DIGITAL BANKING

A digital strategy report on banking value chain

By,
MAY, 28, 2017 R RAVI KIRAN

Confidential Copyright 2014 Tata Consultancy Services Limited

TABLE OF CONTENTS

PROJECT OBJECTIVE

WHY DIGITAL IN BANKING

BANKING VALUE CHAIN

MARKET SIZE AND LEVEL OF DIGITAL ADOPTION

DIGITAL STRATEGY FOR THOSE TOUCH POINTS IN VALUE CHAIN

CHALLENGES IN BANKING

CXO VIEWS & RECOMMENDATIONS

KEY INDICATIVE LISTS

Document Name
REFERENCES

1 Confidential
PROJECT OBJECTIVE

The aim of this project is to find out the need for digital transformation in banking and study the market
for the level of adoption in the banking industry. Define the banking value chain. And lay out the digital
strategies for all the touch-points in the Banking value chain.

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 WHY DIGITAL IN BANKING
DRIVERS DIGITAL TRENDS BENEFITS

Omni-Channel Banking to Grow : Need for flexibility, Lack of co- Improvement in New Customers Growth Rate
ordination among channels & Threat from non-banks Decrease in Customer Attrition
Experience & Power shift to Customers & merchants in contextual payments Improvement in Brand Image
Integrate payments capability with digital experience Increase in Customer Satisfaction
Engagement Customers are expecting Retail treatment from BFS in terms of Increase in non-branch banking usage ratio
customer experience with a Mobile first focus that is personalized Decrease in cost of acquiring new customers

Opportunity for Improvement & efficient Risk & Fraud Management Reduced number and cost of Fraud incidents
with real-time capabilities (through Big Data, & Analytics) Time to market new products
Operational Efficiency Focus on Next-generation Payment hubs Reduction in Social Reputation Risk
Automation of Onboarding processes in Merchant Onboarding, Decrease in Employees per Branch
Wealth Management Client Onboarding, Lending Customers etc. Decrease in Cost of servicing

Leveraging Insights from Customer Information (External & Internal) Increased revenue through loyal customers
for Up-selling & Cross-selling Products, and Product/Services Design Expansion to untapped markets
New capabilities through partner ecosystem
Optimizing branch portfolio through convergence of digital-physical
Business Growth channels, & self-service capabilities
Increase in Customer growth
Increase in fee based income
Opportunity to creating new value proposition in capital markets using Revenues from new products/services or
digital leading to raise in sales & trading Monetization of Data through APIs

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 BANKING VALUE CHAIN

MARKETING SALES PRODUCTS OPERATIONS TRANSACTIONS

Advertising Acquisition Deposits & Credits Front-Office Payments

Branding Offerings Securities Middle-Office Trading
Sales Multichannel Financial Products Back-Office Clearing &
Management Corporate Customer Settlement
Investments Support
Account
Management
Asset Management
Advisory Services

Document Name
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 Market size and level of digital adoption
Digital Banking Market is Estimated to Grow at Compound Annual Growth Rate of Around 8% during 2016 to 2022
Source : https://thefinancialbrand.com/64495/financial-banking-digital-selling-online/

% of all products can be applied for % of all products can be applied for % of personal banking products that
using digital channels using a mobile device could be set up using mobile device

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 Market size and level of digital adoption
Source : Avokas annual State of Digital Sales in Banking report

% of wealth management products Readiness to support digital account % of small business products that
that could be set up on mobile device opening overall (mobile + online) could be set up using a mobile device

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 Digital Strategy for those Touch Points in Value Chain

MARKETING & SALES

Desktop & Mobile Advertising

Capital One, Citigroup and Chase alone spent
SEO more than $168 million on desktop & mobile
ADVERTISING advertising in the first three quarters of 2016,
& BRANDING Content Marketing
according to Pathmatics data

Source :
Email Newsletters http://www.bankingtech.com/625292/banks-and-
digital-advertising-whos-spending-what-and-where/

