store and Channels Solutions  Supply Chain  Finance  Store and Channels  HR  Merchandising and Marketing  IT  Operations 1 | 2
  • 22. © 2011 SAP AG. All rights reserved. 22 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions for merchandising and marketing Bring relevant and differentiating assortments to market  Integrated Product Development Maximize speed of products to market with an accurate source of consistent data  Lifecycle Price Management Create, maintain, analyze and optimize base pricing, and maximize price optimization strategies throughout the lifecycle of the product  Cross Channel Marketing and Promotions Management Leverage customer buying behavior and preferences to exceed customer expectations with relevant marketing campaigns  Real -Time Customer Personalization Deliver real-time suggestions and offers based on product availability tailored to the preferences of the customer Solutions  Supply Chain  Finance  Store and Channels  HR  Merchandising and Marketing  IT  Operations Merchandising and Marketing Supply Chain Finance HR OperationsIT Store and Channels 1 | 2
  • 23. © 2011 SAP AG. All rights reserved. 23 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions for store and channels Deliver personalized customer service  E-Commerce and Catalog Build customer loyalty and increase sales with mobile personalized e-marketing and e-commerce that helps customers find the best products/services  Multi Channel Order Management Allow purchase and return from any channel, providing one consistent and unified face to the customer  Store and Point of Sales Deliver in-store experience that delights customers and meets brand promise with fast cash taking, employee schedules to customer demand, manage inventory and mobile assistance  Cross Channel Customer Service Effectively manage all customer after sales contact to continue the personalized experience and grow loyalty Solutions  Supply Chain  Finance  Store and Channels  HR  Merchandising and Marketing  IT  Operations Merchandising and Marketing Supply Chain Finance HR OperationsIT Store and Channels
  • 24. © 2011 SAP AG. All rights reserved. 24 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions for supply chain Manage profitable and synchronized demand and supply  Integrated Demand & Replenishment Planning Balance inventory ownership with customer service to achieve accurate and flexible replenishment and allocation.  Procure to Pay Efficiently manage the complete retail procurement to payment cycle of items for non-resale items.  Integrated Sourcing and Buying Reduce total cost of goods sold by sourcing as efficiently as possible.  Supply Chain Execution Drive logistics, based upon a single view of customer demand, across all channels and maintain visibility to all costs of operations to make necessary adjustments. Solutions  Supply Chain  Finance  Store and Channels  HR  Merchandising and Marketing  IT  Operations Merchandising and Marketing Supply Chain Finance HR OperationsIT Store and Channels 1 | 2
  • 25. © 2011 SAP AG. All rights reserved. 25 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions for supply chain Manage profitable and synchronized demand and supply  Manufacturing Planning and Execution for Private Label and Local Production Design, define and then monitor all phases of product manufacturing from component sourcing through to production tracking and quality management  Lean Manufacturing for Private Label and Local Production Design, define and then monitor all phases of product manufacturing Solutions  Supply Chain  Finance  Store and Channels  HR  Merchandising and Marketing  IT  Operations Merchandising and Marketing Supply Chain Finance HR OperationsIT Store and Channels 1 | 2
  • 26. © 2011 SAP AG. All rights reserved. 26 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions for finance Maximize financial opportunity  Manage Financial Performance Manage financial and operational performance to help with accurate insight into costing, improved financial planning and forecasting  Treasury and Financial Risk Management Ensure enough liquidity to fund business operations  Manage Enterprise Risk and Compliance Provide continuous monitoring of key risk indicators to compliance to strategy  Payables Management Streamline invoice-to-pay processes and improve vendor relationships Solutions  Supply Chain  Finance  Store and Channels  HR  Merchandising and Marketing  IT  Operations Merchandising and Marketing Supply Chain Finance HR OperationsIT Store and Channels 1 | 2
  • 27. © 2011 SAP AG. All rights reserved. 27 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions for finance Maximize financial opportunity  Receivables Management Improve accounts receivables management with sophisticated credit analysis, streamlined debt collection and seamless integration  Consume to Cash in High-Volume Business Run efficient end-to-end solutions for high volume industries such as retail, with built-in industry best practices  Accounting and Financial Close Run accounting and financial close processes faster, more accurate, more compliant and less costly Solutions  Supply Chain  Finance  Store and Channels  HR  Merchandising and Marketing  IT  Operations Merchandising and Marketing Supply Chain Finance HR OperationsIT Store and Channels 1 | 2
  • 28. © 2011 SAP AG. All rights reserved. 28 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions for human resources Focus on the effectiveness of your most valuable resource  Core HR and Payroll Enable organizations to support and automate processes across the entire employee lifecycle from hire to retire for a global workforce  Workforce Planning and Analytics Help organizations to better plan workforce related needs and associated costs, enables ongoing measurements of performance indicators and metrics  Talent Management Enable organizations to attract, recruit, appraise, develop and retain the best talent available  Time and Attendance Management Enable organizations to optimize workforce utilization through efficient work schedule/roster creation, ensure capture and calculation of time-related data Solutions  Supply Chain  Finance  Store and Channels  HR  Merchandising and Marketing  IT  Operations Merchandising and Marketing Supply Chain Finance HR OperationsIT Store and Channels
  • 29. © 2011 SAP AG. All rights reserved. 29 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions for information technology Improve the efficiency and speed of decision making across the company  IT Service Management A full-blown service desk function with optional integration into SAP Business Communication Management with diverse reporting options  IT Portfolio and Project Management Provide transparency to IT portfolio, projects and resources. Help streamline portfolio processes and standardize project management  Application Lifecycle Management Efficiency and Value along the Application Lifecycle from Design, Transition and Operation Solutions  Supply Chain  Finance  Store and Channels  HR  Merchandising and Marketing  IT  Operations Merchandising and Marketing Supply Chain Finance HR OperationsIT Store and Channels
