MCR (Multichannel Retail)

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Multichannel Retail CoE - Initiatives : Multichannel Retail CoE - Initiatives Prasad Patkar XLRI May 2007

The Big Picture : 1 © 2006, Cognizant Technology Solutions. Confidential The Big Picture Central Knowledge Repository - Project Artifacts - Case Studies - Thought Leadership Standard Reusable Content - Process Flows - Use Case Documents - Test Cases Faster TAT to customer Multichannel Retailing Solutions Multichannel Retailing Solution Framework - Implementation Approach - Generic Framework - Specific Retail Solution Training and Development - L1 Training for MCR - Domain Expertise Solution framework for Business Reporting in MCR Retail CRM Business Intelligence E-commerce Use case, requirements document, test cases Technical Architecture Process flows Project part of a bigger organizational initiative

The Project : 2 © 2006, Cognizant Technology Solutions. Confidential The Project Multi-channel Retailing CoE - Initiatives Creating Standard Reusable Content (SRC) Process Flow Diagrams Understand Multi-channel Retailing Understand business process flow in a Multichannel environment Create business process flows Use Case Document Create use case documents in sync with the process flow diagrams Creating Multi-channel Retailing Solutions Framework Data Analytics in MCR Environment Understand the capabilities of business intelligence/reporting Identify KPIs for MCR environment Create logical framework for the underlying data Identify the benefits of data analytics

Methodology : 3 © 2006, Cognizant Technology Solutions. Confidential Methodology Activities 1. Search internet & CTS knowledge repositories for relevant information 2. Understand the different terms & concepts Understanding Multi- Channel Retail Phase I Deliverable Presentation on multi-channel Retail Deliverable Process Flow Diagrams & Use Case Document Deliverable Data Model of Identified KPIs Deliverable Solution Framework of data analytics in MCR

Multi-Channel Retailing (MCR) : 4 © 2006, Cognizant Technology Solutions. Confidential Multi-Channel Retailing (MCR) Multi-channel retailing by definition is providing your customers with a point of purchase from which to acquire your products, no matter what their channel preference may be. Stores Teleshopping Kiosk Call Center Web Catalog

Multi-Channel Model : 5 © 2006, Cognizant Technology Solutions. Confidential Multi-Channel Model Advantages of MCR Provide convenient and satisfying shopping experiences for sophisticated customers.Create and maximize cross-channel revenue opportunities. Increase customer satisfaction and profitable customer loyalty by delivering a superior shopping experienceReduce costs by expediting order management, including special orders, as well as reverse logisticsLeverage inventory data across channels Improve inventory management by reducing out-of-stocks

Process Flow Diagrams : 6 © 2006, Cognizant Technology Solutions. Confidential Process Flow Diagrams Capture the business process flows in MCR environment Tapped the existing domain expertise Utilized existing project artifacts Generalized process flow Shopping through Internet fulfillment at store Shopping through Store A fulfillment at store B Returns / Reject Cycle

Use Case Documents : 7 © 2006, Cognizant Technology Solutions. Confidential Document processes in the process flow diagrams Structure: Use Case Description Business Rules Process flow diagram Sequence of events Sub flows Error Flows Use Case Documents

Solution Framework for Data Analytics in MCR Environment : 8 © 2006, Cognizant Technology Solutions. Confidential Solution Framework for Data Analytics in MCR Environment Objective: To create a solution framework for Data Analytics in a Multichannel Retail Environment, that can be taken to market as an offering Approach Understand the concepts of business intelligence/business reporting in a Multichannel environment. Understand the data flow and identify data variables in this environment Identify KPIs relating to the following categories which will help the retailers measure their performance Identify the KPIs that will aid measuring and gauging the performance if the Multichannel retail environment. Develop a logical Business Intelligence Framework Category Management Supply Chain Management Web Analytics RFID Analytics Promotional Effectiveness Customer Segment Analysis Customer Loyalty Buying Behavior Channel Importance Vendor Performance Store Management Market Basket Analysis