Usable & Mobile friendly

website

Sales force automation using

SALES Cloud CRM with Analytics

Mobile devices

By 2019, over 85% of new packaged customer service and Source :

support software will be delivered on a cloud-based model https://www.gartner.com/document/3706717?ref=solrAll&refval=185148470
&qid=d1b7b59bfdcbbf2b97b0882633f2f71e

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Digital Strategy for those Touch Points in Value Chain

MARKETING & SALES

Social Media Over 70% percent of internet users are also

active on social media

ACQUISITION Mobile Technology

Source : http://blog.strategisadv.com/digital-customer-
acquisition-strategies-that-help-banks-prove-roi
Inbound Marketing
Engage older, more profitable and brand-
conscious customers
Digital Branches
MULTICHANNEL Target relevant online offers and content at
MANAGEMENT Internet & Mobile Channels these customers

Personalized offers can be delivered via

targeted, customized messages, through
mobile or Internet channels

Adoption of social media marketing along

with other internet channels

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Digital Strategy for those Touch Points in Value Chain

PRODUCTS & SERVICES

KOTAK 811
Opening Saving Account
DEPOSITS & Virtual Debit Card
Mobile Banking App
CREDITS Scan & Pay
Shop, Travel, Entertainment

Kotak Mahindra Bank has set an ambitious target of doubling its total Source : http://www.thehindubusinessline.com/money-and-banking/kotak-
bank-bets-on-811-scheme-to-double-customer-base-in-two-
customers to 16 million in the next 18-24 months from eight million now years/article9676929.ece

PARTNER PAYMENTS API Banking Services

Vendor Payments, refunds, business
correspondents, SMBs, co-operative societies
API Banking Services has digitized the B2B supply
chain.
API banking allows our banking systems to be
seamlessly and securely integrated with corporate
clients ERP systems
Through API or Application Programming Interface,
business enterprises can do all their cash payables and
receivables management from their ERP in a seamless
secure manner
IMPORVEMENTS
Instant Banking Facility: API Banking enables instant cash
payment or receivable facility from any ERP system. This completely
reduces turnaround-time for doing a financial transaction
Hassle-free: No need to send a physical payment request to the
bank or upload CSV files. With a click of the mouse, cash payable
and receivable transaction can be done
Improved operational efficiency: Daily account statement is made
available for easy reconciliation

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 Digital Strategy for those Touch Points in Value Chain
PRODUCTS & SERVICES

SUPPLIER
MULTI-NODAL BLOCKCHAIN
FINANCES
Implementation
Capitalizing on the efficiency and security features of Blockchain, YES BANK has used the Hyper-ledger Fabric supported by IBM to design a
vendor financing solution which allows Bajaj Electricals (anchor client) to digitize the process for discounting and disbursal of funds to its vendors
by integrating seamlessly with YES BANKs systems.
The solution will also facilitate an automated debit from Bajaj Electricals account by YES BANK. The business logic and rules are captured in a
Smart contract (Chain Code) developed by Cateina Technologies.
Benefits
The entire process cycle for bill discounting reduces from four days (owing to manual intervention and transit) to almost real-time
Transparency to all parties through blockchains shared public ledger & End-to-end digital process eliminating paper trail & manual intervention
The entire transaction history of a particular vendor is recorded and is immutable through blockchain
The transaction status along with details are seamlessly transmitted to Bajaj Electricals Enterprise Resource Planning
Seamless integration with existing API Banking implementation by YES BANK using IBMs Enterprise Service Bus(IIB), API management and
Datapower solution.
This integration offers automated processing of transactions with almost zero manual intervention. Use of a permissioned blockchain with flexibility
to add other participants later
Use of superior Cryptokey to offer state-of-the-art security for both documents and transactions on the Blockchain.