  • 30. © 2011 SAP AG. All rights reserved. 30 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions for operations Efficient and sustainable operational execution  Sustainability Reporting and Analytics Sustainability Reporting and Analytics delivers strategy-aligned sustainability execution across the entire business landscape via transparency, optimization and stakeholder engagement  Real Estate Lifecycle Management End-to-end real estate lifecycle management with full integration to ERP Financials Solutions  Supply Chain  Finance  Store and Channels  HR  Merchandising and Marketing  IT  Operations Merchandising and Marketing Supply Chain Finance HR OperationsIT Store and Channels
  • 31. © 2011 SAP AG. All rights reserved. 31 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Customer centric and innovation driven SAP‟s strategy for retail companies Solution Innovations Technology Innovations Delivery Innovations Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 32. © 2011 SAP AG. All rights reserved. 32 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solution innovations for retail companies Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Innovations Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment 1 | 2
  • 33. © 2011 SAP AG. All rights reserved. 33 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Technology • Mobility • Business analytics • In-memory computing • On demand Delivery • Rapid-deployment solutions • Customer co-innovation • Ecosystem Future Continued investment in retail solutions SAP‟s vision is to provide real-time, unified and simplified processes across channels, business models and customers Slide shows selected Items only . See Industry Roadmap for complete view 2Partner Recent Sales/POS Analytics Promotion Management Loyalty Management Mobile Infrastructure Market Sentiment Analysis2 In-Store Merchandising and Inventory Management Loss Prevention Planned In-Memory Consumer Activity Repository & Analytics In-Memory Retail Planning Forecasting & Replenishment Promotion + Integration Sourcing (OP and OD) Warehouse Management Web Channel Mobile Marketing Future In-Memory Retail Predictive Applications Retail Analytics Integration of Channels and Harmonized User Experience Mobile Retailing Supply Chain Execution Hub Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Innovations Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment 1 | 2
  • 34. © 2011 SAP AG. All rights reserved. 34 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Supply chain  Accurate and flexible forecasting and replenishment solutions that effectively and profitably balance inventory ownership, inventory strategy and customer service  Plan all phases of product creation from design and component sourcing through production tracking and quality management Merchandising and marketing  Targeted loyalty programs that address the needs of the customer  Integrated promotions management for fast execution of targeted offers  Financial and assortment plans driven across channels and geographies from same top line goals Corporate operations  Advanced labor scheduling to match employee hours and skill to customer demand  Next-generation employee self- services to improve usability and user acceptance Store and channels • Targeted customer pricing combined with efficient and fast order creation • Extensive catalog management to deliver personalized information through e-mail Web campaigns • Connect all stores, franchise operations, and customers over an array of devices Selected solution innovation Available today Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Innovations Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 35. © 2011 SAP AG. All rights reserved. 35 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Selected solution innovation Loyalty management Program Management Reward Rules Management Processing Engine Membership Handling Loyalty API Connectivity Sales Order Integration Interaction Center Integration Web Channel Integration Program Design & Setup Program Execution CUSTOMER INTERACTION CHANNELS LOYALTY MANAGEMENT SOLUTION  Plan and execute channel customer loyalty programs  Consistently treat customers well throughout the organization  Build customer loyalty by sharing interaction history across channels Partner Management Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Innovations Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 36. © 2011 SAP AG. All rights reserved. 36 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP Promotion Management for Retail Offers complete support for planning promotions, forecasting their performance, and creating a closed-loop promotions process by integrating with execution systems. Business benefits: Greater promotional effectiveness by creating more profitable and timely promotions Enhanced efficiency by providing tools to generate targeted promotions for all sales channels Improved productivity by supporting better collaboration among marketing merchandising and advertising. Business capabilities: Insightful analytics drives a comprehensive promotional strategy to improve financial performance Automated workflow facilitates collaboration between key stakeholders Consumer centric promotions targeted at specific geographic markets One database of product information and offers Selected solution innovation Promotions management Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 37. © 2011 SAP AG. All rights reserved. 37 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP Forecasting and Replenishment Provides automated capabilities for demand-driven synchronized inventories along the supply chain to help improve in-stock positions and reduce cost. The next release will provide more sophisticated functionality for DC replenishment and usability improvements. Business benefits: Reduction of purchasing and logistical costs Increased forecast accuracy leads to better results Improved traceability of automated processes Reduced total cost of ownership through better integration with SAP ERP for Retail Improved accuracy of promotional forecasts Better usability for increased efficiency . Selected solution innovation Forecasting and replenishment Business capabilities: Sophisticated capabilities for truck load optimization Forecast improvements (statistical enhancements and improved visibility) More detailed information regarding automated calculation steps Enhanced connectivity of SAP F&R with SAP ERP for Retail, e.g. source list integration and transit stock consideration Additional time-dependent data for promotions Improved user interfaces Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 38. © 2011 SAP AG. All rights reserved. 