Business Intelligence : 9 © 2006, Cognizant Technology Solutions. Confidential Business Intelligence All POS transactions “real time” in data warehouse Allows centralized monitoring, reporting, management, controls Consumer behavior – Color preference, Seasonality, Price points etc. Real time consolidated view of company Performance reporting – by store, by salesman, by item, by offer, by category, etc. Provides full complement of information resources to manage store sales and measure performance

Data Variables Identified with corresponding Data Flow : 10 © 2006, Cognizant Technology Solutions. Confidential Data Variables Identified with corresponding Data Flow Sample

Sample KPIs Identified : 11 © 2006, Cognizant Technology Solutions. Confidential Sample KPIs Identified

Business Intelligence Derived from KPIs : 12 © 2006, Cognizant Technology Solutions. Confidential Business Intelligence Derived from KPIs 1) Promotions Management - Sales of Promoted Vs. Non-Promoted products per Category

Business Intelligence Derived from KPIs : 13 © 2006, Cognizant Technology Solutions. Confidential What did the supermarket do as a consequence? They put the premium beer display next to the diapers. The result was that the fathers buying diapers and who also usually bought beer now bought the premium beer (the up-sell), as it was so conveniently placed next to the diapers. Significantly, the men that did not buy beer before began to purchase it when it was so visible and handy - just next to the nappies (the cross-sell). Beer sales skyrocketed. Through market basket analysis a retailer discovered a strong association for many customers between a brand of babies nappies (diapers) and a brand of beer. Analysis of purchases revealed that they were made by men, on Friday evenings mainly between 6pm and 7pm. After some serious thinking, the supermarket figured out the rationale was that because diapers are voluminous, the wife, who in most cases made the household purchases, left the diaper purchase to her husband.  Being the end of the working week, the husband and father also wanted to get some beer in for the weekend. 2) Market Basket Analysis - Products bought in association with other products Business Intelligence Derived from KPIs

Findings : 14 © 2006, Cognizant Technology Solutions. Confidential Findings Benefits The standard reusable contents developed through this project will Support consistent and successful delivery of projects in Multichannel Retail environment Demonstrate the value of the technology and our leading capability toprospects and customers Reduce the cost of development through the harvesting, development and maintenance of these assets Reduce the turnaround time to the customers Financial gains due to optimization of the portfolio Cost savings achieved through resource optimization and reduced time to rollout Reduces time spend by Retail Resources on projects related to MCR Improves Operational Effectiveness The solution framework developed will Showcase Cognizants’ thought leadership and domain expertise in Multichannel Retailing Forms a Cognizants’ take to market offering

Slide 16 : 15 © 2006, Cognizant Technology Solutions. Confidential Thank you

Slide 17 : 16 © 2006, Cognizant Technology Solutions. Confidential Appendix A – Process Flow Diagrams

Process Flow - Shopping through Internet, fulfillment at store : 17 © 2006, Cognizant Technology Solutions. Confidential Process Flow - Shopping through Internet, fulfillment at store

Process Flow - Shopping through Internet, fulfillment at home : 18 © 2006, Cognizant Technology Solutions. Confidential Process Flow - Shopping through Internet, fulfillment at home

Process Flow - Shopping through Kiosk / Vending Machine : 19 © 2006, Cognizant Technology Solutions. Confidential Process Flow - Shopping through Kiosk / Vending Machine

Process Flow - Shopping through Store A, fulfillment at store A : 20 © 2006, Cognizant Technology Solutions. Confidential Process Flow - Shopping through Store A, fulfillment at store A

Process Flow - Shopping through Store A, fulfillment at store B : 21 © 2006, Cognizant Technology Solutions. Confidential Process Flow - Shopping through Store A, fulfillment at store B

Process Flow - Shopping through Store A, fulfillment at home : 22 © 2006, Cognizant Technology Solutions. Confidential Process Flow - Shopping through Store A, fulfillment at home

Process Flow – Returns / Rejects Cycle : 23 © 2006, Cognizant Technology Solutions. Confidential Process Flow – Returns / Rejects Cycle