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Digital Strategy for those Touch Points in Value Chain
PRODUCTS & SERVICES

CAPITAL
Mobile & Desktop Application
MANAGEMENT
BEFORE AFTER
BENIFITS
Improved Working Capital
Efficiency - Time taken to
complete transactions reduced
from 3 hours to 1 hour
Digital Approvals - One touch
approval from your mobile app for
all transaction requests
Bulk Payments - Easy & secure
processing of bulk payments via
NEFT, RTGS & Account to
Account transfer

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 Digital Strategy for those Touch Points in Value Chain
PRODUCTS & SERVICES
14% of High Net Worth Individuals (HNWIs) use robo-
Robo-adviser services advisory services for portfolio management
(AI) 69% of HNWIs are using online banking and mobile
WEALTH banking
MANAGEMENT Cyber Security (In- A little more than 40% of HNWI use digital means to
review their portfolio
house & startups)
About 40% HNWIs use digital means to review market
638 million ransomware attacks were attempted in 2016, a 167 times Almost 60% communicate with their advisors virtually
increase over 2015. Thirteen percent of these targeted the financial A little less than 40% of HNWIs use digital technologies
services industry to manage their portfolio
85% of HNWIs use more than three digital devices
Source : According to the 2017 SonicWall Annual Threat Report 98% of HNWIs surf internet and use apps daily
Only 25% of wealth management firms provide digital
Companies in the United States experience an annual loss of more than services beyond e-mails
525 million US dollars due to cyber crime in 2016
Only 25 per cent of wealth management firms
Source : Statista Source : PwC
globally offering digital channels beyond emails.
According to Bank Director's 2016 Risk Practices Survey77% of bank
executives and board members said cybersecurity was their top Financial services companies are on track to increase their
concern cyber security budgets to $10 billion by 2020

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Digital Strategy for those Touch Points in Value Chain
OPERATIONS

PROCESSES
Benefits
Robotic Process
IT SYSTEMS Automation Lower transaction processing time by
up to 60%
REGULATORY Improve productivity by up to 70%
REQUIREMENTS Source : MarketsandMarkets Analysis, December 2016* through reduction of manual efforts
Help banks redeploy staff to higher
skilled roles away from repetitive rule
based tasks
Maintain near 100% accuracy levels
due to elimination of manual errors
Automate routine reporting
requirements
Adhere to regulatory requirements
and eliminate data security risks

Source : http://www.wipro.com/documents/the-virtual-
workforce-applying-robotic-process-automation-in-
banking.pdf

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Digital Strategy for those Touch Points in Value Chain
TRANSACTIONS

Mobile Centric Wallet Apps

Peer-to-Peer payments
PAYMENTS Open API based
Cross-Border Remittances
Crypto-Currencies
Mobile Wallet Advantages

Mobile in-store payments are expected to grow at

154% CAGR between 2013 and 2018
Source : http://thefinancialbrand.com/42760/mobile-
payments-report-pos-trends/

Contactless payments are the fastest growing mobile

payment type, set to grow at 56% annually between
2016 and 2021
Source : Forrester

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CHALLENGES IN BANKING

Data Management Regulatory & Divergent Customer

& Security Compliance Needs

Niche Players & Profit Pressure &

High Fees Everywhere FinTech Startups Competitive Shifts

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 CXO Views and Recommendations
IT should be connected
from end-to-end for
Employees should be
Leadership should helping get rid of silos
trained in digital to
look to bring digital See business from Change
bring about a change
into every aspect Digital point of view Build digital organization
in the culture of the
of banking Infrastructure culture
organization

Digital Transformation

Build cybersecure Most of the banking

firewalls with the Fintechs Build digitally
Secure your data products build
help of best usable products should be on
technology and Mobile devices
keep on updating Try to partner with Fintechs
to use their services on your
Customer base

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 KEY INDICATIVE LISTS
Personal Financial Management Digital Identify management Biometrics, etc
Robo-visory platforms for Investment Products Digital IT Capabilities API Platform, DevOps Tools, etc
Algorithmic Trading & Virtual Trading Platform Virtual Assistants
Digitization of Lending Processes (Convergence of Digital & Physical Big Data Analytics in Fraud Prevention and AML regulations
Channels) Social Media Banking
Digital Channels Enabled Portfolio Management Platform for Capital Digital Branches
Markets Analytics driven Risk Management
P2P Payments, & Lending Private Cloud Enablement for Banks
Algorithmic Fraud Detection Omni-Channel Retail Banking
Algorithmic Trading Understanding Customer Movements Mobile App Analytics
Next Generation Payment Hubs for B2B & B2C enabling real-time Automated Reporting and Risk Management in Capital Markets
payments, Credit Monitoring for Corporate Banking
Video Banking Simplification of Onboarding Process for Customers in Retail Banking &
Customer Analytics for Up-selling & Cross-selling Merchants in Payments Business
Personalized Offers in Retail Banking Leveraging Big Data for Payments Data Analysis

