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Digitally
Engaging Food
Shoppers
SAP Special Edition
by Stephanie Diamond
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
Digitally Engaging Food Shoppers For Dummies®,
SAP Special Edition
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Table of Contents
INTRODUCTION ............................................................................................... 1
About This Book ................................................................................... 1
Icons Used in This Book....................................................................... 2
CHAPTER 1: Uncovering Trends in Food Shopping ......................... 3

Recognizing New Challenges and Opportunities ............................. 3
Looking at Current Trends .................................................................. 4
Delving into the individualization of food .................................... 5
Understanding the “direct to consumer” movement ................. 6
Blurring industry lines .................................................................... 7
Considering the impact of technology ......................................... 8
Discovering the Internet of Things ............................................... 9
CHAPTER 2: Serving The New Food Shopper ..................................... 11

Describing the New Shopper ............................................................ 11
Getting to know your new customers ........................................ 11
Taking the new shopping trip ...................................................... 12
Creating a 360-Degree View of Your Customers ............................ 14
Understanding the value of a 360-degree view ........................ 14
Managing your data to establish a 360-degree view................ 15
Discovering the World of Predictive Analytics ................................ 16
Understanding analytics .............................................................. 16
Benefiting from predictive analytics ........................................... 17
CHAPTER 3: Digitizing The Shopping Experience ........................... 19

Capturing Moments of Opportunity ................................................ 19
Identifying Gaps in Expectations ...................................................... 20
Determining what customers want ............................................ 20
What customers want versus what marketers deliver............. 21
Reviewing why gaps exist............................................................. 22
Understanding Contextual Marketing
and Merchandising in Real-Time ...................................................... 22
Creating an Omni-Channel Experience ........................................... 24
Delivering an omni-channel experience .................................... 24
Taking the customer journey ...................................................... 25
Table of Contents iii
CHAPTER 4: Modernizing the Organization........................................ 29
Introducing the New Organization ................................................... 29
Dealing with manual processes and legacy systems ............... 30
Recognizing workforce skill gaps ................................................ 30
Extending the supply chain network .......................................... 32
Providing live inventory information .......................................... 32
Creating an End-To-End Solution ..................................................... 33
CHAPTER 5: Delivering Solutions ................................................................ 35

Creating A Digital Strategy ................................................................ 35
Asking Key Strategic Questions ........................................................ 36
Finding Five Ways to Build Success .................................................. 36
Digital Core with SAP HANA platform......................................... 37
Workforce engagement ............................................................... 38
Customer experience ................................................................... 38
Supplier collaboration .................................................................. 39
Internet of Things (IoT) ................................................................. 40
CHAPTER 6: Ten Key Resources .................................................................... 41

Future of Food Predictions................................................................ 41
Digital Innovation and Transformation Assessment ..................... 41
Digital Consumer Products Readiness Assessment....................... 42
Breakthrough Technology Trends.................................................... 42
Customer Experience Assessment ................................................... 42
Competitive Advantage Strategies ................................................... 43
Digital Business and Transformation............................................... 43
Strategy for the Internet of Things ................................................... 43
Future of Engagement and Commerce Information ..................... 43
D!gitalist Magazine ............................................................................. 44
iv Digitally Engaging Food Shoppers For Dummies, SAP Special Edition
Introduction
H ave you signed up for a subscription service or ordered
your groceries online? It’s likely that your customers have.
Throughout the book, when I refer to the customer, I’m referring

to the grocery shopper.
The world of food retailing is undergoing a radical change and you

need to keep pace. Technology has created new ways for people
to order and receive food deliveries. It has created new business
models that have shaken the foundation of the local supermarket.
Yo r s ly chain may look ite di erent than it did st a fe
short years ago.
The good ne s is that signi cant ind stry changes are creating
great opportunities for companies to increase their revenue and
develop strong relationships with their customers. The challenge
is that these innovations can’t happen overnight and your organi-
zation must modernize its systems from top to bottom. The speed
at which an organization must implement change is at the heart
of the dilemma most companies must face today.
About This Book

Welcome to Digitally Engaging Food Shoppers For Dummies, SAP
Special Edition. The information in this book gives you insight
about how the future of food is evolving. I introduce new trends
that are changing the face of food sho ing and look at the ro le
of the new food shopper.
This book also gives you a perspective on what you need to do to

create an omni-channel experience and why developing a contex-
t al marketing and merchandising e ort is key to creating a com-
petitive edge. If you don’t currently have a system that allows you
to create a 360-degree view of your customer, this book helps you
see the ene ts that im lementing s ch a system can ro ide.
Introduction 1
Icons Used in This Book
Thro gho t this ook yo nd s ecial icons that alert yo to
important information. Here’s the list:
The Tip icon highlights information that can help make things
faster or easier.
The Remem er icon gi es yo information that yo ill nd hel -

ful to keep in mind. Hopefully, when you search your memory,
this information will pop up.
The Warning icon alerts you to things that are harmful to you or
your work.
The Technical St icon gi es yo more in de th information

about a technical topic. You decide if you want to read it.
2 Digitally Engaging Food Shoppers For Dummies, SAP Special Edition
N TH S CHAPTER
» Discovering new opportunities in the
ood industry
» Recognizing the latest trends in ood

shopping
» Utilizing new technology and the

nternet o Things
Chapter 1
Uncovering Trends
in Food Shopping
T
oday’s consumers can get an ingredient, a meal, or a whole
shopping list delivered right to their door. The Internet has
trained us to expect to receive the products we want, when-
ever and however we want them. This is especially true for the
new food shopper who won’t settle for something that’s mass
produced, unless it’s a cheap commodity item. Shoppers want to
eat when they’re ready to eat, and they have multiple options
available.
In this chapter, you see how the food industry is revolutionizing

itself. I sho yo the great in ence technology has on the f t re
of food and hy the Internet of Things IoT a ects e erything
you do.
Recognizing New Challenges

and Opportunities
As a food marketer you are faced with many new challenges. To be
competitive, you need to be ready to create new business models
and de elo alternate re en e streams on the y. It s an e citing
and challenging time.
CHAPTER 1 Uncovering Trends in Food Shopping 3
To e amine the f t re of food, yo can egin y looking at e
of the global and economic challenges you are facing right now.
They include:
» Consumers in charge: The balance of power has shifted to

the customer. Everything you do has to be customer-centric.
» Demographics: Changes in life expectancies, population
shifts from Baby Boomers to Millennials and Generation Z,
urbanization, and other demographic changes require
changes to targeted content and a new understanding of the
workplace.
» Ena ling technologies: Consumers are connected by their
various devices and want to be able to shop from wherever
they are. If you can’t support their journey, they can and will
go elsewhere.
» Awareness o glo al issues: Consumers are more socially
aware of issues like sustainability and corporate responsibil-
ity. You need to know about your sourcing, your delivery,
and your impact on the environment.
» Economic actors: Some population segments have not
fully recovered from the global financial crisis and you need
to be sensitive to pricing di erences
There are great challenges, t the f t re o ers immense o or-

tunities. Access to data and great insights allows you to spot new
trends and deliver the experience your customers really want.
Do not wait to implement your online shopping strategy. Accord-

ing to Strategy& fully three-quarters of retail growth has
een in online sho ing http://www.strategyand.pwc.com/
perspectives/2015-retail-trends).
oo ing at Current Trends

