The Route to Scalable eCommerce (March 2009)


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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.

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The Route to Scalable eCommerce (March 2009)

  1. 1. The Route to Scalable eCommerce A Framework for Scalable Web-facing Retail Applications Craig Harper-Ashton - Head of eCommerce Neil Stewart - Commercial Director Prepared: March 2009
  2. 2. Who are Salmon? Diverse Interests and Practice Interests in retail, finance, insurance and utilities Focus on enterprise architecture , IT / business change Focus on business impact Application management and support - 25% of the business Innovative Risk Reward Models Fixed price Managed risk Shared reward Diverse Interests and Practice Global SI, operations in London, New York, Beijing, Sydney Successful track record over 19 years c. 180 staff, c 100 in eCommerce team £16.8M turnover Privately owned, financially sound Open, honest and responsive approach Strong delivery-focused culture and focus Mission critical systems Broad and deep expertise in web based applications and technologies Specialist skills in highly transactional systems and solutions e.g. B2B and B2C eCommerce, multi-channel integration, insurance underwriting Customer experience / design
  3. 3. End-to-end eCommerce Project Services Discovery Strategy and business case Requirements (functional/non- functional), analysis/gap analysis Asset clarity framework Business process mapping Package/component/tool set selection 1 Customer Experience Design Customer journey mapping Information architecture Customer experience Design Application of Web 2.0 Usability 2 Ongoing Services Application support or complete managed service (hosting via third party) Maintenance and enhancements Monitoring and alerting Web marketing and SEO; capacity planning; analytics etc Stress testing and performance tuning 3 Solution Implementation Architecture and design Build/test/deploy/training Performance by design Data, systems, 3rd party Solution Integration Implementation of Industry best practices 4
  4. 4. Salmon Delivering eCommerce Solutions for market leading & challenger brands
  5. 5. A Framework for Scalable Web-facing Retail Applications Agenda Definitions SaaS, out-of-the-box, fully bespoke Benefits, Drawbacks A Better Way? SAFE™ Commercial approach
  6. 6. Definitions SaaS, out-of-the-box, fully bespoke
  7. 7. Definitions SaaS An 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.
  8. 8. Definitions out-of-the-box Items, 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.
  9. 9. Definitions Fully Bespoke Refers to software designed and written for a single company and/or task. custom-made to the buyer's specification.
  10. 10. Benefits and Drawbacks
  11. 11. Benefits and Drawbacks SaaS Benefits For the Customer No client/server software installation or maintenance Shorter deployment time Global availability Service Level Agreement (SLA) adherence Constant, Smaller, Upgrades Ease of traditional internal I.T. pains Redistributable I.T. Budget Predictable costs One butt to kick Benefits For the Provider Aggregate operating environment Predictable revenue stream Predictable growth Focus on smaller upgrades instead of monster patch rollouts Sales becomes customer relationship management Drawbacks For the Customer No direct control of the data Dependence on an outsider to run your eCommerce business 12 -24 month tie-in What next? „Prisoner‟ Security One size fits all Drawbacks For the Provider Monthly focus on customer satisfaction Harder development process Compensation issues Success can be a problem
  12. 12. Benefits and Drawbacks out-of-the-box Benefits For the Customer Quick to get up and running Relatively low initial outlay Design templates available WYSIWYG Benefits For the Provider Repeatability Predictabilility Economies-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 all Superfluous features Missing features Package drives business not visa-versa Very costly to add new features Search engine visibility often poor Fixed Database structure „Best practice' not always adhered to Drawbacks For the Provider High churn Innovation at the pace of all
  13. 13. Benefits and Drawbacks Enterprise bespoke Benefits For the Customer High flexibility / agility High differentiation Control over pace of innovation Alignment to business processes , not visa- versa Direct relationship with development partner in locale Typically lower training costs / knowledge transfer compared to packaged software Increased risk management Mix and match / best of breed Benefits For the Provider Highly innovative High profile High value Drawbacks For the Customer Development often requires ROI and TCO assessment, and stakeholder support Procurement procedures Multiple internal stakeholders Multiple partnerships / alliances Bespoke support Longer initial development time Relatively high initial outlay Drawbacks For the Provider Reuse is low as IP is retained by customer Risk Management
  14. 14. A better way?
  15. 15. Revenue HigherLower Effort & Investment over time Lower Higher eCommerce conundrum Solution Complexity HigherLower
  16. 16. Why SAFE™? Big Picture Continued shift from eCommerce -> MC eCommerce -> Cross Channel retailing continues unabated Endemic eCommerce platform failure as eCommerce operations mature 1st 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
  17. 17. 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, Per vasive Core web property Test Market
  18. 18. Commercial Approach
  19. 19. Revenue HigherLower Effort & Investment over time Lower Higher Solution Complexity HigherLower Sold “as-Is”, as a service on a visitor or revenue basis p/m/y, single instance, managed service A. SaaS SAFE™ Commercial Approach
  20. 20. Revenue HigherLower Effort & Investment over time Lower Higher Solution Complexity HigherLower 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
  21. 21. Revenue HigherLower Effort & Investment over time Lower Higher Solution Complexity HigherLower 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 customisationB. out-of-the-box A. SaaS Sold “as-Is” SAFE™ Commercial Approach
  22. 22. 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 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 Head of Service and Channel Development
  23. 23. Unique Approach • Unique Solutions Salmon LLC 220 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 Street Sydney NSW Australia 2000 Tel: +61 (0)2 8251 0044 Fax: +61 (0)2 8251 0097 Salmon Ltd 64 Clarendon Road Watford Hertfordshire WD17 1DA Tel: +44 (0) 1923 320 000 Fax: +44 (0) 1923 320 023 Salmon China Limited 605 Zhongchen Building Lize Zhongerlu #1 Wangjing Science & Technology Park Chaoyang District Beijing 100102 China Tel: +86 (0) 10 6439 8779 Fax: +86 (0) 10 6439 8665