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REFERENCES

http://www.pr2020.com/blog/how-marketing-can-support-the-sales-process
https://www.capgemini.com/resource-file-
access/resource/pdf/Trends_in_Retail_Banking_Channels__Improving_Client_Service_and_Operating_Costs.pdf
https://www.yesbank.in/corporate-banking/product-and-services/digital-banking
http://www.kotak.com/personal-banking/accounts-deposits/811-account.html
http://www.wipro.com/documents/the-virtual-workforce-applying-robotic-process-automation-in-banking.pdf
https://www.cognizant.com/whitepapers/Digital-Payments-Strategy-for-U.S.-Retail-Banks-codex1358.pdf
www.bankingtech.com
https://thefinancialbrand.com/64495/financial-banking-digital-selling-online/
https://www.cognizant.com/whitepapers/digital-marketing-in-banking-evolution-and-revolution-codex1920.pdf
https://www.bai.org/banking-strategies/article-detail/happy-grew-year-five-best-sales-practices-for-banks-in-2017
http://www.cigniti.com/blog/6-challenges-digital-banks-e-wallets-2017-overcome/
https://www.cxotalk.com/episode/digital-transformation-retail-banking
http://www.tothenew.com/digital-transformation?gclid=CjwKEAjw3KDIBRCz0KvZlJ7k4TgSJABDqOK7Qq4LOCE-
nyuaplm6XEarFWZSJ0_MbCtkX1guVWmgDxoCKRrw_wcB
https://www.marketresearchfuture.com/reports/digital-banking-market
https://techannouncer.com/digital-banking-market-estimated-grow-compound-annual-growth-rate-around-8-2016-2022/
http://www.business-standard.com/article/companies/artificial-intelligence-to-disrupt-wealth-management-business-pwc-
116060601023_1.html
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Retail Value Chain

Digital implementation strategy in Retail

-Shahbaz Khan

May 2, 2017

Confidential Copyright 2014 Tata Consultancy Services Limited

Approach

Tried to analyze
scope of digitization
in Retail Then identified the different
touch points in Retail Value
Chain

Tried to find different digital Discovered challenges while

approach that can be applied implementing these digital
in these touch points strategies.

Recommendations based on
experience of implementing
digital strategies.

Why TCS?

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 Digital value at Stake in retail

Digital Value at Stake in retail is of $506 billion worldwide

by 2018.
Value at stake in billions
Retailers are just utilizing 15 percent of their potential $120
Digital Value ( lower than telecommunications (21 $100
percent), financial services (29 percent), and media and $80
$60
entertainment (18 percent)). $40
$20
$0
Highest concentrations of Digital Value at Stake are in
North America (36 percent) and Western Europe (29
percent), Asia Pacific is quickly gaining ground (23
percent)

Ciscos analysis shows that a $20 billion retailer can save

$33 million in IT costs and generate $823 million in EBIT Source:A Roadmap to Digital Value in the Retail Industry by Cisco
by fully implementing DBT.
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 Retail Value Chain

Logistics and Merchandisin Store Marketing

Sales
Supply chain g Operations services

Consumer Multi-
Experience channel

Document Name
and capability
Horizontal Support

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 Supply Chain

Includes procurement, Inventory management and Distribution.

Digital Supply Chain
Before Digitization After Digitization
1. Integrated Planning
Supply chain today is a Digitization can make a and Execution
series of largely discrete, integrated ecosystem that 2. Logistics Visibility
siloed steps . is fully transparent to all 3. Procurement 4.0
Companies lack visibility at the players involved 4. Smart
critical points in the supply from the suppliers , to the Warehousing
Digitization
chain, leading to transporters, and 5. Efficient spare
considerable over or customers demanding parts Management
underselling during peak fulfillment. Autonomous and
seasons. Efficient exchange of B2C logistics
Lack of timely information. information. 6. Prescriptive SCA

https://www.strategyand.pwc.com
Will require digital technologies like the cloud, big data, the Internet of Things, 3D printing, /reports/industry4.0
augmented reality, and others
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 Supply Chain

Smart warehousing

The next link in the digital supply chain is the warehouse.