38 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Merchandising and marketing  In-memory planning to increase the effectiveness, speed and accuracy of planning assortments  In-memory customer segmentation for analysis of high volume customer data  Consumer activity repository to effectively capture and analyze consumer behavior in real-time Corporate operations  E-invoicing with digital signatures  Mobile applications for employees, managers, and HR business partners  Collaborative disclosure management Store and channels  State-of-the art business-to-consumer Web channel that integrates marketing, services, and stores  Personalized mobile shopping experiences with mobile marketing  Enhancements in point of sale Supply chain  Improved data enrichment, simulation and analytics in Spend performance management  Transportation management for freight forwarders and shippers  Rapid deployment solution for global available-to-promise check Selected solution innovation Road map Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 39. © 2011 SAP AG. All rights reserved. 39 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Selected retail innovation Example of redefining retail processes Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Mobile Cloud On Premise Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 40. © 2011 SAP AG. All rights reserved. 40 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Technology innovation On DemandAnalytics MobilityIn-Memory Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 41. © 2011 SAP AG. All rights reserved. 41 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Merchandising and Marketing Supply Chain Store and Channels Corporate Operations  Detailed visibility and risk identification across supply chain  Real -time response by allowing simultaneous consideration of constraints and restrictions along the entire supply network  Real-time sales information to assess current risk of out-of- stock or out-of-shelf situations.  Leverage sales data from all channels to understand customer buying patterns and drive profitable promotions  Increased insight into consumer behavior, mobile and web channel decision activity. • Run profitability analysis at single product or customer level • Improved internal accounting and decision making • Control cost in real-time, faster cost allocation • Enable timely and accurate reporting of financial and operational performance • In a flash general ledger reporting • Balance risk and opportunity  Advanced velocity of merchandise insights available across all channels  Time-phased assortment planning available by product, store and customer integrated to ordering and replenishment processes  Real-time what-if cluster and product optimization integrated to assortment planning  Market basket insights that provide merchandise and assortment guidance Details Details DetailsDetails SAP in-memory computing for retail Opportunities for the business Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment Customer co-innovation:
  • 42. © 2011 SAP AG. All rights reserved. 42 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Opportunity for the business In-memory enabled innovations / HANA use cases Capability enabled by HANA version  Gain detailed consumer insights to provide a differentiating and personalized shopping experience  Consumer Activity Repository Enable retailers to effectively capture and analyze consumer behavior in real-time and make informed decisions. HANA 1.0 SP3  Obtain detailed visibility and alerting of sales performance across all channels  Sales Analysis for Retail Provide advanced visibility and alerting capabilities to Merchants and Store Operations teams regarding sales velocity, promotional impact, product performance etc across all channels HANA 1.0 SP3 • Enable flexible, high- performance retail planning  In-Memory Planning for Retail One high performance data source supporting strategic, merchandise, store and assortment level planning. HANA 1.0 SP3 • Predict consumer buying patterns and behavior  Affinity Insights (PIO service) Advanced basket analysis providing detailed understanding of individual shopper transactions and correlations to seasonal, weekly, daily patterns  Consumer Demand Forecasting HANA 1.0 SP3 Future Legend  Current Solution SAP HANA  Planned Solution SAP HANA  Future Back SAP in-memory computing for retail Merchandise and marketing use cases Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 43. © 2011 SAP AG. All rights reserved. 43 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Opportunity for the business In-memory enabled innovations / HANA use cases Capability enabled by HANA version  Establish a responsive supply network to reduce costs and manage risk across the network more efficiently  Flexible Shipping/Purchasing and Spend Analysis HANA 1.0 SP3  real-time transparency of potential out-of-stock and service level issues creates the opportunity to react rapidly and solve issues.  On Shelf Availability Analysis Analysis of real-time sales information to assess current risk of out of stock or out of shelf situations. HANA 1.0 SP3 • Simultaneous consideration of constraints and restrictions along the entire supply network provide the opportunity to re- plan the flow of merchandize and react on customer demand  Integrated Demand Planning  Warehouse Analytics  Transportation Analytics Future SAP in-memory computing for retail Supply chain use cases Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Legend  Current Solution SAP HANA  Planned Solution SAP HANA  Future Back Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 44. © 2011 SAP AG. All rights reserved. 44 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Opportunity for the business In-memory enabled innovations / HANA use cases Capability enabled by HANA version  Define customer target groups for more efficient promotions and marketing events.  High volume customer segmentation Drives a substantial lift in targeted marketing campaign effectiveness. Support further segmentation via the alignment of customer attributes and detailed SKU level sales data. HANA 1.0 SP3  Increase sales and provide personalized shopping experience.  Omni-Channel Analytics Deliver deep insights on consumer spend and buying behavior by shopping channel Future SAP in-memory computing for retail Store and channels use cases Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Legend  Current Solution SAP HANA  Planned Solution SAP HANA  Future Back Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 45. © 2011 SAP AG. All rights reserved. 