THE SHOPPING MALL

MARKET IN DIGITAL AGE

 SUMMARY
1. Global Trends and Market Changes .......................................................................... 2
2. CIO Challenges Face Digital Journey ......................................................................... 6
3. Oracle JD Edwards and Oracle Cloud - The right choice to address new Trends ..... 7
3.1. JD Edwards Financial Suite .................................................................................... 7
3.2. Real Estate Management Solution ........................................................................ 8
3.3. Internet of Things (IoT) Solution ......................................................................... 10
3.4. JD Edwards Mobile Technologies - Get connected ............................................. 12
3.5. Oracle Social Cloud .............................................................................................. 13
4. Bibliographic References ......................................................................................... 14

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1. Global Trends and Market Changes
Nowadays Shopping Malls are much more than a set of stores arranged in the
same place. They are essential parts of cities, the foundation of retail economies,
and a social gathering point. In last decades, the concept of shopping mall, which
became a full-blown modern retail trend, has proliferated across the globe.

The traditional concept

of Mall is undergoing
great change. Several
global trends are coming
together at the same
time to cause malls to
change the role they play
in people's lives. No
longer are they primarily
about shopping "only".
Now, when consumers
visit malls, they are
looking for experiences that go well beyond standard shopping.

The trends helping to create this change include changing demographics, such as
an aging population and increased urbanization, which means more people living in
smaller spaces and greater need for public spaces in which to socialize and
congregate. In this environment, malls are very welcome, especially in cities where
other public spaces are not safe. The rush of modern life is causing some
customers to prefer mixed spaces where they can live, shop, eat and work all
within a walking distance from home - instead of having to get into a car and drive
to a far and crowded mall. The growing middle classes maintain a strong
association between consumption and pleasure, driving the need for more
engaging shopping experiences. And finally, the e-commerce revolution and the
rise of digital technologies are fundamentally reshaping consumer expectations
and shifting the function of stores toward useful and entertaining customer
experiences.

These trends advance quickly and are forcing mall operators to rethink how they
conceive and operate their properties.

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In the face of these considerable challenges, malls are seeking to stay relevant, drive
growth and boost efficiency. Successful players are investing along important key
points:
New perspective on consumer offering, focusing on experience and convenience.
Online shopping provides consumers with ultimate levels of convenience. Malls will
never be able to compete with the endless product selection, price comparisons and
always-on nature of online. Instead, malls need to move in a different direction, away
from commoditized shopping experiences and toward a broadened value proposition
for consumers.
Innovative malls are incorporating value-added elements that attempt to recast the
mall as the new downtown, including concerts, arts centers, spas, fitness clubs, and
entertainment areas. In Brazil, for instance, a new focus on leisure and entertainment
is already driving growth. Revenue coming into malls from these offerings grew 41
percent in last years.
An emphasis on fine dining and events is also helping to make malls the hub of the
local community a place to share quality time with friends and family, not just wolf
down a meal at the food court.
On the tenant mix front, innovative malls are strategically rethinking the types of
stores that consumers will respond to. Anchor tenants that drive traffic are still key,
but we also see a new emphasis on a mix of smaller stores that add a sense of novelty
to the mall offering.
New Models and Commercial Mix
Although location remains the key real estate consideration for malls, a differentiated
design and structure is increasingly important. Open air malls go a long ways toward
lending an atmosphere of a town center, especially when they incorporate mixed use
real estate. Many of the malls being built in urban areas are open and fully integrated
with the landscape, including elements to help malls better blend in with their
surroundings.
It is critical that malls be about much more than stores. We see the mix of store and
public space moving from the current 70/30 to 60/40, or even 50/50. When this
happens, these expanded public spaces will need to be planned and programed over
the year much like an exhibition. They will be managed more like content and media,
instead of real estate.
Mixed used developments offer consumers an attractive, integrated community in
which to live, work and shop. They also serve to generate additional traffic for the
malls while maximizing returns on invested capital. Other commercial real estate
opportunities that can add alternative revenue streams are hotels and office buildings.

