Implementing a Mobile Sales Force Solution

Nadir Belarbi

CIO L’Oreal Canada

Toronto Mobile Enterprise Conference - October 6th, 2015

Agenda

• About L’ORÉAL CANADA & GROUPE L’ORÉAL

• Context & Metropolis Project Objectives

• Metropolis Project Organization & Timeline

• The Features of the New Solution

• The Device Selection

• Technical Challenges

• Change Management, Support Process & Solution Deployment

• Takeaways

About L’ORÉAL CANADA

61 NATIONALITIES

$1 BILLION IN SALES

Top10 SUBSIDIARY

1200 EMPLOYEES

BRANDS

35 #1 COSMETICS COMPANY IN CANADA

Legacy

A pure player in beauty for

105 years Created by Eugène Schueller in 1909

Our Identity

Beauty Eternal

Cultural

Universal

Infinitely diverse

Social

A permanent quest

Beauty is essential to humanity

OUR BUSINESS

LANCÔME

GIORGIO ARMANI

YVES SAINT LAURENT

BIOTHERM

KIEHL’S

RALPH LAUREN

SHU UEMURA

CACHAREL HELENA RUBINSTEIN

CLARISONIC

DIESEL

VIKTOR & ROLF

MAISON MARTIN MARGIELA

PALOMA PICASSO

GUY LAROCHE

URBAN DECAY

L’ORÉAL

LUXE

L’ORÉAL PARIS

GARNIER

MAYBELLINE NEW YORK

OMBRELLE

ESSIE

CONSUMER PRODUCTS

P.8

L’ORÉAL PROFESSIONNEL

KÉRASTASE

REDKEN

MATRIX

PUREOLOGY

SHU UEMURA ART OF HAIR

ESSIE PRO

PROFESSIONAL PRODUCTS

VICHY

LA ROCHE-POSAY

SKINCEUTICALS

ROGER&GALLET

ACTIVE COSMETICS

Brands & Cultural Backgrounds

Growth & Acquisitions

Examples of Acquisitions of Brands generating 50M Euros of Yearly Revenues.

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

22 000

19

67

19

68

19

69

19

70

19

71

19

72

19

73

19

74

19

75

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Revenues in Euros

IFRS standard since 2004

The World Leader in Beauty

* Estimations

BEIERSDORF* KAO CORP* L’ORÉAL UNILEVER* SHISEIDO* ESTÉE LAUDER*

AVON CHANEL*

28.88

20.7

20.08

9.98 8.38 7.64 6.73 6.16 5.87 5.33

PROCTER & GAMBLE*

JOHNSON & JOHNSON*

WWD BEAUTY BIZ RANKING AUGUST 2013 “BEAUTY’S TOP 100” 2012 sales in billion US DOLLARS

Groupe L’Oréal Operations

40 PLANTS

40,000 FINISHED PRODUCTS REFERENCES

21,000 EMPLOYEES

6.3

.

BILLION FINISHED PRODUCTS

10 FUNCTIONS

KEY FIGURES 2013

Worldwide Presence

3 worldwide centres and 5 regional hubs with 23 research centres

16 evaluation centres

49 scientific and technical regulatory departments

The New L’Oreal

25.1% NORTH AMERICA

35.1% WESTERN EUROPE

39.8% NEW MARKETS

WEIGHT OF NEW MARKETS

Project Metropolis

Growth through Change

Metropolis Project Objectives:

• Increase Sales Reps efficiencies

• Build a 360 view of the customer

• Replace legacy tools with a single solution

• Focus on business added-features vs supporting the solution

• Design a mobile solution with an enhanced user experience

Functional & Technical Requirements

• A Mobile Solution: Wireless & 3G/4G

• A Light weight Solution: Tablet

• Acceptable battery Autonomy: Sales Reps are on the road during the day

• Enhanced User Experience: Ease of use and flexibility

• Allow a VPN Access: Access corporate ressources

• Be a Productivity Tool: Able to run MS Office, Excel Macros

• A Secure Solution

Project Structure

• Agile Mode: Multiple iterative cycles

• Small Pilot Group of Sales Reps from different divisions

• Involvement of respective Regional Sales Directors

• Project Sponsor Lancôme National Sales Director

• Incremental development of the different solution features

• Exchanges with Salesforce, Microsoft & HP Canada

• Extensive technical tests in the field with the Sales Reps

• Strong focus on Training, Change management and Support

• Broad Project communication

Video

The Solution Structure

Three distinct components and Three Decisions

• The sales reps solution (Application)

• The Device (Hardware including Communication features)

• The Device Operating System (OS)

Dashboard Access & messages

Micro-Rep Order Entry

BackBar & PureProgram PPD Loyalty Programs

Follow-up Order Follow-up

Rep Portal Document

Management

Companion CPD Order Proposals

CSS POS Reports

Sales Outlook Customer CRM

Customer Service

Act! 2013 Customer CRM Internal Sales

Daily Activity Log Surveys

Customer information

A 360 Customer View

Customer

Customer Service

Account Executive

Customer information centralisation Access to SAP Information (invoices, orders, etc.) Collaboration / communication (between account executives, head office, customer service, etc.)

Case management Customer Information Visibility Collaboration / communication Integration with 8x8

Fully-branded public or private communities that connect members directly with each other & with relevant content, data and business processes

Solution Features

Customer

•Information

•Territory mgt

Visits

•Task lists

•Calendars

•Surveys

•Store event mgt

•Routing

•History

Orders

•Regular

•Promo

•Credit

•Returns

•No Charge

•Budget controls

•Loyalties program

•History

Document Mgt

•File sharing

Live communication

•AE

•Regionals

•Head office

•Customer Service

Reporting

•Sales obj.

