Lecture 9 - Omni-Channel Business1 (NO Video)

BUILDING OMNI-CHANNEL BUSINESS
BM4322 OMNI-CHANNEL MANAGEMENT 9

IMPLEMENTING OMNI-CHANNEL Lec9
RETAIL & CHANGE MANAGEMENT Learning
Objectives
• Boardroom Buy-in
9A • Executive Management
• Company Wide Adoption & Implementation
• Communicating Change to Customers
• Barriers & Limitations
FUTURE OF RETAIL
• Trends
• Successful Omni-channel Retailers
IMPLEMENTING OMNI-CHANNEL
RETAIL & CHANGE MANAGEMENT
When implementing omni-channel

retail, companies will need to focus
on several key factors:
• Cross channel team cooperation
• Software solutions
• Training employees
• Improving supply chain operations.
1. BOARDROOM BUY-IN
• Medium and large retailers are governed by an overseeing

group of directors at the top, in charge of providing
company guidance, strategic vision, as well as selecting,
supporting and evaluating the chief executive.
• Board members are in charge of planning and approving
annual budgets and are accountable to stakeholders for
the company’s performance.
• Boardroom buy-in and support in addressing change to
an omni-channel model is essential. The Boardroom is
where the company vision is formed and strategic
investments are approved or disapproved.
1. BOARDROOM BUY-IN
• Adopting the omni-channel model is a

strategic decision that needs a company
champion behind it as well as medium and
long term directors support.
• Addressing change is never an easy or short
term task. In successful cases the company
executive heading such effort is usually a
senior management representative such as
the CEO or a board member.
1. BOARDROOM BUY-IN
1. Identify supporting board

members
2. Provide Information
3. Provide External Findings
4. Provide Competitor
Success stories
IMPLEMENTING OMNI-
2. EXECUTIVE MANAGEMENT CHANNEL RETAIL & CHANGE
MANAGEMENT
• Executive Management
9A • Company Wide Adoption &
Once the board room approves strategic DONE Implementation
adoption of the omni-channel model, the • Communicating Change to
company is ready for the next stage, Customers
Executive Management adoption and
coordination. Omni-channel retail FUTURE OF RETAIL
implementation involves personnel from • Trends
different disciplines: • Successful Omni-channel Retailers
• CEO
• Supply Chain
• Merchandising & Operations
• Marketing
• IT/Technology
3. COMPANY WIDE ADOPTIONIMPLEMENTING
& OMNI-
CHANNEL RETAIL & CHANGE
IMPLEMENTATION MANAGEMENT
9B • Company Wide Adoption &
Implementation
• Communicating Change to
Based on the plan decided and outlined Customers
by the senior management team, • Barriers & Limitations
execution should focus on three FUTURE OF RETAIL

important areas, when implementing: • Trends
1. Implementing omni-channel technology • Successful Omni-channel Retailers
2. Shift in company culture towards an unified

omni-channel identity
3. External Factors Negotiation
3. COMPANY WIDE ADOPTION &
IMPLEMENTATION
• Implementing • Choosing the right vendor and technology is a
omni-channel complex feat that should be carefully studied.
technology • Upgrading existing IT infrastructure or
implementing new technologies is not a short
• Shift in company term project. It should be considered a long
culture towards term project that does not end when a solution
an unified omni- is delivered. Many factors should be taken into
channel identity account.
• Some of them are customer needs, existing
• External Factors systems, existing data and future
Negotiation developments.
IMPLEMENTATION
• Implementing Selecting the right vendor to implement

omni-channel omnichannel retail technology is a process that
involves four important steps:
technology
1. Defining requirements (features, new
• Shift in company developments, existing systems)
culture towards 2. Selecting a vendor list and communicating the
an unified omni- Request for Proposal
channel identity
3. Evaluating offers and solutions
• External Factors 4. Decision and planning (negotiation, timeline,
Negotiation deliverables)
IMPLEMENTATION
• Implementing omni-
channel technology
• Shift in company
culture towards an
unified omni-channel
identity
• External Factors
Negotiation
IMPLEMENTATION
• Implementing omni- The minimal systems retailers would have

