Retail 2020: A Roadmap to the Digital Retailing Era
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Retail 2020: A Roadmap to
the Digital Retailing Era
Groupsoft Retail Solution on
Dell EMC Infrastructure Running
Intel® Xeon® Processors
ABSTRACT
The rapid evolution of IoT technology is transforming the retail and fashion industry.
Until recently, many retail technology professionals viewed IoT (Internet of Things)
technologies as offerings to consider sometime in the future. Today, we’re at the point
where IoT solutions need to be not just considered but embraced — for they are one of
the foundational pillars in the new digital retailing era. In a constantly changing world
where social media is driving and influencing customers, these new technologies are
critical for a successful ecommerce and retail strategy.
November 2017
DELL EMC WHITE PAPER
TABLE OF CONTENTS
RETAIL 2020: THE EMERGENCE OF DIGITAL RETAIL . . . . . . . . 1
THE CHALLENGES: NEW CONSUMERS,
NEW WAYS OF SHOPPING . . . . . . . . . . . . . . . . . . . . . . . 1
THE SOLUTION: NEW TECHNOLOGY IN DIGITAL RETAIL . . . . . .3
RETAIL 2020 — TECHNOLOGY IS ESSENTIAL . . . . . . . . . . . . 4
SAP HANA IN A RETAIL 2020 SOLUTION . . . . . . . . . . . . . . . 5
BETTER TOGETHER: DELL EMC, GROUPSOFT,
INTEL, AND SAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
LEARN MORE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
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trademarks may be the property of their respective owners. Published in the USA November 2017, White Paper.
Dell EMC believes the information in this document is accurate as of its publication date. The information is subject to change
without notice.
DELL EMC WHITE PAPER
RETAIL 2020: THE EMERGENCE OF DIGITAL RETAIL
DIGITAL TRANSFORMA- The rapid evolution of technology is transforming the retail and fashion industry — and
TION TRENDS IN RETAIL creating excitement, confusion, innovation, startling predictions from industry pundits,
despair and opportunity. Across the industry, there is an urgent need to adopt new
Digital transformation in retail can’t technology. Until recently, many retail technology professionals viewed Internet of Things
happen overnight. It’s an evolution, (IoT) technologies and tools as offerings to consider sometime in the future. Today, we’re at
not a revolution. Here are some of the point where IoT solutions need to be not just considered but embraced — for they are
one of the keys to success in the new digital retailing era.
the ways the industry is evolving:
Retail solutions based on IoT technology are now available for point-of-sale (POS) systems,
• Usage of big data analytics is
omni-channel enterprise resource planning (ERP) systems, online commerce systems,
increasing — and will continue email marketing and customer relationship management (CRM) systems. These solutions
to increase over time. Through help retailers create a solid foundation for IoT data collection and processing, providing
advances in customer real-time new customer insights. In a constantly changing world where social media is driving and
analytics and insights, retailers influencing customers faster than traditional systems can keep up, these new technologies
are delivering richer customer are foundational pillars for a successful ecommerce and retail strategy.
experiences, intelligent supply THE CHALLENGES: NEW CONSUMERS, NEW WAYS
chain management and more. OF SHOPPING
• Retailers are putting an CONSUMERS HAVE GONE SOCIAL AND DIGITAL
increased focus on a In recent years, consumer wants have shifted. Today, a consumer wants the right product
personalized in-store customer at an attractive price, with good service and the convenience of online or in-store shopping
experience. Technology is — at the same time and every single time. Consumers want to be able to shop, but not
transforming retail by connecting necessarily visit a store. They want to be able to shop from the comfort of home or from
a smartphone or a mobile tablet, and then pay online, and have goods delivered to their
the personalized experience
chosen locations. This is just the tip of the iceberg depicting a growing retail market with new
of the past with the savvy and challenging customer demands.
customers of the future.
THERE’S A TUG OF WAR BETWEEN TRADITIONAL AND DIGITAL SHOPPING
• The retail evolution is enabling
For traditional retailers, there is a balance required between holding on to traditional
simple, affordable, effective retail practices vs. adopting the digital way of shopping that Millennials and their younger
inventory tracking and insight Generation Z counterparts (Gen Zers) use. Does a great product, attractive pricing and good
for brick-and-mortar retail service equate to customer loyalty and increasing sales? Not anymore. Whether online or
environments. shopping in a physical store, the consumer is demanding convenience, superior service and
a personalized shopping experience.
