Post on 30-Oct-2014
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ADAPT YOUR BUSINESS TO THE FUTURE OF COMMERCEJoe Ballard, Director of Business Consulting,
hybris
, especially if it's about the future.
Disclaimer:
Prediction is very difficult
Niels Bohr
We don’t have a crystal ball!
We do have a rear-view mirror…
A lesson from the past
EXTINCTIONS…
NEW SPECIES…
EVOLUTIONS…
Even MUTATIONS…
THEORY OF NATURAL SELECTION
“SURVIVAL OF THE FITTEST”
It is not the strongest of the species that survives, nor the most intelligent, but rather the one most adaptable to change
ADAPTABILITY
PHYSICAL BEHAVIORAL
PHYSICAL
InfrastructureSW ArchitectureStores / Logistics
BEHAVIORAL
PeopleProcessesPrinciples
ADAPTABILITY
“PHYSICAL”
• The way forward is quite clear
The ICEBERG Analogy
“BEHAVIOUR”
• Not so clear!
• Vision
• Ownership
• Organization
• Agility
APIs / Omni Commerce Connect
Platform (Scalability, Performance, Security, Integration, Internationalization, Agility)
Order Management
Cross-Channel Fulfillment
Single View of Inventory
MDM: Product and Customer Content Management
Digital Asset Management
Payment, Tax and Fraud
User & Account
Management
B2B B2CPromotionsand Sales Programs
Promotionsand Sales Programs
SocialCommerce
Store Locator
Reporting Workflow Checkou
tCross
Selling
Advanced
Personali-
sation
Pricing
“PHYSICAL” Typical Platform
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“BEHAVIOURAL” Typical Team
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HOW ADAPTABLE ISYOUR BUSINESS?
FUTUREOF
COMMERCE
OMNI-WHAT?
Definitions of “Omni-Channel”
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“Technology, processes and systems integrated and aligned so that every
channel behaves in the same way, to the point it makes it difficult to distinguish
between them”– Andrew McGregor, eCOMMERA
“It’s how we’d do it today if we could start again”– Philip Green, Arcadia Group
B C
• MULTIPLE CHANNELS OF ENGAGEMENT• EACH CHANNEL IS HIGHLY EFFECTIVE• … BUT EACH WORKS IN INSOLATION
The 2000 - 2012 world view“MULTI-CHANNEL”
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PH
YS
ICA
LD
IGIT
AL
STIMULATION EVALUATION PURCHASE USE LOYALTY
• CUSTOMERS USING MANY MORE TOUCHPOINTS• PREFERRED EXPERIENCE IS A “LONG AND
WINDING ROAD”• HIGHER EXPECTATIONS, LOWER LOYALTY 21
The 2013 and beyond world view“OMNI-CHANNEL”
• BREAK THE SILOS!• RE-ENGINEER THE PROCESSES!• RE-LEARN YOUR CUSTOMERS!
B C
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OMNI-CHANNELthe business response
… MASTER DATA Overlaps & Blind-spots. Single Views.
… KPIs, P&L and ORGANISATION
Measure Channels.
Functional Silos.
Measure Customers.
Experience Owners.
… SYNCHRONISATION & REACTION TIMES
Batch mode.
.xls
Overnight.
Web Services.
.xml
Real time.
… PHILOSOPHY and STRATEGY
Value chains.Economies of scale.“Hold your nerve.”
Dynamic ecosystem.Survival of the fastest.
“Fail fast, learn fast, try again”
… STOCK VISIBILITY Here. There. Everywhere. Accessible and Accurate
YOURBUSINESS: MULTI CHANNEL OMNI CHANNEL
CAN YOU CHANGE?
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3 things you can do this year
“ADAPT OR DIE”
1.CEO ACCOUNTABILITY
SOME THINGS ARE JUST TOO BIG TO DELEGATE!
