Competing in an ever-faster, changing world NASSCOM, September 2014
Forward Looking Language
This document includes “forward-looking statements” within the meaning of the Private Securities...
Competing in an ever-faster, changing world
Lowe’s – a quick introduction
Accelerating Seismic Shifts – Lowe’s Approach ...
Business Overview*
United States
•~$640 Billion Home Improvement Market
Lowe’s Home Improvement
•1,717 stores with onl...
Current Multi-Channel
4
Strategy Overview—U.S. Home Improvement
STORES
ONLINE/ MOBILE
PROJECT SPECIALISTS IN-HOME
CO...
Making home improvement easier on the front end while managing the integration and complexity behind the scenes
5
Omni-C...
6
Mobile at Lowe’s
Product Locator/Shopping List
Weekly Ad
myLowes
Four Mobile Platforms Efficient transacting, yes, ...
Associate Platform: Helping customers Easier tasks in the aisles
Mobile at Lowe’s
Line Busting
Inventory Maintenance
F...
Virtual Reality /Visualization – Lowe’s Holoroom
Customer’s can have a hard time seeing the possibilities Lowe’s is worki...
Virtual Reality /Visualization – Lowe’s Holoroom
visit: www.LowesInnovationLabs.com
The Internet of Things - IRIS
Lowe’s already sells every-’thing’ for the home…..and we can shape the integration Energy M...
The Internet of Things - IRIS
Iris comes in three different starter kit packages, each with a set of devices specific to ...
Big Data – Lowe’s Approach
Measure & Evaluate Integrate new data Create insights Most importantly, Impact decision-making...
Big Data – Lowe’s Approach
Improved mapping of customer’s home improvement journey, identifying gaps and stall-points for...
Accelerating Seismic Shifts – Lowe’s Approach
Omni-Channel – Customer Experience Driven
Mobile – Customer/Associate Ex...
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NASSCOM BPM Summit 2014 : Keynote : Competing in an ever faster changing world - Kelly Ross, Lowes Corporation

Presentation by Kelly Ross, Lowes Corporation in NASSCOM BPM Summit 2014
Published on: Mar 3, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - NASSCOM BPM Summit 2014 : Keynote : Competing in an ever faster changing world - Kelly Ross, Lowes Corporation