• Cloud adoption will increase
over time, and outdated legacy As traditional retailers begin to acknowledge the impact of digital retail, young startups
systems will be replaced, are already bursting with ideas on how to adapt new technology to their advantage.
Free of the burden of managing change that legacy retailers carry, the new retailers
creating new opportunities for
are nimble in the use of new technology, such as IoT-based retail solutions, to create
future-proofing. personalized shopping experiences.
1 DELL EMC WHITE PAPER
MILLENNIALS AND GEN ZERS
• Generation Z consists of those born in 1995 or later. This generation makes
up 25.9 percent of the United States population, the largest percentage,
and contributes $44 billion to the American economy. By 2020, they will
account for one-third of the U.S. population
• 21 percent of Millennials said they had used their tablets to shop for
places to stay within the past year, and 55 percent reported using their
smartphones to shop.
• 87 percent of Millennials said they also used a home computer to shop,
and home computers remain the preferred method of booking.
MILLENNIALS AND GEN ZERS HAVE INTRODUCED NEW WAYS OF SHOPPING
Smartphones, tablets and social media are second nature to Millennials and Gen Z
consumers. They thrive on technology and social media. Unlike the consumers who retailers
have known in the past, Millennials and Gen Zers have little concept of brand loyalty or
boundaries — either social or geographical. They are connected, social and agile. They
are extremely comfortable shopping for their needs online, and visit stores mostly for the
purpose of socializing, entertainment or education.
THE SOLUTION: NEW TECHNOLOGY IN DIGITAL RETAIL
CATERING TO MILLENNIALS AND GEN Z CONSUMERS
The busy consumers of today have less time to spend on shopping errands. As a result,
young startups and existing retailers are adopting intelligent services, including the
innovative use of artificial intelligence (AI)-based applications.
An instance of innovative use of new-age technology was displayed when Amazon
recognized that many of its customers found it tiresome to stand in a cashier’s checkout line
at the store. Amazon GO stores adopted a new “Just Walk Out Technology” that enables
customers to shop and leave, without ever having to stop at the cashier. Amazon used
computer vision, sensor fusion and deep learning algorithms to make it convenient and easy
for its customers to pick up groceries and simply walk out.
TRADITIONAL STORES LIVE ON
The brick-and-mortar store is not dead. It’s just transforming.
Shoppers want more in-store experiences. Consider these findings:1
• 73 percent browse online and then buy in the store.
• 90 percent leave when they can’t find a product or help.
• 86 percent desire to have purchased more.
• 70 percent of sales will be completed in store by 2020.
1 Sources: PWC, Total Retail, September 2015. TimeTrade Shopper Survey, January 2014, N=1087,
IHL, June 2015.
2 DELL EMC WHITE PAPER
USE OF MULTIPLE TOOLS TO CATER TO RETAIL NEEDS
Business
Suite
Customer Workforce
Experience engagement
DIGITAL CORE
Business Intelligent
RUN Transactions Insights
WIN
SAP S/4HANA RETAIL FOR MERCHANDISE MANAGEMENT
SAP S/4HANA FOR FASHION AND VERTICAL SERVICES
IoT and Supply Spend
Chain Management
SAP HANA SAP CLOUD PLATFORM
SAP S/4HANA at a retail operation’s digital core brings in all the components of the new
shopping experience, enabling retailers to meet evolving customer wants and shopping
behaviors. AI, for instance, may illuminate a retailer’s understanding of customer behavior
and persona, and then customize the shopping experience in real time. Moreover, promoting
brand messages via current social media channels is another aspect of this. With SAP
S/4HANA at the core, this becomes a reality.
PARTNERING WITH TECHNOLOGY PROVIDERS FOR SUCCESS
While the transition to new technology can be difficult, retailers are making the
necessary changes and are revisiting their current business strategies and goals.
Many retailers are duly overhauling their organizational structures, reviewing existing
processes and making unprecedented investments in IT to transition their organizations
to the next-generation retail solution.