45 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Opportunity for the business In-memory enabled innovations / HANA use cases Capability enabled by HANA version  Control cost in real-time, faster cost allocation  Enable timely and accurate reporting of financial and operational performance  In a flash General Ledger reporting  Flexible vendor open items reporting (Creditor): List of open and cleared items by vendor / creditor  Flexible open item reporting (New General ledger) New General Ledger line item reporting HANA 1.0 SP3  Run profitability analysis fast and on single product or customer level  Improved internal accounting and decision making  Profitablity Analysis (CO-PA) HANA 1.0 SP3  Balance Risk and Opportunity  Advanced Profitability Planning and Analysis HANA 1.0 SP3 Legend  Current Solution SAP HANA  Planned Solution SAP HANA  Future Back SAP in-memory computing for retail Corporate operations Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 46. © 2011 SAP AG. All rights reserved. 46 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Merchandising and Marketing  Offer personalized promotions and services that will result in increased customer loyalty  Increase store visits by using location- based features  Create superior experience with mobile couponing (m-couponing), fully integrated with point of purchase Store Operations  Augment staff productivity through enhanced store processes and task mgt  Educate staff on new products, promotions and services  Provide store managers all information and processes needed to increase efficiency Customer Interaction  Increase customer reach with mobile catalog browsing, ordering, and store pickup  Improve customer experience with mobile checkout  Mobile store price and availability information  Reduce costs with mobile (POS) Corporate Operations  Give executives instant insight to information necessary for effective decision making  Provide instant information at the speed of business with mobile KPI reporting and business analytics  Streamline internal approvals IT  Manage and control corporate information though a secure infrastructure on every device  Build your own mobile application Details DetailsDetails DetailsDetails Mobility for retail Opportunities for the business Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 47. © 2011 SAP AG. All rights reserved. 47 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Mobility for retail Merchandising and marketing use cases Opportunity for the business Mobility-enabled innovations Capability enabled by  Create superior experience with mobile couponing, fully integrated with point of purchase.  Mobile couponing (Service)  Mobile couponing redemption at POS (Service)  Sybase 365 mobile CRM offering  Future build potential : “CRM-related loyalty management”  Increase sales and customer loyalty by providing a personalized shopping experience.  Mobile marketing Provides real-time interaction and location-based services with the consumer throughout the buying lifecycle. This process creates a personalized approach which influences consumer behavior, drives traffic and increase average spend.  Planned solution (prototype available) Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Legend  Current Solution  Planned Solution  Future Back Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 48. © 2011 SAP AG. All rights reserved. 48 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Mobility for retail Store operations use cases Opportunity for the business Mobility-enabled innovations Capability enabled by  Augment staff productivity through enhanced store processes and task management  Mobile in-store inventory management  Real-time inventory information  Complete visibility of any type of goods movement  Different work lists  Immediate updates to inventory and financials for goods receipts, movements, and issues  Mobile task management Task assignments and control of all activities through mobile devices  Future build potential on Sybase Unwired Platform  Future build potential on Sybase Unwired Platform and Mobile Workflow  Educate staff on new products, promotions and services  Training module access New merchandise attributes readily rolled out corporate-wide  Future build potential  Provide store managers all information and processes needed to increase efficiency  On shelf availability  Mobile workforce scheduling  Interview assistant  Mobile in-store merchandise management  Provides store managers with insight and store associates user friendly enquiry tool  Future build potential on Sybase Unwired Platform Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Legend  Current Solution  Planned Solution  Future Back Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 49. © 2011 SAP AG. All rights reserved. 49 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Mobility for retail Customer interaction use cases Opportunity for the business Mobility-enabled innovations Capability enabled by  Increase customer reach with mobile catalog browsing, ordering, and store pickup  Mobile commerce Full access to common data and common processes across all channels  Future build potential  Improve customer in-store experience with mobile checkout  Mobile self-scanning Customer able to use own device to scan items and initiate a checkout  Mobile payment (Service) Customer able to use own device to pay  Future build potential  Sybase 365 mobile Payments  On-device charging (planned)  Increase customer satisfaction with mobile access to store price and availability information  Price and inventory check Checking merchandise prices and information via scans or minimal key entries, any time, any place, any channel  Future build potential  Reduce costs by bringing mobile POS to every staff device  Mobile POS SAP Point-of-Sale application delivered on a retailer-owned mobile device.  Future build potential Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Legend  Current Solution  Planned Solution  Future Back Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 50. © 2011 SAP AG. All rights reserved. 