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IRCE Ecommerce Technology Workshop 2014 1

#IRCE #techworkshop

Technology Workshop

IRCE Ecommerce Technology Workshop 2014

• Boutique consultancy advising ecommerce

and multichannel retailers and brands

• Trusted Advisors for everything ecommerce,

mobile, omnichannel & digital

• eCommerce Diligence™ philosophy and

methodology drives our Investment

approach to Strategic and Tactical decision-

making and planning

Bernardine Wu, CEO

[email protected]

(512) 680-8662 cell

Client Sampling

Technology Landscape 4


IRCE Tech Workshop 2010

• E-Commerce Guide to the Galaxy

• E-Commerce Platforms

• Order Management Systems

• Site Search

• Online Merchandising Tools

• Personalization Tools

• Data Integration

2011 • Evolving E-Commerce Technologies • Content Management Systems • The Cloud • Open Source E-Commerce • M-Commerce • HTML5 • E-Commerce Platforms • E-Commerce Organizations

Email [email protected] for feedback and suggestions for next year!

2012 • Tomorrow’s Technologies • Cross-Channel Commerce • Technology Budgeting • Leading Edge Technologies • Social / Mobile Technologies • Product / Content / Asset Management • E-Commerce Platforms • Marketing Technologies

2013

• Syncing your e-technology investments with your business

• The big ones: Choosing e-commerce platforms, order management and other major systems

• Crucial technology tools for e-marketing success

• Mobility: Lions, tigers & bears and the differences within mobile

• The newest new thing: Product data and content management as a competitive advantage

• 5 hot new technology developments


8:30 - 8:45 AM Welcome and Introduction by Bernardine Wu (FitForCommerce)

8:45 - 9:45 AM Get Smart: A Roadmap for Sound Technology Investments - Charles Hunsinger (The Jones Group), Michael Arking (Frenchtoast.com), Bernardine Wu (FitForCommerce)

9:45 - 10:30 AM Conquer the Pain Points and Capture the ROI of Product Information Management Systems - Cynthia Rodgers Maignan (Office Depot), Ryan Lee (Gorjana Griffin)

10:30 - 10:45 AM BREAK

10:45 - 12:15 PM Navigating Choice: Platform Selection & Implementation -Kim Hansen (Winston Brands), Nicole Tolbert (HUE.com), Kerry Martin (FitForCommerce), Joe Warfield (Mardel)

12:15 - 1:15 PM LUNCH

1:15 - 1:45 PM Understanding CRM as a Technology and a Process - Karen Humphries Sallick (The Priority Group), Pam Kruse (XO Group)

1:45 - 2:30 PM Going Global: What You Need—And What You Need to Watch Out For - Tonio Fruehauf (Escada Online GmbH), Marshall Porter (Gilt Groupe)

2:30 - 3:15 PM Mobile Commerce: Get Ready Today for Tomorrow - Udi Nir (ModCloth), Jason Roussos (Living Direct)

3:15 - 3:30 PM BREAK

3:30 - 4:30 PM Five Hot New Technology Developments: Social Media, Personalization, Advanced Analytics, Geo-Location, User Experience - Marta Dalton (WESCO Distribution), Ryan West (West Music), Howard Blumenthal (Advance Auto Parts), Aaron Mandelbaum (Icebreaker Consulting), Ross Higgins (Newegg)

4:00 - 7:00 PM Welcome Reception / Exhibit Hall Opens

Today’s Agenda

1

2

3

4

5

6

7

#IRCE #techworkshop


IRCE Resources

IRCE Exhibit Hall

• ~600 exhibitors

• 70+ categories

Attendee Help Desk at Center of Hall

• 24 Maps by Vendor Category

• Best Practices Checklists for 45 topics

• Key Questions to Ask Providers for 45

types of vendors

• 1:1 Consultations with

FitForCommerce analysts

Tech Track of Main Conference


Best Practices Checklists

Best Practices Checklists

Key Questions to Ask Providers

45 different topics

Pick up at front of the room or at the Attendee Help Desk

www.ecommerceknowhow.com/bestpractices.pdf

Affiliate Marketing

B2B eCommerce

Comparison Shopping / Marketplaces

Consultancy / Professional Services

Content Delivery Networks

Content Management Systems

CRM Systems

Customer Care

Customer Satisfaction Measurement Data Mining / Warehousing

eCommerce Platforms

Enterprise Resource Planning (ERP) Email Marketing

Forecasting Products

Gift Card / Certificates

International eCommerce

Internet Security

ISP / Hosting

Logistics

Loyalty / Promotions

Mobile Commerce

Multi/Cross/Omni-Channel Online Catalog / Catalog Management Online Customer Support / Demos / Chat Organizational Design