Trucks can communicate their position and arrival time which will optimize just in- time and just-in-sequence delivery.
RFID sensors will reveal whats been delivered, and send the track-and-trace data horizontally across the entire supply chain.
The management system will automatically allot storage space for the delivery.
Management software will constantly update inventory in real time, through the use of sensors.
Flying drones to aid in taking inventory with sensor data, and mapping the entire facility.

Advancements

DHL recently conducted successful ARS where workers used smart glasses for picking. Then robotics were used for packaging.

Efficient spare parts management with 3D printing

The warehousing link is expensive, labor-intensive, and error prone. Digitization will certainly eliminate much of its inefficiency.

Supplier Production Support

Minimal components
Delivery Spare printed on
and materials shipped Production near Local van delivery Demand and
in customer Delivered same day

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 Supply Chain

Autonomous and B2C logistics robotic transport

Self-driving trucks will depend on mapping software and short-range radar to assess the vehicles surroundings.
Internal sensors will help fleet operators assess damage to cargo and determine maintenance requirements. T
Tightly integrated with ERP system, these vehicles will eventually be able to determine on their own which supplies need
replenishment, pick up loads, drop them and collect returnable packaging.
Contactless sensors and laser safety bumpers on these vehicles will significantly improve on-site employee safety.
Last year, the U.S. state of Nevada licensed two of Daimlers Freightliner Inspiration Trucks for use on public highways.

Track-and-trace technologies

T&T of supplies and products through the transportation system has evolved thanks to new technologies. Radio frequency
identification (RFID) and Bluetooth technologies are being used to track inventory.
3D printers generate readable sensor tags that can be attached to cargo and capture temperature and humidity conditions.
GSM and satellite tracking are used in maritime transport.
Supply chain control tower using IOT, big data can help in track and trace. E.g. Dell

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 Supply Chain

RPA in Supply Chain Management

Blockchain Strengths, Weaknesses, Opportunities and Threats (SWOT)
Order processing and payments.
Trigger off email or text when an order is processed,
shipped, or delayed.
Procurement and inventory management processes :
Access inventory levels and needs.

Future of RPA
By recording the actions of software robots, RPA is able to
gather information about business patterns and internal
workings to reveal potential disruptions and bottlenecks.
RPA allows businesses to streamline operations , be
innovative and agile supply network.

Block chain in SCM

Provenance is a platform that helps brands provide that
transparency by tracing the origins and histories of
products. E.g Tracing the fish on the plate.

Fight counterfeit products.eg Block verify enables

consumers to authenticate products by working with Source: Gartner (March 2017)
manufacturers. Confidential
 Supply Chain

16% reduction in
out-of-stocks
since Wal-Mart
Wal-Mart has used radio frequency identification tags (RFID), which use numerical codes that can be introduced RFID
scanned from a distance to track pallets of merchandise moving along the supply chain. technology
Smart tags, read by a handheld scanner, that allow employees to quickly learn which items need to be into its supply chain
replaced so that shelves are consistently stocked and inventory is closely watched

Supposedly, the
Uses Wi-Fi connected robots to identify products by reading QR codes using built-in cameras.
tracking
AI system determines priority orders.
technology
helps Decathlon to
deliver
to vendors with
100% accuracy

Uses RFID from check point systems in more than 400 of its store.
Planning to use RFID tagging to millions of its products. Confidential
Store Operations

Artificial Intelligence tools to assist customers

Big Data Inventory management

New Payment options including payment apps.

Video conferencing tools, apps to train and help workforce. E.g McDonalds.

Location sensing technologies like GPS, Wi Fi and Beacon Technology.

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Store Operations

Company/Product Feature

Starbucks MOP Pre order and pay

John Lewis Trained workers digitally .Saved 50% expense and 89% in survey
said it saved time.