50 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Mobility for retail Corporate operations use cases Opportunity for the business Mobility-enabled innovations Capability enabled by  Control all reports with role- based access on the go  Mobile analytics At-a-glance summary reporting of key corporate key performance indicators (KPIs) for every line of business and executive  SAP BusinessObjects Explorer software (available now for iPhone and iPad)  Streamline approval and workflow processes and make faster decisions  Mobile workflow Streamlined internal approvals (for example, purchasing, employee leave, shift changes)  Mobile workflow  Deliver high-quality human resource services with a lower total cost of ownership for every employee  Mobile Human capital management (HCM) services  Employee lookup, travel receipt capture, time capture, leave request, approval workflow  Advanced HCM services Interview assistant, manager view, team performance assistant  Planned solution  Future build potential Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Legend  Current Solution  Planned Solution  Future Back Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 51. © 2011 SAP AG. All rights reserved. 51 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Mobility for retail Information technology use cases Opportunity for the business Mobility-enabled innovations Capability enabled by  Manage compliance and support heterogeneous devices via one consolidated platform  Information and device control  Ability to manage and control corporate information on every device  Able to let your associates use their own smart phones on the job, If you require  Afaria mobile device management solution  Custom build applications on a single, integrated platform  Platform for custom-built applications  Ability to build your own applications to give you a competitive edge on a single platform  Sybase Unwired Platform Legend  Current Solution  Planned Solution  Future Back Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 52. © 2011 SAP AG. All rights reserved. 52 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Business analytics retail Opportunities for the business Merchandising and Marketing Finance Supply Chain Store Operations  Streamline planning and budgeting cycles to reduce cycle time  Reduce time taken for period, monthly and quarterly close  Enhanced decision- making with better information and standardization of key business processes  Set KPI‟s to measure the effectiveness of supply chain operations  Allocate impact of fuel and fleet costs across retail units to determine item profitability  Analyze cost and profitability information on retail enterprise activities  Analyze store/department level sales and labor hours planning to efficiently manage your store operations  Improve financial and sustainability performance; set goals to motivate improvement • Quickly respond to changes in customer demand • Identify successful promotions in real- time to optimize the shopper experience • Analyze and respond to market sentiment to maintain loyalty and build a positive brand Details DetailsDetails Details Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 53. © 2011 SAP AG. All rights reserved. 53 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Opportunity for the business Analytics-enabled innovations/analytics use cases Capability enabled by analytics version  Advanced analytics and alerting functionality to coordinate with merchandising and store operations to leverage point-of- sale data for informed decisions  SAP BusinessObjects Sales Analysis for Retail SAP Analytical Application  Identify which promotions are successful and best fit for merchandise mix to correlate with optimal markdown and pricing parameters for all channels  SAP BusinessObjects Promotional and Merchandise Insight SAP Analytical Application  Mantis Pulse Analytics™ enables a rich environment for marketing, HR, product design, and customer service organizations to listen, measure, analyze, and respond to market sentiment  Mantis Pulse Analytics™ for Retail Partner Analytical Application Business analytics for retail Merchandising and marketing use cases Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Legend  Current Solution  Planned Solution  Future Back Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 54. © 2011 SAP AG. All rights reserved. 54 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Opportunity for the business Analytics-enabled innovations/analytics use cases Capability enabled by analytics version  Improve financial planning and analysis for a more comprehensive perspective on business performance across the enterprise  SAP BusinessObjects Planning and Consolidation SAP Analytical Application  Integrate, aggregate and analyze operational and credit risks for a consolidated view of retailers exposure  SAP BusinessObjects Risk Management for Retail Custom Application  Enhanced retail cross –functional and cross- geographic collaboration for visibility on sales and marketing plan execution  SAP BusinessObjects Strategy Management for Retail Custom Application Business analytics for retail Finance use cases Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Legend  Current Solution  Planned Solution  Future Back Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 55. © 2011 SAP AG. All rights reserved. 55 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Opportunity for the business Analytics-enabled innovations/analytics use cases Capability enabled by analytics version  A best practice based, pre-built model for integrated store / department level sales and labor hours planning  SAP BusinessObjects Store Sales and Labor Planning SAP Analytical Application  Enable companies to maximize overall net margin and reduce direct and indirect costs  SAP BusinessObjects Net Margin Analysis SAP Analytical Application  Align sustainability KPIs to corporate objectives and risks; to improve financial and sustainability performance; and set goals to motivate improvement  SAP BusinessObjects Sustainability Performance Management for Retail SAP Analytical Application Business analytics for retail Store operations use cases Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Legend  Current Solution  Planned Solution  Future Back Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 56. © 2011 SAP AG. All rights reserved. 56 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Opportunity for the business Analytics-enabled innovations/analytics use cases Capability enabled by analytics version  Supply chain performance management enables retailers to measure the effectiveness of supply chain operations  SAP BusinessObjects Supply Chain Performance Management SAP Analytical Application  Allocate the impact of fuel and fleet costs more accurately across retail operating units to determine item profitability  Fleet and Fuel Management Cost Containment Custom Application  In-depth analysis and alerting of cost and profitability information on retail enterprise activities  SAP BusinessObjects Profitability and Cost Management for Retail Custom Application Legend  Current Solution  Planned Solution  Future Back Business analytics for retail Supply chain use cases Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 57. © 2011 SAP AG. All rights reserved. 