Order Management Systems (OMS) Product Content Onboarding/Publishing

Payments / Fraud Services

Personalization

Point of Sale (POS) Product Information Management (PIM) Responsive Design Rich Media

Search Engine Marketing (SEM/PPC) Search Engine Optimization (SEO) Shipping

Site Search

Social Media

Web Analytics

Web Design / User Experience

Website Performance / Monitoring

http://www.ecommerceknowhow.com/bestpractices.pdf


eCommerceKnowHow.com

• Knowledge base with 1000s of best practices, feature

assessments and other content

• Searching and sorting for 100s of eCommerce Solutions


eCommerce Internet Retailing


Shopping, Watching, Playing


Many Touch Points. Many Journeys.


Multi-Screen. Highly Mobile.

Google

1 brand


IT’S ALL ABOUT HER! …and Him …and Them !


The Year of the

Customer


Is the

consumer

empowered?

Are we

empowered?


Do we believe it’s

the tip of the

iceberg?


Get Smart:

A Roadmap for Sound

Technology Investment

Bernardine Wu – CEO, FitForCommerce

Charles Hunsinger – SVP and CIO, Harry and David

Michael Arking – President, French Toast

#IRCE


The Online Consumer – Ever Growing

Ecommerce will account for 9.9% of retail purchases by 2017 (IR Feb 2013)


The Broad View:U.S. e-commerce vs. total retail sales

Year

Retail sales

(in $ trillions)

E-commerce

sales

(in $millions)

E-commerce

as % of total

retail sales

2012 3.08 225,544 7.31%

2011 2.97 194,691 6.56%

2010 2.80 168,965 6.03%

2009 2.71 145,260 5.36%

2008 2.81 142,297 5.07%

2007 2.79 138,108 4.96%

2006 2.70 115,075 4.27%

2005 2.56 92,964 3.63%

2004 2.42 74,212 3.07%

2003 2.27 58,234 2.56%

10-year growth 35.7% 287.3%

CAGR¹ 3.5% 16.2%1. Compound annual growth rate

Source: U.S. Department of Commerce from Internet Retailer Top 500 Guide 2013


Tech Investment Priorities

4.0%

15.0%

15.0%

17.0%

25.0%

27.0%

27.0%

33.0%

40.0%

40.0%

48.0%

50.0%

52.0%

52.0%

52.0%

0% 50% 100%

Other

Call center systems

POS/store systems

Order management tools

Back-end integration (enterprise resource planning, financial reporting)

Site search

Site, payment and system security compliance and protection

Product content management tools

Responsive Design

Customer insights and analytical systems

Mobile commerce platforms

Customer relationship management tools

Web content management tools

Multi-channel integration

E-Commerce platform

Source: Forrester Research Inc. May 2013 Global eBusiness & Channel Strategy Professional Online Survey


ECP OMS

WMS

CRM

Site Search

Ratings & Reviews

eMerchandising

eMarketing

SEO/SEM

Comparison

Engines

Affiliate

Email

Social

Mobile

Web Analytics

Personalization

Facebook

Pinterest Twitter

Rich Internet

Apps (RIA)

Loyalty

Zoom

360°

eCatalog

Searchandising

Quick View

Marketplaces

Payment

CMS

Customer Care

Call Center

CRM

Customer Satisfaction

Measurement Gifting

Security PCI Fraud

Hosting

Logistics

Fulfillment Returns

Inventory

Chat

CDN Performance

Click-Recording

eCommerce Galaxy

MCP

Omnichannel

International

DataWH

ERP

Retargeting

PIM DAM

Instagram

Photography

Content Mgmt


Customer

CRM

30

Key Components

Marketing

Webstore

(ECP / CMS)

Order Mgmt

(OMS) Fulfillment

WMS

ERP

Customer

Service

Customers/orders Inventory

Shipping info

Tracking info

Sales Tracking

info

Inventory

Price/Stock Qty.

Merchandising Catalog

Pricing

Content

Images

Traffic

Retail

(POS)

Mobile store

(MCP) Catalog

Product Info

Mgmt (PIM)

Cust/Order


Customer

CRM

31

Key Integrations

Marketing

Webstore

(ECP / CMS)

Order Mgmt

(OMS) Fulfillment

WMS

ERP

Customer

Service


Shipping info

Tracking info

Sales Tracking

info

Inventory

Price/Stock Qty.