Macys On Call A mobile web tool powered which helps customers find products
and more easily navigate stores

Macy/Walgreens Experimenting with location sensing technologies with review of

nearby products.

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Merchandising

Provides much more dynamic Can be used in optimal display Virtual Store Design
price gathering and price of products based on demand Assortment layout
optimization capabilities. and profitability.

Walmart uses its app information (including location and browsing behavior)
with in-store sensors, RFID tags, QR codes and iBeacons information to
improve in-store layout, merchandising and product placement.

Confidential
 Marketing and Sales

Get 360 degree view of customers.

Provide same experience in multiple channels.

Social Media, Blogs and

Big Data and Analytics
Customized promotions
Based on past preferences
and responses.
website Target customers
and provide new channel.
For e.g Instagram tags
Smart Store technologies such as IP
cameras, sensors, Wi-Fi tags, and
mobile technologies, become sources
of insight into buyer behavior.

Recent trends as Cloud based CRM

dropshipping and Gives the
click and collect Users access from
any where

VR/AR provide Beacon technology

immersive Environments Helps in providing
and helps in Customized offers
engaging customers,. And promotionsConfidential
 Customer Experience
Mobile App can improve the
In-Store Experience.
Walmart app switches to in-
store mode when in one. Has
in store navigation, faster
check out process, and
Pricecatcher.
Walmart reports increased foot
fall, larger basket sizes and a
4070% customer lifetime
value lift for those customers
using the app.
In Store technologies
Amazon Go pilot store, sensors
and cameras mean customers can
simply walk out with their
purchasesno checkout needed.
AI tools like Amazons Echo and
Macys On Call
Social media analytics
:Customer conversations on
social media platforms can
be leveraged by retailers to
engage them online and
manage their experience in
real time.
Social media can act as new
sale channels like in
Instagram tags.
Softbank Robotics has
created Pepper, a robot that
uses facial recognition and
language processing to serve
customers in retail
environments ranging from
Nissan showrooms to
experience.
Nescaf shops
Wayfairs remote digital
mockup shows how furniture
will look in your house.
Sephoras color matching helps
pick the perfect lipstick to
complement an outfit.
North Face use VR to transport
customers to Yosemite
National Park as they were
shopping at the stores
Smart mirrors can increase
cross selling
Big Data and Analytics : Data
from online and offline channels
like sensors, WiFi tags and
mobile technologies will give
deep insights of customers. It
will help in giving customized
Confidential
 Implementation challenges

Integrating tools into existing infrastructure.

Bridging the knowledge gap and bringing the digital culture

into organization .

Numerous possibilities with the advent of technology. It can

create confusion in selecting the right direction.

Satisfying the highly informed customers expectations.

Data and data management Integrating and creating huge

amount of data .

Creating a single unified commerce platform which offers

holistic & consistent CX across all touch points.

Data Security
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 Recommendations

Retailers have to listen to the voice of the customer and try to sell experiences if we want customers to visit our shop.
Like using digital technologies to show customers how clothes look on them

Mobile technologies influence every stage of the customers shopping journeyfrom personalized promotions prompted
by geo targeting to in-store research and price checks, as well as to payment capabilities.
Differentiate your offerings.

Expand revenue and profit pools like Walmart Stores are earning rent from digital assets.

Embracing Omnichannel Systems and Processes :

Align the people and processes with the technology to make real-time retail .
End-to-end supply chain visibility helps to near-real-time decisions to reroute products and streamline transportation

Try to become data driven industry . Try finding where data can add value like in promotions , routing, inventory
management ,assortments.

Short term Mid term 34 Long term Confidential

 F&F

Business Problem

1. Little floor Space

2. Limited insights on both online and offline customers

Solution

1. Using a combination of in-store Wi-Fi and integrated mobile and tablet access for shop associates to gain insight on customer.
2. Free Wi-Fi to track customer journey and give curated content.
3. Interactive kiosks in stores allowed customers to order items online .
4. F&F has also piloted remote expert for style tips.