Slide 25 : 24 © 2006, Cognizant Technology Solutions. Confidential Appendix B – Use Case of Website Requirements For Multi-channel Operations

Sample Use Case Document – C04 Update Customer Information (Customer Account) : 25 © 2006, Cognizant Technology Solutions. Confidential Sample Use Case Document – C04 Update Customer Information (Customer Account) Use Case Description Business Rules Sequence of Events

Sample Use Case Document – C04 Update Customer Information (Customer Account) : 26 © 2006, Cognizant Technology Solutions. Confidential Error Flows Sample Use Case Document – C04 Update Customer Information (Customer Account) The sample use case shown above does not have any sub flows. The use case is in sync with the process flow diagrams created These use cases have been developed keeping in mind the generic business process in a multichannel environment. They form a part reusable asset which can be used for future client requirements, saving time and cost resulting in faster turnaround time to the customer.

Slide 28 : 27 © 2006, Cognizant Technology Solutions. Confidential Appendix C – Logical Flow Diagrams for different categories of metrics

Buying Behaviour : 28 © 2006, Cognizant Technology Solutions. Confidential Buying Behaviour Customer ID Customer Name Customer Activation Date Customer De-Activation Date Customer Life Cycle Status Customer Age Group Customer Income Group Customer Sex Customer Satisfaction Rating Customer Retention Rating Nearest Outlet Proximity Customer Occupation Geographic Area ID Customer Market Segment ID Existing Business Potential Business Preferred Channel Customer Email Preferred Payment Mode Frequency of shopping Customer Dimension Channel ID Channel Name Items purchased flag Last Activity Date No. of Transactions No. of selling hours Geographic Area ID Area Density Standard of Living Time Zone Telephonic Code Store Location Store Area Code Store Code Store Name Total Square Area of Store No. of pages traversed Total time spent of portal Online advertisements clicked flag No. of online advertisements Channel Dimension Date ID Date Week ID Week Start Date Week End Date Week Desc Month ID Month Desc Quarter ID Quarter Desc Year ID Year Desc Time Dimension Order ID Customer ID Date ID Channel ID Items purchased flag Quantity purchased Selling price/unit Promotional Offer flag Buying Behaviour Fact Order ID Quantity Ordered Order Date Expected Delivery Date Actual Delivery Date Lead Time Inventory Level Order Status Order Sales Delivery Cost Handling Status Payment Status Delivery Option Promotional offer flag Transportation Cost Order Dimension

Category Management : 29 © 2006, Cognizant Technology Solutions. Confidential Category Management Channel Dimension Product ID Product Name Product Brand Product Size Product Variation Type ID Product Structure Type ID Product Price Life Cycle Status ID Life Cycle Status Manufacture Date Manufacturing Cost Storage Cost Expiry Date Number of Items Sold Product Description Return Rate Minimum Order Amount Maximum Order Amount Product Dimension Date ID Date Week ID Week Start Date Week End Date Week Desc Month ID Month Desc Quarter ID Quarter Desc Year ID Year Desc Time Dimension Order ID Product ID Date ID Channel ID Quantity Sold Selling Price/unit Purchase Price/unit Manufacturing Cost Storage Cost Transportation Cost Category Man Fact Order ID Quantity Ordered Order Date Expected Delivery Date Actual Delivery Date Lead Time Inventory Level Order Status Order Sales Delivery Cost Handling Status Payment Status Delivery Option Promotional offer Transportation Cost Order Dimension Channel ID Channel Name Items purchased flag Last Activity Date No. of Transactions No. of selling hours Geographic Area ID Area Density Standard of Living Time Zone Telephonic Code Store Location Store Area Code Store Code Store Name Total Square Area of Store No. of pages traversed Total time spent of portal Online advertisements clicked flag No. of online advertisements