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 Using Technology to transform Shopping Mall experience
The digital transformation of retail presents new opportunities for malls to engage
consumers throughout their decision process. The shopping malls are taking advantage
of the technology in in different ways.
They are extending their relationships with customers to before and after the mall
visit. This is about engaging customers through compelling content and creating
deeper bonds with them through social media and proprietary sites and apps, as well
as loyalty programs.
Just like retailers, malls
should reach out to their
customers with
customized offers, gift
ideas and other targeted
advertisements based on
real time intelligence and
location-based
marketing. While malls
face the challenge of not
having direct access to shopper purchase data, this can be overcome by inducing
shoppers to use their smartphone to scan purchase receipts in exchange for points
that can be redeemed for concerts tickets, books, discount vouchers for participating
merchants, free parking or invitations to events. Alternatively, technologies such as
face recognition, location-based mobile ads, and beacons are already being
successfully applied in order to identify and establish targeted contact with repeat
customers. Such technologies are also valuable for gathering consumer behavioral
data from which malls can glean useful insights.
Malls are also using technology to transform mall usability as a means of improving
customer satisfaction. There is ample opportunity for malls to decrease customer pain
points, while simultaneously creating entirely new delight points. Technology, for
instance, can be used to address one of the biggest challenges shoppers face at the
mall finding parking. Sensors located in parking lots detect how many spots are
available on each level and give visual indicators to drivers. Once within the mall,
mobile apps can offer quick, easy guides to help shoppers find what theyre looking
for.
But it's not just the innovations that drive the mall market. Important back office
business processes need to be addressed.

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Commercial Real Estate is one of the most complex and competitive industries in the
world. A combination of razor-thin operating margins, volatile market prices, shrinking
occupancy rates, and aggressive competition make maintaining profitability and
driving growth increasingly difficult.
To stay competitive, organizations must have access to timely, reliable information so
that decision-makers can forecast lease revenue and expected costs accurately,
manage properties efficiently, and maximize the return on real estate investments
Its important manage capital assets effectively to ensure profitability.
Operating and maintaining large and expensive assets presents many challenges, from
optimizing complex supply chains to mitigating the impact of unpredictable problems
in operation. Poor management of these operational processes can increase costs
significantly and have a negative impact on profitability.
Without the right tools, meeting these challenges can be incredibly complex and time-
consuming, draining resources and hindering business agility.

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2. CIO Challenges Face Digital Journey

According Gartner Group, CIOs must become trusted advisors to senior management
in the digital business transformation journey. They must guide the business on how to
deploy a modernized technology foundation to create new value streams for
competitive advantage in a volatile and unpredictable business environment.
To provide a modernized technology
foundation to attend Shopping Malls
trends, CIOs and IT leaders need to
support the "seven Cs" of customer
interaction: connected, continuous,
convenient, contiguous, consistent,
collaborative and customized. This
involves understanding how consumers
use technology in their everyday living,
and then deploying technology to
embed the retail brand in the minds of
consumers.
CIOs will need to guide the business on
how to prioritize technology
investments for growth while minimizing the risk incurred when transitioning away
from well-established legacy platforms.

Customer-Centric Merchandising and Marketing

With increased consumerization in retail, customers have more options than ever
before, so it's important that retailing be highly customer-focused. Merchandising and
marketing are probably the most heavily impacted by this trend. The traditional
product-centric approach to merchandising and marketing, which for years worked
well to provide sales results, is rapidly being revolutionized. Now, retailers must view
their customers as not just audience segments, but as individual collaborators and
promoters in a process to source, develop, and market products and services. This will
call for huge changes in data gathering and evaluation. Technology, properly applied,
can have enormous leverage opportunities.

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3. Oracle JD Edwards and Oracle Cloud - The right choice
to address new Trends
Oracles JD Edwards EnterpriseOne solutions provide a comprehensive suite of flexible,
modular tools to help Shopping Mall & Real Estate companies achieve operational
excellence, reduce the cost of asset ownership and management, ensure regulatory
compliance, and drive profitable, sustainable growth. Associated with Oracle Cloud
solutions for Internet of Things, Mobility and social Networking, JD Edwards is fully
aligned with the new challenges and trends of Shopping Malls and Real Estate industry.

3.1. JD Edwards Financial Suite

Financial departments in Shopping Malls are facing an increasing array of
challenges. They must be able to create value for shareholders, reduce operating
costs, improve efficiencies, and maneuver the resources of the organization to
meet business priorities. But to do their jobs effectively, financial professionals
need instant access to crucial information about revenues, profits, and cash flow
information that once was not accessible until period end. With real-time financial
information, decisions become based on all the facts, rather than on guesses. To
provide access to this information, organizations must be able to unite previously
disparate financial functions into a single, integrated system that provides
complete visibility into financial information.
Oracle JD Edwards provides a solid financial foundation, giving the flexibility to
quickly react to changing business requirements. It support full capabilities for
multi-site, multi-lingual and international operations, and includes solutions for:
Accounts Payable, Accounts Receivable, General Accounting, Fixed Assets and
OneView Financials Statements and Project Management.
JD Edwards EnterpriseOne also has
powerful reporting capabilities,
designed to deliver personalized
information to improve productivity,
providing information access solutions
to clearly understand the status of
important business activity.
The intuitive interface empowers end
users with the flexibility to create personalized transactional reports without the
need for IT assistance.

