Rapidly Responding to Opportunities


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Emerging markets are ripe for disruption. See how you can work together to transform your business by letting customers’ needs be the driving force

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  • Speaker: Negin
    Time : 1 minute
    Hello. and good afternoon. It is wonderful to be up here speaking to you all. Today we are going to talk about some of the exciting things that we have been doing in Hepsiburada which is the largest retailer in Turkey. My name is Negin Yeganegy. I’m client principal with ThoughtWorks and this is Emre Ekmekçi, President of Business Development at Dogan Online Group which is the holding company for Hepsiburada.
    - Dogan Group also own CNN Turk, Newpaper Huriyat, Channel D, joint adventure with Burda group (german magazine), real state, enegry
    IT background
    Spent about 9 years building SAP systems mostly for marketing type of business
    Business School
    After than back to Turkey to build a startup
    Worked on couple of Turkey start ups
    Co-founder of City Deal which is part of the Rocket Internet which was later sold to Groupon
    6 months ago ThoughtWorks started to work with Hepsiburada to help them realise some of their business targets and solve some of their technical challenges. We are at the beginning of the journey but we would like to talk to you today about what we have learnt so far where we hope to be and how this will help us to rapidly respond to opportunities in the future which is vital for operating in developing markets.
    Speaker: Emre
    <Emre introducing himself>
  • Speaker: Emre
  • Speaker: Emre
    Online retail in Turkey is expected to see an annual growth of 15.8 per cent in constant value terms by 2017, 107 per cent in total, reaching a market value of $6.6 billion
    There are currently around 40 million Internet users in Turkey (53% of the population), which in the European ranking of countries with the highest number of internet users puts Turkey in 5th place, just after Germany, Russia, the UK and France.
    Half of the population is under 30 years old and actively use social networks (Turkey has close to 33 million Facebook users, ranking six in the world).
    That, along with an enthusiastic fervor for business enterprise, makes Turkey the ideal country to promote e-commerce.
    In 2012 total B2C e-sales has reached €5.4 billion, over 50 per cent up against 2011
  • Speaker: Emre
  • Speaker: Emre
    Hepsiburada is the Turkey’s leading retailer and distributor of xxx. Hepsiburada has a reputation as the most xxxx. It was founded in xxx in Istanbul, Turkey, by xxx.
    Hepsiburada is acknowledged as the leading specialist multiple retailer of fashionable branded and own brand xxx. It combines globally recognised brands such as xxx and xxx with its local labels such as xxx, xxx, with the website servicing 18.5 million unique visitors a month.
    Hepsiburada is proud of the fact that it provides its customers with the xxxx, as well xxx and xxxx.
  • Speaker: Negin
    Time: 1.5 minutes
    Yes, Hepsiburada is the market leader in Turkey today. But in a society and culture where change is so prevalent. The question is not just how you maintain your market leadership for the next 10 years, it is how can you maintain it for the next 12 months.
    Just about everywhere we look we see more evidence that change is happening on an exponential scale.
    Some of this volume and rate of change is a consequence of huge leaps in technology and the increasing connectedness of people and things. Given the rate of the planet’s population growth, however, the rest is simple maths.  As a result, changes in customer behaviour are no longer slow and incremental as they once were. The changes are random, revolutionary and rapid.
    Emre will tell you that retailers like Hepsiburada are responding, but are they responding quickly enough?
    The typical response for most companies is incremental and almost imperceptible levels of change. Safe, subtle and linear – that’s “change” in most organizations. And that is precisely why most of them simply won’t survive in the new era of consumerism. If this is your business you need to transform yourself
  • Speaker: Emre
    This was the position that Hepsiburada was in 2 years ago, they recognised the need for transformation.
    Journey from 2 years ago to ten months ago to 6 months ago
    in order to maintain their market leadership and stay ahead not just of the competition but also consumer demand.
    Speaker: Negin
    Time: 30 seconds
    This was the position that Hepsiburada was in 6 months ago, they recognised the need for transformation in order to maintain their market leadership and stay ahead not just of the competition but also consumer demand.
    This is the story of how Hepsiburada and Thoughtworks are working together to transform the business from being subject to the demands of the market to being the masters of their own destiny with the ability to rapidly respond to their customer’s needs.
    So what does this transformation look like?
  • Speaker: Negin
    Time: 30 sec
    Perhaps unsurprisingly a lot of our clients face challenges with their existing IT systems. IT is often regarded as a cost centre -distinct and separate from the business- a historical separation from the time when all IT had to do was change passwords, install operating systems and back up data. That is no longer the case, technology no longer supports, streamlines or supplements your business, it is not something ‘other’, technology is your business.
    You need a technology function and system that can support and respond to your needs, one that can meet the business needs of today and evolve to meet those of tomorrow…
    Speaker: Emre
    Hepsiburada were handicapped by their existing system;
    Speaker: Negin
    That ability to respond is meaningless unless …..(Next Slide)
  • Speaker: Negin
    Time: 1.5 minute
    ……you know your market
    Today’s retail customers are changing quickly, forcing retailers to keep up with their new demands and continue to adapt their business models to reflect this power shift. Customers have more control over their shopping experience, they have access to more channels and more retailers, all without the need to drive from store to store to seek out the products they are looking to purchase. The goal is to convert these interactions into contextual, immersive, consistent engagements so that the customer is encouraged to return, repurchase and advocate. Customer experience is not a new discipline, but one that is arguably growing in complexity faster than before. Power has moved to the hands of the customer driven by the rapid channel shifts and expectations of the customer base.
