NEW YORK – Jan. 16, 2012 – Throughout
the retail and hospitality industries one axiom reigns supreme: The
customer is always right. Though dating back to the 19th century, it
remains a hallmark of excellent customer service. And while the phrase
is still as essential as ever, making good on it has become more of a
challenge — and more of a possibility.
A
collective of buyers, store planners and supply chain managers work
together to anticipate next year’s hottest products, create pricing
strategies that position the store well against its competitors, and
keep the shelves replenished with just enough merchandise to meet
demand. Meanwhile, a retinue of store managers and employees focus on
serving the customer and selling that merchandise. Underpinning all
these efforts is an array of applications and devices that is often
outdated, disconnected and more a source of inefficiency than it is a
driver of business value.
This week at the National Retail Federation Annual Conference and EXPO (NRF)
in New York, Microsoft will discuss the details of its retail strategy,
which focuses on transforming those one-off applications, devices and
databases into an end-to-end solution. The overarching goal is to help
retailers respond to changes in the market, drive greater efficiencies
in their processes, and provide customers with a shopping experience
that is personal, seamless and differentiates the retailer from its
competitors.
A critical component of
Microsoft’s retail strategy involves the use of intelligent systems that
enable the flow of data across a company’s infrastructure, from
specialized devices where it’s generated by employees and customers, to
back-end systems and services where it’s translated into strategic
insight and business decisions.
Connected Devices Lead to Customer Insight
Part
of what makes intelligent systems possible is a new generation of
barcode scanners, point of sale systems, kiosks and other devices that
are powered by Windows Embedded. Together, they generate a richer level
of data about nearly every facet of a retailer’s business. And once it’s
been analyzed, this data can provide a wealth of insight ranging from
more accurate sales forecasts to more effective pricing models and a
better understanding of customer behavior.
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For companies seeking a
competitive advantage, such data is becoming the new gold standard.
Microsoft estimates, based on 2011 IDC semiconductor market data, that
by 2015 demand for intelligent systems within the retail industry will
grow from its current level of around 15 million units to more than 28
million units.* Retailers such as Family Dollar and U.K.-based
Co-operative Group have already started implementing intelligent
systems, and Microsoft is seeing this same trend take hold in the healthcare and manufacturing industries as well.
To help companies get the greatest value, Windows Embedded released a white paper
last fall that outlines the essential characteristics of an intelligent
system: security, identity, connectivity, manageability, user
experience and analytics. And over the past several months, Microsoft
has released several products that help deliver on some of these aspects
of an intelligent system.
Taking a Natural Approach to Intelligent Systems
The most recent example, and perhaps most noteworthy, is Kinect for Windows, which was the focus of some attention last week at the Consumer Electronics Show (CES) in Las Vegas. Microsoft announced the commercial availability
of the Kinect for Windows SDK, and offered a conceptual example of how
Kinect for Windows and Windows Embedded can work together to reinvent
the retail experience. Microsoft worked with Razorfish to develop a proof-of-concept scenario much like this, which will be on display at NRF.
People
have become more accustomed to a user experience that incorporates
touch, voice and gesture recognition, and with its support for Windows Embedded Standard and Windows Embedded Enterprise,
Kinect for Windows opens the door for a variety of new data collection
and consumption scenarios that introduce these capabilities. For
example, the Razorfish demo combines an NEC
digital sign with Kinect for Windows to engage customers before they
even enter the store. Inside, customers encounter the same combination
of technologies in a virtual dressing room experience that allows them
to view, navigate and see how garments look on a lifelike avatar version
of themselves, without having to switch outfits or sort through sizes.
The Samsung SUR40 for Microsoft Surface is also part of the mix in this demo, as well as another demo for NRF that Microsoft created with IdentityMine.
In both cases, customers can immerse themselves in a 40-inch
touch-screen environment to find more information on the products that
interest them. The Samsung SUR40 also becomes a useful tool for sales
associates to upsell or cross-sell by providing visual, on-the-spot
comparisons between products.
Gleaning Insight From Streams of Data
The
critical component in all these scenarios is being able to generate,
track and harness a variety of data streams. For example, the
aforementioned NEC digital signs demonstrated during NRF feature a
corresponding Microsoft Tag
for each featured retail item on display. Whenever a customer captures
that tag with a Windows Phone 7 or other smartphone, it generates a
piece of data that helps retailers track what products are attracting
the most attention and monitor the preferences of customers that are
enrolled in their customer loyalty program through applications such as Microsoft Dynamics CRM.
Windows Embedded worked with Microsoft Gold Certified Partner, Extended Results,
to create a third proof of concept for NRF around providing executives
with better access to real-time data. The potential pitfall with any
data stream is being able to glean the golden nuggets of business
insight from the extraneous chaff. In March 2011, Microsoft released Windows Embedded Device Manager to help enterprises get the most out of their data.
Windows
Embedded Device Manager was pre-installed on all of the Windows
Embedded-based devices featured throughout the three demos, highlighting
the ability for IT professionals to gain greater control over the
critical devices generating, capturing and analyzing data. This control
extends to a range of devices including POS systems, hand-held devices,
digital signs and kiosks.
Once data is
captured by a device, it can be consumed and analyzed by a variety of
Microsoft applications and third-party services that live within a
company’s channels, datacenters or on a public cloud:
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Microsoft Dynamics AX 2012 for Retail, Microsoft’s end-to-end application solution for retail, will be released on Feb. 1 (as announced at NRF this morning).
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Microsoft SQL Server 2012 includes StreamInsight,
a new tool that helps retailers to more easily harness multiple streams
of data, whether structured or unstructured, and to transform the rush
of Big Data into a gold mine of business insight.
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PowerPivot for Excel 2010,
a download that is available at no charge, is designed to help quickly
manipulate and integrate large data sets using the tools in Microsoft Excel 2010.
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Ultimately,
intelligent systems will benefit everyone along the spectrum, giving
retailers the relevant and timely information they need and offering
customers the service they deserve.
The
Microsoft end-to-end retail demonstrations will be held in the company’s
booth at NRF through Jan. 18, 2012. For more information on these demos
and how intelligent systems are transforming the retail experience,
visit the Microsoft in Retail & Hospitality home page.
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