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3.2. Real Estate Management Solution
Investors and tenants are interested in making the right decisions regarding their
investments. To attract investors and tenants, real estate organizations need a
competitive edge. The right properties, appealing returns, and an efficient way to
manage and maintain the most attractive facilities are the mechanisms at their
disposal to be successful in this increasingly competitive market. Many real estate
organizations spend days consolidating data gathered from multiple systems. This
time-consuming process of managing disparate databases and technologies results
in executives spending time in managing data as opposed to managing their
investments. Current, accurate information is critical. And the quicker information
can be accessed, the more beneficial it becomes for executives, managers, and
owners. The ability to achieve a competitive advantage becomes stronger when
you have the latest information on occupancy patterns, property data, and market
information from a single data source. Most important, real-time visibility across
your portfolio helps promote operational efficiencies and higher return on
investment.
JD Edwards EnterpriseOne Real Estate Management and JD Edwards EnterpriseOne
Advanced Real Estate Forecasting provide a comprehensive suite of integrated
tools to help plan, manage, and monitor investments with precision and
confidence. With anytime, anywhere access to accurate, real-time information and
user-defined reports, you can spend less time crunching numbers and more time
managing your investments.
The Figure 1 shows JD Edwards back office suites and Real Estate Management
Solution.

Figure 1 - JD Edwards EnterpriseOne Integrated ERP and Real Estate Management Solution

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JD Edwards EnterpriseOne Real Estate Management uses collaborative portal
technology to extend your enterprise over the web in real time. Key players,
including tenants, lenders, owners, and facility managers, access property
information any time.
As a further benefit, a single-source, integrated solution eliminates duplicate data
entry, provides real-time
access and reporting across
the entire portfolio, and
reduces time spent reconciling
data from disparate systems.
You can also add JD Edwards
EnterpriseOne Advanced Real
Estate Forecasting. This
product greatly expands the JD
Edwards EnterpriseOne
solution and dramatically
reduces budgeting and forecasting cycles. Multiple economic scenarios can be
easily modeled to investigate the effect on net operating income and property
valuation. Budgeting and forecasting capabilities are seamlessly incorporated with
core financial components of JD Edwards, ensuring information integrity.

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3.3. Internet of Things (IoT) Solution
Using Machine-to-Machine (M2M) communications allow organizations to solve
their most challenging business problems.
These systems work by attaching sensors to collect information such as
temperature, geopositioning, pressure, or vibration, integrating this information
into business processes to make more intelligent decisions, reduce costs, and
create new revenue streams.
The great benefit of the Internet of Things (IoT) is to improve the accuracy,
frequency, and timeliness of your input data. IoT-enabled devices add value to any
industry business process that relies on tedious, expensive, error-prone manual
input to applications. An ERP system integrated with an IoT solution delivers real-
time, always-on data into applications to increase the value of your software
investment.
The JD Edwards EnterpriseOne Orchestrator Studio and the IoT Orchestrator
provide the best of bridge to bring data into your ERP system with ease. The
Orchestrator Studio is an intuitive web-based application for developing
orchestrations that provide the instructions for transferring device data into
transaction in EnterpriseOne.

Figure 2 - JD Edwards EnterpriseOne IoT Orchestrator

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But, how IoT can be used in a Shopping Mall?
Track and locate assets instantly
Oracle Internet of Things (IoT) Asset Monitoring Cloud Service tracks and
locates fixed and movable assets in real time.
Monitoring assets quickly with prebuilt business dashboards with
predefined KPIs for check asset performance, utilization, and availability.
When an asset is moved from one place to another,the location of the
asset is updated in real time. Oracle IoT Asset Monitoring Cloud Service
lets you know where the asset is located relative to floor plans of your
facility, making it easy to locate and use.
Oracle IoT Asset Monitoring Cloud Service includes a mobile app for
mobile phones and tablets so you can monitor your assets from
anywhere. Using the mobile app, you can add new assets and place them
geographically, using the GPS capabilities of your mobile device.

Monitor the health and use of your assets.

As important as monitoring assets location is to guarantee
your asset to function properly when you need it. Oracle IoT
Asset Monitoring Cloud Service analyzes streaming data
from sensors attached to your assets to monitor the health
and use of the device.
This data can be used to alert to conditions that require maintenance of the asset, for
example, low battery or overheating.

Predict when maintenance is required. No surprises.