    These expectations are constantly changing, driven higher and higher not only by what you or your competitors are doing but also innovations in entirely different markets. Du jour rapidly becomes de facto and incremental change results only in standing still. To understand what the customer of tomorrow expects, you need to listen to them today. Whatever differentiates you or your competitors today will become an expectation tomorrow.
    In short, to compete is to meet expectations, to excel is to exceed them.
    Speaker: Emre
    … and that is precisely what we are trying to do. We are currently meeting the expectations of our customers, we are the market leader today. To maintain our leadership position we need to be able to exceed the expectation of our customers tomorrow. Recent competitors have highlighted where we need to focus
    Selection :uniqueness
    Availability : Convenience
    Delivery time: Convenience
    There is very little now that is not being bought and sold via the internet. Consumer acceptance of online commerce is clearly no longer the challenge faced by merchants. The new test however, has become the speed with which those goods can be shipped. In a few years, we’ve gone from shipping products in days to next- day to same-day with companies like eBay shipping in less than one hour.
    Same-day fulfillment for most goods and same-hour delivery on many will soon be regarded as table stakes by shoppers. Anything less will feel like a return to the pony express.
    Speaker: Negin
    Knowing your market is understanding your customer’s expectations …
  • Speaker: Negin
    Time: 1.5 minute
    …. knowing your customer is about knowing what they want before it becomes an expectation. It’s not only about what they say they want but also what they actually do
    Listening to your customer’s, truly listening, therefore has never been more important. It goes beyond reacting to the market it is about monitoring and understanding what your customers are doing so that you are in a position to anticipate and respond to their needs.
    Customer interactions leave a trail of customer data and potential insights on a scale that the industry has never seen before. Customers are leaving information everywhere about their needs, demands, preferences and behaviors within a retailer’s channels and also the social networks and media they consume. Delivering the right customer experience is fundamentally about harnessing this information to gather key insights about a customer and then using that information to change how they interact with your company across all of the available touch points.
    To do this effectively though, it is important not just to understand this data but also to ask the right questions of it to gain meaningful insight and provide your customers with what they truly need.
    Speaker: Emre
    Customers are rapidly digitizing; utilizing mobile devices, which make the online commercial world available to them anywhere they go, and making anywhere they go part of the experience.
    Hyper-location-based commerce is emerging and being adopted, with the mobile device being the center of this new trend.
    Mobile stat – do we need a separate slide for this?
    - Not only is mobile accelerating age-old consumer behaviors and patterns, it’s also creating completely new ones.  
    -The market penetration of smartphones is expected to increase by 124.4 per cent between 2012 and 2017.
  • Speaker: Negin
    Time: 40 Sec
    Responding to your customers needs is not solely about your technology, their behaviour or the market conditions. It is also about the culture of your organisation.
    An organisation’s culture encompasses everything it does and everything it makes. That is, it not only affects the manner in which managers manage or employees behave, but it also affects the way in which the organization processes its product and provides services to its customers.
    To become a responsive business you need to support the culture of experimentation and lead through innovation and disruption of the market, rather than doing things the same way.
    Speaker: Emre
    Typical business organisation where IT was a separate function which purely had tor respond to the demand of the business rather as a differentiator
    Transition from opinion led change
    Things that you might want to mention….
    Product teams
    Market place being a new business model and totally disruptive to their existing business
    Being comfortable with failure and uncertainly
    User testing
  • Speaker: Emre
    Understanding we need to be a responsive business and for that we need a responsive technology platform gave us replatforming
    Understanding the customer behavior change gave us responsive storefront
    Understanding the Market change gave us the marketplace
    Understanding that having a responsive business is not only about having responsive technology gave us organisational transformation
  • Speaker: Emre
    Sharing the strength of the brand that they gained over years from their customers with their suppliers and partners and being part of the Turkey’s ecommerce market growth.
    Maybe reference ambitions from the pdf.
  • Rapidly Responding to Opportunities

    1. 1. RAPIDLY RESPONDING TO OPPORTUNITIES letting customers’ needs drive the business 1
    2. 2. Emerging markets are ripe for disruption 2
    3. 3. 3 TURKEY IS AMONG THE WORLD LEADERS IN B2C ECOMMERCE GROWTH 5%+Expected GDP Growth for 2012-2015 75MMPeople $450BNRetail Market Size 28YRSAverage Age 50% Pop 15-45yrs 11% Total consumer spending CAGR 12-15E!
    4. 4. 20MMVisits per Month 7MMMembers 45% 2014 Growth 500,000SKUs 34% YOY Growth in 12 Years 1MProducts Shipped & Reviewed Each Month
    6. 6. 6 “If the change happening outside your company is far more unsettling than the change happening inside it, you’re not innovating at all. You’re being left behind.” — Doug Stephens
    8. 8. Know Your Limitations
    9. 9. Know Your Limitations Know Your Market
    10. 10. Know Your Limitations Know Your Customers Know Your Market
    11. 11. Know Your Limitations Know Your Customers Know Your Market Know How Your Organisation Impacts the Customer
    14. 14. THANK YOU