One way to ease the transition and make it sustainable for retailers is to enter into partnerships
with service providers and technology companies specializing in niche areas. Such a
collaborative approach allows retailers to overcome the challenges of making heavy monetary
and resource investments and enables the retailer to achieve quicker time to value.
RETAIL 2020 — TECHNOLOGY IS ESSENTIAL
The age of digital transformation has arrived and is undeniably transforming the retail
and fashion industry. Groupsoft, an SAP Services Partner and systems integrator, helps
organizations put technology to work for a smooth and efficient digital transformation.
Groupsoft’s experienced consulting team assists retailers with new-generation SAP
S/4HANA solutions — specifically SAP S/4HANA Retail for merchandise management
and SAP S/4HANA Fashion for fashion management. The new digital core solution, SAP
S/4HANA for Retail, provides agility and flexibility that enables retailers to reinvent their
omni-channel retail business.
3 DELL EMC WHITE PAPER
PLAN SOURCE SUPPY SELL
Marketing and Procurement and Omnichannel
Supply chain
merchandising private label customer experience
Marketing Marketing
• Master data • Merchandise • Replenishment • Omnichannel
management for buying planning and order response
merchandising allocation
• Replenishment • Point of sale
Commerce • Assortment collaboration • Demand Commerce
planning and • Omnicommerce
forecasting and
management • Vendor agreement
planning
management
• Retail price • Omnichannel
planning and inventory
management
• Promotion
Store planning and Store
management
Retail for merchandise management
Business
SAP Customer Activity Repository
Suite
Mobile Digital Core Mobile
SAP S/4HANA SOLUTION PORTFOLIO FOR RETAIL
SAP S/4HANA Retail and SAP S/4HANA Fashion tightly integrate with the SAP S/4HANA
solution portfolio for retail. The portfolio solution consists of SAP Customer Activity Repository,
Retail Planning Bundle (Merchandise Assortment Planning), SAP CRM and Loyalty, SAP
Hybris Commerce, GK POS, SAP SuccessFactors and SAP S/4HANA Finance.
The SAP S/4HANA Retail and Fashion Solution provides end-to-end retail core processes
support, starting with master data down to point-of-sales connectivity. It allows insight into
operational retail and fashion data, empowering users with contextual, relevant, real-time
information for faster and better decision making.
The SAP S/4HANA solution portfolio for retail is designed and developed on big data with
built-in analytics and mobile-friendly applications. Users can easily access and use these
apps across locations and platforms.
SAP HANA IN A RETAIL 2020 SOLUTION
As stores become intelligent, interactive, sources of entertainment and meet-up places for
Gen X and Z shoppers, the need for software applications, and supporting infrastructure
becomes paramount. This is where the Groupsoft Retail Solution on Intel-based Dell EMC
infrastructure comes into play.
The Groupsoft-Dell EMC retail solution is built on retail software and certified SAP solutions
to enable an end-to-end shopping experience — from wearables and smartphones at the
edge communicating past and present buying behavior to sophisticated analytics computing
at the core and in the cloud.
Central to e-commerce retail solutions are SAP standards and SAP technologies. Using the
SAP HANA application platform and in-memory database technologies, all types of retail
data is turned into actionable insights by running analytics at significant speeds to enhance
the customer experience and provide a retail platform for growth.
4 DELL EMC WHITE PAPER
GroupSoft Retail Dashboard
On-premise: managed services Dashboard (WebUI5)
Off-premise: enterprise cloud and
managed services
On-Premise: IaaS
Enterprise Hybrid Cloud
with VMware for SAP
with Dell EMC Services
SAP HANA
Cloud GroupSoft M-360 + RM5 Algorithm
Ready bundles Database and Development
Ready systems
Ready nodes Platform including normalized GroupSoft
RMS Data and RM+RS Merchandise
analytical functions 360
Infrastructure
Retail Merchandise and Store Solution (M-360)
Edge Gateway External
-
SAP Leonardo Edge
Dynamic Edge Processing
IoT Data SAP ERP Energy Data
SAP certified | Pre configured
Micro
Services
SAP SQL
Anywhere
Customer, Merchandise Merchandise, Weather,
Store Attribute Customer system Traffic Events, etc.