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3 things you can do this year
“ADAPT OR DIE”
1.CEO ACCOUNTABILITY
2.EXPERIENCE-LED
EXPERIENCES VS. CHANNELS
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IT FINANCE MARKETING HRSUPPLYCHAIN
the Organisation
CHIEF CHIEF CHIEF CHIEF CHIEF
ENGAGE
EVALUATEPURCHASE DELIVER
SERVICEthe Customer Journey
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IT FINANCE MARKETING HRSUPPLYCHAIN
ENGAGE
EVALUATEPURCHASE DELIVER
SERVICE
CHIEF CHIEF CHIEF CHIEF CHIEF
OMNI-CHANNEL CHANGE MANAGEMENT TEAM
BUSINESS-AS-USUAL MANAGEMENT TEAM
RECONCILLIATION
3 things you can do this year
“ADAPT OR DIE”
1.CEO ACCOUNTABILITY
2.EXPERIENCE-LED
3.LEARN TO FAIL… FAST
, double your failure rate.
On failure:
If you want to succeed faster
Thomas Watson (founder of IBM)
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Make failure ACCEPTABLE in your culture
CELEBRATEDETOXIFYREMOVE FEAR
SET UP THE CONDITIONS FOR EXPERIMENTATION
3 things you can do this month
“ADAPT OR DIE”
1. ASK YOUR BOSS who is accountable for all this?
2. ASK YOUR PEOPLE how do we innovate better and faster?
3. LOOK OVER YOUR SHOULDER search your top 20 products on Amazon/ Alibaba
joe.ballard@hybris.com
Thank you!
@jballard_tweets
APPENDIX
PEOPLE-STRUCTURE
STRATEGY- Define the
Vision
GOVERNANCE- Ensure Quality &
Consistency
EXECUTION- Tasks &
Delivery
Typically is:
InconsistentIncoherent, uncoordinatedLacks P&L / Logical ArchitectureIndecisive, un-empoweredINEFFECTIVE
IsolatedUnder-resourcedToothlessIGNORED
Talented and well-resourcedIn a siloMicro-managedSKILLED but UNDER-OPTIMISED
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Typically is: Should be:
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PEOPLE-STRUCTURE
STRATEGY- Define the
Vision
GOVERNANCE- Ensure Quality &
Consistency
EXECUTION- Tasks &
Delivery
Should be:ConsistentCoherentRigorousDecisiveEmpowered
Integrated with wider business- Consistent experiences- Consistent processes- All ties back to StrategyQA focused, resourced, empowered
Embedded into wider businessAligning with Governance- KPIs/Measurements- Processes- Technologies
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PEOPLE-STRUCTURE
STRATEGY- Define the
Vision
GOVERNANCE- Ensure Quality &
Consistency
EXECUTION- Tasks &
Delivery
OMNI-CHANNEL ORDER MANAGEMENT
Delivering a total customer experience is about engaging across touchpoints in a relevant, contextual way.
DISCOVER
SEARCH
RESEARCH
GET HELP
COMPARE
PERSONALIZE
SHAREEVANGELIZE
USE
TRUST
FRIEND
DECIDEPURCHASE
• INTERACTIVE
• PAID SEARCH
• SEO
• DISPLAY
• MOBILE (NOTIFICATION/SMS)
• WEB
• COMPANY WEBSITE
• MOBILE
• BRANCH/STORE
• CALL CENTER
• SOCIAL
Customer Experience Management
Commerce Logic
Processes (order management, …)
BACK OFFICE
Customers forced Integration of Digital with the Real World: problems really started then
ERP Ware-house
StoreSystem
CRM Data-pools
Suppliers
Data (products, customers, orders, inventory)
hybris OmniCommerce for B2C and B2Bone Technology Stack, modern Architecture
OmniCommerce Connect
Platform (Scalability, Performance, Security, Integration, Internationalization, Agility)
Order Management
Cross-Channel Fulfillment
Single View of Inventory
MDM: Product and Customer Content Management
Digital Asset Management
Payment, Tax and Fraud
User & Account
ManagementB2B B2C
Promotionsand Sales Programs
Promotionsand Sales Programs
SocialCommerce
Store Locator Reporting Workflow Checkout Cross
SellingAdvanced Personali-
sationPricing
REAR VIEW MIRROR – in more detail
HARDWARE >50%
USER INTERFACE
BROWSING
SHOPPING
POINT OF SALE
FULFILMENT
SALES ASSOCIATES
“THINGS”
Customers are IN CONTROLAnd we call this: MULTI-CHANNEL
OMNI-CHANNEL