Pricing

Content

Images

Traffic

Retail

(POS)

Mobile store

(MCP) Catalog

Product Info

Mgmt (PIM)

Cust/Order


Customer

CRM

32

Key People / Teams

Marketing

Webstore

(ECP / CMS)

Order Mgmt

(OMS) Fulfillment

WMS

ERP

Customer

Service


Shipping info

Tracking info

Sales Tracking

info

Inventory

Price/Stock Qty.


Pricing

Content

Images

Traffic

Retail

(POS)

Mobile store

(MCP) Catalog

Product Info

Mgmt (PIM)

Cust/Order


Retailers

Wholesalers Distributors

The Players / Roles

Brand Manufacturers

Licensees

Consumers Businesses Education, Govt

Non-Profits

Brand Owners Licensors

“Sellers”

“Merchants”

“Buyers”

“Customers”

B2C B2E/B2G B2B

DTC

Entertainers

Publishers


Evolution or Revolution R

evenue G

row

th /

Touchpoin

ts

Commerce

Enabled

• Catalog

• Cart & check

out

• Payments

• Fulfillment

Homegrown/

Hosted

Manual updating

Scaling issues

Added Features

• Site search

• Promotions

• Merchandising

• Cross & Up

Sells

• Order Status

• 3rd party

solutions (e.g.,

Ratings and

Reviews)

• Basic

eMarketing

Product-centric

Single-channel

Limited features

Optimized for Online

• Personalized

experience

• Guided navigation

• Best-in-class cart &

check out

• SEO friendly

• Rich media

• Dynamic content

mgmt.

• Product data mgmt.

• Web analytics

• Customer

intelligence

• Integrated OMS

• Integrated call

center

• Basic mobile site

Customer-centric

Merchandiser control

Multi-channel

foundation

1st Generation

Marketing

and

Information

2nd Generation

5th Generation

© FitForCommerce

All Channels Enabled

• Richly integrated

- Marketing

- Promotions

- Pricing

- CRM

- POS

- PIM/CMS

- Inventory visibility

• Content-rich

• Cross-channel

web/store/ vendor

fulfillment options

• Mobile and Tablet

• Global, Local

• Micro-targeted

content and offers

by: Channel,

Preference, Location

• Social

• Search & brand

optimized

Relationship-focused

Maximize wallet share

Find and Buy

anywhere

4th Generation

3rd Generation

Going Global

• Brand recognition

• Regional markets

• Currency

• Language

• Local marketing

• Taxes

• Regulations

• Payment methods

• Fraud detection

• Distribution

• Platform

requirements

• Governance

structure

- Global v Local

• Market analysis

• Regional

technology

infrastructure

• Mobile penetration

Focus on long term

growth

Understand the culture

and market

Manage complexity

Leverage resources

and assets

6th Generation

Can you leap frog?


Customer View

Do I like/want?

How do I know/find?

How do I decide?

Was it good exp?

Would I do it again?

Product/ Assortment

Discovery Decision Customer

Experience Moment of

Truths

Desirable Product/

Assortment

An easy Discovery

An easy Decision

A memorable Customer

Experience

Satisfied in the Moment

of Truths

Her

Vie

w

Ou

r G

oals

MERCHANDISING

MARKETING

CONTENT MANAGEMENT

FEATURES & FUNCTIONS

OPERATIONS ORGANIZATION

P&L / BUDGET SUPPLY CHAIN

To D

o’s

TECHNOLOGY

Tech Eye from the

Marketing Guy

37

What it takes to win 38

The order of Things…

What technologies to focus on?

How much should I invest?

How much time do I need ?

How will I measure success?

39

Ecommerce Eco System

Ecommerce Platform

3rd Party Solutions

Order Management

Systems Mobile & Apps

Customer

40

Ecommerce Platform

In House 7% of Sales

Cloud Based 3.5% of Sales

2012 Forrester Demand ware study

Total Cost of Ownership

(TCO)

41

Ecommerce Platform User Experience

& Customizations

Cost .5% -.75% of Sales

42

Ecommerce Platform Platform Upgrades

Cost: 15% of Annual Fees

43

3rd Party Solutions

• Email platform

• Personalization

• Retargeting

• Affiliate

• Chat

• Imaging/Zoom

• Tag management

• Social Tools

• Reviews

• Analytics

• Marketplace

• Pricing software

• Payments

44

3rd Party Solutions

Program Priority Integrati

on Cost

Annual

Cost

Expected

Sales Lift

Cost

Personalization 1 10K 24K 500K 5%

Loyalty Program 4 5K 12K 400K 3%

Chat 4 7K 5K 50K 10%

Reviews 1 8K 30K 300K 10%

45

Mobile & Apps

46

Mobile Apps

To App

or Not to APP

47

The Continuous Cycle

Phase 2

Grow

Phase 3

Manage

Phase 1

Build

48

Key Takeaways Ecommerce is always evolving , and continuous

investment is necessary to succeed.