Just like everything else they buy, shoppers are demanding food
that is tailored to their unique needs. This change in the balance
of consumer power requires you to know what the food shop-
per needs and how you can immediately customize and deliver it.
Such things as a focus on wellness, the desire for personalization,
and the continued digitization of all phases of the customer’s
o rney a ect hat yo m st deli er.
Com anies need to contin ally e eriment and re ne their
o erings. For e am le, in Se tem er of , Google decided to
geogra hically e and its Google E ress grocery ser ice, t
eliminate perishables like fruits and vegetables, making it easier
to manage the delivery time. They were not afraid to experiment
and nd the selection that makes the most siness sense, th s
making them more competitive with Amazon.
Let s look at fo r ma or trends a ecting the food ind stry that

will change your company’s bottom line. They are:
» Individualization of food
» Blurring of industry lines
» The “direct to consumer” movement
» The impact of technology and the IoT
Delving into the individualization

o ood
The power of the individual has created more demanding food
shoppers. Companies now need to serve every niche audience as
if it were their only one. Today’s shoppers enjoy being “one of
a kind” rather than being thought of as a mass audience. They
search online for the exact item they want, at the price they want,
and they don’t have to settle for the package you put together.
E en ma or com anies like Coca Cola are ena ling c stomers to
create their o n a or mi es.
So, how does this trend manifest itself? Here are several major
factors:
» Eating alone: More people are eating alone and there are
more single households. As a result, consumers want
customized avors and individually sized portions
» nternational tastes: Retailers are now o ering a variety of
cuisines as customers become more adventurous and
require more choices.
» Healthy, resh ood: Food shoppers of every age are focusing
on healthy food and research their ingredients. They are
selecting the “healthiest” choices, and you need to supply them.
A M SE F
One surprising new food trend is that more people are eating alone
than ever before. According to the Hartman Group’s survey, “Hartman
Eating Occasions Compass: Food and Beverage Analytics,” 46 percent
of all eating occasions are now alone.
People no longer expect to sit down and eat a meal with their fami-
lies. They are busy, and they try to grab meals when it’s convenient.
The researchers also found that people are snacking more, with
Millennials leading the way. In addition, Millennials are not sure what’s
for dinner until they’re ready to eat it. They want fast local delivery.
Don’t miss out on the advantages of personalization. According to

Cons mer Prod cts Trends Na igating Deloitte Uni er-
sity Press, J ne , , ercent of cons mers say they o ld
ay a ercent remi m to ersonali e a rod ct they ant to
y. For details, see https://dupress.deloitte.com/dup-us-
en/industry/consumer-products/trends-2020.html.
Understanding the direct

to consumer movement
Another new trend is the “direct to consumer” movement. Tech-
nology makes it possible for food manufacturers to deliver their
rod cts directly to their c stomers, hich can ene t oth the
manufacturer and the consumer in these ways:
» Closer customer relationships: Engaging consumers

directly can help companies enhance the consumer’s digital
experience.
» Expanded revenue growth: By improving customer
engagement, food manufacturers can expand revenue
growth and improve their brand recognition.
» etter products: Better understanding of the customer
experience and direct consumer insights can help in the
product development process.
» More e ective pricing: Direct data on shopping habits can
improve pricing by making it more competitive and indicat-
ing where consumers are willing to pay a premium and
where they aren’t.
Digitally Engaging Food Shoppers For Dummies, SAP Special Edition
ANT A MEA N A O
One of the booming new trends in the food industry is the delivery of
“meal kits.” It has rapidly become a billion-dollar industry and shows
no signs of slowing down.
Meal kits are sold as a subscription service that delivers several meals
a week. They create a menu for you and package up all the ingredi-
ents you need. They ensure that the contents are fresh and deliver
them directly to your door. Many services focus on specialty menus
like vegan meals or healthy eating.
People are using these services for a variety of reasons, including the
fact that it allows them to “home cook” for their kids in less time, they
don’t have wasted leftovers, and they get to sample new ingredients.
Most major food retailers didn’t see this trend coming, so small start-
ups were able to get way out ahead.
To prevent yourself from being broadsided by new trends, be aware

that the future of food shopping all comes down to choice. A recent
webinar about the individualism of food, “Future of Food,” was hosted
by E Kenny Global Head for Consumer Industries for SAP with
guests Bill Bishop, co-founder of Brick Meets Click, and Jerry Wolfe,
CEO of Vivanda. They talked about how customers want “solutions
and outcomes” rather than specific products Products and services
must solve problems for the consumer.
Mr. Wolfe discussed how food has become an individual experience

that is a ected by such things as mood time of day and holiday
seasons. His company, Vivanda, has developed a FlavorPrint that
captures the “digitization of taste ” To find out more about the future
of food trends, you can view the webinar at this link: https://vts.
inxpo.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&
ShowKey=34083.
Shoppers expect grocers and food manufacturers to provide a

variety of ways to deliver their goods directly, including home
delivery, click and collect, and subscription services.
lurring industry lines

According to a article in USA Today, Target executives want
their company to become “the ultimate one-stop grocery, apparel
and home destination for American families as it continues a
transformation to become a more digitally-focused, personalized
and reliable retailer.” Target’s model is one example of blurring
industry lines. Another example is Amazon opening a bricks-
and-mortar grocery store (Washington Post, Octo er , .
Consumers have an explosion of food choices, and your competi-

tors are coming from all directions. You can get dinner at any time
of the day or night from a number of unexpected places.
Considering the impact o technology

Yo kno that technology contin es to a ect e ery hase of yo r
siness. SAP recogni es e technology trends that yo need to
consider if you want to compete and win. They are:
» Hyper connectivity: People love to talk about what, where,

and how they eat, as anyone on social media knows. With
their ever-present mobile devices, consumers can connect
and collaborate with anyone anywhere in the world
including directly with the brands they love.
Make the most of global connectedness. According to the
marketing firm Kleiner Perkins Caufield Buyers the Internet
currently has 3.1 billion users worldwide. The Miniwatts
ROCERANTS
Perhaps as an answer to the meal kit explosion comes the grocerant,
where the meals are served at your local supermarket. Supermarkets
are cooking your food and serving it to you in the same location
where you shop.
Families who are looking for healthy alternatives to fast food are
turning to healthier options like grocerants where you can quickly
consume a meal in a pleasant atmosphere without the clean-up.
A grocerant is not the same as takeout It s a restaurant conveniently
located at a supermarket.
In addition, grocerants have a great opportunity to attract customers

by showcasing their in-store chefs as online experts. They can grow
their YouTube channels and encourage social media relationships
(Progressive Grocer, September 12, 2016).
Marketing Group reports that 1.3 billion people are on social
networks.
» ive decision ma ing: You need to match the right products
to the right customers at the right time and deliver the
shopping experience customers expect.
» Cloud computing: Cloud computing makes it possible for
users to access data, applications, and services over the
Internet. The cloud eliminates the need for costly hardware,
such as hard drives and servers and gives users the ability
to work from anywhere.
» A smarter world: Innovations like 3D printers and artificial
intelligence reshape industries and change business models
overnight For example the U S Army hopes to use 3D
printers to customize food for each individual soldier
(https://news.sap.com/why-3d-printed-food-just-
transformed-your-supply-chain/). This idea would allow
the ultimate in food customization. Soldiers could wear
devices that would relay their vital signs, and food could be
sent to them that would provide for their exact needs.
» Cy er security: Businesses face great risks from digital
theft. You have to secure not only your analytical data but
your customer’s identity and interactions.
Yo can t a ord to miss tackling any of these trends as yo

reimagine the way your business will work.
Using ne technology, yo can dri e a com etiti e ad antage y

developing tools and special apps that allow your customers to
manage their online purchases.
The next section looks at a technology advance that is changing

every facet of our lives. It’s called the Internet of Things (IoT).
Discovering the nternet o Things

