1. Omni-channel Maturity Analysis Lester Allan Lasrado Copenhagen Business School 28 th Jan 2016

2. Structure of this slide-set (Report) First part is on data collection – Who answered, how many, are they from B2B, B2C, what is the size of the company, etc. This follows with average maturity (across the six Omni channel dimensions), industry wise, size wise, specific cases, etc. Finally the Last part, I answer specific questions asked by Stine followed by my recommendations for future work.

3. Part 2 Demographics

4. Demographics- 1  272 respondents tried the Omni channel survey. 228 were mapping real organizations, while the rest tried out of interest.  172 of 228 (75.44%) respondents who started the survey completed it.  Size of the company with more than 1000 employees forms 30% of the data, while less than 50 account for 20% each.  B2B, B2C, B2B & B2C are three categories with 56, 45 and 71 respondents respectively.  Number of respondents by Size of Company Vs. Market Orientation is given below # of completed responses

5. Part 2 Omni channel Maturity

6. Distribution of Overall Omni-channel Maturity  Total Omni-channel Maturity = Sum of the six Omni- channel Dimensions.  Data follows a nice Normal Curve (bell curve), with mean around 8.1 and a standard deviation of 2.75. There is statistically no difference between the first 90 responses (June – Sept 2015) and the last 82 responses (Sept 2015 – to Jan 2016). Hence we can infer that nothing much has changed on Denmark with regards to Omni channel maturity over the last 5 months *All the six Omni channel dimensions has similar pattern, thus making it possible to apply factor analysis, cluster analysis and other statistical techniques in the future. The data follows the fundamental principle of the central limit theorem.

7. 6 Omni-channel Maturity Dimensions  Individual respondent is mapped against average maturity score across all 6 dimensions.  As described earlier, Total Omni- channel Maturity = Sum of the six Omni- channel Dimensions and has a mean average of 8.1.  Performance Analysis scores at 1.612 while data collection and communication & service score at 1.17 & 1.08 respectively -> It is evident that the average Danish organizations are at level 1 of the Omni channel maturity, whose rating is from 0 to 3.  Map your organization and find out where you stand against the average. What about top 25%?

8. 6 Omni-channel Maturity – Top 5 & 25% performers Top 5% and 25% along with the average scores can be seen. E.g. Performance analysis -> Average score of the entire population is 1.61, whereas the top 25% scores 2.08 with the top 5% at 2.53. If one wants to be in the top 5%, then they must score around the 2.53 mark. Similarly other dimension maturity scores can be inferred.

9. Industry wise Omni channel Maturity -1 Mean = 8.115  Arts, entertainment & recreation score higher than wholesale and retail trade, while manufacturing, transportation and storage scored on a lower side. We can thus hypothesize that probably company with B2C orientation would score higher than B2B (next slide).  Interestingly respondents who did not find an industry type or chose other services also scored less than the mean.

10. Company Size & Omni channel Maturity 24% 76% 46%54% 46% 50% Mean = 8.115 The distribution of organizations is evenly spread across the population mean (8.1) in case of organizations above 50 employees, while 76% of organizations with employees less 50 are below the mean (8.1). Company Size-wise breakdown of Omni channel paints an interesting picture. There is a very clear indication that large organizations (50 & above) perform significantly better as compared to smaller ones.

11. Impact of market orientation & size on Omni channel Maturity Max score Min score Average score Number of Respondents Organizations with less than 50 employees see an Omni channel maturity increase of 29% (5.96 to 7.26 to 9.51) as it moves from being oriented from B2B To B2C. It sees a constant 29% step wise increase. Therefore we can infer that a component of B2C orientation has a positive impact on an organizations (less 50 employees) Omni channel initiatives. While organizations with size of 250 to 999 seem to have no significant influence with regards to B2B or B2C orientation. Organizations with employees greater than 1000 see increase in maturity from B2B to B2C, however B2B & B2C scores slightly above only B2C orientation (i.e. 6.62 to 8.94 to 8.53). We can infer that for large organizations (above 1000 employees) operating in both B2B & B2C equally orientation has a positive impact on its Omni channel initiatives. Organizations with size of 250 to 999 has a different trend pattern i.e. Companies with strictly B2B or B2C orientation perform much better (9.36 & 9.37) as compared to companies with both B2B & B2C orientation.

12. Part 3 Answers to specific questions

13. Is there any business areas doing better on Omni channel that other businesses? Which? My Answer: Yes, Overall assessment of Omni channel maturity, Entertainment & information industry perform 17% higher than the average. Finance and insurance also performs 5% higher than the average. (* Refer Slide 11 for other details) However the maturity within these areas vary, hence we would further investigation and this should be part of future work at NBI. E.g. Below is the variation of Omni channel maturity across the Entertainment industry in Denmark. You see that variation from 7.26 to 12.72; however in general 80% of the organizations perform above average (i.e. 8.1)

14. What is the area in the hexagon where businesses (all together) perform the best - and worst? My Answer: Performance analysis dimension is something that all the organizations on an average perform the best. Communication & service, data collection are the two dimensions that all organizations perform worst at. Detailed Answer: The three graphs on your left provides you with scores for the average of all organizations, the top 25% performers and finally the top 5% performers. E.g. In case of Organizing and management -> On an average this dimension is just below performance analysis (rank 2), however the top 25% ranks this dimension at 3 and the top 5% it ranks at 4. By this we can infer that probably it organizing and management becomes more important in achieving Omni channel maturity as you climb up the Omni channel ladder.

15. Is there a difference in performance between big and small companies? My Answer: On an abstract level Yes, we can confidently say that organizations with employees less than 50 employees perform worse than organizations 50 and above. However, beyond that one needs to look at the market orientation along with the size (Please refer slide 13 for details)

16. What are the bigger companies better at than the small? What are the bigger companies better at than the small? Does it mean you are always good at Omni channel if your company size is above a certain point? My Answer 2: The smaller companies (less than 50 employees) perform better than equal to the rest of the companies when it comes to Performance analysis and Organization & management. In fact in organizing and management they perform much better. My Answer 1: The smaller companies (less than 50 employees) perform worst when it comes to data collection and discovery as compared to the rest of the companies. So yes, when it comes data collection and discovery the larger companies (> 50 employees) definitely perform better than companies with less than 50 employees.

17. What in the hexagon is the biggest companies best at? Is there any difference on performance when it comes to geography? My Answer 2: Unfortunately I do not have data for organizations outside Denmark. Within Denmark, we do not have enough answers to go regionally. My Answer 1: You can infer from the graph below or pervious slide. E.g. Communication and service is bad for both less than 50 employees and 250 to 999 as compared to rest.

18. Which area of the hexagon are the financial companies strongest at? My Answer 2: For all six dimensions and comparison with other business areas please check slide 11 or picture below for comparison. My Answer 1: Smaller financial companies (i.e. 50 to 249) have higher Omni channel maturity than the ones with greater than 250 employees. All Respondents from across business areas (140 respondents) Only financial industry (21 respondents)