Benefit

1. In next 3 months, the number of customers logging onto Wi-Fi increased 50 percent.
2. 30-50 % of the time was spent online thus giving chance for pushovers.
3. Interactive kiosks reduced the number of customers leaving empty-handed,also gain online presence.
4. Remote experts promoted F&F as a fashion brand

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 Why TCS?

Clients Name Solution Domain

1. Domain Expertise
Home Depot Buy Online Pickup In
Cross Channel
2. 40+TCS tool and Store
applications JC Penny Interactive Kiosks Stores

3. Retail BPS offerings Walgreens mPOS Mobility

Warehouse &
4. Unique Digital Operation Woolworths Digital Supply Chain
Transportation
Studio and CII tool Customer Engagement
Woolworths Loyalty, Customer CRM & Loyality
5. Long term strategic Ranging & Analytics
partnerships
Supervalue Customer Mobile App Mobility
6. Proven Track record
M&S Multi Channel Retail Cross Channel
Implementation of Click
Sainsbury's Cross Channel
& Collect
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Digital Operation Studio

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CI&I Retail 1.0 Scope : Summary
IoT based Customer Analytics Platform for
real time customer engagement across physical-
digital touch points interfacing with the digital
ecosystem
Customer Digital Persona for 360 customer
insight across their journeys and interactions
Customer Journey Canvas for modeling
customer journeys to create personalized
engagements defining channels, interactions and
desired outcomes
Customer Journey Cockpit for getting real time
visibility to cross channel customer journeys,
tracking progress and forecasting movements to
improve customer engagement and implement
real time retail model
Customer Journey Manager for actively
managing customer engagement programs by
setting goals, cascading targets and setting
initiatives to improve customer engagement
Dynamic Segmentation & Targeting for learning
driven customer engagement based on goals
defined through Journey Modeler and Journey
Manager
Next Best Action and Next Best Offers for 1:1
personalized engagement of customers across their
journeys to drive overall customer engagement
goals
Programmatic Customer Engagement for real
time and contextual personalized interactions
through the customers journey with learning based
interaction models to drive customer engagement
goals
APIs and Developer SDK for easy integration to
digital ecosystems, enterprise applications and
developing channel applications in enhancing
customer engagement
In-Premise & Cloud options for Tier 1 & Tier 2
Retailers to quickly deploy and develop digital
ecosystems
Confidential
 Summary of different Touch Points in Value Chain
Connected supply chain
It includes Sourcing, procurement,
inventory management and
distribution
Try to go for overall connected supply
chain.
Challenge Incorporating digital
capabilities in existing supply chain.
Sensors and geolocation real time
localization, filling status, product
quality
Robotics Picking palletizing
Big data --routing optimization,
Capacity Planning, forecasting
Integrated control-tower
technologies- Track components in
real time, quickly reroute parts
Cloud -- global real time data
available .
Retailers are trying drop shipping and
Crowdsourcing.
Store Operations
Physical retailers should try to smoothen
overall experience of customers with
seamless navigation, quick information,
easy payment.
RFID, IoT Live supply status on-hand, on-
order, in-transit and open-to-buy products
Beacon technology Personalized
experience to customers
Virtual reality Digital shelves and Kiosks
Apps Clienteling apps can be used to
empower associates, consumer apps can
help to locate product in store.
Mobile POS Self checkout and mobile
payment.
RFID tags to scan
items and add them to a virtual shopping
cart. E.g. Target
39
Marketing
Consumers demand a more personalized
shopping experience, making marketing
offers based on consumers shopping
behavior important
Analytics Get 360view of customers and
provide personalized customer experience.
Also optimize operational decision-making
Social media, blogs, website to connect to
customers .Paid media includes things like
Google AdWords, paid social media posts,
native advertising.
For ecommerce and lead generation sites,
social provides a growing opportunity to
improve conversion rates and gain new
conversion channels.
Confidential
Summary of different Touch Points in Value Chain
Sales
Data analytics-Insights can be used to
fine-tune and differentiate direct-
channel product offers, promotions and
online or mobile features.
In house payment solution Starbucks
Click and collect and drop shipping by
manufacturers are possible with digital
capabilities.
Big Data - Analyze massive volumes of
customer data that contains insights
into customer behaviors.
Cloud Takes CRM to new level.CRM
data can be accessed from anywhere.
Social Media Analyze social
sentiments of the product.
40
Customer experience and
support
Beacon Technology
Social Media Helps to support and
interact with customer.
CRM mobile app - Assist sales reps in
staying connected with prospects.
Internet of Things - Improve customer
experiences within the device and/or
based on data regarding the usage of the
device like predictive maintenance.
Virtual reality Digital shelves and
Kiosks.
Big Data Help treat customers like
individual.Like Southwest Airlines started
using speech analytics to extract value-
rich data from live-recorded interactions
with customers.
Zappos is poster-child for exceptional
omnichannel service thanks to their
efforts in pleasing their customers.
Confidential
Reference