Channel Analytics : 30 © 2006, Cognizant Technology Solutions. Confidential Channel Analytics Customer ID Customer Name Customer Activation Date Customer De-Activation Date Customer Life Cycle Status Customer Age Group Customer Income Group Customer Sex Customer Satisfaction Rating Customer Retention Rating Nearest Outlet Proximity Customer Occupation Geographic Area ID Customer Market Segment ID Existing Business Potential Business Preferred Channel Customer Email Preferred Payment Mode Frequency of shopping Customer Dimension Channel Dimension Date ID Date Week ID Week Start Date Week End Date Week Desc Month ID Month Desc Quarter ID Quarter Desc Year ID Year Desc Time Dimension Order ID Customer ID Date ID Channel ID Activation Date Date of Joining De-Activation Date Last Activity Date Name No. of pages traversed Online advertisements clicked flag No. of online advertisements Product ID Quantity Selling Price/unit Total time spent on portal Ch Analytics Fact Order ID Quantity Ordered Order Date Expected Delivery Date Actual Delivery Date Lead Time Inventory Level Order Status Order Sales Delivery Cost Handling Status Payment Status Delivery Option Promotional offer Transportation Cost Order Dimension Channel ID Channel Name Items purchased flag Last Activity Date No. of Transactions No. of selling hours Geographic Area ID Area Density Standard of Living Time Zone Telephonic Code Store Location Store Area Code Store Code Store Name Total Square Area of Store No. of pages traversed Total time spent of portal Online advertisements clicked flag No. of online advertisements

Channel Importance : 31 © 2006, Cognizant Technology Solutions. Confidential Channel Importance Channel Dimension Date ID Date Week ID Week Start Date Week End Date Week Desc Month ID Month Desc Quarter ID Quarter Desc Year ID Year Desc Time Dimension Order ID Date ID Channel ID Quantity Selling Price/Unit Ch Importance Fact Order ID Quantity Ordered Order Date Expected Delivery Date Actual Delivery Date Lead Time Inventory Level Order Status Order Sales Delivery Cost Handling Status Payment Status Delivery Option Promotional offer Transportation Cost Order Dimension Channel ID Channel Name Items purchased flag Last Activity Date No. of Transactions No. of selling hours Geographic Area ID Area Density Standard of Living Time Zone Telephonic Code Store Location Store Area Code Store Code Store Name Total Square Area of Store No. of pages traversed Total time spent of portal Online advertisements clicked flag No. of online advertisements

Customer Loyalty : 32 © 2006, Cognizant Technology Solutions. Confidential Customer Loyalty Customer ID Customer Name Customer Activation Date Customer De-Activation Date Customer Life Cycle Status Customer Age Group Customer Income Group Customer Sex Customer Satisfaction Rating Customer Retention Rating Nearest Outlet Proximity Customer Occupation Geographic Area ID Customer Market Segment ID Existing Business Potential Business Preferred Channel Customer Email Preferred Payment Mode Frequency of shopping Customer Dimension Channel Dimension Date ID Date Week ID Week Start Date Week End Date Week Desc Month ID Month Desc Quarter ID Quarter Desc Year ID Year Desc Time Dimension Order ID Customer ID Date ID Channel ID Quantity Selling price/unit Promotional Offer Cust Loyalty Fact Order ID Quantity Ordered Order Date Expected Delivery Date Actual Delivery Date Lead Time Inventory Level Order Status Order Sales Delivery Cost Handling Status Payment Status Delivery Option Promotional offer Transportation Cost Order Dimension Channel ID Channel Name Items purchased flag Last Activity Date No. of Transactions No. of selling hours Geographic Area ID Area Density Standard of Living Time Zone Telephonic Code Store Location Store Area Code Store Code Store Name Total Square Area of Store No. of pages traversed Total time spent of portal Online advertisements clicked flag No. of online advertisements