  • 1. Competing in an ever-faster, changing world NASSCOM, September 2014
  • 2. Forward Looking Language This document includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Statements of the Company’s expectations for sales growth, comparable sales, earnings and performance, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for services, share repurchases, the Company’s strategic initiatives and any statement of an assumption underlying any of the foregoing, constitute “forward-looking statements” under the Act. Although we believe that the expectations, opinions, projections, and comments reflected in these forward-looking statements are reasonable, we can give no assurance that such statements will prove to be correct. A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by our forward-looking statements including, but not limited to, changes in general economic conditions, such as the rate of unemployment, interest rate and currency fluctuations, higher fuel and other energy costs, slower growth in personal income, changes in consumer spending, changes in the rate of housing turnover, the availability and increasing regulation of consumer credit and of mortgage financing, inflation or deflation of commodity prices, and other factors which can negatively affect our customers, as well as our ability to: (i) respond to adverse trends in the housing industry, such as the psychological effects of lower home prices, and in the level of repairs, remodeling, and additions to existing homes, as well as a general reduction in commercial building activity; (ii) secure, develop, and otherwise implement new technologies and processes designed to enhance our efficiency and competitiveness; (iii) attract, train, and retain highly-qualified associates; (iv) manage our business effectively as we adapt our traditional operating model to meet the changing expectations of our customers; (v) maintain, improve, upgrade and protect our critical information systems; (vi) respond to fluctuations in the prices and availability of services, supplies, and products; (vii) respond to the growth and impact of competition; (viii) address changes in existing or new laws or regulations that affect consumer credit, employment/labor, trade, product safety, transportation/logistics, energy costs, health care, tax or environmental issues; and (ix) respond to unanticipated weather conditions that could adversely affect sales. In addition, we could experience additional impairment losses if the actual results of our operating stores are not consistent with the assumptions and judgments we have made in estimating future cash flows and determining asset fair values. For more information about these and other risks and uncertainties that we are exposed to, you should read the “Risk Factors” and “Critical Accounting Policies and Estimates” included in our Annual Report on Form 10-K to the United States Securities and Exchange Commission (the “SEC”) and the description of material changes therein or updated version thereof, if any, included in our Quarterly Reports on Form 10-Q. The forward-looking statements contained in this document are based upon data available as of the most recent quarterly release or other specified date and speak only as of such date. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf about any of the matters covered in this release are qualified by these cautionary statements and the “Risk Factors” included in our Annual Report on Form 10-K to the SEC and the description of material changes, if any, therein included in our Quarterly Reports on Form 10-Q. We expressly disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, change in circumstances, future events, or otherwise. 1 Strategy Overview
  • 3. Competing in an ever-faster, changing world Lowe’s – a quick introduction Accelerating Seismic Shifts – Lowe’s Approach Omni-Channel Mobile Virtual Reality Internet of Things Big Data 2 Agenda
  • 4. Business Overview* United States •~$640 Billion Home Improvement Market Lowe’s Home Improvement •1,717 stores with online, contact center and in-home / on-site capabilities •Average 112,000 square feet of selling space •Strategic Focus—Asset productivity through improved capabilities within existing channels Orchard Supply Hardware •72 stores with online capabilities •Average 36,000 square feet of selling space, offering a product selection focused on paint, repair and backyard categories •Strategic Focus—Operate under its own brand accessing high-density neighborhoods on the West coast International Canada •~US$40 Billion Home Improvement Market •35 stores with online capabilities •Strategic Focus—Build scale while continuing to evaluate expense structure Mexico •~US$25 Billion Home Improvement Market •8 stores •Strategic Focus—Build scale while continuing to evaluate expense structure Australia •JV (1/3 ownership) with Woolworths •38 Masters stores with online capabilities •Strategic Focus – Build scale while continuing to evaluate expense structure India – Announced May, 2014 •Bangalore Customer Support Center •Strategic Focus – Leverage in-country technology and analytic ecosystem developing and managing proprietary capabilities 3 Strategy Overview *as of January 31, 2014
  • 5. Current Multi-Channel 4 Strategy Overview—U.S. Home Improvement STORES ONLINE/ MOBILE PROJECT SPECIALISTS IN-HOME CONTACT CENTER Plan Purchase Fulfill Plan Purchase Fulfill Future Omni-Channel MyLowe’s Enhanced Mobile Technology: iPhones & Product Locator Flexible Fulfillment: •Buy online pick up in store •Buy online parcel ship from distribution network •Buy online deliver from store New Project Management Tools Expanded Fulfillment Capabilities
  • 6. Making home improvement easier on the front end while managing the integration and complexity behind the scenes 5 Omni-Channel enabling home improvement CUSTOMER EXPERIENCEOMNI-CHANNEL INTEGRATIONMAKE PROGRESSENJOYMENTGETSUPPLIESSTARTSIMPLEINTRICATECONTACTCENTERMYLOWESTRUSTOptimal Source: DistributionAccessibility: Flexible FulfillmentIntegratedView of the TruthGlobal SupplyMOBILECapabilities: Innovative TechnologyLocalizedStorePERSONALSupport and Knowledge: CSCPLANNINGFINISHCINSPIRATION
  • 7. 6 Mobile at Lowe’s Product Locator/Shopping List Weekly Ad myLowes Four Mobile Platforms Efficient transacting, yes, but focusing to help customers and associates
  • 8. Associate Platform: Helping customers Easier tasks in the aisles Mobile at Lowe’s Line Busting Inventory Maintenance For More Information: NASSCOM in October Sean Bartlett Director, Digital Experience, Product, Omni-Channel Associate Consumer
  • 9. Virtual Reality /Visualization – Lowe’s Holoroom Customer’s can have a hard time seeing the possibilities Lowe’s is working to make virtual reality a reality in home improvement
  • 10. Virtual Reality /Visualization – Lowe’s Holoroom visit: www.LowesInnovationLabs.com
  • 11. The Internet of Things - IRIS Lowe’s already sells every-’thing’ for the home…..and we can shape the integration Energy Management•Analytics•Thermostat •Smart Plug •Optical Meter Reader •Clamp •Integrated Metering •Water Monitoring •Gas Monitoring •Oil Monitoring •Ceiling Fans •Water Heaters •Water Filters/Purifiers •Temperature Sensors •Humidity SensorsHome Monitoring•Motion Detectors •Door/Cabinet/Window Sensor •Key Fob •Keypad •Panic/Help Button •IP Video•Motion Detector(pet tolerant) •Water Sensor •Fire Detector •Carbon Monoxide •Directional Detectors •Device Tagging •Safety Home Automation•Door locks•Wall Switches (Int/External) •Wall Plug Sockets (Int/External) •Controllable Light bulbs •Window Blinds •Water Shut Off Valves •Window Shading •Garage Doors •Humidifiers/Dehumidifiers Vehicles•Car Integration•EV Charging •Prox sensing •Maint DataRenewables•Solar Panels •Wind Generators •StorageSenior Care•Help Pendants •Activity monitoring•Bed Sensors •Location Based Sensors •Medical dispensers •Automated doors •2 Way Voice •Stair Lifts •Mobility Vehicles Pets•Door Flaps •Location monitor •Feeders Garden•Irrigation Control •Pool Pumps •Pool Heaters •Machinery (Mowers etc) Support Services•My Lowe's •installation•Utility Rates •Appliance Repair•Pro Monitoring •Insurance •Nurse Call •Location-based services Appliances•Fridges/Freezers •Washers/Dryers •Cooking •Misc devices•HVACOther Property•2ndHome•Parents•RVs, Boats
  • 12. The Internet of Things - IRIS Iris comes in three different starter kit packages, each with a set of devices specific to the following customer needs: Home automation Safety and security Energy and environmentally focused Offer Smart Home product starter kits with á la carte options Overlay simple, tiered services with low priced entry levels A simple, single UI for mobile and the web. The Services Allow consumers to move easily between the service options Free – Basic $9.99– Premium Then just keep adding new devices and services
  • 13. Big Data – Lowe’s Approach Measure & Evaluate Integrate new data Create insights Most importantly, Impact decision-making frameworks Test and Learn for Insights Business Reporting and Analyses Opportunity Identified Set Metrics & Measurement Plan Perform and Monitor Identify Variances and Root Cause Hypothesis Data Analysis Insights Decision Impact Applied to both new market opportunities operational optimization
  • 14. Big Data – Lowe’s Approach Improved mapping of customer’s home improvement journey, identifying gaps and stall-points for strategic and operational actions PlanPurchaseFulfillmentResearch, Planning, InspirationBuying product and projectsProject Completion, Enjoyment.comWeek 1Week 2Week3Week3.5Week4.comWeek5Week6Week7Week 8Start Over In-Home Quote.comCompletionInstallation
  • 15. Accelerating Seismic Shifts – Lowe’s Approach Omni-Channel – Customer Experience Driven Mobile – Customer/Associate Experience, Seamless Integration Virtual Reality – Lowe’s Holoroom Internet of Things - IRIS Big Data – Insights creation for decision improvement 14 Summary How Lowe’s is managing accelerating technological changes Participate and learn Focused, in the context of mission and strategy; for Lowe’s, that’s improving the customer’s experience

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