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to identify structured and unstructured
processes that involve system interac-
tions and human interactions, includ-
ing both internal (within the four walls
of the retailer) and external (suppliers
of goods and services), an especially
valuable asset for retail processes that
involve multiple systems, channels and
touch-points.
Once processes are identified, BPM
enables process automation to reduce
errors, maximize profits and ensure
processes are unified, explains Boston
Retail Partners. Additionally, a BPM
solution can be leveraged for active
business activity monitoring, such as
real-time store operations monitoring,
which could provide employees with
real-time visibility to store conditions.
A retailer starts the process by setting
business rules and deviation thresholds
in a closed-loop structure. If a threshold
is met or an anomaly occurs, a manager
can be alerted immediately, enabling
real-time corrective action.
Ultimately, BPM improves processes by
identifying inefficiencies and bottlenecks
within processes so retailers can quickly
make adjustments. And if evolving cus-
tomer demands require a new process to
be created, BPM enables business users to
rapidly construct the new process.
“With BPM, retailers are able to make
more informed decisions, improve per-
formance and ultimately deliver a uni-
fied, continuous customer experience,”
claim Boston Retail Partners executives.
Needless to say, the transition will not
be easy. New technology tends to require
detailed training, and individual roles,
responsibilities and accountabilities will
alter within and across functions.
“Given the way processes and tech-
nologies have been hardwired to serve
consumers by channel, organizational
change requires a methodical approach
that includes clarity, communication and
training,” advises BRP.
And as with most any technology de-
ployment, ROI models will be requested,
as will justification for the retirement of
some legacy systems.
Even so, retail IT departments clearly
are struggling with rapid change and the
need to create omni-channel experiences
for customers.
“Our survey responses show
increased urgency around integrating
selling channels,” notes George Lawrie,
vice president and principal analysts at
Forrester Research.
Indeed, when Forrester asked retail
CIOs to list their top three business
priorities for IT for 2015, integrat-
ing the selling channels to enable an
omni-channel face was second only to
security concerns, listed by 76 percent
of respondents. That was up from the
64 percent with omni-channel concerns
in 2013. Meanwhile, within the same
survey, respondent were ask to name
their top internal considerations around
deploying and managing IT, and 44
percent said “consumers are demand-
ing access to proprietary corporate data
such as product and inventory infor-
mation.” As recently as 2014, only 6
percent expressed this concern, and just
3 percent in 2013.
At the same time, 82 percent of U.S.
consumers recently surveyed by Accen-
ture said they expect a retailer’s prices to
be the same in store and online, a sig-
nificant increase over the 69 percent who
said this the previous year, according to
the consulting firm. But in a benchmark
analysis, Accenture also found that only
one-third of U.S. retailers had consistent
pricing for more than 80 percent of the
items assessed. And while three-quarters
of retailers told NRF they can fulfill inven-
tory across multiple channels, 46 percent
still use spreadsheets to manage their sup-
ply chain planning.
In other words, the transition to
unified commerce is inevitable, but it’s
certainly going to take some time.
“Retailers should expect their plan to
be executed over the course of several
years as they decommission legacy
systems, establish new integrations and
consolidate disparate technologies into
a unified commerce platform – all while
the business continues to serve and de-
light consumers,” concludes the Boston
Retail Partners’ study.
Along the way, IT departments can
reduce the complexity of migrating to a
single channel platform by ensuring that,
moving forward, any infrastructure and
technology investments that are related to
commerce or customers are not hardwired
to existing systems and applications.
Percent of Retailers that Anticipate
More Than 10% Improvement
from Unified Platform
Operational efficiency
71%
Total customer value
68%
Average order value
67%
Inventory turn
65%
Conversion rate
63%
Promotion redemption
61%
Out-of-stock
60%
Net promoter score
54%
Returns
53%
Source: Boston Retail Partners
Source: Boston Partners Partners
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