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High Performance Acceleration:

Global Retail Process Model

Process Optimization Powers Profitability and Improved Customer Experience


Accentures high performance research has revealed that fewer than one in 10 companies will outperform its industry peer group over a period of more than 10 years. A critical and core characteristic of these industry winners is the customer-centric processes they deploy across their organizations, linking them, and executing them better than their competition. itself as inefficiencies and waste due to unnecessary complexity, exceptions, and dissatisfaction. The process clarity realized by high performers results in an empowered workforce that works smarter, improves decision making, and raises job satisfaction. The improved productivity through process optimization has an immediate and positive impact on the customer experience and profitability, regardless of retail channel. Process Model is unique because: It leverages experience from thousands of Accenture projects Its depth and breadth of process material is unprecedented and difficult to duplicate, representing a significant investment Accentures retail practitioners rely on this proprietary, easy to use asset to reveal and deliver process excellence insights for clients Harvested leading practices from the field are incorporated back into the model to extend and sustain its relevancy to clients.

Remarkably, retailers have been constrained by the lack of process clarity, consistency, and execution Accentures Global Retail Process Model is One of within their organizations. Accentures direct experience withCustomer Customer ExecutionExecution the topCentered Centered a Kind retailers has validated that a transparent, Formatand Format Strategy) 1. Strategy (from Corporate to Brand and Brand Strategy) 1. Strategy (from Corporate to straightBusiness Integration (includes major planning and program mgmt) bymgmt) practitioners CapabilityCapability forward process architecture major planning and program retail Developed 2. 2. Business Integration (includes drives the noise out of the business and thought leaders from around Sub-process 1 Sub-process 1 Core Operations Core Operations world, Accentures Global Retail the operating model. This noise manifests Manage
3. Plan/Market to 4. to 3. Plan/Market to Supply 4. Supply to Customer:Customer: covers Customer:Customer: covers covers 5. Sell to Customer:Customer: 5. Sell to
nearly 20 separate 20 separate nearly capabilities from capabilities from Product Design To Design To Product Managing Marketing, Marketing,Supply through Managing Supply through Advertising & Pricing & Pricing Transportation and Advertising Transportation and Warehousing Warehousing Covers covers Covers nearly 20 nearly 20 Capabilities from Capabilities from more than 20 more than 20 Managing Sales to separate Capabilities Capabilities Managing Sales to separate Managing Operaitons Operaitons Managing from Managing Managing from

Retail CapabilityCapability Retail

Manage

Capability Description Capability Description Definitions Definitions Benchmarks Benchmarks

Sub-process 2 Sub-process 2 Measure Measure Sub-process 3 Sub-process 3

High level overview of the robust offerings in the Accenture


Refine Sub-process X Sub-process X Refine

The Retail Operating Model The Retail Operating Model, greatly simplified here, represents the six high level business area platforms that constitute a robust retail process architecture. This Operating Model is comprised of more than 70 critical retail capabilities, This greatly simplifiedsimplified overview This pictured in a concise,greatly to understand format. The easy overview operating model covers all channels, and addresses process variations driven by product or retailer type.
1. Strategy Strategy 1.
(from Corporate toCorporate to Brand Strategy) Strategy) (from Brand and Format and Format

6. Customer Customer EnterpriseEnterprise 6. Centered Centered

Process Detail overview Each of the capability areas is then defined by a progression of lower level detail processes that constitute the business activities necessary to execute the capability.

3.3 Manage Space & Assortment 3.3 Manage Space & Assortment 3.3.1 Space Planning Planning Assortment 3.3.2 3.3.1 Space 3.3.2 Assortment3.3.3 Visual/ Visual/ 3.3.3 & Management & Management Management Management Merchandise Mgmt. Mgmt. Merchandise
3.3.3.1 3.3.1.1 Incorporate Incorporate 3.3.2.1 Incorporate Incorporate 3.3.3.1 Incorporate Incorporate 3.3.2.1 3.3.1.1 strategic goals strategic goals strategic goals strategic goals strategic goals strategic goals 3.3.2.2 Plan assortment assortment 3.3.2.2 Plan 3.3.3.2 Define fixtures, displays, 3.3.3.2 Define fixtures, displays, 3.3.1.2 Define macro spacemacroapproach and calendarand calendar 3.3.1.2 Define space approach signage and signage and in-store media in-store media 3.3.2.3 Evaluate, build and build and Define plan-o-gramplan-o-gram 3.3.2.3 Evaluate, 3.3.3.3 3.3.3.3 Define 3.3.1.3 Define adjacencies adjacencies assortment assortment or lay-out guidelines guidelines 3.3.1.3 Define optimize optimize or lay-out 3.3.3.4 3.3.3.4 Adjust 3.3.1.4 Allocate andAllocate and 3.3.2.4 Manage assortment assortment Adjust plan-o-gramplan-o-gram 3.3.1.4 optimize optimize 3.3.2.4 Manage space between categories categories execution and product lifecycle tolifecycle to local requirements space between execution and product local requirements 3.3.3.5 3.3.3.5 Define 3.3.2.5 Periodic assortment assortment Define alternative alternative 3.3.2.5 Periodic 3.3.1.5 Manage flexible 3.3.1.5 Manage flexible location displays reviews updates space and common areas space and common areas and reviews and updates location displays 3.3.3.6 Define cross3.3.3.6 Define crossmerchandising merchandising