With the development of new technologies comes the Internet
of Things (IoT). The IoT is the connection of people, data pro-
cesses, and physical objects to the Internet. The “things” on the
IoT include our machines, devices, and appliances. As people con-
nect more objects via the network, it becomes ever more valuable.
According to Intel s A G ide to the IoT infogra hic, y ,

there ill e a ro imately smart o ects for e ery h man
CHAPTER 1 Uncovering Trends in Food Shopping
eing on Earth. Imagine all the data that yo can collect and ana-
lyze to optimize your business!
So, ho does the IoT a ect the f t re of food retailing Yo e

already seen major disruptions. Your customers, your stores, and
your entire business operation can be monitored and mined for
data. This capability was not possible even a few years ago.
One great example of the new IoT technology being used in retail-
ing is called a “beacon.” A beacon is Bluetooth-enabled technology
that pairs with an app on a customer’s smartphone. The customer
downloads your app to his or her smartphone. When customers
walk into your retail store, the store app connects via the Internet
with the app on their smartphones. This allows them to receive
personalized discounts or ads based on their preferences.
This connection also provides data that can be analyzed and used
to enhance and extend your ability to make better decisions. You
can build IoT applications in the cloud, connect all your devices,
control things like sensor data, and optimize your processes to
create new business models.
For e am le, here are some of the ne se cases that the IoT has
enabled:
» Automated manu acturing and connected logistics:

Sensors can follow the product from raw materials to
delivery. This not only allows you to reduce waste; you can
also improve quality.
» Smart things: Using sensors, companies can respond in
real-time to the data collected from the manufacturing line.
» Context aware technology: Companies can immediately
react in context to the marketing or other “moment.”
» Consumer intimacy: Responding to consumers at the
moment of need produces a stronger customer relationship.
Digitally Engaging Food Shoppers For Dummies, SAP Special Edition
IN THIS CHAPTER
» Recognizing new shopper pro les
» Creating a 360-degree view that serves

your customers
» Using predictive analytics to personalize

your o ers
» Focusing on tactics to engage shoppers
Chapter 2
Serving The New
Food Shopper
W
ho will you see shopping in the supermarket aisle? The
answer is rapidly changing. In fact, your customers
may never go to a supermarket to get their pantry
items. They may buy everything from the comfort of their sofa.
This chapter looks at the types of shoppers you will encounter and
sho s ho yo can de elo a degree ro le of yo r c stom-
ers that will deliver the information you need to satisfy them.
Descri ing the New Shopper

The ne food sho er has a di erent idea a o t hat constit tes
a shopping trip and where to buy food. Shoppers are experiencing
an exciting number of options. The choices are almost unlimited
and you need to immediately become a part of these new buying
trends.
Getting to know your new customers

So, hat are the ro les of these ne sho ers SAP s ggests
that because the shopping environment is changing so rapidly,
CHAPTER 2 Serving The New Food Shopper 11
you may be missing several new categories of shoppers, shown
in Fig re . Co ld one or more of these sho ers e yo rs The
categories are:
» Time Starved: Professionals who have to feed their families

while keeping up a heavy work schedule.
O er them Ready-to-go meal kits by subscription
» The Healthy rowser: Shoppers who are browsing online
for recipes and information about healthy meals
O er them Discount coupons
» The New Mom: Busy new moms who want to rely on past
shopping lists to trigger new purchases using a subscription
service.
O er them Shopping lists with recommended items based
on past purchases.
» The Foodie: People who love to experiment with food and
entertain their friends.
O er them An online menu planner and online shopping for
pickup at the store.
» Allergen Alert: Shoppers with allergies who need to avoid
certain ingredients.
O er them The ability to set up a personal profile that alerts
them to foods on their list that contain those forbidden
ingredients.
» nspire Me: Shoppers who browse the aisles for visual
inspiration. They can then go online and pick a recipe that
includes that food.
O er them An in-store shopping associate who can direct
them to the best choice for that particular food
Ta ing the new shopping trip

To further the industry’s understanding of online shopping
eha ior, SAP s onsored a grocery research st dy called Ho
consumers are using online grocery and what it means for retail-
ers in ith the rm Brick Meets Click. For details, see
http://hybris.com/en/consumers-using-online-grocery.
FIGURE 2-1: Six types of shoppers you may be missing
The study found that 41 percent of U.S. consumers have bought

groceries online. The researchers discerned three distinct online
food sho ing tri s that sers are c rrently taking. They are
» Speci c product shopping: Sixty-one percent of those

surveyed search online for something they can t find in the
stores they frequent.
» Ma or grocery shopping: Fifteen percent of those surveyed
go online to make purchases at a more convenient time and
place, which means they shop at home at 2 a.m. if that’s
more convenient.
» Su scription ased shopping: Twelve percent of those
surveyed ordered via a subscription to ensure that they
always have a needed product on order and available
It’s likely that your customers participate in all of these shopping

tri ty es. Are yo re ared to satisfy them
The study also looked at shopping frequency to see what it would

show about online shopping. The researchers found four distinct
categories of users. They are:
» Active: Households purchasing groceries in the past 7 to 90

days who plan to purchase again in the next 90 days
» Occasional: Households who purchased groceries in the last
0 days and plan to buy again in the next 0 days
» Inactive: Households who purchased in the last 90 days and
don t plan to buy again
» Non-user: Households who have never purchased groceries
online
These distinctions are valuable because you want to be able to

predict how often your customers will be shopping and how to
plan for such things as inventory and promotions.
Creating a 360-Degree View

of Your Customers
One of the reasons marketers are excited about the advances in
data analysis is the opportunity to understand customers in all
the di erent ays they interact. This ie is called a 360-degree
view. This section discusses the concept and its value to you as a
marketer.
Understanding the value

of a 360-degree view
To understand what a 360-degree view of your customer is, you
need to think about all the ways that a customer may interact with
your company or brand. You likely can determine what products
your customer has purchased using past history data. That isn’t
too great a lea . B t do yo kno hat the c stomer said a o t
your product on Facebook? Do you know who his or her major
sho ing in encers are Or, do yo e en kno that the c stomer
name in your database is not the same one the customer uses on
various social media accounts?
The only way you can learn everything you want to know about
your customer is to create a 360-degree view. This is not an
insigni cant task. Yo can t accom lish it man ally. Yo need to
bring in systems that are set up to connect all your disparate data
sources together.
According to the Forrester s r ey detailed in Cha ter , marketers
are using an average of 15 distinct systems to store and retrieve
customer data.
So, what kind kinds of data should you collect? You need to collect
both structured and unstructured data:
» Structured: This is the type of data that has been collected

