GS1 Digital Lunch and Learn Session
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1 GS1 Digital Lunch and Learn Session Steve Bratt and Robert Beideman GS1
2 Outline Growth of Web Commerce Is There is a Unique and Critical Role for GS1? GTIN on the Web primer What Problems Will be Solved? What is our Approach? What Do We Need from the Community to Succeed? 2
3 Growth of Web Commerce 3
4 Globally, online will outpace offline sales growth by 3-5 X Much of offline sales will be influenced by online research USD billions 2,977 Retail sales by influence 3,155 +5% p.a. 3,799 3,636 3,478 Online sales 3,313 Onlineinfluenced offline sales CAGR Percent Percent of growth Offline sales e 13e SOURCE: Forrester Research (2011) 14e 15e 2016e In US, nearly 50% of offline sales will be influenced by online research
5 Millions of Users Mobile vs. Desktop Web Browsing Largest future growth will be mobile and emerging economies Source: Mary Meeker, Morgan Stanley, April 2010
6 Researched online (2012), Percent Migration online is playing out at different rates across categories Still in-store Digital battleground Gone to digital Appliances Electronics Comp HW/SW Video Games Sporting goods Toys Books Music Health & Beauty Home décor Clothing HH Products Office Supply Grocery Purchased online (2012), Percent SOURCE: McKinsey iconsumer survey; team analysis 6
7 One motivation for GS1 Digital Manufacturers, retailers, regulators, and consumers are demanding increasing amounts of standard attribute data for products, need unique identification to hold it all together. Brand Min Handling Storage Temp Wheat Allergen Specification Name Package Type Is the Item marked with a Batch/Lot Number Brand Group Spec Length Benefits (Spanish) Net Content 3 UOM Fish Catch Zone 3 Ingredient Name (English) Base Unit of Measure MFG GLN 3 Deposit UPC Shipping Start Date Fish Catch Zone 2 Peanut Level of Containment Material # Spec Unit Product Name (Spanish) Unit UOM Sub-Brand Shipping Unit Cholesterol Qty Contained UOM Item Description 1 Primary Delivery Method Container Content Brand Owner MFG GLN 1 Is Organic Polyunsaturated Fat Qty Contained Flavor Unit Size Volume UOM Product Category Merchandise Width Merchandise Height Is Security Tag Present Website URL Gross Weight Nutritional Platform Hazmat Classification Kosher Net Certification Content 5 UOM Number Monounsaturated Fat Measurement Precision Indiv Unit UOM MFG GLN 5 Cancel Date Product Percent Juice Style Trade Item Recall Ind BarCode Type Alternate Item Agency UPC Description Is Organic Storage & Usage (Spanish) Riboflavin Chemical Indicator Soybean Allergen Specification Name Merchandise Length Return Goods Policy Vitamin A Qty Contained Saturated Fat Qty Contained UOM Preparation Instructions (Spanish) Vitamin K Prod Hierarchy Merchandise Weight Is Halal Protein % RDI MFG GLN 4 Lead Time Package Name 2 Package Name 4 Fish Allergen Specification Name Discontinue Date Package Name 3 Vitamin A % RDI Item Type Vitamin C Qty Contained Max Order Qty Product Image Container Type Vitamin C % Supplier RDI Pack Cost Peanut Allergen Specification Direct Consumer Name Delivery Alternate Item Identifier Merchandise Unit Peanut Allergen Specification Agency Transfatty Acids Qty Contained UOM Gross Weight UOM Weight Unit Model Number Iron Diet Certification Number Conveyable Ingredient Statement (English) Net Content 4 UOM Production Start Date Ingredient Country of Origin 1 Short Product Description Order Qty Multiple Riboflavin % RDI Target Market Primary UPC Potassium Measurement Precision Net Weight UOM Language Code Cluster Ti Total Fat Measurement Precision Register with GS1 Crustacean Allergen Specification Agency Ingredient Country of Origin 2 Net Content 2 UOM Calorie From Fat Qty Contained UOM Handling Storage Temp UOM Sub-Department Net Content 2 Net Weight Ordering Unit Fish Catch Zone 1 Ingredient Statement (Spanish) UDEX Material Group Polyunsaturated Fat Qty