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OMNI-CHANNEL TECHNOLOGIES
BM4322 OMNI-CHANNEL MANAGEMENT 12

© 2018 Creative – Presentation template

 Lec 12
OMNI-CHANNEL TECHNOLOGIES
12A • Enabling Technologies Learning
• Objectives
Near Field Communications (NFC)
• Beacons
• Radio Frequency Identification (RFID)
• Omni-channel Payments
• Big Data & Machine Learning
ENABLING TECHNOLOGIES

Omni-channel is the result of a tectonic

shift in retail, a pressure on retailers to
redefine their business models
new
and a combination of
technologies.
ENABLING TECHNOLOGIES

1. Mobile browsing revolution

• Ushered in by the launch of the iPhone and subsequent
innovations and market shifts
• The smartphone and later on the tablet changed the way
consumers interact with brands, get informed and ultimately
purchase
2. Big data processing
• With increasingly better connectivity, larger processing power,
improved database software and analytical processes,
• Consumers and retailers alike accessed a pool of information
previously untapped.
ENABLING TECHNOLOGIES:
MOBILE DEVICES

• Retailer-consumer interaction shifted

• Technologies aided (wireless) connection with
consumer, for example beacons & NFC
• Payments solutions: Paypal, Google Pay, Amazon
payment, Apply Pay, Samsung Pay etc

Marketing efforts, payment mode, customer service

and many other processes have to change in order to
keep up with the shift
ENABLING
TECHNOLOGIES:
MOBILE DEVICES

• Mobile devices
transformed businesses
• Worldwide smart mobile
devices ownership is
growing trend
• Phones got smaller,
increasingly autonomous
and smarter

https://www.bankmycell.com/blog
/how-many-phones-are-in-the-wo
rld
ENABLING
TECHNOLOGIES:
MOBILE DEVICES

This change is noteworthy as it

marks how disruptive
smartphones have been to
retail.

Factors pushing retailers into an

omni-channel era:
• Internet connectivity
• Rich media applications
• Location based services
• Mobile payment systems
ENABLING TECHNOLOGIES:
MOBILE DEVICES
 OMNI-CHANNEL
ENABLING TECHNOLOGIES: TECHNOLOGIES
• Enabling Technologies
MOBILE DEVICES 12A
DONE
• Near Field Communications
(NFC)
• Beacons
• Radio Frequency
• Advanced mobile features will empower the Identification (RFID)
consumer even more – technology development • Omni-channel Payments
will feed the advancement • Big Data & Machine Learning
• Some tech companies are pushing the limits of
mobile device usage further and some of them
will be increasingly relevant to retailers
everywhere
 OMNI-CHANNEL
NEAR FIELD TECHNOLOGIES
COMMUNICATIONS (NFC) • Enabling Technologies
• Near Field Communications
12B
(NFC)
• Beacons
• Radio Frequency
NFC, the abbreviation for Near Field Identification (RFID)
Communications, is a technology that allows you • Omni-channel Payments
to transfer data wirelessly between two devices. • Big Data & Machine Learning

Like WiFi and Bluetooth, it's one more type of

wireless communication standard that allows
communication between any two devices that
are NFC capable.
NEAR FIELD COMMUNICATIONS
(NFC)
 NEAR FIELD COMMUNICATIONS
(NFC)
• The most expected and
promising technology for
omnichannel retailers
worldwide is near field
communications.
• Allows tap-and-go payment
services that have the potential
to transform payments,
identification services and
even personalized marketing.
NEAR FIELD COMMUNICATIONS
(NFC)
• Widely used in retail to identify users and provide
personalized pricing.
• NFC changes ways retailers and customers interact with
each other
• Easy payments, connected bank accounts and/or credit
cards (Apple Pay, Samsung Pay, Google Pay)
• Marketing activities: coupons, redemption, reservations
etc.
• Only works for selected models of iPhones!
NEAR FIELD COMMUNICATIONS OMNI-CHANNEL
(NFC)
TECHNOLOGIES
• Enabling Technologies
12B • Near Field
DONE Communications (NFC)
• Beacons
• Radio Frequency
Identification (RFID)
• Omni-channel Payments
• Big Data & Machine
Learning

