Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

B2B Digital Transformation - Case Study

5,343 views

Published on

The Complete Transformation from Offline to Online Magento Implementation of a B2B Platform – a Case Study. This case study shows how we managed to reach 100.000.000 EUR of online revenue, within only 3 quarters last year.

Published in: Business
  • Don't forget another good way of simplifying your writing is using external resources (such as ⇒ www.WritePaper.info ⇐ ). This will definitely make your life more easier
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • It's so easy that you can find it with your eyes shut. For example, as for me the best and the most responsibly working service is this one - HelpWriting.net - you'll find there everything you need. And the prices are reasonable.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

B2B Digital Transformation - Case Study

  1. 1. 1   The  Complete  Transforma1on  from  Offline  to  Online     Magento  Implementa1on  of  a  B2B  Pla;orm  –  a  Case  Study.   Tom  Karwatka,  Divante.co    
  2. 2. This  Case  Study  Shows  How  We  Managed  to  Reach...   2   100.000.000   EUR  online  rev   aOer  Q3  of  last  year    
  3. 3. B2B  is  The  HoRest  eCommerce  Field  Right  Now     •  Nearly  75%  of  B2B  buyers  say   buying  from  an  e-­‐commerce   site  is  more  convenient  that   buying  from  a  sales  rep.   •  30%  of  today’s  B2B  buyers   finalize  at  least  half  of  their   purchases  online.  By  2017,  this   will  nearly  have  doubled  to   56%.   3   •  60%  of  B2B  companies  -­‐  their   B2B  buyers  spend  more  when   interac1ng  with  mul1ple   channels.   •  Omnichannel  B2B  customers   are  also  more  likely  to  become   repeat  and  long-­‐term   customers.   hRp://divante.co/blog/b2b-­‐ecommerce-­‐2016/    
  4. 4. About  Client  -­‐  TIM   •  TIM  SA  is  the  biggest  electro-­‐ technical  goods  distributor  in   Poland  and  one  of  the  biggest   in  the  region.   •  30  years  of  experience  in  the   market.  It’s  been  on  Warsaw   Stock  Exchange  since  1998.     •  Clients  from  the  construc1on   business  area.       4  
  5. 5. Growth  Strategy:  eCommerce   •  Goal:  diversifica1on  of   business  and  improvement   of  effec1veness   –  Expand  customer  base  (new   industries,  B2C  clients)     –  Expand  product  range  and  add   new  product  categories.   5   It  is  difficult  to  convince  the  employees   to  introduce  new  ideas,  especially  such   radical  ones.  Moreover,  our  vision  and   strategy  need  to  be  clear-­‐cut  to  the   Board  of  Directors  and  owners.     We  cannot  begin  without  their  support   and  -­‐  as  you  can  see  -­‐  the  project  is   planned  to  last  for  many  years.   -­‐  Artur  Piekarczyk,  Vice-­‐President  
  6. 6. Start  of   coopera1on   –  5.2011   Start  of  first  B2C  test   project  –  9.2011   Niche  webshop  with   cables  for  B2C   clients     Can  TIM  sell  on-­‐ line  ?   Can  we  acquire  new   customer  groups?   Start  of  B2B   project  -­‐     3.2012   Switching  to   SCRUM  –   5.2013   B2B  project   going  live  –   7.2013   S.W.A.T  –   11.2013   Major   redesign  –   8.2014   Moving   hos1ng  from   TIM  internal   datacenter   to  outside   datacenter  –   2.  2015   Advanced   BigData   project  –   1.2016   Timeline  of  Coopera1on   6  
  7. 7. Process   7   1.  Business  requirements.     2.  Customer  research.  
  8. 8. Research     •  Field  research.     •  We  had  previously  completed  a  B2C   project,  so  we  had  some  interes1ng   data  about  a  new  type  of  customers.   •  Researches  we  did  in  this  case:   Compe1tors  analysis,  Surveys,   Benchmarking,  Trend  analysis,   industry  reports  etc.   8   In  the  picture  you  can  see  Kasia  in  one  of  our  end-­‐clients’   facili1es.  During  that  field  research  we  learned  that  sales   reps  prefer  to  call  their  call  center  and  place  orders  directly   to  the  operator.   All  analy1cs  packages  provide  key  reports,  such  as  most  frequently   visited  pages,  visitor  demographics,  bounce  rate  and  more.  