2. Business Integration 2. Business Integration

(includes major planning and programand program management) (includes major planning management)

Core Operations Core Operations to 5. Sell to Customer:Customer: 5. Sell to 3. Plan/Market 3. Plan/Market 4. Supply 4. Supply to Covers capabilities from Customer:Customer: Covers Covers capabilities from Covers to Customer:Customer: to
Managing Sales to Managing Sales to separate separate capabilities from Covers separate capabilities capabilities capabilities from Covers separate Managing Operations Operations Managing Managing Supply through Managing Supply through from Product Design To Design To from Product Transportation and Managing Marketing, Marketing, Transportation and Managing Warehousing Advertising & Pricing & Pricing Warehousing Advertising

3.3 M Space Assor

3.3.1 Plann Mana

6. Customer Customer EnterpriseEnterprise 6. Centered Centered


(core administrative functions) functions) (core administrative

3.3.3.7 Manage andManage and 3.3.3.7 execute signage creation execute signage creation

3.3.2 Assor Mana

Exceptional Client Value

ery apability Description Description process clear

The Global Retail Process Models purpose is client value creation. When coupled with Accenture experience, the model is a catalyst for identifying opportunities for margin improvement, category expansion, portfolio optimization, multi-channel execution, and selling performance. The model is also used to support decisions on outsourcing, centralization, de-centralization, and integration. How is this achieved? The process content within the model accelerates the unmasking of hidden process overlaps or gaps within a clients business operations, exposes best practices buried in the organization, differentiates between core and non-core process essentials, and clarifies process improvement tail Capability bility Detailed, iterative,opportunities for action. High-level, High-level,

Value is created when these revelations are used to determine and deploy process essentials that might be executed differently or in a less costly manner. This is exemplified in practice through the process model linkage to system configuration templates within Accentures Value Led Enterprise Resource Planning (ERP) assets. In addition, shared process essentials are candidates for blueprinting a Services Oriented Architecture (SOA) that reduces the constraints on current legacy systems or organizational boundaries.

process execution. Greater process clarity and consistency allows these companies to more effectively foster and establish long term, loyal and profitable customer relationships that set them apart in the industry. Right now, using Accentures proven Global Retail Process Model, Accenture practitioners are assisting clients to achieve their desired levels of process mastery, carving weeks out of process development times and project lifecycles. The Global Retail Process Model is yet another example of how Accenture helps its clients to deliver high performance. Contact Accenture today to find how the Global Retail Process Model is helping retailers outperform their competitors, and how it can bring value to your organization.

The Process Focus Payback

Knowledge. Speed. Results. The largest, and most successful, retailers on the planet are achieving their businessDetailed, iterative, objectives through a Detailed, iterative, Capability Scale of Capability Scale of Mastery Mastery no clear clear no clear process process clear process process customer-centric relentless focus on
Level of Level of Mastery Mastery

efinitions s Basic

Benchmarks arks ng Emerging

Global Retail Process Model

Basic Progressive Emerging Progressive Leading Leading Emerging

Process Definition overview The processes at each level are accompanied by a detail definition that explains the process, provides a sample of key performance indicators that may be used to measure the process, and is organized via a numbered taxonomy for easy reference and linkage back to the capability level.