Contained UOM Total Fat % RDI Height Business Unit Fineline Soluble Fiber % RDI Eggs Allergen Specification Name Diet Type Code Hi Is Kosher Food Service Pack Size Product Size Sesame Allergen Specification Name Spec Width Crustacean Level of Containment Vitamin D Cholesterol Qty Contained Saturated Fat Qty Contained Net Content RFID Tagged Virtual UPC Code Packaging Material Code Selling UOM Item Identifier Does Trade Item Carry USDA Child Nutrition Label? Net Content 5 Min Order Qty Saturated Fat Measurement Precision Tree Nut Allergen Specification Agency Potassium Qty Contained Multi-Pack Indicator RPPC Indicator Household Serving Size (English) Package Marked Returnable Spec Height Cholesterol % RDI Serving Suggestion (Spanish) Storage & Usage (English) Milk Allergen Specification Name Eggs Allergen Specification Agency Graphics Specialty Recyclable Package Ingredient Name (Spanish) Total Fat Qty Contained UOM Calcium Cholesterol Qty Contained UOM Total Fat Qty Contained Net Content 4 Composite Wood Level Code Spec Weight Supplier Number Graphics Specialty Base Sodium % RDI CPSC Regulated Indicator Transfatty Acids % RDI Supplier Stock Width Depth UOM CAW Household Serving Size (Spanish) Dietary Fiber % RDI Monounsaturated Fat % RDI Transfatty Acids Qty Contained Number Cluster Material Environmental Identifier Base Unit Vitamin D % RDI GPC Coupon Family Code Product Classification Cholesterol % RDI Iron % RDI Large Product Description Consumer Unit Sub-Type Ingredients Sequence # Dietary Fiber Qty Contained UOM Pack Value Net Content 3 Trademark Family Cluster GTIN Marketing Wrap Tree Nut Allergen Specification Name Registration Status Kosher Type Fish Allergen Specification Agency Base Unit UOM Preparation State Soybean Level of Containment Vending Vitamin E % RDI Kosher Certification Agency Sugar % RDI Benefits (English) Sesame Level of Containment Thiamin % RDI Invoice Item Item Scannable Soybean Level of Containment Container Specialty Vitamin E Polyunsaturated Fat Measurement Precision Information Provider Max Handling Storage Temp Preparation Instructions (English) Product Sub-Group Calorie Qty Contained Polyunsaturated % RDI Tare Weight Item Contains Wood Valid From Soybean Level of Containment Vitamin K % RDI Variable Weight Indiv Unit Min Ingredient Country of Origin 3 Secondary Information Provider Calorie Qty Contained UOM Cholesterol Measurement Precision Cholesterol Qty Contained Transfatty Acids Measurement Precisions MFG GLN 2 Package Name 1 Ordering UOM Manufacturer Expanded Product Description (Spanish) Potassium Qty Contained Soluble Fiber Containment Wheat Level of Containment Sodium Measurement Precision Information Private Monounsaturated Fat QTY Contained UOM Third Information Provider Protein UOM Thiamin Private Label Indicator Country of Origin Net Content 1 UOM Servings of the Trade Item Unit Sodium Qty Contained UOM Register with DataPool Nationally Priced Aerosol Indicator Sodium Qty Contained Product Image URL Deposit Code Dietary Fiber Qty Contained Sesame Allergen Specification Agency SAP Description Packaging Type Audit Date Eggs Level of Containment Sugar Qty Containment UOM Fish Level of Containment Serving Suggestion (English) Segregation Code Protein Qty Contained Serving Size Deposit Amount Special Order Available Base Unit Retail Barcode Derivable Material Code Agency National Account Package Code Preparation Type Calorie Measurement Precision Calorie From Fat Measurement Precision Pesticide Indicator Deposit Currency Potassium Qty Contained UOM Calorie From Fat Qty Contained Fourth Information Provider Deposit Text MFG Code Tree Nuts Level of Containment Potassium % RDI Subject to US Patent Health Category Width UOM Soluble Fiber Containment UOM Product Link Sugar Qty Containment Crustacean Allergen Specification Name Lowest Level Monounsaturated Fat QTY Contained Deposit State Pallet Stack Height Serving Size UOM Credit: PepsiCo Depth Volume 7