https://www.youtube.com/watch?v=gCZfdcckjk4
 OMNI-CHANNEL
TECHNOLOGIES
BEACONS • Enabling Technologies
• Near Field
12C Communications (NFC)
• Beacons
• Radio Frequency
Beacons are small, wireless Identification (RFID)
transmitters that use • Omni-channel Payments
Bluetooth low energy (BLE) • Big Data & Machine
technology send signals to Learning
other smart devices nearby. They
are one of the latest developments
in location technology and
proximity marketing. Put simply,
they connect and transmit
information to smart devices
making location-based searching
and interaction easier and more
accurate.
BEACONS

Brief History
2013: Apple introduced iBeacons
2014: Macy introduced Beacons to all 4,000 stores
2015: Google launched Eddystone
2016: Google launched Eddystone-EID
2017: Google pilots Project Beacon
BEACONS (watch after segment)

https://youtu.be/eGJYaku0V9Y
BEACONS

How does it work?

BEACONS

Applications
• Advanced Data Analytics
• Personalized Marketing Messages/Push Messages
• Loyalty Programs
• Out of store marketing, driving foot traffic to stores
• Location tracking
BEACONS VS NFC

Similarities Differences
• Both allow cashless • Beacons are wireless sensors
working on Bluetooth Low Energy
payments technology, whereas NFC works
• Both are aimed at newer on short-range radio waves,
smartphones allowing two devices exchange of
data when in proximity to one
another
• NFC needs a closer distance
between devices to work as
compared to Beacons
BEACONS VS NFC

Security
• Although security and encryption have been
enabled on both technologies, the NFC has the
upper-hand, as it works together with the SIM
card (already secured) and needs a closer distance
to work, thus making interception harder for
hackers.
• BLE, on the other hand works on larger distances
(up to 50 m / 164 feet) and can be intercepted.
 OMNI-CHANNEL
TECHNOLOGIES
BEACONS VS NFC • Enabling Technologies
• Near Field
12C Communications (NFC)
DONE • Beacons
• Radio Frequency
Usage Identification (RFID)
• Omni-channel Payments
• Beacon works as a broadcaster and • Big Data & Machine
works best for advertising and Learning
communication purposes
• NFC being a non-invasive technology,
works best in response to an action
initiated by the consumer (payment)
 OMNI-CHANNEL
RADIO FREQUENCY TECHNOLOGIES
•
IDENTIFICATION (RFID)
Enabling Technologies
• Near Field
Communications (NFC)
• Beacons
• Radio Frequency
Radio-frequency identification (RFID) uses 12D
Identification (RFID)
electromagnetic fields to automatically identify
• Omni-channel Payments
and track tags attached to objects.
• Big Data & Machine
Learning
RFID has a lot of applications, but it’s most
notable contribution in Retail is in

logistics
management and
stock taking.
RADIO FREQUENCY
IDENTIFICATION (RFID)

https://www.youtube.com/watch?v=3xE37v3dxW0
OMNI-CHANNEL PAYMENTS
OMNI-CHANNEL PAYMENTS
One of the things that make convergence to omni-
channel slightly uncomfortable is the way customers
pay for merchandise.
Right now the way we make payments online and
offline doesn’t allow a quick integration of payment
services, mostly due to legacy financial systems.

Electronic payments account for 69% of consumer

transactions in Singapore – just slightly higher than
the global average of 65%.
 OMNI-CHANNEL PAYMENTS

In Singapore, it’s a common sight

to see retail counters with
multiple terminals serving
different modes of payment: one
for credit cards, another for debit
cards, yet another for contactless
payments.
On the back-end, business
owners spend hours liaising with
various vendors, different banks,
grappling with multiple platforms
and numerous devices.
OMNI-CHANNEL PAYMENTS