•Dashboards

•Reports

Customer 360° view

Project Challenges

• OS: Ease of use and Win 7 vs Win 8

• Battery life challenges with an earlier tablet model

• Office 365 limitations: Excel Macros

• Ability to use other corporate applications pnly running on Windows.

• 3G and other wireless connectivity reception issues

• Training & Change Management for a sales rep force on the move

The Hardware Device

Selection criteria:

• Size & Shape (dimensions, weight, etc.)

• Battery life

• Screen resolution

• Overall performance

• 3G and other wireless connectivity

• Connection to an External Display (accessory)

• Open to Bluetooth keyboard and mouse (accessories)

Devices Tests

HP ElitePad 1000 G2

• Windows 8.1, 3G/LTE

• Productivity jacket or POS jacket

• Docking station

• Microsoft portable keyboard and mouse

• Portable screen

Pros

• Windows based device – easy to adapt to.

• WiFi and 3G/LTE integrated

• Compatible with all corporate applications

• Centralized management (GPO, SCCM, etc.)

Cons

• Short battery life

• Small screen size and small screen resolution

• On-screen keyboard is usable only in portrait mode

(vertical position of the screen)

• Windows 8.1 user interface (Modern) is confusing

(frequent switch from Modern to Desktop mode is

annoying)

Devices Tests

iPAD Air

• iOS 7, 3G/LTE, WiFi, 64 GB

• Protection jacket

Pros

• Very good battery autonomy.

• WIFI and 3G/LTE integrated

• Comprehensive interface

• Better on-screen keyboard

Cons

• No internal storage – needs Cloud integration

• Small screen size

• On-screen keyboard is usable only in portrait mode (vertical

position of the screen)

• O365 requires corporate subscription and it this some significant

limitations (no macros, f. ex.)

• Very complex integration with corporate services: files access,

Intranet portals (flash), SSO, etc.

Selected Device

HP Elitepad 900 G2:

• Windows 7, MS Office 2010, 3G/LTE capable

• Touch screen, non removable.

Optional: • Productivity jacket or POS jacket • Docking station • Portable screen • Microsoft portable keyboard and mouse

Wireless Test Areas

Saint-Jérôme (60 km from Montréal area)

Toronto

Montréal

All locations had LTE and Public Wifi coverage

Main Technical Challenge

Wireless 3G / 4G – LTE connectivity: • Loss of session and connectivity (Micro Wireless Failures with HTTPS

Sessions) • In Rimouski, Qc / Fort McMurray, Alberta / Aurora, Ontario /

Belleville, Ontario but also Metropolitan Areas (Montreal, Toronto, Vancouver)

• Public WIFI: • Bandwidth availability can fluctuate depending on the WIFI use.

Mitigation: • Salesforce One Off-line limitations (Read-Only) • This lead to the development of a customized Off-line module using

the SalesForce API (OSF Global Services)

In the Field: WIFI Challenges

Public WIFI: The Internet access through publically available WiFi Hot spots does not provide a reliable data link: the speed of the connection is usually GOOD, but the access drops frequently. In some cases, the WiFi signal coverage drops inside of salons/beauty shops. Sometimes, even if the signal strength is high, the laptop can not establish an Internet connection due to high concurrent bandwidth usage or local gateway’s throughput problems.

In the Field: 3G / LTE Challenges

Built-in 3G/LTE network: The Internet access through integrated 3G/LTE network interface has the similar problems: the speed of the connection is usually Low/Medium inside of buildings, but the connectivity is more stable than Public WiFi. The speed of the connection is good enough when LTE service is available (usually in city centers or big Shopping centers). Though, the connection can switch to 3G at any time resulting the slow unreliable Internet access. Also, the LTE coverage in Canada is very limited and usually only available in big cities.

In the Field: Netmotion/Telus

Netmotion VPN: We also tried to explore “Netmotion” VPN solution. Netmotion allows to mask the data link connectivity issues (connection drops, etc.) by hiding the link errors from the application level and passing the traffic via VPN: application (WEB browser for example) still “think” that it is always connected to the destination server, because the link is established through local proxy service, controlled by Netmotion app. The solution works very well, but has a significant limitation: it’s impossible to establish a second VPN connection inside of Netmotion VPN. So it’s impossible to connect to our Corporate VPN and use Netmotion at the same time.

Change Management, Support & Deployment

• Training and deployment were done at the same time

• Reps received their new tablets a few days before the training to

transfer their data with the Help Desk assistance

• Reps were trained during 2 days on their new tablets and left the training operating the new solution

• Training sessions were held in major Canadian cities and in sync with Reps events (meetings, gatherings, etc.)

• Support relies of the chain of Key Users, Help Desk (leve 1), Advanced Functional Support (Level 2) and Outsourced Dev.

Takeaways

• For a mobile use, don’t only rely on an online-use. Have an Off-line

mode as a plan B.

• Don’t assume that your users will use a device because it’s the best of bread one: Do an extensive pilot and survey the users.

• Plan for the right support and change management depending on your users tech maturity.

• Wireless use is battery consuming: plan your device selection accordingly.

• Test, Test and Test Again: Your solution should endure the field complexities and drawbacks.

Qu

est

ion

s?