8 Is There is a Unique and Critical Role for GS1?
9 Universal support to increase GS1 s digital focus to address these trends, pain points, and regulations GS1 s current level of focus on digital 1 vs. ideal future level of focus 2 Average level of focus (1 = not very focused; 5 = very focused), N = "We create some standards but we don't move fast enough to keep up with digital trends We need GS1 to focus on the digital world, especially on product data and images 2.7 Current Ideal We re only at the starting point for consumer information, where there's an urgent need to move forward fast consumers expect this and there will soon be regulatory demands in Europe Need to get more e- commerce players on the global board GS1 needs a dedicated, independent group devoted to digital trends future 1 1 Q24: How much does GS1 focus on the digital world today? 2 Q25: How much should GS1 focus on digital in the future given the potential increase in online sales and digital nature of consumers buying behaviors? 3 Includes stakeholders from Global Office (N = 10), Member Offices (N = 28), and external organizations (N = 66). Scores came from stakeholder interviews and survey. SOURCE: McKinsey May 2013 Survey; interviews with GS1 stakeholders 99
10 What is GS1 Digital? GS1 Digital is a framework for projects to adapt the existing GS1 System and to create new standards and services that address pain points and opportunities posed by commerce across the World Wide Web Current scope: GS1 Source GTIN on the Web other projects added as business needs are defined 10
11 What is GS1 Source? GS1 Source Started in 2011 A framework for sharing trusted product information in consumer-facing digital channels Companies use GS1 Source to share information about their products Application developers provide this product data to consumers 11
12 What is GTIN on the Web? GTIN on the Web Started in 2013 Leveraging the Web as a new share technology for the GS1 System of Standards Relevant across all sectors and solutions, GTIN on the Web will enable the consistent representation of GS1 keys and attributes in online environments GTIN on the Web is a key technology enabler to bridge the physical and digital world of commerce 12
13 GTIN on the Web primer 13
14 Global standards for Web page layout = YES For product data on Web page = NO Search engines see global web standards for links, fonts, images, page layout The web page that you see </div><div style="float:left; width:208px; text-align:center;"> font-family:arial; font-size:16px; white-space: nowrap; width: <li class= ingr"><div><h3>sugar</h3><p> <span class="v">12g<div> <h3>fat</h3><p><span class="v">3g</span> There are no global standards for embedding product IDs and attributed are in the code of a web page. What computers see in the underlying Web code Search engines can only infer meaning. 14
15 Global standards for Web page layout = YES For product data on Web page = WHAT IF? The web page that you see What computers see in the underlying Web code </div><div style="float:left; width:208px; text-align:center;"> font-family:arial; font-size:16px; white-space: nowrap; width: XMLSchema# gtin: gpc: gpcattr: typeof="schema:product" id="contentmain" about ="gtin: "> <span property="gr:hasean_ucc-13" content=" "></span> <span property="gr:hasgtin-14" content=" "></span> <span property="gs1:hasgpcbrick" resource="gpc: "></span> <span property="gpcattr: " resource="gpcattrvalue: "></span> If these were real standards, search engines could better understand product data 15
16 Relationship of GS1 Share technologies Consider GTIN on the Web a new Share technology ecom Key-based data exchange: GTIN GDSN Key-based data exchange: GTIN From private private To Note distinction between: GS1 Digital - GS1 Source: a mobile-enabled service based on standard definitions of consumerfacing data (e.g. ingredients, allergens, etc.) GS1 Source Key-based data lookup: GTIN GTIN OTW Attribute-based data search/linking using GTIN+ public public GS1 Digital GTIN on the Web: a new initiative to standardize the way industry and internet tools describe products, transactions, and events in the language of the web. Will explore several web standard approaches, leveraging existing keys (incl. GTIN) 16
17 What Problems will be addressed by GTIN on the Web? 17
18 Online search suffers because standard unique product identifiers are not used globally Same Dixie item listed as pack by retailer 1 and box by retailer 2 Retailer Retailer 1 Product Dixie combo pack 168 Price $12.59 Without a unique ID, search engines cannot tell that Pack = Box Retailer 2 does not appear in the following search ACTUAL EXAMPLE Dixie combo pack 168 Retailer Retailer 2 Product Dixie combo box 168 Price $10.21 Retailer : Retailer 1 Product : Dixie combo pack 168 Price : $12.59 SOURCE: Google 18