Businesses could instead integrate payments across multiple

platforms. Increasing efficiency and profits by adopting a
seamless, omni-channel payments system. In doing so, they
would be able to process payments with greater speed
and efficiency saving time and resources in their back-
offices, leverage integrated data for actionable insights, and
offer customers a seamless, integrated experience.
Benefits:
• Greater Efficiency
• Leverage Data for Insights
• Seamless Customer Experience
OMNI-CHANNEL PAYMENTS

Benefits: • 70% of businesses surveyed in a KPMG

• Greater Efficiency report agreed that there are simply too many
payment methods/contracts with banks to
• Leverage Data for handle
Insights
• By adopting omni-channel payments,
• Seamless Customer businesses will be able to work across a single
Experience centralised platform that enables businesses to
accept and process payments across multiple
markets.
• Retailers can drastically simplify these
processes, cut down on the human resource
and financial investments needed to manage
their payment acceptance.
 OMNI-CHANNEL PAYMENTS

Benefits: • The use of technology and data allows local

• Greater Efficiency retailers to gain business intelligence and
insights into areas such as purchasing habits.
• Leverage Data for
• Integrating payments from the point-of-sale
Insights
(POS) system with accounting software or
• Seamless Customer customer relationship management (CRM)
Experience systems to capture disparate pieces of
information enables retailers to better serve
their customers.
• Leveraging insights gleaned from payment
information, retailers can decide when and
who to offer discounts and deals to drive sales.
 OMNI-CHANNEL PAYMENTS
• Having access to cross-channel shopper data gives
Benefits: merchants a treasure trove of information that can be
analysed for patterns online and offline.
• Greater Efficiency
• They can then mine this information for customer
• Leverage Data for
retention and loyalty marketing. Many merchants are
Insights already beginning to offer their customers an omni-
• Seamless Customer channel shopping experience and in doing so
Experience significantly improve the shopper experience.
An example: a shopper makes a number of purchases from
an e-commerce site. Several months later, she goes
shopping whilst on vacation. At the checkout, the terminal
recognises the shopper’s card, and the staff member adds a
discount and a personal thank you thus delighting the
customer with an even more seamless, personalised
experience.
 OMNI-CHANNEL PAYMENTS
• Customer journey today is fluid, accessible, and
Benefits: continuous. Shoppers can, and want, to purchase
whatever they want, without restrictions on time,
• Greater Efficiency location, and across social, online, and mobile
• Leverage Data for channels.
Insights • Businesses need to provide a seamless experience and
• Seamless Customer allow customers to start a purchase in the channel of
Experience their choice and complete it in a potentially different
channel of their choice.
For example: A shopper goes into a store and wants a shirt
in a different colour than what’s currently available in-
store. If a store has adopted an omni-channel approach,
the shopper can go to the in-store tablet-assisted sales
terminal that carries the entire web-based inventory,
choose the colour they want, make the payment on the
spot, and have it delivered to the address of their choice.
 OMNI-CHANNEL PAYMENTS

• Omni-channel payments enable retailers to

Benefits:
service customers across multiple channels (in-
• Greater Efficiency store, online, or mobile); retail sectors,
• Leverage Data for payment types (NETS or debit and credit
Insights cards), and payment methods (contactless,
chip and PIN, magnetic and online) through
• Seamless Customer mobile point-of-sales devices, payment
Experience gateway, or virtual terminal. In doing so, the
store has gained a purchase rather than losing
an opportunity.
• With discerning consumers becoming
increasingly accustomed to omni-channel
payment capabilities, it will transform "the
next big trend" into "the new norm" for
consumers in Singapore.
OMNI-CHANNEL PAYMENTS
OMNI-CHANNEL PAYMENTS: ALIPAY

Alipay (used on desktops and smartphones)