channel technology to implement, update and integrate are:
• Shift in company • CRM - customer relationship
culture towards an
unified omni-channel management with unified customer
identity Database
• External Factors • Order Management System
Negotiation • Real time inventory management system
• Real time supply chain management
• Integrated omni-channel marketing and
sales
IMPLEMENTATION
CRM - Customer Relationship Management with unified
• Implementing omni- customer Database
channel technology • The customer expects seamless experience across all
• Shift in company channels. Although experiences cannot be identical,
culture towards an the average customer expects at least pricing
unified omni-channel consistency and discounts across all channels.
identity • Customers feel the need to be treated consistent
• External Factors across channels, and they need to have the feeling
Negotiation that they can jump channels, as long as they identify
themselves.
• By uniting customer databases and allowing channel
identification customers can feel valued and
empowered. To allow this, retailers need to implement
a cross-channel customer database that allows
customer interactions to be recorded and loyalty
programs to permeate channels.
IMPLEMENTATION
• Implementing omni- Order Management System
channel technology • The order management system sits
• Shift in company at the heart of marketing, sales and
culture towards an fulfilment operations.
unified omni-channel • Includes order information, product
identity availability (whether in stock or with
• External Factors suppliers), order entry and
Negotiation customer service (including
returns), financial processing
(payments, invoicing), fulfilment
operations (operational support on
product selection, picking, packing
and shipping) and advanced
analytics.
IMPLEMENTATION
• Implementing omni- Real-time inventory management
channel technology system
• Shift in company • Managing inventory across all
culture towards an
unified omni-channel storage points (stores, warehouses,
identity webstore inventory) is a must when
implementing omni-channel
Negotiation retailing. The inventory
management system should
provide real-time data and feed this
data into the Order Management
system for order processing.
IMPLEMENTATION
• Implementing Real-time Supply Chain
omni-channel Management System
technology
• The supply chain management
• Shift in
company
system handles the product flow
culture towards within the company and outside
an unified of it. Data integration with
omni-channel suppliers provides an accurate
identity perspective for retailers on how
• External goods move from manufacturing
Factors to the end consumer.
Negotiation
• Last mile fulfilment
https://www.youtube.com/watch?v=Yiafb0-gqF4 20min. Learners to watch OTOT
IMPLEMENTATION
• Implementing Integrated Omni-channel
omni-channel Sales & Marketing
technology • Be aware of which
• Shift in company marketing channels work
culture towards an best, supported by real time
unified omni- data and sales results
channel identity
Negotiation
IMPLEMENTATION
• Implementing omni-
channel technology Company culture and human
• Shift in company resources are still blind spots when it
culture towards an comes to omni-channel
unified omni-channel implementation. Although processes
identity
can be easily designed and planned, a
• External Factors shift towards an ideal retail structure
Negotiation is often influenced by the existing
company culture.
IMPLEMENTATIONStreamlining Efforts, Mar 2020
Neiman Marcus to Slash Last Call Business, Cut 750 Jobs In
• Implementing For example, a shift

omni-channel towards omni-channel
technology may mean closing stores,
• Shift in company re-assigning workforce
culture towards an and dealing with
unified omni- inherent cross
channel identity department
• External Factors competition. In some
Negotiation unfortunate cases, it
could also mean jobs are
lost when job scopes are
redrawn. Part of co’s 4-yr transformation plan
along, with investment in omnichannel
and supply chain technology
IMPLEMENTATION
The most important actions retailers take to assure
• Implementing company wide adoption are:
omni-channel • Promoting and incentivising integrated thinking to
technology insure cross-channel, cross department
• Shift in company competition does not arise and staff place the
customer first and a specific sales channel later.
culture towards
an unified omni- • Providing staff with an unified vision on the
channel identity company Omni-channel retailers need to allow
associates to understand cross-channel operations.
• External Factors To do so, they need to see beyond their specific
Negotiation point of sale. B&M store should be able to place
orders online for their customers, phone operators
should be able to plan in-store pick up and so on.
IMPLEMENTATION
The most important actions retailers take to assure
• Implementing company wide adoption are:
omni-channel • Training staff to inform rather than sell Store
technology associate is there to provide more information and
• Shift in company connect to the consumer. The magic should be
preserved and store associates should inform and
culture towards allow customers to place orders on their own, as
an unified omni- retail operations will become increasingly
channel identity frictionless.
Negotiation
3. COMPANY WIDE ADOPTIONIMPLEMENTING
& OMNI-
IMPLEMENTATION MANAGEMENT
9B • Company Wide Adoption &
DONE Implementation
• Implementing It also largely depends on: • Communicating Change to
omni-channel • Competition, social, legal and Customers
technology technological changes, and
• Shift in company the economic and political FUTURE OF RETAIL

