Wednesday Jul 01, 2015

Cloud Momentum

You likely have heard that Oracle is undergoing a massive business transformation to embrace cloud solutions.  According to reports, cloud sales are going better than expected and this part of Oracle's business is growing fast.  The retail business unit is, of course, on-board and picking up momentum. Recall back in April we released a set of cloud services based on assets acquired from Micros.  They are:

Then earlier this week we released Oracle Commerce Cloud, a SaaS solution for online retailers looking to simplify their IT while still driving innovation and growth.  Retailers Elaine Turner and Rock Creek were early adopters and have reported positive results.  In developing Oracle Commerce Cloud, the team really focused on speed-to-value, making it easy to implement and continuously incorporate new ideas.


And later this month we'll be offering two additional families of cloud services based on science and insights.  We're rapidly delivering the cloud services the market is requesting.

I first talked about the cloud's applicability to retail in this blog back in 2009, and at the time I was on the fence.  Conceptually it made perfect sense, but I wasn't sure retailers would be willing to give up the control.  But over the years I've seen examples of retailers not only embracing the cloud, but also advocating for it.  Every situation is different, and there are still ample opportunities for on-premise and hosted solutions, but SaaS is certainly gaining greater acceptance.


Tuesday Jun 23, 2015

Perspective from NRF Protect 2015: Adidas Uses Oracle Retail XBRi to Reduce Fraud at the Point of Service

Analytics and exception-based reporting, made available across all stores brings Big Data-style science to loss prevention

In advance of NRF Protect, here is a look at what some of our customers are doing to reduce and respond to fraud in stores. This is the first in a two-part series. To learn more, be sure to visit us at the Oracle Retail Booth #1227 at #NRFProtect this week in Long Beach, CA. 

Retail loss prevention professionals are well aware that employee theft and employee-related fraud account for the biggest single segment of shrink. According to the November 2014 Global Retail Theft Barometer, employee-generated shrink accounted for just over 40% of the previous year’s $128 billion total, even more than the one-third generated by shoplifting and organized retail crime.

Given these facts, retailers have a compelling interest in understanding and curtailing employee-generated shrink. The conundrum, however, is that no retailer can effectively investigate every single transaction in every single store. Fortunately, employees who commit fraud tend to follow specific patterns. By using tools that apply science to the problem, retailers can shift this challenge from a Big Data problem to an opportunity for insight.

One of the most important loss prevention tools is exception-based reporting, using advanced algorithms to constantly monitor point-of-service (POS) activity, identify potentially fraudulent transactions, and alert specialists automatically. Trends, outliers and “red flags” can be measured and tracked by region, store, or individual employee. By providing essential data to multiple levels of staff – from individual loss prevention specialists in the field to regional managers – an organization can effectively empower their team to root out fraud, and act quickly to resolve it. Doing the same thing manually is impossible when transactions multiply over dozens or thousands of locations. 

For adidas, the global designer and manufacturer of athletic shoes, clothing and accessories, it was nearly impossible to consistently identify the causes of shrink and fraud in its 2,470 stores worldwide. The company was unable to perform loss prevention exception reporting and faced operational challenges including lack of data protection, multi-system misalignment, difficulty adjusting to time zone and language variances, and system failures resulting in non-compliance issues.  In a recent Chain Store Age article, adidas shares how it reduces fraud in employee and administration losses following its implementation of Oracle solutions. Adidas shared their experience at Oracle Industry Connect. You can download the presentation adidas: Measuring and Managing Loss to Preserve Profit from the Oracle Retail RACK. 

Now available as a cloud service, Oracle Retail XBRi Loss Prevention Cloud Service captures all POS transactions and then administers advanced business analytics that apply a laser-focused look at key loss patterns. Designed to be completely agnostic to the POS solution and source data, XBRi integrates with both Oracle and third-party POS solutions – even multiple solutions – giving retailers flexibility and freedom of choice. The cloud service shifts funding from a potential capital investment in software and IT infrastructure to an operational expense. 

To learn more, be sure to visit us at the Oracle Retail Booth #1227 at #NRFProtect this week in Long Beach, CA. 


Wednesday May 27, 2015

Insights from OIC: LIDS Sports Group Makes Inventory Easy to Access Across Channels

In late March, retail executives gathered at Oracle Industry Connect 2015 to share perspectives. Here is a glimpse of what you missed from the sessions....


