>>live from Madrid, Spain. It's the Q covering HP Discover Madrid 2017 Brought to you by Hewlett Packard Enterprise >>Welcome back to Madrid, Spain. Everybody, this is cute. The leader in live tech coverage And we have a day to HP discover Madrid. My name is Dave Volonte with my co host for the week Peter Verse. Jeff, Carla is here. He's the senior director of solutions. Go to market system integrators at Hewlett Packard Enterprise and Kalyan Gara Mela. Who is the i o t manager? Deloitte. Yes, Gentlemen, welcome to the Cube. Thanks for coming on, You bad love too deep here. It's always a great time. Yes. So you know, when you come on with Deloitte, we always sort of mentioned you guys. One of the top system integrators in the planet. You got deep expertise and vertical industries. You guys bring the technology expertise. Last time we were talking about manufacturing. This time we're gonna talk about retail. Yes. Why? Retail, You know, retails in turmoil. Everybody's got numbers on war room. But you guys are going after that, helping some of your customers so to take advantage of their physical presence, bringing in an online presence move into digital. Is there hope there's hope, their retail dead? You know, >>I hear all the time about this retail apocalypse retail is dead, and in reality, it's not dead at all. Still, 85 to 90% of purchases were being going through a brick and mortar store problem here, and the apocalypse will happen to those brick and mortar retailers that don't change. They don't digitize and change to the changing demands of a consumer and the way they want purchase something, give you an example, my son or even myself. Now I increasingly want to do things through an experience. My computer, my mobile phone. I do research. I I want to understand. I want recommendations. I want personalization. I want to be catered to. I don't want to go stand in line. Well, that experience can be done but are unique. Ability. Is taking that experience in a planet into a brick and mortar environment? >>Well, I got to say I love going Cabela's with my kid with my wife. I mean, I could spend all day. Hey, get that on Callie and tell us about your you're rolling. The Lloyd, obviously specializing in the retail practice. What, Your background? >>Yes, my name's Kalyan. Gotta Mila being a coyote manager from the >>delight you >>practice based out of San Francisco, and we have been working with our partners and friends. Hitch be Aruba over the past year or so, helping them dollar, I ot go to market projects, products that can be that we can take to market on Dhe. Recently. We're just working with manufacturing and retail industry. >>So what's the conversation >>like with your customers? As I said, everybody's got an Amazon war room they're trying to figure out. Okay, >>how do we leverage our physical presence as an advantage? What were the conversations like with clients with >>our clients? Mostly that talking about How did the mimic our online channels? Right. If I go to an online retailer, you know, if I go open, say amazon dot com, they know exactly what item I am for chasing where I'm going next. What? How much time I'm spending. So in order to differentiate the brick and mortars in order to differentiate themselves from the fellow retailers, they have to offer that customized shopping experience in order to get given a reason for the customers to come in store and make that purchase. So they're trying to look at what new technologies that we can can we can help with. What are some of the new processes that we can help with? And that's where most of our conversations have been going on, >>Really experience. Problem >>it is. And you talk about the bells and I moved into a new house, ready to buy my big >>lazy boy chair and watch Sunday >>football, and I'm not gonna go online just by here. I want to touch and feel that I was late and I want to understand. Well, that is a perfect opportunity of providing an experience. Allows me to do the research, get suggestions, go into a brick and mortar store. Try it out, then guess what? I'm getting personalized. Hey, you know what? There's a nice beer stand that I could put right next to that table. Be calm, perfectly complemented. Hey, there's a light that can look over So we have that ability of actually tying together and experience, actually predicting in advance what the customer really doesn't know they want next. But they really do want example. We just walked out of a client engagement. Beautiful example. Plan Engagement sells high end women's fashions, right dresses and shoes and accessories. Everything. And he's He basically said, We're dabbling around with R F I. D tags, um, inventory management, but we don't know what to do, right? Bingo. We now have a proven, referenced architecture called the Connected Consumer. This is a preview to be announced to be soon, but that can allow, actually that client to integrate and optimized and digitized the solution for a number of different use cases that spans a unique customer experience in store operations and efficiencies, and then providing insights through analytics in store analytics to make decisions quickly. So you've got by using this architecture building of solutions based with Deloitte Competence season capabilities in HPD Aruba technology. We can deliver that to increase top line revenue, increase basket side, decrease inventory costs, lost inventory and provide much greater brand loyalty to those customers by having a nice, personalized teachers. They know me by name. They know what I'm looking for in advance. Beautiful solution. >>So the online retail world did two crucial things. One is provided new way of customer to buy something and number two, it provided a new way for the retailer to learn something about the customer. Very, very powerful. But as you said, we're still last time. I checked physical things that move through space that used physical senses, too. Make decisions, Tactile. Do I like the color? You know the experience. I mean, I remember having arguments with people about whether the Apple stores are ever gonna have any impact in the world. And, boy, did they prove that experience of physically being there matters. So in many respects we're talking about, We're talking about creating spaces, the correspond to the experience that a customer wants in a way that doesn't force them into another channel. >>I think that is excellent. Thank you will hear security and character talks about who these are Aruba team. And they are renowned for taking a space and providing using technology and I, t and software and security to provide a total experience, an immersive experience for those that are occupying that. >>But that's not how retailers used to think. What they used to think was this is the space where I put my inventory where I show my product and then I'll put the catch register over here. What you guys I presume we're trying to do is show how. Show them how they could turn that physical space into a place that can bring in the online digital elements, complimented in a way that makes that door a source of different jack >>experience in the brick and mortar store and allows the comfort of Yeah, you know >>that makes it differentiated so that someone wants to go there, because that is a valuable experience in and of itself. >>And sadly, retailers of the past 40 years have always relied on big brand names to attract customers. If I have the best brands in the world, customers will come