for decades It has a set format and can be analyzed by
breaking items into rows and columns Your transactional
data is an example of structured data.
» Unstructured: This is new data. It’s the kind of data that’s
collected when you create video or audio for example You
find unstructured data when you look at social media
platforms and review sites. If you don’t include unstructured
data you ll miss out on what is now believed to be 0
percent of all the data we collect today. Included in this data
type are blog posts customer review sites and tweets
Both ty es of data o io sly are im ortant. It s essential to con-

nect and integrate both data types so that you can make predic-
tions and create engaging content.
Managing your data to esta lish

a 6 degree view
Your predictions are only as good as the data they come from. You
need to focus on the quality of your data and invest in systems
that ill meet yo r ongoing needs. Here are the things yo r orga-
nization must do to leverage data:
» Consolidate your data: Pull all your data together. Bring in

siloed data from across the organization including both
cloud and on-premises data Prioritize the data value and
move uickly to determine what must be fixed immediately
and what can wait.
You can t a ord to move too slowly in fixing your data or it
will never meet the standard needed to make proper
decisions A 360-degree view re uires data that is continually
refreshed and connected.
» ring your data up to date: You know that if you have not
given any attention to your data in the last few months, it is
rife with errors, duplicates, and old information. Using messy
data hampers your ability to e ectively engage your
customers on many levels, including customer service.
» Develop a master le or each customer: When complete,
this is the 360-degree file that you can use to begin a
relationship with your customer You can learn if the
household has multiple buyers and what their buying habits
are.
» Connect other sources of data: Your data becomes ever
more valuable as you connect other data sources to it
Adding your social media files and other pertinent content
like ad data (information that the customer consumed prior
to purchasing) from a current ad campaign gives you even
more valuable predictive data
» Continue to monitor and improve your data: You must
continue to monitor and improve your data so that it
becomes even more valuable as it grows
Discovering the orld

o Predictive Analytics
The ability of businesses to collect data on every phase of their
operation creates a tremendous advantage for those who are savvy
eno gh to se it. Predicti e analytics gi es com anies o ort ni-
ties they could never have dreamed of before they began analyz-
ing the myriad kinds of data available today.
Understanding analytics
So, what is predictive analytics? Researchers describe predictive
analytics as having four major attributes (see http://practical
analytics.co/predictive-analytics-101):
» Descriptive analytics: This type of data tells you what

happened.
» Diagnostic analytics: This type of data tells you why it
happened.
» Predictive analytics: This type of data tells you what will
happen.
» Prescriptive analytics: This type of data tells you how you
can make it happen.
By tili ing these fo r ty es of data, yo can mo e from collect-

ing information, to optimizing it, to monetizing it. You can then
improve your upsells and predict whether your customer will con-
tinue to be your customer. You can also improve the performance
of yo r s ly chain. Most im ortantly, yo gain great insight
into anticipating what shoppers will buy so that you can focus
your resources on producing more of what they want.
Don’t just focus on vanity metrics like page views and Facebook
likes. Keep your eye on the data that will create real value for your
business.
ene ting rom predictive analytics

Predicti e analytics can ring yo all sorts of ene ts, incl ding
these:
» Marketing data management: You can take all the

information you have about a customer to gain insight into
her specific interests
» Real time predictions and scoring: You can develop
predictive scores about such things as the customer s buying
habits and lifetime value to the company
» nsight and per ormance management: You can identify
insights about when your customer will buy
» Omni channel pro le: This can help you enrich your
customer knowledge and analyze buying behavior
» Audience targeting and segmentation: This gives you the
ability to visualize customer behavior
» Social listening and sentiment analysis: This gives you the
ability to analyze both the structured data (like products
purchased) and unstructured data (like tweets) to gain a
fuller picture of each individual customer.
When choosing tools for better decision making, one of your goals
should be to reduce the time your company takes to transform
information into insights.
A eal to their hearts and carts. Use real time analytics to hel
you inspire, educate, and guide shoppers to products tailored just
for them.
IN THIS CHAPTER
» Identifying moments of opportunity
» Meeting customers’ expectations
» Implementing contextual marketing and

merchandising
» Delivering an omni-channel experience
Chapter 3
Digitizing The Shopping
Experience
R
elevance is the new digital currency. Customers want indi-
vidually targeted products and an individualized customer
experience. You must be customer-centric if you want to
engender brand loyalty and compete to win.
This cha ter looks at the di erence et een hat the ne food
shopper expects and what marketers are delivering. I show how
contextual marketing and merchandising can provide the per-
sonalized experience that leads to loyal customers and increased
revenue.
Capturing Moments of Opportunity

The in charge cons mer ants ant to e a le to nd rele ant
content without having to dig for it. Companies that are easy to
do business with impress customers across all platforms from
mobile devices to in-person experiences. If you don’t, customers
ill easily nd yo r com etitor, ho does.
Customers also want to perceive value for their interaction with

you. All your hard work and planning comes down to a “moment
of opportunity” when you need to be able to provide exactly what
your customers want at the very moment they want it.
CHAPTER 3 Digitizing The Shopping Experience 19
Identifying Gaps in Expectations
An interesting dichotomy has developed between what the new
food shopper is expecting and what marketers can deliver. The
gap between expectations and reality is a direct result of the lag in
digitizing organizations. To see how the process plays out, begin
by looking at what customers want.
Determining what customers want

It isn’t a secret. Every day customers let you know on social media
platforms whether you are meeting their needs. What are they
e ecting They ant o ers that are
» In context: Consumers want o ers and information that

relate to topics they are currently interested in
Key question to ask: Can you provide information and
o erings that relate to the consumer s context at the
moment?
» Relevant: Customers let you know what they are interested
in by the types of content they respond to (for example
recipes healthy eating tips or promotions)
Key question to ask: Are you responding to your customer s
needs completely
» Consistent: The content must be delivered to the right
customer across channels in a way that sends the same
message on all platforms
Key question to ask: Do you provide consistency in your
messages and pricing across all touchpoints
» Convenient: The customer should be able to get the
product in the most convenient way
Key question to ask: Can a customer place an order from a
smartphone and pick it up from a local store Research has
shown that customers who come to pick up their order buy
additional items while there
» Responsive: The customer should feel that the platform she
is searching on is addressing her specific needs
Key question to ask: Can your system recognize a person who
has been searching before and make new recommendations
to them?
» Create trust: Customers must feel a sense of trust for your
brand or they won t consider purchasing from you
Key question to ask: Do you know how your brand is per-
ceived on social media and how it is perceived by
consumers across all channels
What customers want versus

what marketers deliver
Customers are willing to trade their valuable information for a
customer experience that delivers exactly what they need in real-
time. Marketers recognize this priority but have been unable to
deliver on their own. To study the problem, SAP Hybris com-
missioned a survey of marketers and consumers to determine
how marketers were providing contextual, personalized experi-
ences to their customers. Forrester conducted the survey, called
“The Contextual Marketing Imperative,” in 2015 (https://
www.hybris.com/en/downloads/white-paper/forrester-
contextual-marketing-imperative/724).
The researchers made se eral interesting ndings
» Personalization is important but the strategies are not well