Customer Segment Analysis : 33 © 2006, Cognizant Technology Solutions. Confidential Customer Segment Analysis Customer ID Customer Name Customer Activation Date Customer De-Activation Date Customer Life Cycle Status Customer Age Group Customer Income Group Customer Sex Customer Satisfaction Rating Customer Retention Rating Nearest Outlet Proximity Customer Occupation Geographic Area ID Customer Market Segment ID Existing Business Potential Business Preferred Channel Customer Email Preferred Payment Mode Frequency of shopping Customer Dimension Channel Dimension Order ID Customer ID Channel ID Customer Segment Market ID Manufacturing Cost Storage Cost Transportation Cost Quantity Selling Price/Unit Cust Segment Fact Order ID Quantity Ordered Order Date Expected Delivery Date Actual Delivery Date Lead Time Inventory Level Order Status Order Sales Delivery Cost Handling Status Payment Status Delivery Option Promotional offer Transportation Cost Order Dimension Channel ID Channel Name Items purchased flag Last Activity Date No. of Transactions No. of selling hours Geographic Area ID Area Density Standard of Living Time Zone Telephonic Code Store Location Store Area Code Store Code Store Name Total Square Area of Store No. of pages traversed Total time spent of portal Online advertisements clicked flag No. of online advertisements

Market Basket Analysis : 34 © 2006, Cognizant Technology Solutions. Confidential Market Basket Analysis Customer ID Customer Name Customer Activation Date Customer De-Activation Date Customer Life Cycle Status Customer Age Group Customer Income Group Customer Sex Customer Satisfaction Rating Customer Retention Rating Nearest Outlet Proximity Customer Occupation Geographic Area ID Customer Market Segment ID Existing Business Potential Business Preferred Channel Customer Email Preferred Payment Mode Frequency of shopping Customer Dimension Channel Dimension Product ID Product Name Product Brand Product Size Product Variation Type ID Product Structure Type ID Product Price Life Cycle Status ID Life Cycle Status Manufacture Date Manufacturing Cost Storage Cost Expiry Date Number of Items Sold Product Description Return Rate Minimum Order Amount Maximum Order Amount Product Dimension Date ID Date Week ID Week Start Date Week End Date Week Desc Month ID Month Desc Quarter ID Quarter Desc Year ID Year Desc Time Dimension Order ID Product ID Customer ID Date ID Channel ID Market Basket Fact Order ID Quantity Ordered Order Date Expected Delivery Date Actual Delivery Date Lead Time Inventory Level Order Status Order Sales Delivery Cost Handling Status Payment Status Delivery Option Promotional offer Transportation Cost Order Dimension Channel ID Channel Name Items purchased flag Last Activity Date No. of Transactions No. of selling hours Geographic Area ID Area Density Standard of Living Time Zone Telephonic Code Store Location Store Area Code Store Code Store Name Total Square Area of Store No. of pages traversed Total time spent of portal Online advertisements clicked flag No. of online advertisements

Promotional Effectiveness : 35 © 2006, Cognizant Technology Solutions. Confidential Promotional Effectiveness Channel Dimension Product ID Product Name Product Brand Product Size Product Variation Type ID Product Structure Type ID Product Price Life Cycle Status ID Life Cycle Status Manufacture Date Manufacturing Cost Storage Cost Expiry Date Number of Items Sold Product Description Return Rate Minimum Order Amount Maximum Order Amount Product Dimension Promotion ID Promotion Type Promotion Category Promotion Scale Promotion Cost Time Duration Target of Promotion Promotion Dimension Order ID Product ID Promotion ID Channel ID Location ID Manufacturing Cost Storage Cost Transportation Cost Promotion Category Purchase Price/Unit Quantity Selling Price/ Unit Promotional Fact Order ID Quantity Ordered Order Date Expected Delivery Date Actual Delivery Date Lead Time Inventory Level Order Status Order Sales Delivery Cost Handling Status Payment Status Delivery Option Promotional offer Transportation Cost Order Dimension Channel ID Channel Name Items purchased flag Last Activity Date No. of Transactions No. of selling hours Geographic Area ID Area Density Standard of Living Time Zone Telephonic Code Store Location Store Area Code Store Code Store Name Total Square Area of Store No. of pages traversed Total time spent of portal Online advertisements clicked flag No. of online advertisements