Sensor data streaming to Oracle IoT Asset Monitoring Cloud Service is continually
analyzed in real time. Using customizable prediction analytics, your assets will tell you
when they need maintenance, often long before they fail.
Perform preventive maintenance on critical assets.
Improve asset availability.
Reduce operating costs.

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3.4. JD Edwards Mobile Technologies - Get connected
Location-based technologies, such as Wi-Fi, Bluetooth or Bluetooth Low Energy
(BLE), leverage shoppers mobile phones and in-store sensors to passively gather
shopper behavioural trends, providing mall managers and their tenants with
valuable insights. Acting on these insights enables management to tailor a more
personalised approach in order to delight and entertain customers.
Taking this one step further, shoppers who
are happy to download an app then enable
mobile devices and in-store sensors to
effectively talk to each other. This means
consumers can receive personalised
information, relevant offers and
communications in real-time. For marketing
teams, this is an opportunity to start a
dialogue with customers as soon as they
enter the centre, or sometimes even before
a fantastic way to improve your one-to-one engagement.
Using additional location-based data such as people counting and in-store analytics,
mall managers are able to understand how customers are interacting within the mall
by piecing together insight into:
which entrance and exit points shoppers are using
which zones are receiving the highest percentage of traffic
how promotions and events are influencing the customer journey
how long, on average, consumers spend in the centre
how the customer travels through the centre and which are the most used paths
to purchase
Working in harmony, these tools can drive decision-making across marketing, leasing
and operations, helping management teams create the right tenant mix, inform
staffing and security operations and create engaging events and promotions. The
more information you gather the more you learn, the more you can act on, the
better the experience.
Oracle's JD Edwards EnterpriseOne Mobile Enterprise Solutions offers the mobile
workforce an array of role-based and fit-for-purpose mobile applications with a
modern user interface on the device of their choice for increased business efficiency.
JD Edwards EnterpriseOne Mobile Applications can be used in conjunction with
Oracles Mobile Platform and Oracles Mobile Cloud Service to simplify mobile
development, integration, security and analytics for overall improved business
results and accelerated business execution.

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3.5. Oracle Social Cloud
Take advantage of social media for
business, listen to what customers are
saying about your Mall and deriving
insights from those conversations,
create content that gets engagement,
likes, and shares. These are just some
of uses that successful Shopping Malls
do with social channels, not only to
provide better customer service but
also to uncover qualified sales leads. Oracle Social Cloud provide the better insights,
better content, faster service, and faster growth.
Better Insights
Listen to social conversations around Shopping Mall and Shops and capture deeper,
more-actionable insights. Oracle Social uses LSA+NLP+Boolean listening technology
to capture only relevant conversations around your brand, which help you derive
accurate insights quickly. Use these insights to create the right content with the right
message and measure campaign ROI across owned and earned social media
channels.
Better Content
Deliver the right message, to the right people, at the right time, in the right place.
Create and push consistent content across all social midia. Or create and scale
hypertargeted content based on demographics and user interactions. Broaden your
reach with paid media posts.
Faster Service
Provide proactive customer service on social channels to keep customers loyal and
engaged. Oracle Social Relationship Management (Oracle SRM) automatically
identifies and categorizes customer service posts, alerts you to priority posts, and
tracks subsequent communication between your company and the customer. Posts
can be automatically route to customer and respond on-the-go with the Oracle SRM
mobile app.
Faster Growth
Uncover qualified sales leads to grow your customer base. Do social listening, get
insights, and understand what customers really want. Then use these insights to
create better offers and campaign, define better targets, and find similar customers
on social media. All this leads to selling more products and generating more revenue
for Shopping Mall.

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4. Bibliographic References
1. Mckinsey&Company - Marketing and Sales Insights - The future of Shopping
Mall
2. Gartner Group - Retail Industry Research Focuses on Digital Business
Transformation

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ABOUT MPL: MPL has been operating in the Brazilian and South American markets
since 1985, having started its operation with JDEdwards in 1993, being the leader of
the practice in Brazil.

It has performed hundreds of JDEdwards implementation projects in Brazil and more

than 60 rollouts in the territory.

It consolidated a broad knowledge of the legal aspects of Brazil and of all the market
best practices that are applicable to Brazilian companies, having developed its own
methodology for conducting rollout projects.

It has expert consultants in various industries and areas of competence of JDEdwards

with more than 20 years of experience.

It maintains a business unit focused on JDEdwards support, helping more than 3000
end users in various versions of WorldSoftware and Enterprise One.

Developed accelerators for the implementation process that reduce risks and
deadlines.

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