By Rose Spicer-Oracle on May 12, 2015
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....
Retailers at the recent Oracle Industry Connect sessions talked about numerous “forces of disruption” that are changing their business and creating new opportunities. Setting the tone for two days of presentations by retailers, for retailers, Jill Puleri, Senior Vice President and General Manager of the Oracle Retail Global Business Unit, talked about what retailers are doing to thrive in the midst of new market opportunities.
The most disruptive forces, said Puleri, are often consumer-driven and offer subtle but important insights. Among them:
● People using their mobile devices differently: “Instagram has a 25% greater engagement rate than Facebook, which tells you that visual is more engaging than text on these devices,” said Puleri.
● Greater willingness of consumers to reveal where they are to third parties: “People are using Uber to hail a cab, which says the ‘creep factor’ about revealing their locations is lessening,” she said. “That’s important because people are keeping their mobile devices within one meter of their body for 23 hours a day.”
● However, people are still wary about data breaches, which have not been limited to retail but have spread to health care and other industries.
● With same-day delivery, “Amazon has set the bar,” said Puleri. Even though the e-tailer loses money on many of its lower-value shipped orders, it has raised consumer expectation levels about service. In addition, the growth of third-party companies handling the “last mile” of delivery have the potential to disintermediate the customer’s loyalty to the retailer.
Puleri revealed results from New Consumer Study: Retail Without Limits that surveyed 5,000 consumers in 10 countries: 83% insist on the adoption of new technology by retailers, “Because they want to use that technology in their shopping process,” she said. “In addition, 70% rate stock transparency to be very important in e-commerce. Consumers don’t understand that this is a hard thing for many retailers to accomplish; they just want it. And 50% of respondents expect to use their mobile devices for product research, which points to the need for responsive design” that provides optimal experiences on different mobile devices.
More than 160 Oracle customers shared their success stories at OIC. Apparel retailer Lilly Pulitzer’s CIO Keary McNew revealed that Oracle helped the company implement responsive design for its e-commerce offerings last year, and that the retailer would launch a new mobile app for iOS integrated with the Oracle Open Commerce platform in May 2015.
For sports apparel retailer LIDS, the Oracle Retail Locate solution provides visibility into 800 of its stores’ inventories to the retailer’s e-commerce website, and also gives in-store associates tools to find items on the shelves at other stores, and also to arrange for these items to be shipped to different stores or to customers’ homes, according to Vice President of Information Technology Larry Havlik.
Offering these customer-friendly services can create additional challenges to how retailers operate. “In many cases, process changes are harder than technology,” said Puleri. When instituting ship-from-store, for example, “questions arise such as, Where do stores get packing material? What happens when someone cancels an order? Oracle is documenting these processes from retailers all over the world.”
In other remarks, Mike Webster, SVP and General Manager of the Retail and Hospitality Global Business Units at Oracle Webster noted that in addition to its technology offerings, Oracle has deep retail expertise that it makes available to customers. “Omni-channel is an enterprise opportunity that involves getting to a single enterprise view of inventory, customers, orders, price, and promotion,” said Webster. “Focusing just around the edges won’t help: the conversations now are about what retailers need to be thinking about in planning, supply chain, e-commerce, point-of-sale, business intelligence, and customer engagement to support omni-channel. We’ve built that out into our Oracle Retail Reference Model.
“That’s important because ultimately omni-channel isn’t about channels, but about how we bring the power and the process of the entire organization to deliver a differentiated customer experience,” he added.
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