  9. 9. Personas   9   •  A  persona  is  a  fic1onal  iden1ty.   •  Personas  help  you  to  understand   what  a  client  actually  needs.   •  Usually,  we  create  3-­‐4  personas   for  each  project.   •  A  persona  gives  the  customer   data  a  human  face.     •  Personas  also  help  prevent  some   common  design  pi;alls,  which   may  otherwise  be  easy  to  fall   into.    
  10. 10. Design  Phase   •  Prototyping  –  changes  are  much.   •  We  use  mockups  -­‐    the  interac1ve  prototypes.     •  We  get  our  client  involved  in  almost  every  phase  of  design.   10   Concep1on   Selec1on  of  ideas   Prototype  1   Prototype   3   Prototype   2   Genera1ng   Ideas   Coherent   prototype   Workshop   Findings   Polishing  the   Prototype   Research   Findings   Data   from  GA   6  clients   of  TIM   2   poten1al   clients   4  itera1ons   of   prototypying   User  Research   Design  Process  
  11. 11. We  work  in  teams.     We  generate  ideas  using  personas.   Then  we  do  paper  prototyping AOer  that  each  team  presents  mockups   and  discusses  them  with  other  teams.     Then  we  choose  the  best  ideas  and  build   one  coherent  mockup  prototype.   Workshops  
  12. 12. Paper  Prototypes   12   Concept 1 Concept 2 Concept 3
  13. 13. Digital  Prototypes   13   •  Digital  version  of   prototypes.     •  Clickable  and  will  allow   us  to  conduct  user  tests.  
  14. 14. User  Tes1ng   •  Usually  6  users  are  enough     to  determine  80%  of  usability   problems.     •  We  do  itera1ve  tes1ng.     AOer  the  tests  tweak  the   mockups  and  test  everything   again.   14   In  this  case  designing  was  a  challenge:  poten1al  customers  either  had  an   experience  with  online  stores  or  had  no  experience  whatsoever.    
  15. 15. Final  Digital  Mockup  
  16. 16. Graphic  Design   16   •  It  took  us  one  month  to  finish  the  graphic  work.       •  To  shorten  the  1me  to  market,  in  the  mean1me,  we  carried  on  implementa1on.  
  17. 17. Choosing  the  Technology   •  Since  2008  so  we  have  tried  many   eCommerce  pla;orms.     •  Why  you  should  consider   Magento:   –  Magento  is  currently  the  most   popular  eCommerce  soOware   –  Magento  is  the  most  popular   pla;orm  to  migrate  to   –  You  have  the  producer’s  support   and  an  elas1c  license  model.   –  The  soOware  provides  a  rich  set  of     ready-­‐to-­‐use  features.   –  Magento  2.0!   17  hRp://blog.aheadworks.com/2015/05/ecommerce-­‐pla;orms-­‐popularity-­‐may-­‐2015-­‐two-­‐pla;orms-­‐take-­‐half/   Alexa  1  million  top  sites  survey  unveiled  leadership  of  Magento   among  world  top  eCommerce  pla;orms.  
  18. 18. Magento  vs  B2B  Needs   You  should  consider  these  points:     •  Adding  products  faster  (with  photos  and  videos)  -­‐  PimCore  or  Akaneo.   •  Marke1ng  automa1on  that  actually  works  and  is  easy  to  use  -­‐  Mau1c.   •  Recommenda1on  engine  -­‐  Hadoop.   •  Search  that  works  like  Google  -­‐  Fact  Finder   •  CRM  allows  your  sales  reps  to  work  on  your  clients’  accounts  –  OroCRM     •  Custom  B2B  modules:  a  tree  structure  of  the  clients'  account,  payment   methods,  flexible  shopping  cart.   18  
  19. 19. Omnichannel  Open  Architecture   19  hRp://divante.co/blog/omnichannel-­‐open-­‐architecture/  