Making complete store inventories available to both its online shoppers and associates in physical stores has given Lids Sports Group a 1.5% in-store sales boost and helped e-commerce sales rise “dramatically,” according to Vice President of Information Technology Larry Havlik. He and Lids Director of Applications Development Kevin Thompson revealed the bottom-line and customer service benefits of implementing the Oracle Retail omnichannel order broker solution at Oracle Industry Connect earlier this year.


Prior to going live with the Oracle Retail Order Broker solution (formerly Oracle’s MICROS Locate) in February, online shoppers only saw the caps, apparel, and sports memorabilia currently in stock at Lids’ Indianapolis distribution center, meaning that some items and sizes would display as “unavailable.” However, by adding the on-shelf inventory of 800 of its 1,400 brick-and-mortar stores, Lids immediately moved an additional 72,000 UPCs into the “available for purchase” category.


“Where the inventory is currently located isn’t visible to the online customer, and it doesn’t need to be,” said Havlik. “Locate’s job as an order broker is to accept an order and then look for the best ‘match’ for filling it, whether that’s the DC or another Lids store.”


In addition to expanding offerings to its online shoppers, the Locate deployment has created flexible save-the-sale options in physical stores. Associates can arrange for a requested item to be shipped to a customer’s home or for it to be picked up at another Lids store.


The enhanced availability is particularly beneficial for Lids, which features a large amount of branded team merchandise. Home-town loyalties to different sports teams means stores located in different cities, or even just in different parts of a region, can carry widely varying assortments. “Even stores located only 15 miles apart can have stock differences of as much as 65%,” explained Thompson.

Havlik and Thompson both appreciate the ability to apply Lids-specific business rules to Locate’s order management and fulfillment functions. Settings can be adjusted to decrease available quantities of an item from an individual store to ensure it doesn’t go out of stock, or to increase available quantities if the item is easily available from a DC or other source. For fragile items such as Tiffany lamps, the system can be set up to only fulfill from the DC to ensure products are packaged and shipped so as to avoid breakage.

Other factors used by the system’s decision tree include choosing the fastest/cheapest shipping option; consolidating multi-item orders into as few shipments as possible; and even using different stores’ sell-through and shrink rates as a “tie-breaker.” “Locate could choose to fulfill an item from a store where this item hasn’t been selling well, or it could take into account that a store with a high shrink rate might not be trusted to actually have the inventory on hand,” said Thompson.


Havlik expects even bigger sales increases, both in stores and online, as Lids brings additional stores’ inventory into the system and as “people get more comfortable with saving ‘lost’ sales via Locate.”


Now Available: Augment the Store Experience with Cloud Services


Cloud-based applications essentially outsource many elements of IT management including maintenance and upgrades, leaving time for internal teams to focus on driving business improvements (versus keeping the lights on). Like most industries, the retail industry is increasingly looking to cloud-based solutions when an IT organization can’t carve out time to explore and implement new functionality that the business side seeks due to a lack of resources and competing priorities. Cloud deployments free up IT resources for more strategic projects, and they also allow technology vendors to deliver innovation to retail users more quickly and with more frequent updates. On April 1st, Oracle Retail announced the Cloud Services offerings.  By taking advantage of the flexibility afforded by cloud-based solutions, your team will find it easier to extend and support new technologies to stores located throughout your geographical footprint. 


Call to Action: How will you differentiate your store experience? 

Oracle Retail Xstore with Order Broker will also be available for demonstration at booth #709 during the IRCE conference on June 2-4, 2015 in Chicago. Stop by and see us or contact Oracle Retail oneretailvoice_ww@oracle.com to take steps that will impact your bottom line. 

For more insights from OIC, see the remarks by NordstromULTA BeautyOur Executive Team and watch here for more Oracle customer stories. And for another perspective on Lids’ success, click here.

The Oracle Retail team loves the LIDS co-branded shirts. Photo credit: Steve Paradise

Wednesday Mar 25, 2015

How Leveraging the Cloud Can Unleash Retailers’ Business Agility

A Viewpoint from Jeff Warren, Vice President Solution Management, Oracle Retail 

Newly launched Oracle Retail Cloud Services combine reliability, security, cost savings and built-in interoperability

The ever-accelerating pace of change in retail puts pressure on everyone within the retail enterprise, but perhaps no one feels it more acutely than the CIO. Technology is rapidly reshaping key elements of the traditional shopping experience, from m-commerce and mobile payments to store-based fulfillment. IT departments are tasked with discovering, and bringing on line, these fast-emerging functionalities, while at the same time maintaining the existing architectures that support both basic corporate and retail-specific systems.