culture towards environment. • Trends
an unified omni- • Successful Omni-channel Retailers
channel identity
Negotiation
4. COMMUNICATING CHANGEIMPLEMENTING
TO OMNI-
CUSTOMERS MANAGEMENT
• Company Wide Adoption &
Implementation
Once strategy is adopted, omni-channel tactics are
put in practice, technology implemented and the 9C Customers
company culture shifts towards omni-channel, there • Barriers & Limitations
is only one thing to do: Communicate change to the
market. FUTURE OF RETAIL
Although communication is seen as a marketing • Trends
department related task, this time is best to happen
organically.
Before announcing omni-channel abilities with bells
and whistles retailers need to trial-test their new
operations. By testing, analysing and improving,
errors previously invisible can become clear.
4. COMMUNICATING CHANGE TO
CUSTOMERS
There are several areas where big-data management can
provide insights, thus improving customer satisfaction:
Product assortment
• After omni-channel technology is implemented, data regarding product
sales, product choice depending on locations and inventory availability
should be analysed.
• By analysing these indicators, retailers could gain insights on what
products to purchase, where to stock and how to market these product
to the consumer.
New product development
• By using insights from the customers, merchants can either develop new
products, add new brands to the shelves and increase inventory based
on different trends across locations, channels and time.
4. COMMUNICATING CHANGE TO
CUSTOMERS
There are several areas where big-data

management can provide insights, thus improving
customer satisfaction:
Personalized communication
• Although communicating to customers on a one-to-one
basis may seem impossible, personalized communication is
possible with the help of marketing software.
• Using mobile, direct marketing, social media as well as
offline marketing tools, marketing can become a source of
contextual information rather than a mass market shouting
tool.
4. COMMUNICATING CHANGEIMPLEMENTING
TO OMNI-
CUSTOMERS MANAGEMENT
Change should be communicated through product assortment • Company Wide Adoption &
Implementation
improvement, a responsive marketing and personalized
communication. 9C Customers
There is no point in shouting “We are doing omni-channel” as from the DONE • Barriers & Limitations
consumer’s point of view, it is nothing but a buzzword, until retail
operations can provide a better service. FUTURE OF RETAIL
• Trends
BARRIERS & LIMITATIONS
Planning, strategizing and implementation sounds easy,

but in actual fact it is fraught with many difficulties and
resistance.
• Technological constraints & security issues
• Lack of sophisticated skillsets
• Lack of time, resources and money
• Over-ambitious plans
• Legacy Structure and Change resistance from
stakeholders/suppliers/staff/customers
• External factors (social, legal, political etc)
• Supply Chain Performance & Issues
BARRIERS & LIMITATIONS:
LEGACY STRUCTURES
For example an attribution model was previously used in

