Smarter Operations

Today's retailers spend most of their money on store operations-

unloading trucks, stocking shelves, marking inventory.

But what about the customer?

Smarter operations help retailers take cost out –

freeing up resources to invest in activities that

actually help grow the business and differentiate from the competition.

Like opening new stores in new markets, introducing new

products and services, even business model innovation.

By doing more with less, smarter operations in

their own right can prove an engine for growth.

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New Enterprise Models

To achieve maximum efficiency, retailers have

traditionally focused on their enterprise business model:

reconfiguring what is done, how, in what location, by whom.

And this is where retailers have historically

made the most significant use of technology,

whether in the stores,throughout the supply network,

or by outsourcing functions.

An emerging approach to business model innovation is

through cloud computing, which is particularly

well suited to retail's numerous physical locations,

fast-changing needs and seasonal swings.

Cloud offers a way for retailers to do more with

less by aligning operations with actual traffic

and cutting costs while adding flexibility.

Here are just a few examples:

Say you're a major department store.

You could use cloud to consolidate in-store technology,

allowing you to reduce the complexity and cuts costs.

Cloud allows you to dynamically scale up

computing power when you need it to perform intensive

operations like merchandise planning and demand

forcasting and scale down when you don't.

You could deploy new customer services to

the cloud, like on-demand checkout.

This could help you quickly enable point-of-sale capabilities,

whether physical, mobile or on line.

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New Revenue Models

Smarter operations are also focused on new revenue models:

changing how revenue is generated through

new value propositions and pricing.

Retailers are always looking for new ways

to differentiate by delivering increased service levels.

As consumers become accustomed to

receiving home delivery of goods the same or

next day, some retailers are rethinking the role

of the store – adapting them from simply being

a place where you buy stuff to an experience

focused on the solutions customers demand.

And retailers are serving customers better by

tapping into employees' expertise and

offering relevant services around their products.

For example: Say you're a retailer

who realized your value to customers resided not just

in the products you sell but also the expertise

and services you deliver.

Transforming your workforce by adding a

service team that helps customers design,

install, and operate computer and home solutions

helps you continue to grow revenue

and increase market share.

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Conclusion

By combining new enterprise models with

new revenue models you open up the potential

to transform an entire retail segment,

reshape the dominant industry model for that segment,

or even create an entirely new business model.

Retailers have an opportunity to provide an

environment where customers can access the solutions

they need and want to live their daily lives.

For example: Say you're a fashion brand

who traditionally reached customers through larger

established partners. By designing a new

integrated operating model based around merchandise

management, distribution, financing and

technology, you could launch your own successful

e-Commerce channels across multiple countries.

You now can own and orchestrate the buying

process and deliver products and

services that support your unique brand.

By making operations smarter, retails can

build products, stores and shopping experiences

around the most important thing, the customer

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