Data from Store and including Master and
IoT Edge JAVA
Console Engine Market Place Logistics Data
THE HARDWARE FOUNDATION: DELL EMC INFRASTRUCTURE WITH INTEL
XEON PROCESSORS
Dell EMC infrastructure components provide a robust hardware foundation for the
Groupsoft-Dell EMC retail solution. These building blocks for retail solutions include the
compute power of Dell EMC PowerEdge™ servers with the latest Intel® Xeon® processors,
working in combination with Dell EMC software, storage and networking products.
Dell EMC offers a portfolio of infrastructure options that include Ready Nodes, Ready
Bundles and Ready Systems. To make it easier for customers to decide on which
deployment model is best for them, Dell EMC offers certified SAP HANA Ready
Solutions optimized for SAP analytic workloads.
READY SOLUTIONS
Managing and growing retail operations can be done successfully with data insights to
a customer’s online and in-store shopping behavior. Moreover, analyzing all the data
generated by retail operations from customer data points, transaction sales data, to online
social media data, and then adding business-to-business vendor and supply chain data
increases the complexity of the task. Leveraging SAP analytics Ready Solutions from
Dell EMC and SAP services from Groupsoft provides a single view of retail customer data
and gives all departments a unified view of the business for real-time decisions.
5 DELL EMC WHITE PAPER
PowerEdge Servers + PowerEdge Servers + Hyper-converged (Vblock,
Software Network + Storage + Software VxRack, VxRail) + Software
Certified and optimized hardware Reference Architectures +
Workload solutions layered on
with optional factory software value add (benchmarks, tuning,
top of engineered systems
installation deployment guides)
• Ready Nodes for retail are built on Dell EMC PowerEdge servers with Intel Xeon
processors, and delivered with SAP HANA software pre-loaded.
• Ready Bundles for retail are based on SAP-certified Dell EMC servers, storage and
networking, including support for SAP HANA Tailored Data Center Integration (TDI).
• Ready Systems for retail are pre-built systems with the convenience of an appliance
and the flexibility of TDI, including options that incorporate Dell EMC V[x]Block, VxRail
and VxRack.
DELL EMC IOT SOLUTIONS
Retailers are evaluating how the Internet of Things will change the way they conduct business
and drive significant return on investment (ROI) in terms of operational efficiency, improved
customer experience, risk mitigation and enablement of entirely new business models.
For retailers looking to capitalize on the IoT technologies, the Dell IoT Edge Gateway offers
many advantages. In particular, the gateway helps retailers:
• Enable real-time decision making through analytics at the edge
• Reduce data transfer costs through data compression and cleansing
• Reduce operations and maintenance costs
• Improve security and data continuity
Retail companies that want to maximize their IoT investments can count on Dell EMC to
provide for their needs from the edge, with software partners like SAP and service partners
like Groupsoft. Today’s innovative approaches to retail operations — like enhancing
the customer experience in-store or online, ensuring the supply chain is connected and
monitored, making price adjustments on the fly as supply and demand changes per store,
per geography and per trends — requires an interconnected network of edge-to-core-to-
cloud devices. Dell IoT solutions provide that and much more.
6 DELL EMC WHITE PAPERTechnology Partners
(ISVs, IHVs, OSVs) Service Partners
(System Integrators,
DELL IoT Infrastructure
Contractors, Developers)
Last Mile Delivery
Solution Support
System Integration
Deployment
Project Design
Procuring Accessory
Dell’s IoT ecosystem provides analytics enabled at the edge, data center and cloud. Use
case examples benefiting from this ecosystem include customers who use wearables and
smartphones at home, at work or at play to look up product information, to compare reviews
or check out the latest social media commentary before they order products. Moreover,
Dell IoT analytics solutions provide real-time insights into customer behavior and changing
trends, enabling companies to meet and exceed customers’ expectations per click and per
order. All the while, Dell IoT security helps ensure that any entry into the retail network is
protected and helps enable safe deployment of IoT initiatives.
To accelerate the time to market for retailers’ IoT projects, Dell provides IoT Labs, a place to
explore business outcomes and test and deploy IoT projects before taking them into production.
Current labs are located in Santa Clara, California; Limerick, Ireland; and Singapore.