multichannel retail where channels providing the most sales
would receive greater attention and company resources.
A company employing the a Brick & Mortar channel, an
online store and a mobile sales app would find most of its
sales come from the Brick & Mortar channel and therefore
discourage online sales.
Attribution to the offline store would not work, however in
omni-channel retailing. Customers browse online, compare
on their mobile phone and end up purchasing in the Brick &
Mortar store.
BARRIERS & LIMITATIONS: IMPLEMENTING OMNI-
LEGACY STRUCTURES MANAGEMENT
Here is the main challenge for retailers with legacy Implementation
structures and systems. • Communicating Change to
9C Customers
• Incentives impact employees directly as sales in DONE • Barriers & Limitations
Brick & Mortar store vs online sales are rewarded
differently. Staff may see each channel as FUTURE OF RETAIL
“competition”. • Trends
Developing an omnichannel strategy presents great
opportunities in terms of offering customers an
appealing value proposition and potentially increase
revenues. However, it also introduces some pain
points that retailers have to address to ensure that
the omnichannel strategy is efficient and sustainable.
IMPLEMENTING OMNI-
MANAGEMENT
•
IMPLEMENTING OMNI-CHANNEL Boardroom Buy-in
RETAIL & CHANGE MANAGEMENT • Company Wide Adoption &
• Boardroom Buy-in Implementation
• • Communicating Change to
Executive Management Customers
• Company Wide Adoption & Implementation • Barriers & Limitations
• Communicating Change to Customers
• Barriers & Limitations FUTURE OF RETAIL
9D • Trends
FUTURE OF RETAIL
Learning
• Trends in Omni-Channel Retail Objectives
TRENDS IN 32
OMNI-CHANNEL RETAIL
Omni-channel is the new retail strategy going
forward by helping retailers stay competitive.
Having effective omni-channel means creating
seamless shopping experiences for your
customers on any devices across any channels.
Your omnichannel platforms must have consistent
design, branding, and strategy to help guide your
customers to your business to make their
purchases.
Omni-device
Hyper-Personalization
Customer Service 24/7
Payment & Checkouts
Fulfilment Flexibility
© 2018 Creative – Presentation template

TRENDS IN OMNI-CHANNEL RETAIL
• Omni-device Customer convenience is top priority.
• Hyper-Personalization • According to Google, about 85% of online

shoppers start a purchase on one device
• Customer Service 24/7 and finish on another.
• Payment & Checkouts • For example, a customer may browse
• Fulfilment Flexibility & your website during lunchtime on their
Speed desktop and switch to mobile on their
way home before completing the
checkout at home or in a brick and
mortar store.
• Not fulfilling this may result in losing sales
• Important to ensure transference of
shoppers’ information across devices and
content displays well across devices
• Omni-device Customers expect personalized

communications and products tailored to
• Hyper-Personalization their individual preferences.
• Customer Service 24/7 • Personalized communications
• Payment & Checkouts • Personalized products
• Fulfilment Flexibility & • Personalized recommendations
Speed
• Personalized content
• DIY
Requires deep understanding of
customers’ needs, purchase history
through advanced analytics.
Live persons
• Omni-device
Customers expect your service
and products to be available at
• Hyper-Personalization
the time when they require.
• Customer Service 24/7
• Speed is key
• Payment & Checkouts
• Instantaneous replies via
• Fulfilment Flexibility &
Speed interactive FAQs or AI Chatbots
Improving customer service
across all channels will help
create exceptional customer
experiences that will keep
shoppers coming back.
• Omni-device Delivering fast and efficient online

