scalable ecommerce solutions: salmon

The Route to Scalable eCommerceA Framework for Scalable Web-facing Retail Applications

Craig Harper-Ashton - Head of eCommerceNeil Stewart - Commercial Director

Prepared: March 2009

Who are Salmon?

Diverse Interests and PracticeInterests in retail, finance, insurance and utilitiesFocus on enterprise architecture , IT / business changeFocus on business impactApplication management and support - 25% of the business

Innovative Risk Reward ModelsFixed priceManaged riskShared reward

Diverse Interests and PracticeGlobal SI, operations in London, New York, Beijing, SydneySuccessful track record over 19 yearsc. 180 staff, c 100 in eCommerce team£16.8M turnover Privately owned, financially soundOpen, honest and responsive approachStrong delivery-focused culture and focus

Mission critical systemsBroad and deep expertise in web based applications and technologiesSpecialist skills in highly transactional systems and solutions e.g. B2B and B2C eCommerce, multi-channel integration, insurance underwritingCustomer experience / design

End-to-end eCommerce Project Services

Discovery

Strategy and business caseRequirements (functional/non-functional), analysis/gap analysis Asset clarity framework Business process mappingPackage/component/tool set selection

1 Customer ExperienceDesign

Customer journey mapping Information architectureCustomer experience Design Application of Web 2.0Usability

2

Ongoing Services

Application support or complete managed service (hosting via third party)Maintenance and enhancementsMonitoring and alertingWeb marketing and SEO; capacity planning; analytics etc Stress testing and performance tuning

3Solution Implementation

Architecture and designBuild/test/deploy/trainingPerformance by designData, systems, 3rd partySolution IntegrationImplementation of Industry best practices

4

SalmonDelivering eCommerce Solutions for market leading & challenger brands

A Framework for Scalable Web-facing Retail ApplicationsAgenda

DefinitionsSaaS, out-of-the-box, fully bespoke

Benefits, DrawbacksA Better Way?SAFE™Commercial approach

DefinitionsSaaS, out-of-the-box, fully bespoke

Definitions

SaaSAn application owned, delivered and managed remotely by one or more providers.The provider delivers an application based on a single set of common code and data definitions which are consumed in a one-to-many model.on a pay-for-use basis or as a subscription based on use metrics.

Definitions

out-of-the-boxItems, functionalities, or features provided out of the box are those that do not require any additional installations, plug-ins, expansion packs, or products. For tangible products, the phrase "out of the box“ promotes functions, e.g. “the out of box functionalities provided in HP OpenView Service Centre”.The connotation is of a system without customisation, such that it is usable with a vanilla software installation.

Definitions

Fully BespokeRefers to software designed and written for a single company and/or task.custom-made to the buyer's specification.

Benefits and Drawbacks

Benefits and DrawbacksSaaS

Benefits For the Customer

No client/server software installation or maintenanceShorter deployment timeGlobal availabilityService Level Agreement (SLA) adherence Constant, Smaller, UpgradesEase of traditional internal I.T. painsRedistributable I.T. BudgetPredictable costsOne butt to kick

Benefits For the Provider

Aggregate operating environmentPredictable revenue streamPredictable growthFocus on smaller upgrades instead of monster patch rolloutsSales becomes customer relationship management

Drawbacks For the Customer

No direct control of the dataDependence on an outsider to run your eCommerce business12 -24 month tie-inWhat next? ‘Prisoner’SecurityOne size fits all

Drawbacks For the Provider

Monthly focus on customer satisfactionHarder development processCompensation issues

Success can be a problem

Benefits and Drawbacksout-of-the-box


Quick to get up and runningRelatively low initial outlayDesign templates availableWYSIWYG


RepeatabilityPredictabililityEconomies-of-scale


Features of packages are designed to be useful for the greatest number of users and are developed according to the demands of the greatest number of customers. One size fits allSuperfluous featuresMissing featuresPackage drives business not visa-versaVery costly to add new featuresSearch engine visibility often poorFixed Database structure‘Best practice' not always adhered to


High churnInnovation at the pace of all

Benefits and DrawbacksEnterprise bespoke


High flexibility / agilityHigh differentiationControl over pace of innovationAlignment to business processes , not visa-versaDirect relationship with development partner in localeTypically lower training costs / knowledge transfer compared to packaged softwareIncreased risk managementMix and match / best of breed


Highly innovativeHigh profileHigh value


Development often requires ROI and TCO assessment, and stakeholder supportProcurement proceduresMultiple internal stakeholdersMultiple partnerships / alliancesBespoke supportLonger initial development timeRelatively high initial outlay


Reuse is low as IP is retained by customerRisk Management

A better way?

