Thanks for staying so late today. Always preferred to go first when I do something like this. Wasn’t sure how to feel as Nice guys finish lastHowever, the best things come to those who wait.Wife gave 2 pieces of advice:Will YoungHome by Michael Buble at OK KaraokeThe Premier Farnell story over the last decade has been an interesting one as the business was first introduced to online, before now being a primarily online business. The speed of transformation has hopefully led to a number of interesting lessons that can be applied. Of course, often the most interesting lessons that can applied are those from other industries. Yammer is Facebook for the enterprise. Actually by look of share price, Facebook is the AOL of the 2010s.Really quite interesting moves we have made with engaging our customers through social media.
Google, Marks & Spencer, Global Head of Conversion.From Belfast.Been away for 8 years. Jokes about accent – changed words from cow, how etc, just shout out Ian Paisley and I’ll understand what you mean.Story about client meeting and John thinking I was calling the client Joe rather than the colloquial “Do You Know”. Point out not calling anyone in the crowd Joe.
Premier Farnell plc is a leading, high service, multi-channel distribution group supporting millions of engineers and purchasing professionals globally through its Group companies. Our products range from electronic components to industrial products from over 3,500 leading suppliers.The overall size of the global electronics distribution market is approximately £200 billion, of which the high service element is conservatively estimated at £20 billion.High service distribution is highly fragmented with around 20% of the total available market served by Premier Farnell and three other global players. The remaining 80% of the high service market is served by small and medium-sized local competitors.We supply to people at the start of the design process and at the end of the design process – explain this a bit more.Sell as 3 main brands – Farnell in Europe, Newark in the US and Element 14 around the rest of the world. We also incorporate CPC in the UK, and Akron Brass and MCM in the US.
How you might have heard of the company before.Released by The Raspberry Pi Foundation - a UK registered charityWhat’s a Raspberry Pi?The Raspberry Pi is a credit-card sized computer that plugs into your TV and a keyboard. It’s a capable little PC which can be used for many of the things that your desktop PC does, like spreadsheets, word-processing and games. It also plays high-definition video. We want to see it being used by kids all over the world to learn programming.How much will it cost?The Model A will cost $25 and the Model B $35, plus local taxes.What will I get when I buy one?A Raspberry Pi. Leads, a power supply or SD cards are not included but can be purchased at the same time from Farnell and RS. You will be able to buy preloaded SD cards too.
48 websites globally in 33 local languages Growth internationally using e Commerce opportunity as a priorityIncreasingly design is moving to these markets with nearly 50% of the world’s newly qualified engineers each year graduating from universities in India and China as the region becomes the design powerhouse for technology and industrial markets.International growth markets contributed 23.2% of total sales, giving three year compound growth of 48.0%. Eastern Europe grew strongly, up 29.2% driven by the region’s web sales performance. Strong infrastructure in a total of 27 locations in the region, most notably Australia, New Zealand, China, Singapore, Thailand, Korea, Taiwan and India. a sophisticated logistics operation that enables delivery to 253 Chinese cities on a daily basis, and are able to offer the best technical support in the industry from our Global Technology Centres in Bangalore and Shenzhen.
PICS OF MAD ENGINEERS – PEOPLE HAVE IDEAS OF US WITH THIS TYPE BUT THAT ISNT THE CASE – DOC BROWN BACK TO FUTURE - Professor Farnsworth – don’t have any doomsday devices or Delorean time machinesMany ways we are a composite of a B2C and B2B business – lots of customers, relatively low AOVs of £130 and purchase directly on-line.
55% of MDD sales came via the web and other e-channels. Increased the penetration of eCommerce channels to 55.3% of total MDD sales as we exited the year, with Europe exceeding our KPI of 70% of sales via eCommerce. 55.0% of total sales compared to 47.6% in 2011 - significant strategic progressionOver 32.5 million page views per quarter on transactional and community websites Over 300 Field Sales Staff Over 900 Contact Centre Staff Over 200 Global Technical Support Engineers with Live 24/5 supportNew call centre in Krakow. Our new multi-lingual, pan-European outbound telesales call centre in Krakow, Poland, is on track for a phased launch following its opening on 28th May. As previously announced, £7.5m of exceptional costs, principally in relation to this project, were incurred in the quarter and will be recovered over a 3-4 year payback period.This type of transformation hasn’t come without its difficulties
Things can get very confusing with the number of initiatives, but customer only care about a few things2 sides to this – customer focused actions and employee actions
A little field-mouse was lost in a dense wood, unable to find his way out. He came upon a wise old owl sitting in a tree. "Please help me, wise old owl, how can I get out of this wood?" said the field-mouse."Easy," said the owl, "Grow wings and fly out, as I do.""But how can I grow wings?" asked the mouse.The owl looked at him haughtily, sniffed disdainfully, and said, "Don't bother me with the details, I only decide the policy.“Moral is that it has been about senior management committing to the process – there is no point telling the staff to commit to being an ecommerce business if the C level execs think that a Macbook is a novel about raincoats.Was a large journey to make between skills people had for a catalogue company to skills people have for an Ecommerce business. Lot of people in the room will have gone through the same journey in their businesses.Testing team – diverse skills.Need to clarify future state.About management of people’s expectations.TrainingStory you spin the workforce – nerve to see it through – stories of future state.Sorry, for those who think I’m about to tell an Irishman joke, but it’s a story about a mouse and an owl.How do you get an Irishman on the roof?Tell him the drinks are on the house.