• Hyper-Personalization and in-store checkout processes for
• Customer Service 24/7 their customers is crucial.
• Payment & Checkouts • Latest POS technologies
• Fulfilment Flexibility & • Process payment anywhere
Speed
• Accepting payment modes of
choice by consumers, including e-
wallets
• 1 page check out process
FUTURE OF RETAIL
TRENDS IN • Trends
9D
OMNI-CHANNEL DONE
RETAIL
• Omni-device
• Hyper-Personalization Delivering products and or To maximize fulfilment and return options,
• Customer Service services to customers wherever it’s vital to have a strong inventory system
24/7 they want. which provides real-time updates across all
channels, because the last thing you want is
• Payment & Checkouts • Buy online pick up in store for a customer to make an online purchase
• Ship-from-store and then not have the inventory in stock to
• Fulfilment Flexibility ship it.
& Speed • Instantaneous shipping
• Automated parcel lockers
SUCCESSFUL IMPLEMENTING OMNI-
OMNI-CHANNEL RETAILERS MANAGEMENT • Boardroom Buy-in
Implementation
Many companies are jumping on the bandwagon to • Communicating Change to
move omni-channel. Here are 2 with outstanding Customers
examples:
FUTURE OF RETAIL
9E • Trends
SUCCESSFUL OMNI-CHANNEL
RETAILERS: UNIQLO
History & Background:
1972: Tadashi Yanai inherited his father’s chain of 22 men’s tailoring stores,
Ogori Shoji in Ube, Yamaguchi.
1984: Tadashi Yanai became company president and he opened a new store
– Unique Clothing Warehouse, which was later shortened to Uniqlo.
Vertically integrated entire process from taking control design to
production to retail.
1998: Opened more then 300 Uniqlo stores across Japan. Brand perception
changed from a discount retailer selling cheap and low-quality apparel to
the suburbs to an affordable but high quality brand. Opened a 3-storey
store in iconic Harajuku in central Tokyo in 1998.
2018: Uniqlo is a wholly-owned subsidiary of Fast Retailing Company
Limited and it is known for providing high-quality private-label casualwear
at low prices.
RETAILERS: UNIQLO
2018:
• 1,300 stores in 15 countries across Asia, Europe and US in just a
matter of 20 years, with close to 800 retail stores in Asia alone
• Market capitalization of over USD 31.8 billion
• Employs more than 43,000 people globally
• Revenues of USD 17.3 billion and a profit of USD 1.6 billion in
2017
• Japan contributed 44 percent to its total revenue, with one in four
Japanese said to own a Uniqlo down jacket
• Revenue forecast of 10.1% growth to USD 19 billion for FY2018.
Much of Uniqlo’s success is credited to its founder’s strategy of
innovation and its very customer-centric culture!
RETAILERS: UNIQLO
Factors for Success:
• Vertically integrated process from product planning, design,
manufacturing, distribution to retail > efficient supply chain
• Innovative technologies & fabrics, well branded
• Straightforward brand architecture Men’s, Women’s, Kids,
subdivided into Tops, Bottoms, Outerwear, Innerwear, Homeware &
Accessories
• Unique brand communication strategy (ambassadors, partnerships
& collaborations, consistent in-store design)
• Sustainability efforts and support
RETAILERS: UNIQLO
Omni-channel Journey:
• Uniqlo has a history of omnichannel excellence. Among the first fashion brands to
offer in-store touchscreens that make it easy for shoppers to share outfits on social
media, today the Japanese retailer features savvy innovations across touchpoints.
• Once signed into Uniqlo’s app, shoppers can view their purchase history, check out
personalized suggestions for matching products, and confirm availability online or
pickup them up at a brick-and-mortar location nearby. The global company even has
plans to install vending machines, stocked with its premium t-shirts and jackets, in
airports and malls around the world. Whether on web, mobile, in-real-life stores or
flight terminals, Uniqlo’s omnichannel approach seamlessly connects the physical to
digital experience so shoppers can buy what, when, and where they want.
• Successful omnichannel retailers combines informative content, member rewards
programs, and a seamless screen-to-screen-to-store presence that puts the customer
experience first.
Uniqlo aims to increase online sales from 5% to 30%!

RETAILERS: UNIQLO
Future Growth:
• Gamification (Box boy)
• Artificial intelligence: Ensure
that the right products are
always in the right store at
the right time by using real-
time data analytics.
• New retail formats, vending
machines
RETAILERS: DISNEY
Disney’s “Magical” Omni-channel Journey
• Trip planning
• Room booking
• Admissions
• Fast passes
• Photos
• Room check in
• Keyless entries
• Payments & Purchases
• Reservations
• Maps, Directions & GPS
• Food ordering tool
45
RETAILERS:
DISNEY
Leveraging on real-time data and
seamless integrations of all systems,
Disney is able to deliver a “magical”
omni-channel experience, customized
and personalized to your preferences.
These real time data translates to

operational needs for Disney, on staff
deployment, resources allocation, even
product popularity and sales etc.
LEARN MORE
© 2018 Creative – Presentation template