developed Only 6 percent of the marketers surveyed were
able to deliver the kind of real-time personalization that their
customers want
» Although companies give themselves high marks for their
personalization e orts customers give them low marks
Marketers need to get this issue right because 66 percent of
the consumers said that personalized o ers and content
in uenced their purchasing decisions
» Customers expect value in exchange for providing personal
information They feel disappointed by companies that take
their information but deliver very little in return For this
reason they restrict some information and leave the
marketer to figure it out on their own This is an ongoing
challenge that is not being met
» By consolidating its data a company is better able to deliver
enhanced personalization However only 22 percent of the
marketers surveyed have a single customer database
Reviewing why gaps exist
The gap between customer expectations and marketer delivery is
wide. What are the causes of these gaps in expectations? They
incl de lack of
» Collaboration: The IT department and the marketing and

sales departments are not closely aligned
» Insight: Legacy systems keep a rigidly defined segmentation
for your customer who has constantly changing needs
» Integration: Without bringing together siloed data you can t
develop the enriched data you need to make decisions
Ga s e ist eca se some com anies nd it diffic lt to gi e c s-

tomers what they want while focusing on driving revenues and
ro ts. By rst de ning the c stomer e erience and tying it to
business goals, companies can more easily deliver an engaging
experience.
Understanding Contextual Marketing

and Merchandising in Real-Time
Although the term “contextual” may sound complicated, it’s
really very straightforward. It’s the next step in the evolution of
personalization. It refers to the idea that you must engage each
customer as an individual and provide her with relevant real-time
content and purchasing options.
“Contextual” means understanding what the customer has done,

recognizing what context she is in right now, and predicting what
she might do. It lets you look at past interactions and anticipate
the customer’s behavior. This method allows you to produce solid
recommendations in the moment. You can do this by capturing
t o ty es of data
» Explicit behaviors including previous online orders and

responses to campaigns
» Implicit behaviors including keyword searches and page
visits
Mo ile data g res hea ily in nderstanding yo r c stomer s
behavior. Throughout the day, your customers are using their
smartphones to complete a variety of tasks. You can gain a com-
petitive advantage if you combine your other data sources with
mobile data to develop a clear picture of the scope of their actions.
You are also able to maintain contact with them using their pre-
ferred method. For example, you can text a coupon or provide a
mobile greeting.
Com anies like Ama on, Ali a a, and Net i ha e trained yo r

customers to expect high levels of personalization. If you don’t
provide it, your competition likely will.
The concept of contextual engagement is easy to understand,

t the e ec tion is m ch less so. So, hy do it The ene ts are
enormous. You can drive sales, increase margins, and enhance
the customer experience. Show the customer items that suit their
needs based on such things as shopping history, popular items
from other similar shoppers, and current promotions you are
r nning that ertain to them. Fig re sho s ho conte t al
data produces relevant content.
FIGURE -1: Contextual data produces relevant content
Keep it dynamic. If your promotional rules are static, rather than

dynamic, it ecomes diffic lt to change the merchandising mi
to meet customers’ needs, which change minute-by-minute, and
con ersions and sales s er. Understanding hich rod cts are
“hot” at this very moment is a challenge, because many factors
can ca se con ersion rates to shift, incl ding
» Time of day
» Day of the week
» Day of the month
» Weather
» Availability
» Store promotions
» Competitor promotions
» Press reviews
» Social media reviews and trends
Creating an Omni-Channel Experience

I’m sure you’ve heard about the importance of creating an omni-
channel experience. What does that really mean? It’s the evolu-
tion of what was previously known as a multichannel experience.
A multichannel experience followed the old siloed model where
each department operated alone. Marketing created its own cam-
aigns, and sales de elo ed its o n lans and ne er the t ain
o ld meet. Each channel re ected the content deemed im or-
tant by the department that owned it. Multichannel experiences
proved to be inadequate for digital shoppers, who don’t care
which channels they use. Shoppers do what’s convenient for them
at the time and expect a personalized result. The marketer’s job is
to g re o t ho to rod ce a seamless e erience.
The old Internet marketing model assumed that your customers

would begin their evaluation of you at your home page. Those days
are o er No , c stomers can nd yo in h ndreds of laces and
yo need to e s re each e erience mo es them to ard a sale.
Delivering an omni-channel experience

Think about how a company might create an omni-channel expe-
rience. Perhaps a chocolate manufacturer wants to create a luxury
experience and a feeling of exclusivity for its customers. To do
this, the company can create a “Chocolate Club” that utilizes the
follo ing omni channel c stomer e eriences
» Phone and email: These channels provides advice from

experts about chocolate selection
» A bricks-and-mortar store: The store has a sleek atmo-
sphere where employees conduct tastings and provide
information
» Web and apps: These channels o er ordering capability and
courier delivery for special occasions
When you develop new channels, you have the opportunity to

directly engage with your customer at more touchpoints. This
method gi es yo the added ene t of de elo ing more c stomer
interest data to analyze.
Establishing an omni-channel experience requires that all

employees, not only the ones who deal with customers, must par-
ticipate in providing a great customer experience. Make it a habit
to talk with your support center and speak to actual customers.
You want to make sure that data tracking isn’t the only way you
learn about your customer’s needs and concerns.
Taking the customer journey

An omni-channel experience is the one your customers have as
they move across platforms (for example, desktop, mobile, and
in-person) to complete their daily tasks. If you have developed a
true omni-channel experience, they can move seamlessly to get
the information they need and the products they want to buy.
To create an e ecti e omni channel e erience, it s im ortant

to understand what food shoppers are thinking about as they go
from the triggering event to purchase. The following are seven
steps known as the “customer journey.” These are the things
yo r c stomers consider and the actions yo can take to in ence
them. A customer might take this path when considering whether
to y a meal kit s scri tion
» Awareness: The customer is passive at this stage until a

triggering action causes her to perceive a need of some kind
The trigger could be external like someone making a
re uest or an internal trigger based on something she
realizes she wants or needs Perhaps she realizes that she
needs to eat healthy meals but doesn t enjoy shopping at
her local supermarket after work
Actions you can take Make the shopper aware of your
service by advertising online and o ine participating in
social media conversations and delivering outbound
campaigns
» Discovery: The customer begins to consider her options
She may consult friends and create a list of potential
companies for further exploration
Actions you can take Your customer will be conducting
searches online so make sure your meal kit service appears
in the search results You must also have content that the
customer perceives as having credibility wherever she
finds you
» Interest: The customer begins to research solutions in
earnest She evaluates o erings with the intention of
creating a short list of companies that have what she wants
Actions you can take Your customer wants to be able to
di erentiate you from your competition You need to have
third-party opinions (for example social media posts or
thought leaders) who recommend your meal kit service as
the best solution Have customer-facing employees ready to
answer uestions o ine and an online chat feature on your
website
» Consideration: In order to feel confident about making a
purchase decision your customer is actively learning about
your product She wants to see actual demonstrations
converse with sales people and talk to current customers
Actions you can take You need to engender trust and
credibility at this stage You want to make sure your cus-
tomer knows about support policies and other pertinent
ownership information You also want to target and elimi-
nate any objections the customer may have
This is a crucial point in time for the customer. It is the moment