19 Broad adoption of GTIN on the web could improve search accuracy illustrative Search engine finds initial Search engine sees GTIN in HTML code search term on 1 st retailer s web page 1 Dixie combo pack Retailer Retailer 1 Product Dixie combo pack 168 Price $12.59 <html> <meta name= GTIN content= > </html> Search engine leverages both text-based and GTIN-based search, and finds 2 nd retailer s webpage Search engine returns all results, regardless of initial search term 3 Retailer Retailer 2 Product Dixie combo box 168 Price $ Retailer Product Price Retailer 1 Dixie combo pack 168 $12.59 <html> <meta name= GTIN content= > </html> Retailer Product Price Retailer 2 Dixie combo set 168 $
20 GTIN usage could also allow search engines to aggregate a full view of online data ACTUAL EXAMPLE Schick quattro titanium razor For many products (including this one), search engines requires a GTIN from their retailers product feeds Schick quattro titanium razor Lower price More reviews More retailers SOURCE: Google, Bing 20
21 Key benefits will address key pain points Leveraging a structured data model means web crawling robots will better understand content since it is will be machine-readable Search engines prioritize content that they understand Merchants will be able to differentiate their content, and drive higher levels of traffic, conversions, and increased sales Consumers can obtain more relevant results that they can trust, move seamless between on- and offline sales channels, and share products and opinions across social networks There will be better integration along the supply and demand chains, based on consistent use of the GS1 system of identifiers and attributes 21
22 What is our Approach? 22
23 Phased approach to a complex domain that is new to GS1 GS1 Digital Industry Engagement Feedback SBN BRAD DRAFT GTIN on the Web Technical Exploration and Incubation MSWG 2013 / 14 Rat. Project 2 Technical Exploration and Incubation MSWG Rat. Project N 23
24 GS1 Digital IE Interest Group - Initial Participants (9/2013) Initial MOs in IE IG and/or Technical TF Belgium & Luxembourg Canada China Colombia Denmark Egypt France Germany Hong Kong India Japan Netherlands Poland Sweden Switzerland UK US New Organisations Engaged Google schema.org W3C Other connections through MOs 24
25 Objectives of the GS1 Digital Industry Engagement Interest Group To define requirements for the representation of the GS1 System of Standards in online environments To analyse business opportunities and needs of our Global base of member companies in the realm of demand-side, consumer-facing functions To coordinate and engage globally with a growing community of companies as directed by our Member Organisations, specifically those involved in online commerce and Web search and discovery across geographical boundaries To enable and facilitate our Member Organisations to engage their local communities and to cultivate relationships in the B2C space
26 Technical Task Force Activities Research and Development/Education We have been in working with W3C, Google, Auto ID Labs and others to determine best approach for item data on the web Pilot Research into current state of practice Review of schema.org and Good Relations Review of best methodologies for standard mark-up Determination of set of attributes to test based on schema.org and available GDSN data. Research how best to represent identifiers including AIs on the web Pilot work has started 26
27 What Do We Need from the Community to Succeed? The Ask 27
28 Do we need to be more open? Context: Standards work in the Internet world tends to be more open, with a focus increasingly driven by consumers Potential actions: 1. Make standards, vocabularies, and classification schemes available to the public in Web formats 2. Make already-public product data (e.g., labels) available to the public (with permission) in Web formats 3. Make software tools and APIs available to developers to encourage broad innovative use of GS1 technologies 4. Attract Demand-Side experts to participate in GS1 requirements and standards development 28
29 We need your help Opportunities IE Interest Group Tuesday Afternoon Session Technical Task Force Monday Afternoon Session Bring your industry to the Pilot Industry Brands, retailers (omnichannel and online only), search engines, social media, solution providers Expertise This is not supply chain as usual Marketing, social media, Web standards and design those people down the hall MOs and user experts needed 29
30 Contact Details Steve Bratt Chief Technology Officer and President, Standards Development
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