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The Center of Retail 2018 - Enterprise Order Management

  • ID: 4535526
  • Report
  • October 2017
  • Region: Global
  • IHL Consulting Group
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Retailers are racing to compete with Amazon.  To do so they must get to a single version of the truth on customers so that their stores become an advantage.  They must turn their stores into a competitive advantage and they must be able to fulfill orders from anywhere.  To do so they are investing heavily into Enterprise Order Management. In fact, the Enterprise Order Management system is the core for retail going forward.  Having that single order management system that allows for shipping from the warehouse, pickup at store, or simply traditional store fulfillment is key to not only surviving, but thriving in the future.

This study reviews the trends and barriers around reaching this goal of a single order management system, the painful process of removing silos, and the goal of using stores and their locations as their competitive advantage.  This research looks at the top vendors in this area, the size of the market and the positioning of those vendors.  It is designed for retailers and vendors that are looking to move to the central order management process.

One of the most exciting developments that retailers are currently embracing is Unified Commerce. We define Unified Commerce as the holistic technology stack that provides one version of the truth for data pertaining to customers, products, pricing and sourcing, that in turn enables the procurement, sale and delivery of merchandise independent of channel. Those solutions that fit within the Unified Commerce umbrella are showing extremely healthy adoption moving forward across a broad range of retail segments and tiers. In retailer discussions the main reasons given include cost savings and a more seamless data flow (for both the retailer and the consumer).

Our view is that in the next five years, the most successful retailers will embrace the concept of Unified Commerce wholeheartedly. The foundation for a successful Unified Commerce strategy is a highly capable and configurable enterprise order management system (EOM) that is able to look at orders independent of the originating order channel. EOM with be linked with the five key technology pillars consisting of Store/POS, E-Commerce, Sales/Marketing/CRM, Merchandising/SCM and BI/Analytics, resulting in the figure shown to the right. OMS will be the natural extension of key Point-of-Sale (POS) functionality such as enterprise inventory visibility, ordering from other stores, return of online purchases, ship from store, order online from the POS, click and collect, and store to store transfer. The broad functionality required by OMS is extended even further when one considers the additional permutations for ordering and return brought by online and phone/catalog sales.

Note: Product cover images may vary from those shown
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1.0 Background and Introduction
2.0 Market Definition and Sizing
3.0 Foundation of Unified Commerce
4.0 The Profitability Payoff
5.0 Potential For Beacons
6.0 Trends, Drivers and Barriers
7.0 Market Size by Revenue
8.0 Market Share by Vendor
9.0 IHL Insight Market Positioning
10.0 Top 15 Providers by Revenue
11.0 Methodology

Note: Product cover images may vary from those shown
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General 5 step process for all research.

Step 1 – The WorldView IT Sizing Forecast Model is used by the analyst as a leverage as a sizing and forecast tool for over 300 retail Hardware, Software, SaaS and Services categories is leveraged within this research. The analyst has been sizing and forecasting the retail/hospitality market worldwide by solutions for over 10 years. This provides the upper bounds of the market data and total market size.

Step 2 – This is then combined with a Sophia Data Service that tracks over 4,500 enterprise retailers and hospitality providers (with a minimum of 50 locations) in terms of which vendor’s technology a given retailer/hospitality provider has installed, the total lanes/licenses, the timing of those installations and when they are due to be replaced.

Step 3 – If it is part of an end user study, the analysts will do customized web surveys and phone calls with key retail industry leaders several times a year. This data is then leveraged for several different research reports if applicable. When combined with the IT Sizing in step 1, the detailed installs by retailer in step 2, and then the vendor and customer interviews in step 4, the research data comes from several angles to provide the most insight to readers.

Step 4 – The installs and business sizing for each vendor is validated through public records and vendor/channel interviews. Customer service/traction is validated through existing customer interviews and surveys.

Step 5 – All of this is then merged together into a singular view that not only provides total market size, but also market share and scale of difference between vendors.

Where many research companies provide a top level of insight with just the facts, these reports go a bit deeper through the use of cross-tabulation and sources to answer the questions about “So what?”, not just the data, but what it means and how you can react to the market as a result of this data.