Given these competing demands – “keeping the lights on” while simultaneously serving as the engine for business agility – retail CIOs require cloud-based applications from a trusted technology partner with extensive industry expertise. Oracle is responding with a new offering of Oracle Retail Cloud Services applications for managing e-commerce; customer engagement; order management and order brokering; loss prevention; and brand compliance. (See product list below.)

Cloud-based applications, which in essence outsource many elements of IT management, maintenance, and upgrades, address retailers’ need for business agility. It’s increasingly common that when an IT organization can’t supply the new functionality that the business side seeks, a simple lack of time is cause. Cloud deployments free up IT resources for more strategic projects, and they also allow technology vendors to deliver innovation to retail users more quickly and with more frequent updates.

Keeping Costs in Check

The other benefits of cloud-based applications have been well documented, and are part of the reason so many businesses and individuals have been embracing cloud-based applications, data storage, and processing. They include:

● Lower initial hardware and software costs

● Lower ongoing costs, leading to a lower TCO (Total Cost of Ownership)

● Faster deployments and streamlined routes for patches and system upgrades

Other cloud features are particularly well suited to a retail environment. Scalability and easy access to additional processing power on an as-needed basis fit the needs of a highly seasonal business, one that must often deal with unexpected spikes (such as when a retailer seeks to promote a suddenly “hot” product) and dips.

Oracle’s subscription-based pricing for retail applications maximizes this benefit, bundling software, hardware, and upgrades into a predictable cost structure. In addition, by pricing IT services like a utility, retailers only pay for the processing power they require and actually use.

Mitigating Risk, Maximizing Security

Many retailers have hesitated with cloud deployments based on concerns about data security and overall reliability. This is understandable, given that retail data breaches are highly visible and can tarnish both individual companies and the entire industry. The ability to protect data and maintain the trust of their customers necessarily remains top-of-mind for retailers.

Oracle Retail Cloud Services benefit from the company’s worldclass culture of operational excellence. Oracle Data Centers are classified as Tier 4, the highest level of sophistication, providing 99.995% of uptime. This translates to less than 30 minutes of downtime during an entire calendar year – performance that very few (if any) retailers could match. Oracle Retail also has access to Oracle’s top-notch expertise in the cloud, security, and networking.

Security features inherent to Oracle technology solutions allow for transparent data encryption at the column level, allowing PII (Personally Identifiable Information) to be encrypted using keys that are held in a separate “wallet.” Backups are automatically encrypted, and keys can easily be changed on an as-needed basis. The Oracle Retail solutions leverage Oracle Identity Manager solutions to manage and enforce authentication and authorization for applications, and all elements are PCI-DSS certified.

Built-In Interoperability

Retailers will also benefit from the strategy behind Oracle Retail Cloud Services. These solutions are part of the retail industry group’s comprehensive Commerce Anywhere strategy, which encompasses technology ranging from financial applications to system hardware, so they are designed for maximum interoperability with both on-premise and cloud-based systems.

Oracle also offers flexibility in cloud deployment options. Because different retailers will be at different points in the cloud adoption curve, Managed Cloud services (also known as hosting) allow users to get more comfortable with the concept of outsourcing elements of their IT infrastructure. As the technology provides “wins” and the retailer’s culture adapts, the adoption path can ultimately lead to Oracle Infrastructure-as-a-Service and Platform-as-a-Service offerings. Oracle offers choices that retailers can leverage based on where they are in terms of their own maturity level and business needs.

Most importantly, Oracle Retail Cloud Services give CIOs the tools to keep up with today’s dizzying speed of change. Retailers can no longer wait one to two years to implement the next big thing; IT departments need to deliver meaningful value to the business in time frames that are measured in months. By outsourcing key day-to-day operational duties to cloud providers, IT departments are freed up to offer higher levels of strategic innovation and business agility.

Tuesday Oct 16, 2012

What's Old is New Again

Last night I told my son he could stream music to his tablet "from the cloud" (in this case, the Amazon Cloud).  He paused, then said, "what is the cloud?"  I replied, "a bunch of servers connected to the internet."  Apparently he had visions of something much more magnificent.  Another similar term is "big data."  These marketing terms help to quickly convey topics but are oversimplifications that are open to many interpretations.  At their core, those terms are shiny packages holding recycled ideas.

