1. Omnichannel is Here to Stay
Santiago Gallino – Tuck School of Business
Toni Moreno – Kellogg School of Management
January 2017
July 2013 – LBS – London, UK

2. Learning Modules 1. Demand forecasting 2. Inventory Decisions
3. Assortment Planning
4. Pricing Decisions
5. The omnichannel customer
6. Fulfilling omnichannel demand
7. Omnichannel journeys
8. Supporting an omnichannel strategy

3. M8.5 Legacy Structure 1 Involves the whole company.
It is one retailer not multiple channels.
Legacy Structure and how to adjust. If you start the company today you will do something different.
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

4. M8.5 Align Incentives 2 Given the current structure:
Complement not compete
Here is the main challenge for retailers with legacy structures and systems
Incentives impact employees directly
Sales in a ZIP code go to the store
Online store is rewarded by total sales increase
Public vs Privet companies and long term vision.
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

5. M8.5 Operational Implications3
At the end of the day is all about execution.
Not every innovation is for every retailer.
Need to recognize that you might need to do things you don’t know how to do… get the right team.
Rethink your process. You might need to start from scratch.
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face

6. M8.5 Omnichannel Connections4
Customers will keep pushing the to integrate the experience:
Mobile Coupons
Mobile Transaction
Live Chat
Buy through Chat
Shop box
And the list continues. We know that not all of them will be here in a few year but customers will continue to demand a seamless experience.
Home depot – Trader Joe’s
Nordstrom – Banana Republic – The North Face