the route to scalable ecommerce (march 2009)
DESCRIPTION
Salmon's presentation given at a half-day advisory seminar and networking session designed for Rackspace eCommerce clients and prospects, eCommerce software partners and web design partners.TRANSCRIPT
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The Route to Scalable eCommerceA Framework for Scalable Web-facing Retail Applications
Craig Harper-Ashton - Head of eCommerceNeil Stewart - Commercial Director
Prepared: March 2009
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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
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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
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SalmonDelivering eCommerce Solutions for market leading & challenger brands
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A Framework for Scalable Web-facing Retail ApplicationsAgenda
DefinitionsSaaS, out-of-the-box, fully bespoke
Benefits, DrawbacksA Better Way?SAFE™Commercial approach
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DefinitionsSaaS, out-of-the-box, fully bespoke
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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.
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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.
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Definitions
Fully BespokeRefers to software designed and written for a single company and/or task.custom-made to the buyer's specification.
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Benefits and Drawbacks
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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
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Benefits and Drawbacksout-of-the-box
Benefits For the Customer
Quick to get up and runningRelatively low initial outlayDesign templates availableWYSIWYG
Benefits For the Provider
RepeatabilityPredictabililityEconomies-of-scale
Drawbacks For the Customer
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
Drawbacks For the Provider
High churnInnovation at the pace of all
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Benefits and DrawbacksEnterprise bespoke
Benefits For the Customer
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
Benefits For the Provider
Highly innovativeHigh profileHigh value
Drawbacks For the Customer
Development often requires ROI and TCO assessment, and stakeholder supportProcurement proceduresMultiple internal stakeholdersMultiple partnerships / alliancesBespoke supportLonger initial development timeRelatively high initial outlay
Drawbacks For the Provider
Reuse is low as IP is retained by customerRisk Management
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A better way?
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Reven
ue
Hig
her
Low
er
Effort & Investment over
time
Lower Higher
eCommerce conundrum
Solu
tion
C
om
ple
xit
yH
igher
Low
er
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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
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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
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Commercial Approach
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Reven
ue
Hig
her
Low
er
Effort & Investment over
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
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Reven
ue
Hig
her
Low
er
Effort & Investment over
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”
SAFE™ Commercial Approach
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Reven
ue
Hig
her
Low
er
Effort & Investment over
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”
SAFE™ Commercial Approach
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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
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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
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