  20. 20. Integra1ons     Nowadays  the  plaBorm  is  connected  to  the  following   systems:   •  IntegraDon  with  CRM  system:   –  Sending  client’s  data   –  Downloading  client’s  data   –  Cart  synchronizaDon  (price)   –  Cart  downloading   –  Cart  reservaDon   –  Sending  orders   –  Sending  RFPs   –  Downloading  offers  for  a  customer   –  Downloading  product  price   –  Downloading  product  price  for  a  customer   –  Downloading    invoices  data  and  invoices  in  pdf   –  Downloading  order’s  history   –  Downloading  order’s  data                   •  Product  Management  Program   –  Downloading  data  on  products  and  categories   –  Downloading  catalogue  cards  of  products  and   pictures     •  Warehouse  IntegraDon   –  Downloading  product  availability   –  Downloading  cable  segments     •  FactFinder  IntegraDon   –  Sending  product  database   –  Downloading  search  results   20   •  Integra1ons  are  one  of  the  hardest  problems  in  eCommerce  development.     •  Crea1ng  failbacks  -­‐  if  one  of  the  systems  is  down  we  are  able  to  operate  -­‐  s1ll   •  We  use  a  dedicated  soOware  as  a  buffer  layer.  
  21. 21. CRM  Live  Integra1on   •  CRM  integra1on  plays  the  key  role  in  the  system   •  Bilateral  integra1on  in  a  real  1me  -­‐  the  merchants  in  TIM’s  central  can  edit   the  shopping  carts  of  the  customers  that  are  currently  logged  on.   21   Reco  engine  Browsing   Call   Add  to  cart   Client   Consultant  
  22. 22. Users  Inspire  Us   •  One  day  a  consultants  finds     an  order  for  100  light  bulbs  and     a  huge  electric  pole.     •  To  ship  such  a  pole,  you  have     to    carefully  arrange  the  delivery.     22  
  23. 23. Dedicated  Func1ons   23   Dynamic  offer   You  want  to  buy  2  km  of  the  cable.     TIM  has  a  2.5-­‐km-­‐long  piece  in  stock,  they’d  love   to  get  rid  of.  So,  they  offer  you  their  2.5  km   cheaper  than  your  2  km.  It’s  up  to  you  to  decide   which  length  you  will  opt  for.     The  online  cart  is  expanded.   You  have  a  bunch  of  specific   func1ons,  like  communica1on  with   the  merchant,  dedicated  payment   methods,  conver1ng  cart  to  an  offer   inquiry  and  so  on.  
  24. 24. B2B  Func1ons  to  Consider   The  most  common  B2B  func1ons  we  implement  in  our  projects:     ü  List  of  contractors  with  verifica1on   ü  Individual  or  collec1ve  nego1a1on  of  discounts   ü  Order  files   ü  Offer  crea1on   ü  Consultants  who  can  accept  the  order  on  behalf  of  the  customer  by  the   phone  /  email  /  during  a  mee1ng   ü  Saving  and  sharing  the  cart  content   ü  Forms  of  payments  that  are  typical  of  B2B  (for  instance:  a  trade  credit)   In  the  cases  like  this  one,  all  the  dedicated  func1ons  are  implemented  as  extra   Magento  modules.  So  you  are  s1ll  able  to  update  your  Magento.     24  
  25. 25. Development  phase   q  Scalability  and  Performance   q  Quality   q  SLA     q  Effec1ve  development   q  Data  Driven  Customer  Experience     Implementa1on  and  Start-­‐up   The  implementa1on  of  the  first   version  of  the  system  took  us  over   14  months.   25   Start  of   coopera1on   –  5.2011   Start  of  first   B2C  test   project  –   9.2011   Start  of  B2B   project  -­‐     3.2012   Switching  to   SCRUM  –   5.2013   B2B  project   going  live  –   7.2013   S.W.A.T  –   11.2013   Major   redesign  –   8.2014   Moving   hos1ng  from   TIM  internal   datacenter   to  outside   datacenter  –   2.  2015   Advanced   BigData   project  –   1.2016  
  26. 26. Scalability  and  Performance     •  Replica1on  of  the  database  to  speed   up  reading  opera1on  and  balance  the   traffic  to  database   •  Using  a  cache  system  –  in  this  case   Memcached  was  replaced  by  Redis   •  Using  a  scaRered  file  system   (GlusterFS)   •  Using  an  hRp-­‐reverse-­‐proxy  system   Varnish  that  speeds  up  loading  pages   and  sta1c  files   •  Using  PerconaDB  instead  of  MySQL  for   the  database   26   New  Relic  Performance  Report,  ELK  Stack  +  Kibana  
  27. 27. Ensuring  Quality   •  The  extra  risk  factor:  a  big  number  of   integra1ons.   •  AOer  every  round  of  changes,  we  do  the     performance  test  to  verify  that  the   applica1on  works  beRer.   •  To  keep  the  quality  high,  we  use   –  2  phase  Code  Review   –  version  control  system,   –  1cke1ng  system  (where  all  communica1on  with   the  client  happens)   –  monitoring  system  –  Incinga,  Jenkins  +  Selenium   +  ELK  Stack  to  monitor  integra1ons   27   We  use  separate  environments  for  developers,  tests,   and  produc1on.  