57 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points On demand solution for retail Overview DetailsDetails Details Strategic sourcing, contract life- cycle management, and supplier management components Collaborative decision making Analytics Contact centre Details Sourcing Bring together people, information, and business methods to drive fast, meaningful results Explore, report, and share data with the SAP® BusinessObjects™ BI OnDemand solution Rapidly reach performance, quality and cost targets across distributed contact centre operations Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 58. © 2011 SAP AG. All rights reserved. 58 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points On demand solutions for retail Opportunities for the business Opportunity for the business Solution  To survive in an increasingly challenging global economy, procurement organizations need to drive sustainable cost savings, manage contracts efficiently, optimize supplier management, and deliver rapid time-to-value. The SAP Sourcing OnDemand solution can help. Ensure sustainable cost savings Deliver comprehensive contract management Gain 360-degree supplier insight The SAP Sourcing OnDemand solution comprises strategic sourcing, contract life- cycle management, and supplier management components. This subscription- based solution offers a combination of software, services, and support that can empower you to manage the entire strategic sourcing-to-contract process. Opportunity for the business Solution  Companies need teams that work together, sharing and brainstorming in a structured fashion to drive fast decision and maintain a record of communication that can be used to constantly refine and improve decision made. SAP Streamworks solution an help  Unite people, information, and business  Work with the applications you use today including e-mail, WebEx, and EVERNOTE The SAP® StreamWork™ application supports collaborative decision making by bringing together the people, information, and business methods to drive fast, meaningful results. SAP Sourcing OnDemand SAP StreamWork OnDemand Back Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 59. © 2011 SAP AG. All rights reserved. 59 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points On demand solutions for retail Opportunities for the business Opportunity for the business Solution Business Challenges Limited information that hampers informed decision making Lack of accessible easy-to-use BI tools for business users Lack of reports that provide a complete view of the business Time-intensive manual processes to consolidate or share data and create reports, charts, graphs, dashboards, and visualizations Explore, report, and share data with the SAP® BusinessObjects™ BI OnDemand solution. It‟s a comprehensive business intelligence solution in a software-as-a- service model Opportunity for the business Solution Contact center solutions are often rigid, and responding effectively to customer needs taxes your entire organization. SAP Business Communications Management helps achieve: Higher customer satisfaction with improved service levels and higher rates of first-call resolution Reduced cost with smarter workforce utilization and lower maintenance costs Fast time to benefit through an implementation of fixed scope and price performed within weeks SAP® Business Communication Management software is a contact center solution that helps organizations to rapidly reach performance, quality and cost targets, especially in distributed operations. SAP BusinessObjects BI OnDemand SAP Business Communication Management OnDemand Back Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 60. © 2011 SAP AG. All rights reserved. 60 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Delivery innovations Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 61. © 2011 SAP AG. All rights reserved. 61 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Rapid-deployment solutions Overview DetailsDetails Details Extended warehouse management Portfolio monitoring Forecasting and replenishment CRM marketing Details Predefined services for retail Overview Point of sale data Details ERP connectivity Details Opportunity to adopt next generation warehousing automation techniques Easy monitoring and decision making support for operative projects Decision making support and monitoring including customer and financial integration as well as standard analytics Predefined solutions for sophisticated Forecasting and Replenishment application Services and accelerators for master data, mapping to standard customer/industry message formats This service is delivered into the customer‟s system landscape to take and post POS data Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment Starter Pack Fashion & Grocery Retailing Details Complete solution package which integrates specific industry processes Details Planning for Retail Helps retailers define budgets, manage assortments per channel utilizing real-time what-if demand driven forecasts
  • 62. © 2011 SAP AG. All rights reserved. 62 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Extended Warehouse Management Opportunity for the business Solution Opportunity to adopt next generation warehousing automation techniques & achieve continuous improvement in supply chain execution Designed for existing SAP ECC customers who are looking to expand their footprint with SCM EWM 7.0 with High ROI & Low TCO  A jump start on the EWM journey with quick wins and continuous business improvement  Best practice principle with fixed scope  A service targeted to small and midsize enterprises as well as dedicated business units of large enterprises Opportunity for the business Solution This SAP Rapid Deployment Solution provides an easy monitoring and decision making support for operative projects running in SAP Project System (PS). Monitoring capabilities include e.g. financial integration as well as standard analytics via SAP Business Objects Explorer and Business Context Viewer. Portfolio Planning  Identify Proposals  Analyze Rick & Rank Proposals  Create and Approve Budgets Portfolio Monitoring  Monitor Portfolio Project Monitoring  Initiate Project  Project Execution  Implementation Project Rapid-deployment solutions Portfolio Monitoring Back Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 63. © 2011 SAP AG. All rights reserved. 63 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points CRM Rapid Deployment Marketing Opportunity for the business Solution This solution provides easy monitoring and decision making support, monitoring capabilities include customer and financial integration as well as standard analytics via SAP Business Objects Explorer and Business Context Viewer. Simplify Campaign Management  Hierarchical Campaign Planning  Marketing Project Management  Integrated Execution Channels Better Support the Sales Force  Integrated Lead Management  Automated Lead Distribution Rapid-deployment solutions Back Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 64. © 2011 SAP AG. All rights reserved. 