virtual techdays india │ 18-20 august 2010 technology & the retail industry siju narayan │...
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virtual techdaysINDIA │ 18-20 august 2010
TECHNOLOGY & THE RETAIL INDUSTRY
Siju Narayan│ Retail Industry Lead, Microsoft India
The Retail Industry – An Overview India Retail – Vital Statistics The Retail Value Chain
What’s on the CXO’s Mind? Top 5 Priorities Can Technology Enable Landing these priorities?
Microsoft’s Skin in the Game Solutions Execution
virtual techdaysINDIA │ 18-20 august 2010
S E S S I O N A G E N D A
Industry of Promise - Most Attractive Retail Destination1
3 Years of Turbulence India’s Retail Growth
virtual techdaysINDIA │ 18-20 august 2010
INDUSTRY OVERVIEW
+ Disposable Incomes+ Favourable Demographics+ Changing Lifestyles+ Growth of Middle Class + Urban & Rural Markets
-- Global Meltdown-- Credit Squeeze-- High Operating Costs-- Low Customer Confidence-- Lack of Trained Manpower-- High Rentals
1A T Kearney’s Global Retail Development Index (GRDI), 2009
virtual techdaysINDIA │ 18-20 august 2010
INDIA RETAIL – VITAL STATS
Apparel/Textiles38%
Food & Grocery12%Consumer Durables
9%
Footwear9%
Catering Services7%
Furnishings6%
Mobiles3%
Entertainment3%
Jewelry3%
Books, Music, Gifts3% Watches
3%
Pharmaceuticals2% Health & Beauty
1%
Quick Facts
Market Size $350 billion
Organized Retail Penetration
5% - 8%
Unorganized Retail Market
12 million “kiranas”
Growth Rate 15% - 20%
Contribution to GDP 14%
Retail Density 6%
Per Capita Retail Sales $379 p.a.
GDP Growth – strong growth despite global reset Demographics – One of the youngest and largest consumer markets in the
world Government Policies – encouraging inclusive growth; granting industry
status; GST Rural India – huge growth potential. 72.2% rural population Increased disposable incomes growth in consumption The infrastructure of roads & cold chains Increased spend on non-food and non-essential items
virtual techdaysINDIA │ 18-20 august 2010
FACTORS SHAPING THE INDUSTRY
The Global Slowdown2
virtual techdaysINDIA │ 18-20 august 2010
WHAT’S ON A RETAIL CEO’S MIND??
2Cartesian Economic Meltdown Survey, Dec 2008
Impact of the Global Slowdown
virtual techdaysINDIA │ 18-20 august 2010
WHAT’S ON A RETAIL CEO’S MIND??
Cost of Real Estate – Grounding!
virtual techdaysINDIA │ 18-20 august 2010
WHAT’S ON A RETAIL CEO’S MIND??
1. KPMG Analysis, “Indian Retail – Time to Change Lanes”, 20092. Jones Lang Lasalle Meghraj Report on India Retail, 2008
virtual techdaysINDIA │ 18-20 august 2010
HIS TOP PRIORITIES…
Priorities
Better Insights
into Business
Demand & Supply Chain
Efficiencies
Enhance Reach – Multiple Channels
Leverage IT Optimally
Cost Control
virtual techdaysINDIA │ 18-20 august 2010
THE TECHNOLOGY FOUNDATION NEEDED
To Land his Business Priorities
Standardized Infrastructure
Best of Breed Applications
Seamless Interoperability
Collaboration
Pay-As-You-Use
Enterprise Mobility
virtual techdaysINDIA │ 18-20 august 2010
MICROSOFT IS UNIQUELY POSITIONED
To Enable That Foundation For You
Supplier Warehouse Multi-channel
Retail Store
Call Center
Customer
HQ
B2B Customer
A Typical Retail Org.
virtual techdaysINDIA │ 18-20 august 2010
HOW DOES THE APPLICATION MAP LOOK LIKE?
Information Flow
Goods & Information Flow
LOB ERP WMS POS
DB DB DB DB
Messaging
Collaboration
MESSAGING
COLLABORATION
SFA
DB
CRM
DB
CRM
DB
CRM
DB
E-COM
DB
Supplier Warehouse Multi-channel
Retail Store
Call Center
Customer
HQ
B2B Customer
virtual techdaysINDIA │ 18-20 august 2010
HOW DOES THE APPLICATION MAP LOOK LIKE ON MICROSOFT STACK?
Information Flow
Goods & Information Flow
LOB AX AX LS Retail
DB SQL SQL SQL
Messaging
Collaboration
EXCHANGE 2010
MICROSOFT OFFICE SHAREPOINT SERVER 2010
MS CRM
SQL
MS CRM
SQL
MS CRM
SQL
MS CRM
SQL
CS2009
SQL
Supplier Warehouse Multi-channel
Retail Store
Call Center
Customer
HQ
B2B Customer
virtual techdaysINDIA │ 18-20 august 2010
STANDARDISATION = COST SAVINGS
8 LOB Scenarios
3 Applications
1 Platform
Cost
Productivity
virtual techdaysINDIA │ 18-20 august 2010
ONTO THE CLOUD
“The bottom line: Early adopters are finding serious benefits, meaning that cloud computing is real and warrants your scrutiny as a new set of platforms for business applications.”
“By 2012, 80% of Fortune 1000 enterprises will be using some cloud
computing services, 20% of businesses will own no IT assets.”
New Economics
Reduced Management
Redefining Productivity
virtual techdaysINDIA │ 18-20 august 2010
ONTO THE CLOUD
software as a service infrastructure as a service
platform as a service
consume it migrate to itbuild on it
“SaaS” “PaaS” “IaaS”
virtual techdaysINDIA │ 18-20 august 2010
ONTO THE CLOUD
infrastructure as a service
migrate to it
“IaaS”
Workload Patterns Optimal for the Cloud
virtual techdaysINDIA │ 18-20 august 2010
THE TECHNOLOGY FOUNDATION NEEDED
To Land his Business Priorities
Standardized Infrastructure
Best of Breed Applications
Seamless Interoperability
Collaboration
Pay-As-You-Use
Enterprise Mobility
√√√√√
√
virtual techdaysINDIA │ 18-20 august 2010
IN A NUTSHELL….
India Retail• Exponential Growth• Role of Technology-acknowledged
Microsoft’s Role
• Enabling LOB Apps• Standardized Infrastructure• Largest Partner Ecosystem• Cloud Services
ADDRESSING A RETAIL CXO’S CONCERNS
PARTNERSHIP