Retailers who prefer to do their proofs of concept in their own labs are supported with the
necessary tools and resources to complete their projects. These services are provided free
of charge for qualified customers.
HYBRID AND CLOUD OPTIONS
A majority of industries still employ on-premises solutions. However, organizations are
progressively moving to cloud deployments, whether for sandbox explorations, testing,
quality assurance (QA), or production environments. To meet the needs of these
organizations, Dell EMC offers a complete selection of fully managed cloud and hybrid cloud
solutions for off-premises SAP HANA environments.
• For hybrid cloud, Dell EMC offers a mix of on-premises, private cloud and Virtustream
public cloud services with orchestration between the platforms. Such configurations
enable workloads to move between private and public clouds as computing needs and
costs change, giving businesses greater flexibility and more data deployment options. The
Dell EMC Enterprise Hybrid Cloud solution consists of hardware, software and services
from Dell EMC and VMware brought together into a platform to deliver the foundation for
infrastructure-as-a-service. Dell EMC and VMware engineering teams have designed,
tested and proven the hybrid cloud solution in multiple workload settings, so organizations
can avoid risk and accelerate time to production value.
7 DELL EMC WHITE PAPER• For off-premises managed cloud for SAP, Virtustream, a Dell Technologies company,
provides private, hybrid and public cloud solutions, and offers an unparalleled platform
for running SAP and SAP HANA workloads in the cloud. Virtustream cloud solutions are
purpose-built to run complex, mission-critical, I/O-intensive applications like SAP with
unmatched economics, application-level performance SLAs and integrated security and
compliance. Virtustream pre-sales experts and consultants have extensive experience
working directly with SAP applications. They have the expertise to seamlessly migrate
SAP deployments to the cloud.
• To integrate processes and build a connected business, Dell Boomi enables
organizations to integrate and connect any combination of public, private, or hybrid cloud
or on-premises applications, accelerating e-commerce solutions and retail deployments.
Data from CRM, marketing automation and ERP systems can be quickly integrated using
Boomi Atomsphere technology to provide a single-pane 360-degree view of customers.
Boomi has pre-built connectors to integrate the most commonly used applications,
along with technology connectors that can be quickly configured for any data source, in
the cloud or on-premises, enabling better insights into sales operations and improving
strategy decisions.
BETTER TOGETHER: DELL EMC, GROUPSOFT,
INTEL, AND SAP
The Dell EMC and Groupsoft solution for retail brings together all the hardware, software,
services and expertise needed to design and deploy a comprehensive solution that spans a
broad environment.
• Dell EMC provides a blueprint for industry-leading IoT solutions that leverage proven
infrastructure components and powerful hardware, including Intel Xeon processors,
required to drive real-time analytics.
• Intel processors empower Dell EMC compute solutions to run at peak capacity and enable
world-leading benchmark performance.
• Groupsoft provides solutions in SAP Business Suite, covering strategy, architecture,
implementation, performance optimization, integration, extensions, upgrades, training and
managed services.
• SAP provides SAP HANA software for in-memory, high-speed computing and deep
knowledge expertise in retail solutions. SAP SE is a multinational software corporation
that makes enterprise software to manage business operations and customer relations.
Ultimately, the combination of in-depth retail expertise, powerful infrastructure, sophisticated
software and a leading-edge in-memory database enables retailers to offer e-commerce
solutions that enhance the customer’s shopping experience while growing revenue.
8 DELL EMC WHITE PAPERLEARN MORE
To learn more about Dell EMC’s and Groupsoft’s retail solutions:
CONTACT YOUR GROUPSOFT OR DELL EMC ACCOUNT REPRESENTATIVE:
• Contact pn@groupsoftus.com or arjun@groupsoftus.com
• Contact: Rajitha.Thalluri@dell.com or Morten.Loderup@dell.com
OR VISIT:
• www.groupsoftus.com
• Intel Responsive Retail solutions website
www-ssl.intel.com/content/www/us/en/retail/retailsolutions.html
• www.dell.com/en-us/work/learn/internet-of-things-solutions
• www.dell.com/en-us/work/learn/retail
• DellEMC.com/sap
• Twitter handle: @intelretail
GROUPSOFT
Groupsoft, an SAP Services Partner and systems integrator, provides innovative SAP implementation
and IT consulting solutions for Retail and Fashion. Groupsoft has the expertise to deliver the powerful
and sustainable SAP Retail and Fashion solutions that drive business success. It provides compre-
hensive solutions in SAP Business Suite, covering strategy, architecture, implementation, performance
optimization, integration, extensions, upgrades, trainings and managed services.
