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Press Release

Six Disruptive Digital Trends Retailers Must Address in 2017

Reston, VA, 12/12/2016

Software AG (Frankfurt TecDAX: SOW) today released it’s top six predictions for the retail industry in 2017, building on the company’s predictions from 2016, all of which proved remarkably accurate. Retailers will again strive to match Amazon’s sales and fulfillment model, engage new channels, geek up their stores, and use technology to refine inventory management and anticipate customer desires in 2017.

Oliver Guy, Software AG's Global Industry Director for Retail, noted: "Retailers will again strive to match Amazon's sales and fulfillment model, engage new channels, geek up their stores, and use technology to refine inventory management and anticipate customer desires in 2017."

New Tribes of the Amazon-ization
There will be further "Amazonization" of retail, with new market entrants – as well as existing retailers - finding new ways to sell, fulfill and deliver products to eager, often impatient, consumers.

You Won't Need a Remote for Channel Hopping
Retailers will quickly adapt and connect into new channels to engage with customers, using avenues including "conversational commerce" – Amazon Echo or Bots in Facebook Messenger.

Find More Stuff
Real-time inventory will be a reality, as more retailers realize that a rip-and-replace program for core merchandising, warehouse and store systems is not the best – or the quickest - way forward; the smartest retailers will look for other approaches like using in-memory caching combined with high speed messaging in order to provide real-time inventory levels across every location, channel, store and shipment.

Stores Geek Up To Attract Customers
Customers want to see techie gadgets when they go into brick-and-mortar stores, and retailers are going to be adding cool things like robots that give them directions, kiosks for in-store ordering, and magic mirrors for trying on clothes.

Eat Your Heart Out, Jamie Oliver
IoT will start to creep into your kitchens as devices like Amazon Echo, Hiku and others allow consumers to add things to their shopping lists. Conversational commerce will be a precursor to Artificial Intelligence and then "cognitive commerce," which will appear over the next few years.

We know what you want
The arrival of "anticipatory customer experience" will allow retailers to manage customer expectations earlier and earlier in the sales process. This, in turn, can help retailers solidify an emotional attachment to their brand, offering customers what they want before they know they want it.

Oliver Guy concluded: "As retailers get to grips with real-time inventory, geek up their stores to attract new customers and begin to predict what customers want early in the sales cycle, they will have a much easier time taking advantage of the 'retail moment.' All of this entails being able to orchestrate across systems in order to be able to fulfill the customer promise."

About Software AG
The digital transformation is changing enterprise IT landscapes from inflexible application silos to modern software platform-driven IT architectures which deliver the openness, speed and agility needed to enable the digital real-time enterprise.

Software AG offers the first end-to-end Digital Business Platform, based on open standards, with integration, process management, in-memory data, adaptive application development, real-time analytics and enterprise architecture management as core building blocks. The modular platform allows users to develop the next generation of application systems to build their digital future, today.

With over 45 years of customer-centric innovation, Software AG is ranked as a leader in many innovative and digital technology categories. Software AG has more than 4,300 employees, is active in 70 countries and had revenues of €873 million in 2015.

Learn more at www.softwareag.com

Software AG, 11700 Plaza America Drive, Reston, VA, 20190

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Baerbel Strothmann
Senior Manager Corporate Communications
Tel: +49 (0) 6151 92-1502
Byung-Hun Park
Head of Global Corporate Communications
Tel: +49(0) 6151 92 2070

Software AG
John Stewart
11700 Plaza America Drive, Suite 700
Reston, Virginia 20190
United States
Tel: +1 978-289-3185
Zachary Berger
United States
Tel: +1 781 761 4500