Customers still want the same things - Whether B2B or b2c, keep focused on what customers want – fast delivery, availability, price
4 million products, 465,000 from stockChosen partner of 3,500 suppliersLots of breadth, less on depthMost products only sell less than 20 times a year.Ecommerce makes this more difficult as customers can look on all of our websites around the world to see stock information – sales people could previously control that.Also easier as can buy from any of the websites – not a catalogue world where the availability isn’t up to date
– show where our distribution centres are and talk about difficulties - say we struggle with this.But, the fact is that becomingeCommerce business has given us the opportunity to sell over the world in this way.MDD has operations in 34 countries where we provide our customers with easy access to information and products and consistent, fast and reliable delivery. We ship over 67,000 line items per day to anywhere in the world from seven distribution centres – Singapore, Leeds, Liege, Australia, China, US. That is 18 million line items per year. Our shipping accuracy is 99.7% and, as demanded by our customers, we ship 99.6% same day.
In an eCommerce world with 4 main competitors, customer access to all the prices worldwide and many products being commoditiesValue added pricing – next day delivery, service proposition, live chat, telephone supportCustomer feedback on the site a few months ago from a customer complaining about the exceptionally high quality of customer service. It was suggested that less money was spent on staff training and the savings put to reducing customer bills.
We all have data, we just all don’t use it well.Improvement of back-end systemsAB testing design changesUsing our web analytics better to guide pricing and stocking decisions
Our growing web proposition provides customers with fast access to data and information, whether through our transactional sites or our unique element14 Community which offers engineers instant access to the latest environmental legislation, industry experts, design tools, an online TV channel and the chance to collaborate and share with other engineers globallyengineering communityOver 4m visits this year in the first 6 months of this year.Current monthly average of over 500k visits 34% of these customers are returning • The community celebrated the 100K member milestone
the Knode, providing a range of tools and support invaluable to design engineers. Our growing suite of eCommerce tools adds value to our purchasing customers as we improve workflow management to ease complex processes.The Knode now has over 1,000 Dev Kits, 300 Dev Tools and thousands of free CAD libraries – legislation, competitionsthe Knode, which since its launch has seen engineers research over 860,000 different aspects of their designs.
The Ben Heck Show (TBHS) has now surpassed 5 million views globally and continues to attract new audiences. Two of this quarter’s episodes (Raspberry Pi, Ben's exclusive 3D printer) featured contests which required viewers to join element14 to enter. These activities were also promoted on third-party sites including Engadget, PC World, and others. We have begun to translate key episodes (such as Raspberry PI) to German for testing more global participation. Introducing electronics hobbyist Ben Heckendorn, star of the all new Ben Heck Show, sponsored exclusively by element14. Join Ben and his friends for bi-weekly episodes as they build and mod a host of amazing community-inspired electronics creations.
In Q2 we continued building on our success around webinars. This includes an improved, easier-to-use navigation and better highlighting of upcoming events. 19 webinars were held across 4 different series (Knode Design Flow, elector, Cadsoft, and Freescale), generating a total of 1,954 registrations.
Not as sophisticated here as we want to be. We have apps and a mobile website, which is better than a lot. But, we will be doing better as customer use more smartphones and tablets.
Search challenges likeCustomers being more exact with what they want than RetailSheer number of products makes it hard to keep up with changing product catalogueNumber of products with low search volume makes it harder for bid management systems
How do you get an Irishman on the roof?Tell him the drinks are on the house.
B2B e-Commerce: What Are The Expectations And Opportunities?
B2B e-Commerce: What Are TheExpectations And Opportunities?
• Who are we?• How did we transform to eCommerce from catalogue?• How do we engage our customers? Page 2