DELL EMC
Dell EMC, a part of Dell Technologies, services its customers — including 98 percent of the Fortune
500 — with a broad, innovative infrastructure portfolio that spans from edge to core to cloud. A strate-
gic SAP technology and software partner for more than 20 years, Dell EMC is a leader in server and
storage performance benchmarks for SAP HANA and SAP applications.
INTEL
Intel is a world leader in the design and manufacturing of essential products and technologies that power
the cloud and an increasingly smart, connected world. Intel delivers computer, networking and commu-
nications platforms to a broad set of customers, including original equipment manufacturers (OEMs),
original design manufacturers (ODMs), cloud and communications service providers, as well as industrial,
communications and automotive equipment manufacturers.
9 DELL EMC WHITE PAPERABOUT THE AUTHORS
Sajid M. Khan is a tech sector stalwart with a broad range of sales and marketing experience. He has held key
positions at Intel and Compaq focused on strategic planning, product marketing, business development and sales
enablement across a range of technologies. He is currently Director of Smart Cities Marketing and Business
Development with Intel’s Internet of Things Group (IoTG). Sajid has a BSEE from Osmania University and an MBA
from the University of Houston. Sajid is based in Portland, Oregon, where he resides with his wife and two daughters.
Amitabh Nema is a Founder and Principal Consultant of Groupsoft US Inc., which provides consulting and
implementation services globally in the retail and fashion space. He is acknowledged as a subject matter expert, a
thought leader, and business and technology solution innovator in the digital retail and fashion area. Amitabh brings
wealth of knowledge and experience in SAP retail and fashion solutions gained over the past 20 years with retailers
spanning the globe across verticals like luxury and fashion goods, specialty retail, food and grocery retail, among
others. He brings a 360-degree view of enterprise retail and fashion, including e-commerce and new-age technology
adoption like IoT, AI and machine learning. Amitabh has a Masters in Foreign Trade from International Institute of
Foreign Trade, New Delhi, and is based with his family out of Princeton, New Jersey.
Rajitha Thalluri is an Enterprise Technologist for Big Data and Analytics with the office of CTO at Dell. She has
more than 20 years of experience in enterprise information management initiatives, big data strategies and data/
information modeling. Rajitha led multiple initiatives in formulating strategy and architecting solutions for managing
and building insights with heterogeneous data systems. More recently, her focus has been around rationalizing the
right tools, technologies, platforms and solutions to establish a big data environment.
Morten Loderup is Dell EMC’s Alliance Manager responsible for driving SAP analytics solutions revenue, including
retail, with partners and direct sales in North America. Morten is responsible for SAP analytics solutions pipeline growth
and development, along with SAP and partner relationship development. His activities include customer target activities
and messaging, partner go-to-market events and activities, and joint message development. Morten offers a breadth
of experience in this field, having worked at Dell for 15 years, with over half of those years working on SAP-related
projects as an SAP Solution Architect, SAP Services Program Manager for Dell’s first SAP HANA launch, and now as
an Alliance Manager for SAP. Morten has an Engineering Management degree from the University of Texas, Austin,
and a Masters of Computer Information Systems degree and an MBA from the University of Phoenix.
Andrew Gentry is the Segment Marketing Manager for Intel Retail Solution Division (RSD). In this role he is
responsible for driving the market growth for retail segments worldwide, developing and executing strategic plans
based on RSD customers’ needs, and identifying market and competitive trends, product positioning and marketing
programs to differentiate and grow the markets. Andy has held various marketing and management positions at Intel,
including Product Marketing, Program Management, and consumer PC Customer Marketing. Andy holds a Bachelor
of Science degree from UCLA and an MBA from Arizona State University W. P. Carey School of Business.
To learn more, visit: DellEMC.com/sap or www.groupsoftus.com
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