http://www.cisco.com/c/dam/en_us/about/ac79/docs/mfg/NextGen-SCM.pdf
http://www.bain.com/publications/articles/retail-holiday-newsletter-2016-2017-5.aspx
https://www.wired.com/insights/2014/05/retails-next-big-bet-ibeacon-promise-geolocation-technologies/
https://hbr.org/2015/11/the-potential-of-geolocation-for-revolutionizing-retail
https://www.whisbi.com/info/omnichannel/solution/retail/in-store/virtual.html
https://www.whisbi.com/info/omnichannel/solution/retail/in-store/augmented.html
https://hbr.org/2016/09/virtual-and-augmented-reality-will-reshape-retail
https://www.forbes.com/sites/nikkibaird/2017/04/26/in-retail-ar-is-for-shoppers-and-vr-is-for-business/2/#782752c7e304
https://www.uipath.com/blog/how-rpa-impacts-the-global-supply-chain
https://www.gita.org.in/Attachments/Reports/8%20NASSCOM-ERI-RPA%20Market%20Opportunity%20-
%20NASSCOM.pdf
https://www.linkedin.com/pulse/blockchain-retail-sector-sudip-nair
http://www.ccgrouppr.com/practical-applications-of-blockchain-technology/sectors/retail/
http://cerasis.com/2016/02/05/digital-supply-chain/
https://www.capgemini-consulting.com/resource-file-access/resource/pdf/retail-store-research_dti.pdf
http://www.cpcstrategy.com/blog/2014/10/state-of-retail-industry-trends-2015/

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Reference

http://www.mckinsey.com/industries/retail/our-insights/how-retailers-can-keep-up-with-consumers
http://image-src.bcg.com/BCG_COM/Decoding-Digital-Retail-Feb-2016-India_tcm21-28732.pdf
https://www.forbes.com/sites/oracle/2014/01/13/10-technology-trends-that-will-revolutionize-retail/#154eda3c419c
https://www.spencerstuart.com/research-and-insight/how-digital-technologies-can-transform-sales
https://www.salesforce.com/blog/2015/08/6-ways-technology-streamlined-sales.html
https://www2.deloitte.com/content/dam/Deloitte/se/Documents/technology/Omni-channel-2015.pdf
https://dupress.deloitte.com/dup-us-en/focus/disruptive-strategy-patterns-case-studies/disruptive-strategy-value-chain-
models.html
http://www.cisco.com/c/dam/en_us/solutions/industries/retail/digitalroadmap.pdf
https://www.strategyand.pwc.com/reports/industry4.0
http://www.southeast-
europe.atkearney.com/documents/10192/1049227/Creating+Competitive+Advantage+Through+the+Supply+Chain+-
+Insights+on+India.pdf/fe6aad2f-56be-4a71-9ad6-8413308afc48
https://www.tradegecko.com/blog/incredibly-successful-supply-chain-management-walmart
https://internetofbusiness.com/8-real-life-examples-iot-supply-chain/
http://www.cisco.com/c/dam/en_us/solutions/industries/docs/manufacturing/case_study_puma.pdf
BPS_Offering Capability_Retail Digital Operations Studio_ppt
CII Retail 1.0 - KIX Webinar ver 0.3.3
Retail Value Chain Case Studies v1
42 Confidential
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