• Alipay was launched in 2004 as a secure transaction service for
Taobao, as transactions were risky and unsecure at that time.
• Alipay saw tremendous growth and expanded beyond Alibaba’s
ecosystem, especially from online to offline payments in retail,
wholesale, e-commerce and financial sectors.
• Alipay has a wide variety of financial services integrated, such as
money market investing (Yu’e Bao), insurance services (ZhongAn),
credit rating services (Sesame Credit), personal credit lines (Ant
Micro Loan) and bill payments etc.
OMNI-CHANNEL PAYMENTS:
ALIPAY (FACIAL RECOGNITION)

https://www.youtube.com/watch?v=f-NIAUhU2E0
OMNI-CHANNEL PAYMENTS:
WECHAT PAY
WeChat Pay (used primarily on smartphones only)
• WeChat Pay started off as an offspring of popular instant messaging
app WeChat. It was created so that people can “instant message”
payments.
• Through WeChat’s partnership with banks, WeChat users could use the
WeChat Pay’s facility to pay bills, buy groceries, and pretty much
anything using their phones.
• As a social app, Wechat targets those who want to send monetary gifts
to friends and family. This is through WeChat Pay’s “Red Envelope” or
“Ang Pau” feature. With this feature, users can send over money to
friends in their WeChat circle.
OMNI-CHANNEL PAYMENTS:
GOOGLE PAY

Google Pay
• Google Pay is a digital wallet platform and online payment system
developed by Google to power in-app and tap-to-pay purchases on mobile
devices, enabling users to make payments with Android phones, tablets or
watches on web, app and in-stores.
• Integrates offline, online and mobile shopping and aims to be the leader in
omni-channel customer identification.
• Allows easy storage of credit and debit cards, loyalty cards and gift cards
• Unifies payments, offers promotion, voucher redemption and store payment
acceptance
• Works as single point of identification and by using NFC it allows touch-
and-pay to any PayPass point.
OMNI-CHANNEL PAYMENTS:
AMAZON PAY

Amazon Pay
• Amazon Pay is an online payments processing service
that is owned by Amazon. Launched in 2007, Amazon
Pay uses the consumer base of Amazon.com and
focuses on giving users the option to pay with their
Amazon accounts on external merchant websites.
OMNI-CHANNEL PAYMENTS: OMNI-CHANNEL
TECHNOLOGIES
AMAZON PAY • Enabling Technologies
• Near Field
Communications (NFC)
• Beacons
• Radio Frequency
Identification (RFID)
• Omni-channel Payments
• Big Data & Machine
Learning 12D
DONE

https://www.youtube.com/watch?v=NrmMk1Myrxc
 OMNI-CHANNEL
TECHNOLOGIES
BIG DATA & MACHINE LEARNING
• Enabling Technologies
• Near Field
Communications (NFC)
• Beacons
The omni-channel customers expect personalization. • Radio Frequency
They expect seamless experiences between online Identification (RFID)
channels and brick and mortar stores. If they can’t 12E
• Omni-channel Payments
easily make a purchase, they’ll leave for a different • Big Data & Machine
retailer. Learning

Big data can solve these problems for retail brands

looking to increase sales and customer satisfaction.
For the retail industry, big data means a greater
understanding of consumer shopping habits and how
to attract new customers.
BIG DATA & MACHINE LEARNING

What is Big Data?

Big data describes a large volume of data that is used to reveal
patterns, trends, and associations, especially relating to human
behavior and interactions.

The 4Vs of Big Data

Volume: Amount of Data generated
Velocity: Speed of which Data is generated
Variety: Types of Data being generated (structured,
unstructured)
Veracity: Trustworthiness of Data
BIG DATA & MACHINE LEARNING

Big Data in Retail Industry

• Predicting Spending (credit card transactions, IP addresses, user log-
ins, loyalty programs, market basket analysis)
• Personalizing Customer Experience
• Forecasting Demand in Retail (some algorithms analyze social media
and web browsing trends to predict the next big thing)
• Customer Journey Analytics
• Optimized Pricing (track competitors, market changes, consumer
spending etc)
RETAIL 2020: 5 TECHNOLOGIES

https://www.youtube.com/watch?v=iRvaWHk3A8k
 OMNI-CHANNEL
ALIBABA: NEW RETAIL TECHNOLOGIES
• Enabling Technologies
• Near Field
Communications (NFC)
• Beacons
• Radio Frequency
Identification (RFID)
• Omni-channel Payments
• Big Data & Machine
Learning
12E
DONE

https://www.youtube.com/watch?v=336YkwayCD4