Reven

ue

Hig

her

Low

er

Effort & Investment over

time

Lower Higher

eCommerce conundrum

Solu

tion

C

om

ple

xit

yH

igher

Low

er

Why SAFE™?Big Picture

Continued shift from eCommerce -> MC eCommerce -> Cross Channel retailing continues

unabated

Endemic eCommerce platform failure as eCommerce operations mature1st and 2nd generation sites being replaced

Increasing demand for strategic eCommerce solutions that;Support low cost of entry & have rich functionality & features An underlying technology platform that delivers scalability & flexibility Support innovation without technical or contractual limitations

End of one-size/vendor fits all approach, with growing need for seamless integration of data,

systems and solutions as an enabler of rapid eCommerce Differentiation e.g. Check and Reserve, Reserve and Collect, Advantage Card

Opportunity to ‘package’ our 10+ years eCommerce experience – enabling customers to leverage this IP in the form of one solution, available in 3 commercial models with;> A proven eCommerce project delivery methodology> Reusable components that align with worldwide eCommerce best practices> Fully tested and pre-configured elements and modules> Production-ready solution combining software and services

1

2

3

4

Robust underlying platform

Pre integrated components

Managed hosting

SAFE™ features

UI Design

IBM WebSphere Commerce

Pricing, Orders, Product, Scheduled Jobs

100% uptime with Rackspace

3 CSS compliant designs

Deployment

UAT >> Staging >> Production

Pre-integrated options

Omniture, Coremetrics, Magic Zoom, Market Advisor,

Google Maps

Brand Extensions

(Kids, luxury,

Seasonal)

International

Site

Trial Brand

#1

xn

SAFE™ Technical Components Web Properties and Channels

POS

B2B

Kiosk

Sales Centre

Mobile, Pervasive

Core web property

Test Market

Commercial Approach

Reven

ue

Hig

her

Low

er


time

Lower Higher

Solu

tion

C

om

ple

xit

yH

igher

Low

er

Sold “as-Is”, as a service on a visitor or revenue basis p/m/y, single instance, managed service

A. SaaS

SAFE™ Commercial Approach

Reven

ue

Hig

her

Low

er


time

Lower Higher

Solu

tion

C

om

ple

xit

yH

igher

Low

er

Sold “as-Is”, as a service on a visitor or revenue basis p/m/y, Single instance, managed service

B. out-of-the-box

A. SaaS

Sold “as-Is”


Reven

ue

Hig

her

Low

er


time

Lower Higher

Solu

tion

C

om

ple

xit

yH

igher

Low

er

Sold “as-Is”, as a service on a visitor or revenue basis p/m/y, Single instance, managed service

C. Enterprise Bespoke Dedicated infrastructure, single instance, significant customisation

B. out-of-the-box

A. SaaS

Sold “as-Is”


250% Sales Growth

> 60% Visitors Growth

Live in < 90 Days

We are committed to providing a leading shopping experience and Salmon has been instrumental in

this process. We have worked with Salmon to evolve Halfords.com in accordance with our

customers’ shopping habits and to ensure that our online offering is reflective of our customers’

expectations. This investment has centred on improving search, convenience, service; and

cross-channel optimisation

Jan 2009

www.halfords.com

Head of Service and Channel Development

http://www.halfords.com/

Unique Approach • Unique Solutions

Salmon LLC220 Old Country Road

Mineola NY 11501-4271

United States of America

Tel: 001 516 742 7888 Fax: 001 516 742 9169

Salmon Asia Pacific (Pty Limited)

Level 1, 299 Elizabeth StreetSydney NSW

Australia 2000

Tel: +61 (0)2 8251 0044Fax: +61 (0)2 8251 0097

Salmon Ltd 64 Clarendon Road

Watford Hertfordshire

WD17 1DATel: +44 (0) 1923 320 000 Fax: +44 (0) 1923 320 023

[email protected]

Salmon China Limited 605 Zhongchen Building

Lize Zhongerlu #1Wangjing Science & Technology Park

Chaoyang DistrictBeijing 100102

China

Tel: +86 (0) 10 6439 8779Fax: +86 (0) 10 6439 8665