at which the customer may decide to do nothing and keep the
status quo. More often than not, if a customer decides not to
make a purchase, it’s because she chose to do nothing rather than
s eci cally re ecting yo r rod ct or ser ice.
» Action: The customer decides to make a purchase goes
through the vendor s shopping experience and arranges
payment
Action you can take An easy-to-use shopping cart and clear
shipping information and confirmations can help assure the
customer that you are a responsive vendor You also want to
make sure that all delivery options the customer may want
are available
» Use: The customer begins cooking with your meal kit He or
she evaluates the uality of the product and how easy it is to
do business with you
Actions you can take You want to do everything you can at
this stage to make sure that the customer uses and is
satisfied with your item You should send how-to cooking
information and other content that shows your customer
how to get maximum value from your service You may also
want to alert her to add-ons to the service that can enhance
her cooking skills even further If the customer contacts your
support services make sure they are prepared to do
everything they can to satisfy her
» Advocacy: If the customer is satisfied she might become
your advocate This means she will tell her friends and
colleagues about your products If the customer is unsatis-
fied she may go on social media and complain about your
service to others
Actions you can take Highlight the positive comments of
advocates on social media and other venues Help them
connect with one another to reinforce their positive feelings
Provide any tools or apps that will make it even easier to
share their opinions and advocate for you
Food retailers that don t o er meals can still hel c stomers lan
their meals by providing suggestions for food and wine pairings,
or o ering reci e cards.
CONTENT FOR THE CUSTOMER
JOURNEY
The customer s journey re uires content that delights your customers
and also meets your business goals Here are some tips to remember
• Information and education are paramount Don t sell at the begin-

ning of the journey
• Mine your organization for true experts in their respective fields
and create content from their input If you don t have in-house
experts make the e ort to find outside sources of expertise
• Make sure your employees are participating in social media
forums and other places where there is active discussion about
your company or products
• Content marketing is not a side project You need a robust plan
and active participants to get the job done
IN THIS CHAPTER
» Dealing with legacy systems
» Examining workforce issues
» Meeting live inventory challenges
» Developing an end-to-end system
Chapter 4
Modernizing the
Organization
I
ncredibly fast moving changes in technology and customer
expectations have created a new dilemma for companies that
want to modernize. Previously, these companies approached
modernization in a siloed manner. Information technology
departments reacted to business requests, and many times the
business unit that was the most adamant got the attention. There
were few strategic end-to-end conversations.
Today, this a roach is a reci e for fail re. If di erent de art-

ments in the organi ation change and their o n systems,
they perpetuate the siloed conditions that impede progress. This
chapter looks at the issues surrounding the need for accelerated
organizational change. These issues include dealing with legacy
systems, the lack of workforce preparedness, and changes to the
supply chain.
Introducing the New Organization

Today’s organizations need to take an end-to-end approach to
modernization so that all their business processes are connected,
cohesive, and customer driven. Unless you do this, you can’t cre-
ate the 360-degree view of the customer that’s needed to meet
CHAPTER 4 Modernizing the Organization 29
the expectations of your customers. Your customers will continue
to have disjointed and incomplete experiences. So, what do you do?
To reimagine your organization, begin by looking at some of the

major challenges facing companies that want to modernize. This
section covers each in turn. As you review each one, see how it
applies to your organization’s modernization problems. You’ll
likely recognize several of them.
Dealing with manual processes

and legacy systems
One of the greatest challenges to any organization attempting to
modernize is the existence of legacy software systems and man-
al o system siness rocesses that re ent it from deli er-
ing e ecti e rand e eriences. In addition, legacy systems are
labor intensive and lack clarity. They have latent and cumbersome
processes that cannot accommodate the needs of the dynamic
real-time information that is now available for use in a customer-
focused world.
For example, think about how your website interacts with the
existing inventory at your stores. In most cases, the products
o ered on yo r e site make the ass m tion of in entory.
That leads to otential con icts ith the other side of the
in entory the in store sho er. It s entirely ossi le that the
marketing strategies for online commerce will outstrip the inven-
tory. When that happens, either the online shopper gets shorted,
or the in-store shopper arrives at the shelf after the online order
has een f l lled and the item is o t of stock.
Both scenarios are unacceptable, brand damaging, and completely

contrary to the goals and strategies that drove you to a multi-
commerce strategy to begin with. You can look to your antiquated
legacy decisions to keep those old systems around as the primary
culprit.
Consider hether yo r o system rocesses are creating an

impediment to your connected enterprise.
Recognizing workforce skill gaps

Essential to every great organization are workers who have the
right skills to erform their o s. Today s orkforce is a ected y
several major contributing factors that you can’t ignore. Is your
company ready? These factors include:
» Demographic shifts: Millennials (born between 1982 and

2004) are taking over and they have di erent ideas about
work Millennials believe that work should integrate more
easily into their daily life and should not be confined to
specific working hours as it was in the traditional “nine-to-
five” lifestyle That belief is in con ict with customer service
norms in the food industry If you re unprepared to accom-
modate Millennials preferences you may be behind the
curve and have to rethink how you attract top talent
» The lack of skills for new work: Employees need cohesive
onboarding ongoing training and performance manage-
ment to meet the challenges of the new workplace This
means investing time and money right now to provide the
right technology and training
» Competition from non-traditional companies: It seems
everyone sells food these days which means your new
competitors may be scouting your pool of employees right
this minute This trend will challenge employee loyalty and
could force pay levels to increase
Your ability to recruit from social media directly a ects your
workforce If you can t recruit from social media you need to
modernize your HR function
» Rede ning customer service: Because of the constant
changes in all aspects of the business companies are
rethinking what great customer service means The constant
pressure to cut store labor can create an “empty store” feel
and drive shoppers who want more than a box of Cheerios
to stores that appear to cater to their needs The move to a
higher-priced value-added workforce can yield enough sales
and margin to more than o set the costs So it s smart to
look at store labor versus a constant attack on head count
» Complexity: Products and services are more complex Your
workers must be prepared to deal with the challenges of
global regulations and re uirements as they collaborate with
workers around the world
Extending the supply chain network
One of the key features of the new digitized company is the abil-
ity to immediately res ond and deli er rod ct modi cations. For
food manufacturers, these innovations can include such things as
changes to ingredients on the y or the need for more ersonal-
ized labeling.
Enter the new supply chain network. You can no longer be com-
petitive if you haven’t developed an extended supply chain. An
extended supply chain requires collaboration among all the part-
ners and the ability to see what materials are available in your
artner s in entory. Colla orate e ecti ely, and yo ll e a le to
deliver the customer experience exactly as the customer wants it.
So, what has created the need for the new extended supply chain?
SAP lists the following four conditions (https://news.sap.
com/why-3d-printed-food-just-transformed-your-supply-
chain/):
» Demand for individualized products: Customers no longer

accept products that don t meet their needs so your supply
chain has to be prepared to “turn on a dime ”
» The growth of the sharing economy: The sharing economy
has made it very easy for partners to share resources and
outsource parts of the manufacturing process This trend
also facilitates the “direct to consumer movement” men-
tioned in Chapter
» Resource scarcity: This refers to not only the contingent
workforce but raw materials that are in short supply because
of bad weather and other economic conditions
» Customer-centricity: A relentless focus on the customer
re uires that you change products to meet unexpected
demands
Providing live inventory information