Store Management : 36 © 2006, Cognizant Technology Solutions. Confidential Store Management Customer ID Customer Name Customer Activation Date Customer De-Activation Date Customer Life Cycle Status Customer Age Group Customer Income Group Customer Sex Customer Satisfaction Rating Customer Retention Rating Nearest Outlet Proximity Customer Occupation Geographic Area ID Customer Market Segment ID Existing Business Potential Business Preferred Channel Customer Email Preferred Payment Mode Frequency of shopping Customer Dimension Channel Dimension Date ID Date Week ID Week Start Date Week End Date Week Desc Month ID Month Desc Quarter ID Quarter Desc Year ID Year Desc Time Dimension Order ID Customer ID Date ID Channel ID Quantity Selling Price / Unit Store Open Flag Total Square Area Store Man Fact Order ID Quantity Ordered Order Date Expected Delivery Date Actual Delivery Date Lead Time Inventory Level Order Status Order Sales Delivery Cost Handling Status Payment Status Delivery Option Promotional offer Transportation Cost Order Dimension Channel ID Channel Name Items purchased flag Last Activity Date No. of Transactions No. of selling hours Geographic Area ID Area Density Standard of Living Time Zone Telephonic Code Store Location Store Area Code Store Code Store Name Total Square Area of Store No. of pages traversed Total time spent of portal Online advertisements clicked flag No. of online advertisements

Supply Chain Management : 37 © 2006, Cognizant Technology Solutions. Confidential Supply Chain Management Channel Dimension Order ID Product ID Channel ID Actual Delivery Date Manufacturing Cost Storage Cost Transportation Cost Order Status Quantity Supply Chain Fact Product ID Product Name Product Brand Product Size Product Variation Type ID Product Structure Type ID Product Price Life Cycle Status ID Life Cycle Status Manufacture Date Manufacturing Cost Storage Cost Expiry Date Number of Items Sold Product Description Return Rate Minimum Order Amount Maximum Order Amount Product Dimension Order ID Quantity Ordered Order Date Expected Delivery Date Actual Delivery Date Lead Time Inventory Level Order Status Order Sales Delivery Cost Handling Status Payment Status Delivery Option Promotional offer Transportation Cost Order Dimension Channel ID Channel Name Items purchased flag Last Activity Date No. of Transactions No. of selling hours Geographic Area ID Area Density Standard of Living Time Zone Telephonic Code Store Location Store Area Code Store Code Store Name Total Square Area of Store No. of pages traversed Total time spent of portal Online advertisements clicked flag No. of online advertisements

Multi-channel Metrics : 38 © 2006, Cognizant Technology Solutions. Confidential Multi-channel Metrics Customer ID Customer Name Customer Activation Date Customer De-Activation Date Customer Life Cycle Status Customer Age Group Customer Income Group Customer Sex Customer Satisfaction Rating Customer Retention Rating Nearest Outlet Proximity Customer Occupation Geographic Area ID Customer Market Segment ID Existing Business Potential Business Preferred Channel Customer Email Preferred Payment Mode Frequency of shopping Customer Dimension Channel Dimension Date ID Date Week ID Week Start Date Week End Date Week Desc Month ID Month Desc Quarter ID Quarter Desc Year ID Year Desc Time Dimension Order ID Customer ID Date ID Channel ID Quantity Selling Price / Unit Purchase Price / Unit Place of Order Place of Delivery Place of Return Prepaid / Postpaid Flag Multi Channel Fact Order ID Quantity Ordered Order Date Expected Delivery Date Actual Delivery Date Lead Time Inventory Level Order Status Order Sales Place of Order Place of Delivery Place of Return Delivery Cost Handling Status Payment Status Delivery Option Promotional offer Transportation Cost Prepaid / Postpaid Flag Order Dimension Channel ID Channel Name Items purchased flag Last Activity Date No. of Transactions No. of selling hours Geographic Area ID Area Density Standard of Living Time Zone Telephonic Code Store Location Store Area Code Store Code Store Name Total Square Area of Store No. of pages traversed Total time spent of portal Online advertisements clicked flag No. of online advertisements

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