Measure your investments

• Build a two to three year road tech roadmap

• Upgrades are resource intensive. Timing is key

• Always leave room for flexibility for new Tech

• Prioritize the best sales drivers first

• Third party solutions need to be vetted

• Don’t chase the latest fads

• UX will continue to be paramount

• Mobile needs to have the same level of attention

as desktop.

49

Michael Arking

President,

Frenchtoast.com

E mail : [email protected]

@ArkingMichael

50

mailto:[email protected]


51


Why are we all here today?

• Competition is driving our corporate

evolution more than ever before

• Business process complexity continues

to grow at a revolutionary pace

• Creates a stronger requirement for tight

alignment and/or convergence of our

platforms

• How do we address the IT implications of

these challenges and create effective

roadmaps?

52


Defining the Commerce Roadmap

53


– circa 2011

• Company entered bankruptcy in early 2011 – IT investments in prior years had been very limited

• Many systems (other than web site) were 15-25 years old

• An IT modernization roadmap was required to outline case for evolving IT post-bankruptcy

• First step: develop and document the IT strategy

54


Effective Commerce Strategy Elements

• Not just technology – address people (skills) and process (including metrics)

• Remember, strategy is meaningless unless it is implemented!

• Implementation should be prioritized by business case – what has value?

• Transformational change is difficult but can sometimes be more easily accomplished in large projects vs. a series of smaller ones

55


• Commerce enterprises often have numerous, complex systems with lots of integrations

• Needed to cover assessment of customer-facing systems: Web site (including web/native apps for mobile), Call Center/CRM, Retail/POS

• Supporting application stack is also critical – Customer MDM (if not CRM), Product MDM (PIM), inventory management, Order Management (including DOM)

• Supporting infrastructure – EAI/service bus, cloud infrastructure support, network expansion/upgrade, etc.

Commerce systems

56


The Elements of Strategy Investment Prioritization Analysis

(based on executive committee ranking)

Project Avg Rank Std Dev

CRM improvements 1.60 1.1

S&OP Improvements 3.10 2.0

Website Improvements 4.20 1.5

EDW 2.0 5.80 2.0

Implement MDM systems 6.00 3.3

Refresh IT Infrastructure 7.20 1.6

Replace Mainframe 7.40 3.7

Call Center Technology Upgrade 7.90 2.2

Purchasing System Consolidation 8.80 2.4

Printing Improvements 9.20 3.4

Upgrade TMS 10.30 3.0

Upgrade Imaging System 11.30 3.4

GL Consolidation 11.80 3.9

Replace Manufacturing Labor Management

12.70 2.5

Replace HR System 13.00 3.9

Upgrade ELS and Recipe Management 14.40 1.6

57


The Elements of Strategy

Calendar 2012 Calendar 2013 Calendar 2014

IT Strategy Roadmap

Leagcy system replacement

CRM improvements 1

Campaign Mgmt E

WMS Implementation E

0

Call Center Technology Upgrade 8

Purchasing Consolidation 9

GL Consolidation 13

Replace Mfg Labor Mgmt 14

HR Replacement 13

Upgrade Labeling and Recipe Mgmt 14

S&OP Implementation S&OP Process 2

Website Improvements 3

EDW 2.0 4

MDM 5

Refresh IT Infrastructure 6

Replace Mainframe 7 Printing Improvements 10

Upgrade TMS 11

Upgrade imaging system 12

IT Organization and Process Improvements

Legend

n Business Prioritization

Leagcy Dependent

Holiday Season

58


Portfolio and Project Management

• Program Management capability is critical

• Defining requirements is a key step – don’t leave this out!

• Business collaboration and ownership is mandatory

59


Selecting solutions

• Produce an RFP (with detailed requirements) and require potential

suppliers to respond

• Evaluate solution against DETAILED requirements

• Require the vendor short list to demonstrate their system WITH

YOUR REQUIREMENTS in a structured evaluation that is

consistent and scored the same across participants

60


Scoring a Selection Criteria Vendor 1 Vendor 2

Ori

gin

al

RFP Scoring 85% out of 100% 94% out of 100%

Blink Test 3.75 out 5 4.1 out of 5

Vendor Demo 80% out of 100% 90% out of 100%

Roadmap New web integration Q1 15 Key acquisitions enhance roadmap

Customer References Fewer implementations Winner

Ease of doing business Outstanding sales support, difficult to

negotiate with

Open deal structure, higher flexibility

Cost Winner, by 15%

Ad

dit

ion

al

Implementation Complexity Single Provider Multiple providers with own expertise

Long-term costs Increases based on transaction volume S/W maint fixed w/annual escalator