  28. 28. SLA   •  250.000  EURO  daily  rev.   •  We  must  be  able  to  react  under  1  hour  and   prepare  a  workaround  for  any  problem.     •  “Divante  S.W.A.T.”  –  a  specially  formed  unit   working  24/7.     •  The  membership  is  op1onal  but  to  sign  up   every  member  has  to  pass  an  official  exam.     •  Members  get  special  bonuses  added  to   monthly  salary.   •  The  group  responsibility  -­‐  if  SLA  is  violated   on  any  website,  nobody  gets  their  bonus.   28   Divante  S.W.A.T.  is  a  unit,  that  covers   security  of  the  pla;orm  and  react  ASAP   when  the  system  is  down  or  an   emergency  happens.   SLA > 99.9%
  29. 29. Effec1ve  Development     •  To  maintain  effec1ve   development  of  project   we  created  a  dedicated   team   •  SCRUM  gives  TIM  the   control  and  quality  they   need.   •  SCRUM  team   –  Product  Owner   –  4  Developers   –  1  Front  End  Developer   –  1  Tester   •  Con1nuous  delivery  -­‐   Ansible,  Phing   29   Source:  hRps://en.wikipedia.org/wiki/Con1nuous_delivery   To  ensure  con1nuous  delivery  we  automate  the  tests  and  deployment.     Deployment time <5 min
  30. 30. Data  Driven  Customer  Experience   We  use  data  on  a  large  scale  to   improve  User  Experience  for   TIM’s  clients.         To  inspire  you  -­‐  on  TIM’s   examaple:   •  97%  of  customers  preffer  one   specific  view  of  product  list  –   „miniatures”          
  31. 31. Business  Results   31   The  share  of  online  sales     in  total  sales  in  terms  of  income   The  share  of  online  sales  in  total   sales  in  terms  of  No.  of  products   The  number  of  the  products  ordered  online  is  growing  faster  than  the  total   value  of  online  sales.  That  means  that  the  online  sales  have  bigger   poten1al  to  diversify.  On  top  of  that,  smaller  but  more  frequent  purchases   build  customer  loyalty.   B2B  project   going  live  –   7.2013   Q3,  2015   •  AOer  the  first  year:   –  50%  of  online  sales   –  Over  50.000.000  EUR     online  rev     –  25.000  products   •  AOer  3  years  –  Q1-­‐Q3   –  67%  of  online  sales     (85%  of  products)   –  Over  100.000.000  EUR     online  rev     aOer  Q1-­‐Q3   –  125.000  products  
  32. 32. Business  Results   •  This  project  has  been     a  huge  success  for  TIM.     •  They  achieved  their  business   goals:     –  Diversity  of  business   –  A  lot  of  new  customers   –  Improved  business  effec1veness   32   Clients  tes1monials:  hRps://www.youtube.com/watch?v=-­‐ QumO63G_7M&list=PLuXGEsfZdwIUuaIJTEd3PDSUQLilYVu9a&index=3     TIM  client’s  really  like  the  B2B  e-­‐Commerce  website   Harvard  Business  Review  has  wriRen  an  ar1cle  about  TIM  recently.   The  Project  was  shown  as  a  true  digital  transforma1on.    
  33. 33. What’s  Next?   •  Improving  the  reten1on  of  clients   through  BigData  analysis  and   personalized  recommenda1ons.     •  Automated  pricing  op1miza1on     -­‐  the  next  big  thing  we  want  to  pursue.     33   In  the  Forrester  research  from  2014  -­‐  Building  The  B2B   OmniChannel  Commerce  Pla;orm  Of  The  Future   •  Automated  pricing  op1miza1on  –  62%   •  Personalized  recommenda1ons  –  56%   •  Use  of  wearable  compu1ng  in  distribu1on   centers  –  49%   •  Sensors  in  shipments/products  –  46%   •  Robots/automa1on  in  distribu1on  center/ supply  chain  –  34%   •  Shopping  cart  abandoment  analysis  –  32%   B2B  e-­‐Commerce  technologies     to  invest  
  34. 34. Thank  You!   Tom  Karwatka   Divante.co   hi@divante.co   3 We  base  on  the  exper1se  we’ve  got  from  a  number  of  B2B  projects   and  generalize  it  to  find  the  gold  rules  of  B2B  eCommerce.  

×