64 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Planning for Retail Opportunity for the business Solution The SAP Planning for Retail Suite helps retailers with their core planning challenges and fine tunes channel specific assortments. Key benefits: • Closed-loop retail business processes, based on industry best practices, improve efficiency and accuracy in merchandise decision making • Clear visibility across all performance metrics to support retail performance analysis, re-plans, and sales performance no matter the number of channel/stores/sku combinations • Gain the market insight needed to anticipate new trends and with one single merchandise planning and analysis solution convert these insights into actionable plans that create and fulfill customer demands. SAP Planning Suite for Retail  Channel Financial Planning  Merchandise Planning  Key Item Planning SAP Planning Suite for Retail  Enhanced rules based calculation engine  Enhanced cell locking capabilities Rapid-deployment solutions Back Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 65. © 2011 SAP AG. All rights reserved. 65 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Predefined services for retail Enterprise Data Warehouse Service for Point of Sale Opportunity for the business Solution Reduced implementation cost  End-to-end preconfiguration  Focus on core processes – solution to address customers‟ needs Speed to value  Reduced implementation cycles  gap/fit analysis instead of lengthy design phase  Rich experience and successful track record with, and smooth automation of customer-related retail processes and retail-specific processes Business-process-oriented approach helps customers quickly get to a standard configuration and prototyping. Meets customers„ needs for predefined solutions yet still uses the sophistication of the SAP Forecasting and Replenishment application to meet special needs SAP Forecasting and Replenishment Opportunity for the business Solution  Helps retailers drive responsive replenishment also known as advanced vendor-managed inventory (VMI) for customer replenishment  Allows companies to drive better decisions with access to key KPIs such as inventory turns, order fill rate  Rapid delivery in typically under 12 weeks  Traditional license and subscription models Process steps include B2B data load and correction, forecasting, and promotion planning, replenishment, sales order proposal and generation, delivery Service scope includes services and accelerators for master data, mapping to standard customer/industry message formats, reporting content Back Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 66. © 2011 SAP AG. All rights reserved. 66 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points ERP Connectivity for Point of Sale Data Management Opportunity for the business Solution Taking point of sale information from any device and any location is vital for retailers to get up to date sales and stock information across their enterprise. This service is delivered into the customer‟s system landscape to take and post that POS data to the customers systems.  Delivery of the coding and objects  Extensive documentation provided  Initial 1,5 day workshop session with two consultants on site for know-how transfer  Further walk through sessions after implementation of service on customers system to complete configuration and set up and make a run through. Predefined services for retail Back Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment Opportunity for the business Solution  Complete solution pack for fashion retailers which integrates fashion specific processes  Complete solution pack for grocery retailers which integrates grocery specific processes  Builds a solid foundation and base layer for the system implementation  Prototype with pre-configured fashion and grocery specific scenarios  Major additional developments to enhance standard functionality  Comprehensive documentation material as well as project proposal  Internal customer workshop  Example SBO dashboards on request Starter Pack for Fashion and Grocery Retailing
  • 67. © 2011 SAP AG. All rights reserved. 67 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Customer co-innovation SAP Research Living Labs The Future Retail Center, located in Regensdorf, Switzerland, and managed by SAP Research Zurich, is a joint effort between SAP Research and customers, as well as industry and academic partner organizations to foster research and development in retail and logistics. SAP Community Network This online hub supports customers, partners, consultants, experts, and SAP employees. Companies can find answers to questions and benefit from the expertise of other community members as they develop their own products. SAP Regional User Groups (America‟s SAP Users‟ Group – ASUG) Each global region has an SAP user group and the industry business units meet quarterly with these groups to discuss current releases, future plans, and workshops to solve customer problems. These user groups have been in existence for over 25 years. SAP BusinessObjects innovation center This interactive online forum lets customers sample SAP technology that is in development. Companies can download prototype software and offer feedback. SAP Premier Customer Network Successful companies that SAP has selected to collaborate and share ideas. Network members participate in programs designed to cultivate, diversify, and transform ideas into tangible business improvements. Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 68. © 2011 SAP AG. All rights reserved. 68 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Customer co-innovation Precision retailing and the mobilized consumer Real-time marketing Influence the composition and size of the shopping cart real-time in the store Real-time offer suggestions of special offers and products that match customer needs Benefits Increased customer loyalty and satisfaction Generate additions sales with up-selling opportunities How Real-time marketing with in-memory technology and mobile applications Back Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 69. © 2011 SAP AG. All rights reserved. 69 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Customer co-innovation Unimarc, Grocery Retailing, Chile Accelerating business growth by accelerating reporting Enhancing the value of business intelligence Benefits Used preconfigured content to minimize implementation effort Finished in one week, on schedule How SAP NetWeaver Business Warehouse Accelerator 600% Users with access to management information 30% Increase customer satisfaction 500% Increased delivery of sales reports Back Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 70. © 2011 SAP AG. All rights reserved. 70 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Ecosystem Consulting and integration SAP BusinessObjects Sales Analysis for Retail to prevent out of stocks Trilogy Project – benchmarking across core processes Balance labor cost with excellent service Link strategy, budgeting, performance, and compliance processes Value-add resellers/development For more details, see the SAP Communities site on SAP.com: SAP Communities SAP Paybacks and Chargebacks by Vistex SAP Incentive Administration Social media and market sentiment analysis Supply chain modeling and analytics software Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment
  • 71. © 2011 SAP AG. All rights reserved. 71 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Retail without boundaries Key trends driving future innovations Innovations Technology  Mobility  Business analytics  In-memory computing  On demand Delivery  Rapid-deployment solutions  Customer co-innovation  Ecosystem Future Solutions  Road map  Recent innovations  Redefining retail processes  Loyalty management  Promotions management  Forecasting and Replenishment Redefined customer interaction Today 2015 CustomerStore Web Mobile Social Media Store B2COrders Goods Issue Customer New level of real-time customer data Global, verticalized supply chain Merchandising Marketing SupplyChain ... Customer Data Merchandising Marketing Supply Chain
  • 72. © 2011 SAP AG. All rights reserved. 72 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points References and results Proof Points  La Vie en Rose  Wolverine  Welspun
  • 73. © 2011 SAP AG. All rights reserved. 73 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points La Vie en Rose, a leading Canadian retailer of lingerie and swimwear, installed SAP software to support a centralized data warehouse. The firm now has the analytics and reporting functions it needs to standardize performance calculations, enhance merchandising and replenishment strategies, and optimize potential growth. The new platform has also increased operational efficiency and freed up IT staff to focus on tasks with higher business value. Created a centralized source for timely, accurate data Replaced manual sales performance reporting with automated weekly reports Standardized calculations of performance for greater accuracy and reliability Improved accuracy in measuring effectiveness of marketing and promotional campaigns 10% Raised conversion rate by 1%, thereby increasing sales by 10% 95% Reduced manual effort by 95% and eliminated 20 hours per week of merchandising Proof Points  La Vie en Rose  Wolverine  Welspun
  • 74. © 2011 SAP AG. All rights reserved. 74 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Wolverine World Wide Inc., a leading global marketer of branded footwear and apparel, wanted to leverage its wholesale business to grow its retail operation. This demanded a solution that integrates fully with its wholesale software, the SAP Apparel and Footwear application. By implementing SAP for Retail solutions, Wolverine has gained the real- time visibility needed to increase revenue in all of its stores. Higher store revenue and sell-through rate Multiple currencies and languages supported Manual tasks by retail staff reduced Retail store stock outs reduced Inventory replenished for in-demand styles Integration with SAP Apparel and Footwear 25% Increase outlet store sell-through rate 35% Concept store sell-through rate increased on core products Proof Points  La Vie en Rose  Wolverine  Welspun
  • 75. © 2011 SAP AG. All rights reserved. 75 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Welspun Group, one of the fastest-growing Indian conglomerates, represents an amalgamation of expertise and engineering excellence in premier pipe and home textiles. Welspun India Ltd., the flagship company of the group and manufacturer of home textiles for U.S. retailers, required a standard way of communication. To support fast-paced internal growth, integrate smoothly with acquired companies, and achieve a standard communication platform, Welspun India chose SAP software. Built an integrated platform to interact with business partners Automated and standardized operational processes Improved business compliance with legal and regulatory requirements for different customers Increased customer confidence with high quality of deliverables and business continuity Allocated resources and minimized IT administrative and maintenance costs more effectively, allowing personnel to work on high-end tasks 60% Increase in order delivery efficiency 20% to 30% Concept store sell-through rate increased on core product Proof Points  La Vie en Rose  Wolverine  Welspun
  • 76. © 2011 SAP AG. All rights reserved. 76 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points SAP solutions help retail companies run better Strategy SAP innovations enable business transformation IT value Orchestration across on premise, on demand and on device providing flexibility, security and scalability on a single IT platform. • Easily consumable through implementable steps • Quick ROI through rapid deployment solutions (RDS) • Secure reliable operations tuned for your business On-DemandMobility Business Analytics In-Memory Computing Business value “End to end” processes for multi industry value chains combining horizontal and industry specific solutions  Plan and Market better: 360 degree customer insight to plan and execute targeted merchandise assortments, pricing and promotion strategies  Target better: Enhance real-time customer experiences across all touch points  Sell better: Interact with customers by their preferences to build loyalty and maximize new sales  Supply better: Improve product availability and customer service with real-time visibility to planning and execution.  Operate better: Simplify business processes and empower employees with the right information when they need it
  • 77. © 2011 SAP AG. All rights reserved. 77 Drivers Innovations Take AwayStrategyRun Better Transformation Solutions Proof Points Take Away Continued investment in retail solutions that leverage new technologies to surpass the speed and mobility demands of customers and employees Our customers are reaping the benefits and running better with SAP SAP helps drive business transformation with real-time unified and simplified business processes 1 2 3 Take Away
  • 78. © 2011 SAP AG. All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.