Existing Knowledge/Skills Existing Java stack Existing .NET stack

Integration/Technology Front-end to eCom Back-end to Purchasing, Inv Mgmt

Configuration/Customization Easier, less customization More difficult, Requires customizations

Vendor Domain Expertise Leading in Retail, PIM Leading in CRM, OMS

Peer Group Direct Marketers, B2B Retailers

61


Don’t forget about process

• Good process mapping helps outline critical impacts of proposed projects

• People get caught up in features and functions, but take it back to business process

• Many projects ultimately are justified by the process savings/benefits, and the process map helps leadership understand the level of complexity of what is proposed

62


Don’t forget about process

Order

History

Existing Orders

Management

Customer

Inquiry

Order Hold

Management

Returns

Management CUSTOMER

SERVICE

ORDER CAPTURE

Customer

Identification

Item

Association

Up / Cross Sell

Review

Order Items

Validation

Destination

Definition

Order

Personalization

Available to

Promise Conf.

Order

Scheduling

Order Initiation

Order Pricing

Order Review

Order Payment

Order

Finalization

Order Capture

Rules

Reporting

PRODUCT

INFORMATION

MANAGEMENT

PIM/MDM Attribute Management SKU Management

Clubs and Collections

Management

Cross Sell /

Up Sell

Price Management

Substitution Calendar

Management

Digital Assets

Item Management

Vendor Management

Cost Management

Location Management

Demand

Planning

Supply Chain

Planning

PLANNING

Integration

Customer

Service

CALL

CENTER

SUPPORT

PURCHASE ORDER MGMT

Order

Management

Vendor

Integration

Tax

Management

FINANCIAL

Integration to

G/L Account

Mgmt

Physical

Inventory

Management

INVENTORY MANAGEMENT

Inventory

Visibility

ECOM

Web Store PIM Order Capture

ORDER ORCHESTRATION

FTC Management

Item / Kit Build

(Generate Work

Order)

Shipment

Optimization

Inventory

Availability

Payment

Processing

Supply/Demand

Location

Management

Inventory

Allocation

Order

Orchestration

Rules

Logistics

Calendar

Review

Release to

Fulfillment

Shipment

Confirmation

Rules Definition

Reporting

Promotions

Management

Affiliate

Management

Loyalty Program

Management

CRM &

CAMPAIGN

MANAGEMENT

Coupon

Management

Integration

Customer

Service

Customer

Data

Management

Gift List

Management

Data REPORTING

& ANALYTICS Reports

Ticket

Generation

Shipment

Management

Capacity

Planning

Fulfillment

Rules

Transportation

Planning

Load

Management

FULFILLMENT

Reporting Integration

WMS

Custom Kitting

& Bundling

Greeting Card

Generation

63


Go It Alone, or Ask For Help?

• This can be a complex and sophisticated

process to manage

• Outside expertise is helpful, or even critical,

depending on your team’s knowledge,

resources and timeline to act

• When selecting outside

help, it isn’t one size

fits all

• Ensure your partner’s

objectives are aligned

with yours

64


‘Design’ is critical

• Design has solid traction in Customer segment

of Commerce and ‘good UX’ for the customer is

as important as ever

• Design in the rest of the enterprise is also

critical:

– Contact Center

– POS

– Fulfillment

65


What is our success to date with these

methods? • Re-established our ability to tackle strategic

projects

• Completed several roadmap projects

• Started our largest and most ambitious program to-date: replacing a core legacy platform – RFP successfully executed & design started

• Used external help for several key activities – Overall IT strategy, ecomm strategy, RFP/selection process, business process analysis

• The strategy has evolved several times along the way – it’s expected!

66


From Agile…

• Agile (per Google): “able to move quickly and easily”

• Characterized by making fast, incremental changes

• Emphasis on time-to-market, user-defined requirements

• Challenges for Commerce: – Less time to consolidate

deliverables or solidify the quick hits

– Less time spent on architecture and planning

– Transformational change can be more difficult to achieve in small, fast increments

67


…to Acrobatic

• Acrobatic (per Google): “performing, involving, or adept at spectacular gymnastic feats”

• This is what our businesses are continually asking for us to do now – accomplish spectacular feats of IT gymnastics

• How do you move from (merely!) Agile to Acrobatic?

68


#IRCE #techworkshop

Charles Hunsinger [email protected]

Michael Arking

[email protected]

Bernardine Wu [email protected]

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