I see many headlines declaring big data changes everything, but it doesn't.  Savvy retailers have been dealing with large volumes of data since the electronic cash register was invented.  But there have been a few changes to the landscape that make big data a topic of conversation:

1. Computing power has caught up to storage volumes. Its now possible to more thoroughly analyze the copious volumes of data retailers have been squirreling away.  CPUs are faster, sold state drives more plentiful, and new ways to store and search data are available.  My iPhone is more powerful than the computer used in the Apollo mission to the moon.

2. Unstructured data is everywhere.  The Web used to be where retailers published product information, but now users are generating the bulk of the content in the form of comments, videos, and "likes."  The variety of information available to retailers is huge, and it's meaning difficult to discern.

3. Everything is connected.  Looking at a report from my router, there are no less than 20 active devices on my home network.  We can track the location of mobile phones, tag products with RFID, and set our thermostats (I love my Nest) from a thousand miles away.  Not only is there more data, but its arriving at a higher velocity.

Careful readers will note the three Vs that help define so-called big data: volume, variety, and velocity. We now have more volume, more variety, and more velocity and different technologies to deal with them.  But at the heart, the objectives are still the same:

  • Informed decisions
  • Accurate forecasts
  • Improved optimizations

So don't let the term "big data" throw you off the scent.  Retailers still need to execute on the basics.  But do take a fresh look at the data that's available and the new technologies to process it.  The landscape will continue to change and agile organizations will always be reevaluating their approaches.  You just need to add some more weapons to the arsenal.

Tuesday Dec 20, 2011

Retail Strategy for 2012

Earlier this month I reviewed my 2011 predictions and made new ones for 2012.  Of course I wasn't the only one thinking about what's next for retail.  RIS News published their 2012 outlook, Retail Touchpoints has their 2012 insights, and Stores has their 2012 predictions so there's no shortage of opinions.  Reading these articles, its easy to pull out the major themes and they're exactly what you'd expect.  I could write about each theme, but I thought it would be more fun to remove all but the buzzwords.  See if you can still understand my summations...

  • Mobile-- anywhere/anytime commerce, always on consumers, omni-channel, Amazon's showroom, ubiquitous access to product info, QRCodes, online inside, NFC, loyalty, empowered employees, endless aisles, tablets
  • Social-- one-to-marketing, f-commerce, big data, customer analytics, psychographics, contextual offers
  • Cloud-- deployment, management, access data from anywhere, lower TCO, elastic, utility pricing, security, SLAs, SaaS, outage

This shortened version of writing sure saves time!  Here's the point.  Now is a good time to reflect on this year and think about your strategy for next year, which had better address all three mentioned areas.  I'm not saying you need to embrace all three, but you do need to have a point-of-view on how each can affect your business.  As you're reviewing your strategy, here's a little advice for the new year:

Don't get caught up in the buzzwords.  Look past the coolness factor and figure out how things directly impact the business.  A Twitter account might increase sales, but old-fashion supply-chain management might move the needle even more.  Put a little money toward innovation, and invest the rest toward improving the basics.

Skate to where the puck is going.  Your strategy must not only address your customers but also your future customers.  Run ideas past your teenage kids because they will soon be your customers.  This is especially important for matters relating to privacy, which continues to vary greatly by generations.

Measure twice, cut once.  Strategies must be based on data, not gut feelings.  Execute only after you've done the necessary analysis and have metrics in place to assess results. Challenge the statistics and use multiple sources.

Food for thought.  See you next year at NRF!

Wednesday Nov 23, 2011

Reviewing Retail Predictions for 2011

I've been busy thinking about what 2012 and beyond will look like for retail, and I have some interesting predictions to share.  But before I go there, let’s first review this year’s predictions before making new ones for 2012.

1. Alternate Payments
We've seen several alternate payment schemes emerge over the last two years, and 2011 may be the year one of them takes hold. Any competition that can drive down fees will be good for everyone. I'm betting that Apple will add NFC chips to their next version of the iPhone, then enable payments in stores using iTunes accounts on the backend. Paypal will continue to make inroads, and Isis will announce a pilot.

The iPhone 4S did not contain an NFC chip, so we’ll have to continuing waiting for the iPhone 5. PayPal announced its moving into in-store payments, and Google launched its wallet in selected cities.  Overall I think the payment scene is heating up and that trend will continue.

2. Engineered Systems
The industry is moving toward purpose-built appliances that are optimized across the entire stack. Oracle calls these "engineered systems" and the first two examples are Exadata and Exalogic, but there are other examples from other vendors. These are particularly important to the retail industry because of the volume of data that must be processed. There should be continued adoption in 2011.