Inventory management has never been a productive activity.
In the past, lots of hand-counting and manual processes were
woven throughout the supply chain. Happily, technology has
made inventory management a more productive process.
But because shoppers have higher expectations about getting their

items immediately and correctly, companies must up their game
again. They need to invest in demand sensing and live inventory
management. The good ne s is that se eral ene ts accr e to
those organizations that spend the money to update their sys-
tems. These are a fe of the ene ts
» You can determine the exact amount of inventory you need

so that you don t have money tied up in overstock
» You can price items more accurately when you know exactly
what s on hand
» You can collect accurate data to use in your predictive
analytics
» Your perishable assortment can become visible and
subse uently more accurate and in line with demand This
enhances uality and prevents food waste
In addition, live inventory management provides these advan-

tages for your customers:
» Your customer service is viewed as being responsive to

customers needs
» Customers know when you are out of stock and can substi-
tute an item if they need it immediately In-store out-of-stock
is the fastest way to lose customer loyalty Online stock
transparency with shoppers helps avoid this pain
Creating an End-To-End Solution

Most retailers and food manufacturers understand that they
can no longer make small, incremental changes to their orga-
nization and hope to be competitive. The steps you need to take
to achieve modernization require a good deal of planning and
company-wide participation. Here’s a brief look at the seven
ste s that SAP recommends to hel achie e an end to end sol -
tion see Cha ter for more on this to ic
1. Develop a vision and strategy: Start with the customer and

move outward Determine the level of engagement you want
to provide and plan your strategy from there
Ask yourself: How will this strategy a ect our competitive
advantage?
2. Assemble the core team: Make sure you include every
internal stakeholder so that the brand experience strategy
matches the consumer engagement strategy
Ask yourself: Who will be accountable for the end-to-end user
experience
3. Perform a gap analysis: You want to know what is working
and what isn t Determine how your vision di ers from the
engagement you actually deliver
Ask yourself: Do you really know the context your consumer is
in at any given moment
4. Create the project plan: Supply a road map to all stakehold-
ers to ensure that they know what goals they are expected to
meet along the way
Ask yourself: Do we have consensus on all the di erent parts
of the plan?
5. Identify the outcomes: Determine the three outcomes that
are most important to achieve
Ask yourself: Do our outcomes include revenue goals internal
business goals and conversion of shoppers to advocates
6. Specify the core competencies: Look at such things as your
platforms and systems data management and the develop-
ment of your omni-channel experience to determine the core
competencies re uired
Ask yourself: Have you identified all the core competencies
that must be in place to achieve success
7. Build the business case: Think through the return on
investment (ROI) for all the cost areas
Ask yourself: Have you highlighted all the investments needed
to assure your management that you have taken all re uired
expenditures into account
IN THIS CHAPTER
» Asking the right questions to create a
digital strategy
» Solidifying a digital core with the SAP

HANA platform
» Understanding the value of live business
Chapter 5
Delivering Solutions
T
he food industry is at the dawn of the next big technology
change where everything is connected and software is
embedded in the devices we use in our daily lives. Businesses
across the farm-to-fork chain require a simple approach to build-
ing a pragmatic and realizable vision of their digital strategy.
This chapter looks at the key questions you need to ask as you cre-
ate your corporate vision. You also see the solutions that SAP can
deliver to create a powerful digital strategy for your organization.
Creating A Digital Strategy

It’s the best time to run a food business. It’s the worst time to run
a food business. Success or failure depends on your digital strat-
egy. So what are the essential things that you need to do to ensure
corporate success? You need to
» Reduce complexity in business processes and simplify

technology.
» Deliver end-to-end, outcome-based business solutions.
» Ensure that predictive data delivers the best business
results.
CHAPTER 5 Delivering Solutions 35
Asking Key Strategic Questions
These are formidable challenges. To ensure that your plans will
s cceed, yo sho ld egin y ans ering these e estions, as
sho n in Fig re
» How can we have no technological limitation in our core

business?
» How can we excite our workforce in a hyperconnected
world?
» How can we conduct transactions faster in our supplier
network, sharing smart data securely and in real-time?
» How can we connect our assets and products in real-time to
create an organization that is always responsive to
customers?
» How can we build the digital front-end for a better customer
experience and more new customers?
FIGURE -1: Questions you need to ask to develop a digital strategy.
Finding Five Ways to Build Success

To guide you through the process of answering those questions,
SAP has de ned the follo ing e illars, as sho n in Fig re .
FIGURE -2: The SAP HANA platform with the key pillars.
Digital Core with SAP HANA platform

This digital core enables immediate insight, intelligence beyond
automation, and integration, not only between departments but
between the company and the world. A new in-memory comput-
ing aradigm sim li es rocesses and ro ides the latform for
innovation and digital business.
SAP S/4HANA can enable a complete 360-degree view of con-

s mers y merging cons mer ro les ith eha ioral data from
multiple channels, allowing marketing, sales, supply chain,
manufacturing, and innovation to respond with personalized,
outcome-based products and services.
SAP S/ HANA and arti cial intelligence create the otential for a
whole new user experience and way of working. The technology
drives productivity by sensing, analyzing, optimizing, and acting
in the moment of need.
Workforce engagement
People with access to digital, consumer-grade technology work
smarter, faster, and etter. Here are some of the ene ts that
sing SAP soft are tools ro ides
» Attract the best workforce: Recruit and onboard the best

workforce, simplify their work, and ensure that regulatory
and compliance requirements are met.
» Manage the total workforce life cycle: Manage the total
workforce life cycle from recruiting to onboarding, perfor-
mance, compensation, and learning, all in one place.
» Create smarter apps with greater user experience:
Enable the workforce to easily access the right information
across any device and through a simplified user experience
Customer experience
Customers expect simple, seamless, and personalized experiences
across any channel. SAP Hybris provides a path for creating the
ne digital front office.
Make sure that any new system you bring into the organization
connects all the c rrent systems. The ne digital front office from
SAP is a single platform that brings together marketing, sales,
services, and commerce, fully integrated in real-time with back-
office rocesses in s ly chain, man fact ring, roc rement,
and nance to ens re seamless digiti ation of the entire con-
sumer experience.
SAP solutions for customer engagement and commerce powered

by the SAP HANA platform enable a 360-degree view of your con-
sumers and customers, real-time interaction, and sophisticated
predictive analytics, fully integrated with core transactional sys-
tems as sho n in Fig re .
This degree ie allo s yo to do se eral im ortant things
» Orchestrate business outcomes delivered across marketing,

commerce, sales, and service.
» Deliver personalized experiences in the moment and in
context with each interaction.
FIGURE - : The SAP platform enables a 360-degree view of the customer.
» Create a single, harmonized experience for your consumers

while minimizing costs and streamlining employee
engagement.
» Engage consumers and customers anywhere and at any
moment in their journey.
» Fully integrate with your core business processes.
Supplier collaboration
B siness to siness transactional efficiencies range from
sourcing and transacting to payment processing.
SAP S/4HANA gives you the capacity to digitize business pro-