RETAILERS: DISNEY
https://www.youtube.com/watch?v=4duntPPygU4
RETAILERS: DISNEY
https://www.youtube.com/watch?v=Ry35MziPBAI
RETAILERS: DISNEY
https://www.youtube.com/watch?v=lcBC1CFOMvQ
IMPLEMENTING OMNI-
Decathlon leads the way with omnichannel MANAGEMENT
and digital store capabilities in Singapore • Executive Management
Implementation
Customers
FUTURE OF RETAIL 9E DONE

• Trends
https://www.thedrum.com/news/2019/12/03/decathlon-leads-the-way-with-omn
ichannel-and-digital-store-capabilities-singapore
Cover in Tutorial 13
Decathlon Taking on tech to
allow for the
human touch
• Started SG showroom in 2014
• Small click-and-collect stations
• Huge retail outlets equipped
with the latest technology
• Replaced cashiers with self-

checkout counters
• Deployed a robot that takes
inventory of the 5,000 m2
store (within 5-6 hr)
• Interactive screens that detect
Decathlon Singapore Lab provides more than just sports product RFID tags to display
products; customers can find tools and assistance to additional information (or flip
repair their bicycles at a 24-hour workshop in the store. to a mirror mode).
Decathlon
To fulfil Decathlon’s
promise to have online
orders delivered or
ready for self-collection
within two hours, an
overhead conveyor belt
system lets staff send
the ordered items to
the packing station
without missing a beat
as they move around
and attend to in-store
customers.
https://www.facebook.com/iuiga/videos/1933325473443233/
Interesting Engagement
~ IUIGA
✘ Interactive RFID Screen Experience
✘ Online shopping in BM store

Interesting Engagement Iuiga makes it mandatory for
all new customers at stores
~ IUIGA
to first download and
register on the Iuiga app, the
company can seamlessly
transition these customers
from offline to online and
broaden its customer
database for e-marketing.
Use the purchase data to recommend and

introduce new products and services to customers.
When the customers scan QR codes (in store), they
are able to see which products customers view and
add to their wishlists.
✘ Scan for more info
IMPLEMENTING OMNI-
Interesting Engagement CHANNEL RETAIL & CHANGE
~ IUIGA MANAGEMENT
To differentiate and position itself uniquely, an e-brand has to • Executive Management
invest considerably in social media platforms, focused
marketing through e-mailers, and advertising on platforms Implementation
such as Google. • Communicating Change to
Customers
FUTURE OF RETAIL 9E DONE

• Trends
✘ Cashless payment
https://www.asiaone.com/singapore/s
qkiis-100000-april-fools-diamond-hun
t-turns-out-be-real

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BUILDING OMNI-CHANNEL BUSINESS

BM4322 OMNI-CHANNEL MANAGEMENT 9

When implementing omni-channel

• Medium and large retailers are governed by an overseeing

• Adopting the omni-channel model is a

1. Identify supporting board

execution should focus on three FUTURE OF RETAIL

2. Shift in company culture towards an unified

• Implementing Selecting the right vendor to implement

• Implementing omni- The minimal systems retailers would have

• Implementing For example, a shift

• Shift in company the economic and political FUTURE OF RETAIL

There are several areas where big-data

Planning, strategizing and implementation sounds easy,

For example an attribution model was previously used in

© 2018 Creative – Presentation template

• Omni-device Customer convenience is top priority.

• Hyper-Personalization • According to Google, about 85% of online

• Omni-device Customers expect personalized

• Omni-device Delivering fast and efficient online

Uniqlo aims to increase online sales from 5% to 30%!

These real time data translates to

© 2018 Creative – Presentation template

FUTURE OF RETAIL 9E DONE

• Replaced cashiers with self-

✘ Interactive RFID Screen Experience

✘ Online shopping in BM store

Use the purchase data to recommend and

FUTURE OF RETAIL 9E DONE

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