Scales of Mastery overview For each capability, a perspective relative to industry performance conveys how advanced ones process mastery is across 7 dimensions (not all shown), on a scale comprised of categoriesbasic, progressive, leading, and emerging.

tions

Manage Space 3.3.1 Capability Descriptions & Assortment: Capability Descriptions Manage Space & Assortment:Space Planning and Management High-level, Detailed, iterative, Key Key Capability Capability Scale of Mastery no Capability clear process Parent Title Parent Title clear process Performance Performance Description Description Indicators Indicators of Mastery Level

3.3.1 Space and Management 3.3.1 Space Planning Planning and Management High-level, High-level, Detailed, Detailed, iterative, iterative, Capability Scale of Capability Scale of Mastery Mastery no clear clear no clear process process clear process process Level of Level of Mastery Mastery

mt. Parent Title

3. Plan/Market displays, media

gram

3.3 Manage Space gram & Assortment

ve

3.3 Manage Space & Assortment

on

Leading Plan/Market Emerging This 3. This Basic Progressive 3. Plan/Market 3.3 3.3 Manage Manage capability capability Sales Sales contains the Margin Margin contains the processes to Importance Importance to customer space to customer Specialized processes to Space & Space & Space management Specialized space Space and develop, Return develop, execute execute Return onspace on space is an activity resources with some resources, with assortment are Assortment optimize... optimize... Andof approval by Assortment and and developed by one of level more... And more... contribution of cross developed in the departments with cross functional functional team. concert with each no specialized the with the sponsors. Sales Approval with Space Complying Sales Usually Space Complying with 3.3 Manage3.3 Manageother and vertically 3.3.1 3.3.1 Space Space resources (e.g. buyer strategic category involves Margin multiple stakeholders integrated in the companys Margin & companys strategic & Assortment Assortment managers, to business from &store operations). Planning PlanningorSuppliers are used processes store customerto customer and & goals these goals these Importance Importance to guarantee processes operations Return on space integration strategy through evaluate, optimize and Return and Management main evaluate, optimize andonspacemore... consistency against Management as the source marketing. execution. define... define...of And more... And information about External entities (e.g. strategy. trends (e.g. sales trend Institutes) and vendors Usage of external in a category). strategic strategic Sales entities/suppliersManage Space Incorporating used as additional Incorporating Sales 3.3 Manage3.3 as Space 3.3.2 3.3.2 sources in& Assortment Assortment Progressive. company & company goals these goals Marginof trends (e.g. these Margin Assortment Assortment Sales). Suppliers also processes Importance Importance to customer to customer processes evaluate, evaluate, build and Return Return on involved build Management and optimize... optimize... oninvestment investment in planning Management And more... And more... some specific spaces (e.g. home theaters universe).

Basic

Basic

Progressive Leading Leading Emerging Emerging Progressive

Space management space space space Space management Specialized Specialized space Specialized Specialized Space and Space and is resources some resources, with is an activity an activity resources with some with resources, with assortment assortment are are developed level by contribution developed developed in developed by one of by one of approval of approval by level of contribution of cross of cross in the departments with cross functional team. concert the departments with cross functional functional functional team. concert with each with each no sponsors. Usually Approval with other and no specialized specializedsponsors. Usually Approval with other and vertically vertically resources buyer involves multiple stakeholders integrated in the resources (e.g. buyer (e.g.involves category category multiple stakeholders integrated in the or store managers, store guarantee guarantee business from to business from or store operations).operations). managers, store to operations andintegration integration and strategy Suppliers Suppliers are used are used operations and and strategy through through as the mainas the main source of source of marketing. marketing. consistencyconsistency against against execution. execution. External entities (e.g. informationinformation about about External entities (e.g. strategy. strategy. trends (e.g. trends (e.g. sales trend and vendors Usage of external of external sales trend Institutes) Institutes) and vendors Usage in used as entities/suppliers as in a category).a category).used as additional additional entities/suppliers as sources of in sources of trends (e.g. trends Progressive.Progressive. in (e.g. Sales). Suppliers also Sales). Suppliers also involved involved in planning in planning some specific spaces some specific spaces (e.g. home (e.g. home theaters theaters universe). universe).

Key Contacts
For further information on how the Global Retail Process Model can bring value to your organization, please contact one of the following Accenture Retail Practitioners: In North America: Janet L. Hoffman janet.l.hoffman@accenture.com

About Accenture
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills, and technologies to help clients improve their performance. With approximately 146,000 people in 49 countries, the company generated net revenues of US$16.65 billion for the fiscal year ended Aug. 31, 2006. Its home page is www.accenture.com.

In Europe:
Richard Wildman richard.wildman@accenture.com

In Asia-Pacific:
Andrew Clarke andrew.clarke@accenture.com In Latin America: Vasco Simoes vasco.simoes@accenture.com

Copyright 2007 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

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