cesses across your internal and external business operations. It is
the connection to your customers’ global partner ecosystems that
enables you to extend those processes externally beyond the four
walls of your business.
Internet of Things (IoT)
The most dramatic change in the digital economy is driven by
hyperconnectivity and the science of Big Data, transforming
nearly every business model.
As a res lt of the a ndance of conte t al information from

eather to social media trends to demand signals those ho
manage operations will have to rely on instant information to
anticipate new opportunities and challenges. The ability to use
instant information provides the entry point to live business.
Entire value chains will become fully transparent, and machine
learning will allow companies to predict trends and optimize
operations. These innovations will revolutionize the world of
business.
SAP IoT Sol tions is the rst IoT s ite in the market e i ed
with an IoT foundation based on the SAP HANA Cloud Platform. It
provides companies across industries with business solutions that
connect assets, goods, customers, and employees. Using SAP IoT
Solutions application services for IoT, SAP partners and custom-
ers can extend SAP IoT Solutions and build their own IoT-enabled
solutions.
IN THIS CHAPTER
» Taking an interactive survey to spot new
business opportunities
» Benchmarking your ability to monitor

real-time customer engagements
» Reviewing how the Internet of Things

changes your business
Chapter 6
Ten Key Resources
T
he future of food and the technology associated with food
shopping are moving at breakneck speed. This chapter has
lots of exciting interactive resources for you to check out.
They include checklists, benchmarking tools, and surveys.
Future of Food Predictions

http://go.sap.com/documents/2016/11/d6c5b9be-967c-
0010-82c7-eda71af511fa.html
A erfect storm of technology ingredients is de ning a ne

recipe for how food is grown, produced, sold, and experienced.
Check out SAP’s key predictions about how the food chain will be
revolutionized.
Digital Innovation and

Transformation Assessment
www.sapdigitaltransformation.com
From operations to mobile apps, and from in-store analytics to

in-the-moment replenishment, take this short SAP assessment
CHAPTER 6 Ten Key Resources 41
and get a tailored re ort o tlining ays yo can create in nite
business opportunities.
Digital Consumer Products

Readiness Assessment
https://valuemanagement.sap.com/VLM/?ID=608&isNew
UI=1&SurveyLanguage=English#/
Fifteen percent of Consumer Product companies monitor indi-

vidual consumer engagements in real time. Want to benchmark
yourself with your peers? Check out SAP’s benchmarking tool.
Breakthrough Technology Trends
http://www.digitalistmag.com/digital-economy/
2016/02/01/5-digital-trends-changing-business-
enabling-possible-03977910
Disco er e reakthro gh technology trends SAP has o tlined.

Learn how you can use them to shift your business models, pro-
cesses, and workplace to meet today’s outcome- and experience-
focused consumers.
Customer Experience Assessment
http://www.sap-epublisher.com/hybris-assess/go.
php?awh=1
From customer awareness to purchase and beyond, every food

shopper follows an individual journey. Are you giving them a
“Wow, this brand really gets me” experience? Take SAP’s cus-
tomer e erience assessment to nd o t.
Competitive Advantage Strategies
http://go.sap.com/documents/2016/07/08c40169-7e7c-
0010-82c7-eda71af511fa.html
Customer demands are often as unique as the customers them-

selves. Understand four key strategies delineated by SAP to sup-
port competitive advantages with individualized products.
Digital Business and Transformation
http://go.sap.com/solution/digital-business.html
Learn about digital transformation and what it means to be a dig-

ital business. Find out what’s driving the digital transformation.
Strategy for the Internet of Things
http://go.sap.com/solution/internet-of-things.html
Learn about the Internet of Things and look at the six things SAP
thinks you need to know when building your IoT strategy.
Future of Engagement and

Commerce Information
http://www.the-future-of-commerce.com
SAP’s Future of Customer Engagement and Commerce is a helpful

destination for relevant and timely information and analysis on
consumer-facing and business-to-business topics.
CHAPTER 6 Ten Key Resources 43
D!gitalist Magazine
http://www.digitalistmag.com
SAP’s D!gitalist Magazine covers the latest insights about the

digital economy incl ding nder the radar trends, ro les of
disruptive companies and technologies, and interviews with lead-
ing thinkers who are shaping the future of tech and business.
WILEY END USER LICENSE AGREEMENT
Go to www.wiley.com/go/eula to access Wiley’s ebook EULA.

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Manufactured in the United States of America

CHAPTER 1: Uncovering Trends in Food Shopping ......................... 3

CHAPTER 2: Serving The New Food Shopper ..................................... 11

CHAPTER 3: Digitizing The Shopping Experience ........................... 19

Table of Contents iii

CHAPTER 5: Delivering Solutions ................................................................ 35

CHAPTER 6: Ten Key Resources .................................................................... 41

iv Digitally Engaging Food Shoppers For Dummies, SAP Special Edition

Throughout the book, when I refer to the customer, I’m referring

The world of food retailing is undergoing a radical change and you

About This Book

This book also gives you a perspective on what you need to do to

The Remem er icon gi es yo information that yo ill nd hel -

The Technical St icon gi es yo more in de th information

2 Digitally Engaging Food Shoppers For Dummies, SAP Special Edition

» Recognizing the latest trends in ood

» Utilizing new technology and the

In this chapter, you see how the food industry is revolutionizing

Recognizing New Challenges

CHAPTER 1 Uncovering Trends in Food Shopping 3

» Consumers in charge: The balance of power has shifted to

There are great challenges, t the f t re o ers immense o or-

Do not wait to implement your online shopping strategy. Accord-

oo ing at Current Trends

4 Digitally Engaging Food Shoppers For Dummies, SAP Special Edition

Let s look at fo r ma or trends a ecting the food ind stry that

Delving into the individualization

CHAPTER 1 Uncovering Trends in Food Shopping 5

Don’t miss out on the advantages of personalization. According to

Understanding the direct

» Closer customer relationships: Engaging consumers

Digitally Engaging Food Shoppers For Dummies, SAP Special Edition

To prevent yourself from being broadsided by new trends, be aware

Mr. Wolfe discussed how food has become an individual experience

Shoppers expect grocers and food manufacturers to provide a

lurring industry lines

CHAPTER 1 Uncovering Trends in Food Shopping 7

Consumers have an explosion of food choices, and your competi-

Considering the impact o technology

» Hyper connectivity: People love to talk about what, where,

In addition, grocerants have a great opportunity to attract customers

8 Digitally Engaging Food Shoppers For Dummies, SAP Special Edition

Yo can t a ord to miss tackling any of these trends as yo

Using ne technology, yo can dri e a com etiti e ad antage y

The next section looks at a technology advance that is changing

Discovering the nternet o Things

According to Intel s A G ide to the IoT infogra hic, y ,

CHAPTER 1 Uncovering Trends in Food Shopping

So, ho does the IoT a ect the f t re of food retailing Yo e

» Automated manu acturing and connected logistics:

Digitally Engaging Food Shoppers For Dummies, SAP Special Edition

» Creating a 360-degree view that serves

» Using predictive analytics to personalize

» Focusing on tactics to engage shoppers

Descri ing the New Shopper

Getting to know your new customers

CHAPTER 2 Serving The New Food Shopper 11

» Time Starved: Professionals who have to feed their families

Ta ing the new shopping trip