to me back. That scenario doesn't hold true anymore. You need to give them a reason. A personalized, curated experience for them to come in >>well, not least of which is the digital technology allows us to spin up new brands like overnight and so also so there's a there's it's having an erosion of effect on the other side of the inventory. So tell us a little bit about where you think over the next few years that differentiated in store experience is gonna be what is going to constitute great retail. >>I'll start enough shit. >>First and foremost, the expectations of millennials and other generations is more of that online experience. So I think I think retailers of the future have to be able to provide that customized experience. To be able to provide predicted people are not waiting in line is not an option in the future, right? I mean, even you. You look a waiting in line is not an option. I think that ability of you have to have more instantaneous gratification but allowing, if you will, the personalization being covered. I think that one expectation for those that want to sustain a business in retail in the future >>and add on to that right. I mean, the marketing managers are the store managers of the past have always relied on opinions rather than data and insights to make this better business stations. Where do I place my product? Where are my customer spending most of my time? It's just guess it's most of it was guessing. Now there is a technology out there where we can actually monitor what's happening inside your retail store and dead. While you can make better business nations to help you with your customer journeys, >>traffic, foot traffic, you know through video analytics and the data someone's hanging around the Nike booth or whatever you know financially, and you can purposely point them and give them suggestions of 20% off. And so you can personalize that experience. >>So wait. See Io client on DDE that's in the retail space on the way he described it is, you gotta break the whole thing down. Let me test you guys. You have a period of I want the experience of shopping on. The example that he gave me was a bike company a number of years ago who used flexible manufacturing to collapse the time high end bike to collapse, a time from order in the bike, getting the bike down to a few days. And they failed because the customer like waiting the process of buying, reducing time. Simple, straightforward, but also what they said. And this is the kind of flexibility we're talking about is some people don't wanna walk out of the store with the product they want to deliver to their home, so the store is again, not the place where the inventory is. It's the place where you experience the product and that they create an option. How would you like that? I like to be delivered to my house. No problem. There you go. Is that the kind of thing that we're talking about in the future? >>Absolutely. We call it the unified commerce of the Arm and channel shopping experience. You want to give the customer all the options available. Like you said, I could buy online shipping in store O. R. I can buy in store get into my house all the different options that a customer is looking for. A non online channel, which is easy and convenient. We want to do that in a brick and mortar as well, and our solution can help you do that as well. So you >>guys encounter a client that is, you know, declining same store sales management is concerned about, You know, the future. It seems like it's a tired sort of experience and, you know, that's sort of the end of the spectrum. And you want, you know, the to be his future. Stefano, the talk about where do you start so >>who brings what experts is. >>Actually, I'm gonna repeat what I said last time. Our mantra is First off, you gotta think big. Then you start small and then you scale fast. And what I mean, that what we mean by that is with the Lloyds capability. It's been a week and jointly come in and help a retailer. Let's think it through. Let's think you have how many branches looking to wear? What are your problems? What your inventory leak age. You know what your current experience, but you're in store WiFi. We can build a plan on what we can do. But the next big problem that we see is not about the technology is about the people in the process. How do you convince its How do you commit? Some who invest to change well, this through our proof of concept capabilities, we have the ability of starting small. Let's just go in and we can do through this architect modular proven architecture. We could do a starting Well, let's just start with some R F I. D tags and tags and start small. We can deliver the business value and calculate that and extrapolate that out if we apply that to your all your stores and scale fast. So we're making it. This be an on ramp for those retailers because they're saying what I do. I know I need to change, but what do I >>So you do like a test store model, right? Okay. And then what? That's your POC is actual. >>Yeah, And then So I wanna go back a little bit on this whole coyote offering. It's a composite offering, right? It takes a lot of technologies coming together and a lot of SMEs subject matter experts to come in and help you to build a whole solution. And that's where I think our solution is where it's ready to go, where all the pieces have been put together and can be easy from day one. The time to market has been drastically reduced because of this. Right? So we see a lot of value in that. >>So So you're able to say Okay, what kind of target customer? What kind of inventory? What's the cost of it? What's the turn? Take all those business attributes and then say we can map that back into a set of physical and system components that you can scale fast >>really comes around you. Three buckets were doing this to optimize an increase revenue, basket size conversions, everything timed revenue, decrease costs, efficiencies and inventory logistics people, uh, labor. And then providing a much greater experience of brand loyalty, which will also affect both costs and >>capture and capture additional data. So, for example, returns means two things costs, but also, somebody had a problem. >>So, uh, we're out of time, but so summarize kind of where you guys were at, >>uh, your solutions when it's gonna be available, you go to market, give us the >>tickets. That right now we're here at HP discovered we're previewing this connected consumer architecture. We're will deploy it. Calendar quarter one of next year will be the full announcement. We have contact information. We would love to engage in clients and start that discussion now around doing proof of concepts on dhe. We're going to be not only driving this collective retail solution that could be extrapolated into different use. Cases in markets were also continued to drive the Moorman industrial Internet of things and manufacturing offering around predicting maintenance, asset monitoring, maintenance that we talked about in Vegas. >>Great. Well, I hope next next Vegas come back with some examples and some a customer, and we could go through so that one of impact you've had, maybe you'll be through a POC. At that point. I'd >>love to get the cube into one of their poc >>a well loved. All right, guys. Thanks very much for coming on the Cube. All right. Good >>to see you. See? All right. Thanks. Keep it right there, >>buddy. We'll be back with our next guest day. Volonte for Peter Burke alive from Madrid 17.