Oracle reports that Exadata is its fasting growing product, and at the recent OpenWorld it announced the SuperCluster and Exalytics products, both continuing the engineered systems trend. SAP’s HANA continues to receive attention, and IBM also seems to be moving in this direction.

3. Social Analytics
There are lots of tools that provide insight into how a brand is perceived across popular internet sites, but as far as I know, these tools are not industry specific. The next step needs to mine the data and determine how it should influence retail operations. The data needs to help retailers determine how they create promotions, which products to stock, and how to keep consumers engaged. Social data alone does not provide the answers, but its one more data point that will help retailers make better decisions. Look for some vendor consolidation to help make this happen.

In March, Salesforce.com acquired leading social monitoring vendor Radian6 and followed up with acquisitions of Heroku and Model Metrics. The notion of Social CRM seems to be going more mainstream now.

4. 2-D Barcodes
Look for more QRCodes on shelf-tags, in newspaper circulars, and on billboards. It's a great portal from the physical world into the digital one that buys us time until augmented reality matures further. Nobody wants to type "www", backslash, and ".com" on their phones.

QRCodes are everywhere. ‘Nuff said.

5. In the words of Microsoft, "To the Cloud!"
My favorite "cloud application" is Evernote. If you take notes on your work laptop, you will inevitably need those notes on your home PC. And if you manage to solve that problem, you'll need to access them from your mobile phone. Evernote stores your notes in the cloud and provides easy ways to access them. Being able to access a service from anywhere and not having to worry about backups, upgrades, etc. is great. Retailers will start to rely on cloud services, both public and private, in the coming year.

There were no shortage of announcements in this area: Amazon’s cloud-based Kindle Fire, Apple’s iCloud, Oracle’s Public Cloud, etc. I saw an interesting presentation showing how BevMo moved their systems to the cloud.  Seems like retailers are starting to consider the cloud for specific uses.

6. F-CommerceTop of Form

Move over "E" and "M" so we can introduce "F-Commerce," which should go mainstream in 2011. Already several retailers have created small stores on Facebook, and it won't be long before Facebook becomes a full-fledged channel in the omni-channel world of retail. The battle between Facebook and Google will heat up over retail, where both stand to make lots of money.

JCPenney and ASOS both put their entire catalogs on Facebook, and lots of other retailers have connected Facebook to their e-commerce site. I still think selling from the newsfeed is the best approach, and several retailers are trying that approach as well. I just don’t see Google+ as a threat to Facebook, so I think that battle is over.  I called 2011 The Year of F-Commerce, and that was probably accurate.

Its good to look back at predictions, but we also have to think about what was missed.  I didn't see Amazon entering the tablet business with such a splash, although in hindsight it was obvious. Nor did I think HP would fall so far so fast.  Look for my 2012 predictions coming soon.

Thursday Oct 06, 2011

OpenWorld 2011, Retail Perspective Part 2

For those that can't afford the capital investment, Oracle is offering its Exadata and Exalogic machines as part of the Oracle Public Cloud, as was announced at OpenWorld  Retailers can easily provision both database and middleware environments in which they can deploy their applications and pay a monthly fee.  Additionally, Oracle is offering its Fusion applications on the cloud.

What's unique here is the fact that Oracle is using the same technologies normally used on-premise.  This means that existing on-premise applications can be moved back and forth between the cloud and data center as appropriate.  So your next question must be, can I run my Oracle Retail applications on Oracle's cloud?

If all the requirements of the product are met, then it makes no difference whether you deploy on-premise or on the cloud.  If you're using the supported version of the operating system, database, and middleware then where the hardware is located should make no difference.  While we've not yet had the opportunity to test our products on the Oracle Public Cloud, we have tried them on Amazon's cloud without issue.

But do retail applications like merchandising and POS really belong on the cloud?  I'm not quite there yet -- I cling to the belief that core applications should be on-premise, but many non-core applications work just fine in the cloud.  We will get there eventually -- its really a matter of organizations catching up with the technology.

Monday Feb 07, 2011

Traditional POS is Dead

[Read More]

Wednesday Dec 15, 2010

2011 Predictions for Retail

[Read More]

Wednesday Sep 22, 2010

Exalogic and Cloud Computing

[Read More]

Tuesday Apr 28, 2009

To Host or Not to Host

[Read More]
About


David Dorf, Sr Director Technology Strategy for Oracle Retail, shares news and ideas about the retail industry with a focus on innovation and emerging technologies.


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