CrossTalk

June 16, 2022

AI Foundation for Planning

The Platform for Modern Retail

Retail Home

Oracle Cloud Infrastructure / Next-Gen Architecture STORAGENETWORKING COMPUTE CONTAINER ORCHESTRATIONCONTAINERS

Retail Reference

Model

Business Process Flows

Glossary

Technical Models

Retail AI Foundation

Forecasting Engine

Affinity Analysis

Profile Science

Customer Decision Trees

Demand Transference

Innovation Workbench

Attribute Extraction

Advanced Clustering

Customer Segmentation

Retail Cloud Services

Merchandising

Inventory Operations

Brand Compliance

Planning

Store Operations

Order Broker

Analytics

Order Management

Supply ChainCustomer Engagement

Retail Extensibility

Low-code App Development

REST Data Services

Cloud Extensions

Retail Data Store AUTONOMOUS DATA WAREHOUSE DATA MANAGEMENT RETAIL SCHEMA EXTENSIONSPACKAGED RETAIL SCHEMAS

BUSINESS KPI’S ADMINISTRATIVE MONITORING NOTIFICATIONSSERVICE PORTAL

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Oracle Retail Analytics & Planning

Affinity Analysis

Profile Science

Customer Decision

Trees

Demand Transference

Innovation Workbench

Attribute Extraction &

Binning

Advanced Clustering

Customer Segmentation

Merchandise Financial Planning

Assortment Planning

Assortment & Space

Optimization

Promotion & Markdown

Optimization

Offer Optimization

Inventory Optimization

Retail Insights

Demand Forecasting

Forecasting Engine

The Advantage of a Platform Market Trends and Needs

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65%

30%

have switched to a different brand because of a poor experience.

of “Global multichannel fashion retailers will use AI and automation to create more targeted assortments, reducing product options.” – Gartner Research

62%

8.3%+

of Generation Z consumers prefer to buy from sustainable brands.

Rise in Annual Inflation Rate.

Planning & Optimization – What’s New? Denim

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Customer Centricity Pivot to customer

What can be done? • Leverage Data Visualization - the new

powerful reporting tool to enrich planning processes with high value data

• Smarter assortment planning with AI Foundation such as customer segmentation

• Tailored Assortments for customer centricity

Data Visualization: • Puts extensibility in retailer’ hands, allowing users to

analyze the data in their own unique way • Included with MFP & AP license

Oracle AI foundation enables: • Customer Segmentation to group customers based on

attributes, behaviors and transactions, to tailor offers, pricing, assortments accordingly,

• Incorporating Customer Decision Trees to effectively plan assortments the way the end customer shops

• Utilizing affinity analysis to determine how items interact with each other to drive a more effective promotional strategy and lead to better customer satisfaction

• Shifting towards customer behavior hierarchies instead of product hierarchies for achieving customer centricity

have switched to a different brand because of a poor experience.

65%

Planning & Optimization – What’s New? Denim

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Automation - Artificial Intelligence & Machine Learning

What can be done? • Creating robust assortment plans faster with AP

simplification • Real time data transfer between solutions to

align targets and plans • Shift towards the intelligent curation of Assortment

with AI Foundation • Targeting higher sales, lowering inventory costs,

reducing customer returns and eliminating waste

Oracle Assortment Planning enables: • Making the assortment planning process simpler for users. • Drive efficient assortments with AI such Demand

Transference and discontinuing Wedge Builder functionality • Makes it easy for retailers to adopt and use the solution • Advanced Segmentation and Clustering to optimally Cluster

stores and gain insight into customer behavior • Creating detailed weekly level sales, receipts and inventory

plans • Using Real-time alerts to identify priorities, evaluate actions

and replan key metric, where needed

of global multichannel fashion retailers will use AI and automation to create more targeted assortments, reducing product options. – Gartner Research

30%

Guided Learning and Driving Adoption Maximizing the value of your investment

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• Deliver Modern Product Training: • In-context and in the UI • Role-based entry points • Multiple mechanisms (feature

explanation, learning path, video)

• Target Help / Assistance: • Increase new feature usage • Decrease searching for

answers

• Measure and Drive Adoption: • General Usage • New Features • Pathways / Business Process • Updates

Planning & Optimization Denim

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Sustainable Planning

What can be done? • Focus macro planning targets on sustainable

brands • Forecasting does the heavy lifting to identify

sustainable channels, clusters and locations • Understand what your customers want using

segmentation and returns forecasting • Have a sustainability-driven planning process,

or one that’s informed by sustainability by providing transparency of product information from origin to its entire journey till store

Oracle Merchandise Financial Planning enables: • Merchandise and Location Planning to identify

opportunities across the business • Planning Sales across Bricks and Mortar and Visits, Gross

demand, Returns, Net Demand in the e-commerce channels and then aggregate for a company wide view

• Building customers purchasing and fulfillment journeys to align inventory to customer fulfillment

• Adapting templates to the specifics of your business or create customized processes,

of Generation Z consumers prefer to buy from sustainable brands.

62%

Planning & Optimization Grocery

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Soaring Inflation

What can be done? • Start to gain pipeline momentum with Oracle’s

future Regular Price Optimization capabilities • Utilize the Customer Value Team for targeted

pilots

Oracle’s Regular Price Optimization capabilities will: • Taking advantage of our common statistical forecasting

UI • Common business rules and strategies to drive

automation and exception management • Utilize competitor pricing rules • Optimize pricing decisions to drive overall portfolio goals

and initiatives • Combat rising vendor costs with strategic, data-driven

approaches for regular price decisioning

Increase in Annual Inflation Rates.

8.3%+

Tim Pricing Analyst

Cost

Up to 50% staff efficiency

Margin

3-15% Gross Margin

Sales Service

2-5

The Value of Planning and AI Foundation

Copyright © 2022, Oracle and/or its affiliates11

2-6% Revenue Days of inventory

The Value of One Transforming Inventory

Precision

$ 1

.0

$ 1

.3

Net Revenue $ Power of One Net Revenue $s

$1.020

$1.010

$1.000

$1 Billion retailer, AUR $36, 30% markdown revenue

-1 +1

$ Bi

lli on

s

Customers typically see anywhere from

3 – 15% improvement

 Robust Analytical & Machine Learning Techniques  Optimization  Automation  Scalability  Integration

+ $3,000,000 Annual Incremental Revenue & Margin *unconstrained

13

Q&A

THANK YOU

Slide Number 1 The Platform for Modern Retail Oracle Retail Analytics & Planning The Advantage of a Platform Planning & Optimization – What’s New? Planning & Optimization – What’s New? Guided Learning and Driving Adoption Planning & Optimization Planning & Optimization Slide Number 10 Slide Number 11 The Value of One Q&A