Customer Survey


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Customer Survey

  1. 1. the cloud for “me”Mass Customization 2.0: meCommerce Cloud Platform
  2. 2. SelectEx Store Demo 2
  3. 3. Customer Survey MethodologyUser of SurveysWe determined that due to the complex multi department nature of our product offering, asurvey would not adequately address are information gathering needs.. Template based MassCustomisations solutions cross many departments (Sales, Design, Procurement, Manufacturingetc)Face to face interviews (11 Interviews)It was decided focus on face to face interviews with demonstrations to senior executives anddecision makers with the following companies. Greater than €50M Less than €50M 3
  4. 4. Large companies V’s SmallCompanies Findings Large companies V’s Small Companies • Large companies 50M < • Large legacy product issues – holding products that are obsolete but cater to a few clients. • Huge portfolio of products • Product innovation is slow and measured • Big department divide – Many small decision makers • Slow to move and evolve – Current systems are adequate for what they want and change has not been forced on them • Customization seen as a necessary evil they must deal with • Smaller companies 50M > • No legacy product issues • Tight well controlled products – links well with supply chain • One to two key decision makers • Open to product and market innovation • Customization seem as the means of differentiating themselves and providing greater flexibility 4
  5. 5. Software Requirements FindingsSoftware UI • Wanted a virtual wardrobe/virtual dressing • Wanted their catalogues digitisedSoftware Backend -Wanted integration with back office systems SAP, Oracle etcSoftware Store • Multi-lingual, Multi-currency, • full shopping cart facilities including fixed product • Content Management 5
  6. 6. FindingsBusiness Model Conclusions• Mass Customization business model is a desirable model in theory for our potential work wear clients. But they are also constrained by their circumstances. To move to a mass customization model requires detailed revision of their supply chain and all the elements that touch it. We may be early with the template mass customization model for large companies in this marketplace. There is no compelling reason for these large companies to redefine their supply chain regardless of how beneficial the model may be.• The model to be adapted quickly may require a transition model to adapt the UI aspect of our template mass customization model to meet current demand, while the supply chain (infrastructural aspects) of mass customization are modified over a longer period of time.• The turnkey solution for some clients is a desired option (Software and manufacturing services for small batch ordering of apparel). This is an easier way to apply the business model where there is strong internal resistance to change. All the hard work is done outside the internal structures of the company.• The ability to touch the customer (Sell directly too or influence) while not a defining requirement is seen as extremely important for our clients. This can get very complicated if the clients sells through 3rd party distributors. A mass customisation model passing through a 3rd party can get severely disrupted and elongated. It is not as effective a model as when dealing directly with the consumer.• The value of the product is important for low price, high volume products, the benefits of mass customization are limited unless manufacturing methods allow for capital intensive solutions 6
  7. 7. FindingsSales and Marketing Conclusions (Overcoming First Mover Distinction)• Dealing with the decision makers and the decision makers. It has come clear from the face to face interviews that there in large companies there are many decision makers and even thought the primary decision maker may back you the process of implementation may last along time without support of departmental decision makers. We need to target our presentations to be broken up by department and address the concerns of every department. This will form the basis for getting consensus over implementation of the solution• Dealing with supply chain lag to the software. There can be a big infrastructural lag between implementing the software and have the ability to scale the mass customized product production. This lag needs to be managed at the product design level and in combination with procurement. We need to map the stages of implementation better so that large companies can see a road map for implementation of software along side the product production model.• Large companies v’s Small companies. Large companies like the solution and see this model as the future of their business, but are weary of the complexity of implementing it based on current infrastruture. They want a incremental step towards our model not total implementation. Also the decision making process is slow within these organisation and can take years.• Mass Customisation Total Solution. For the smaller companies they require a turnkey solution, they have no manufacturing ability for small batch ordering even based on our Template Mass Customization model• The target markets. We should look at a more open target market, as customization is a current trend, talking to venture capitalists and business accelerators may be an option. • New entrants • VC’s 7
  8. 8. FindingsSoftware Development Conclusions based on our face to face interviews there are a number ofsoftware modules that can be expanded on and developed.• UI developments • Virtual dresser for customized and fixed garments • Ability to sell both customized and fixed garments together • Logo management system to allow reuse of logo’s across many garments and to tag final logo’s and logo formats for printing and/or embroidery. • BOM development – expansion of the current BOM module to allow for more complex BOM scenarios • Technical files output development• Backend Developments • Stories on Integration with backend solutions, SAP, Oracle etc. • Stories on Integration with online CRM solutions, Salesforce etc.• Developing with the customer UI focus and backend focus • We need to work with a development client on all future module development, and develop a strategic plan for software development with these customer. 8
  9. 9. ConclusionsOver all Conclusions• Our business proposition is a desirable model but the adaption speed may be slow with large companies within our initial target sector. It is worth pursuing this project past the OAP stage and into the OEP stage• Internal dynamics in companies play a big role in the decision making process of adaption of our solution. This can slow the process down considerably.• We need to determine the balance of our effort between big target customers and small target customers. We should also explore more dynamic sectors such as the ones including retail.• We felt that requirements are becoming more complicated but matching target customer size might be getting smaller. One of the possible solution is to make make SelectEX as a plugin to other eCommerce Platforms• We need to think and adapt our solution to a more current model, the leap we are asking large companies to make with the current system is big, a transitional model incorporating some of there current key requirements is needed. We need to integrate fixed product more into our template model. This can be done over a period of time during a trial period with clients. 9
  10. 10. Content From Previous Introduction Slides
  11. 11. Customization…growingglobal demand 10 Start-up trends that will be huge in 2012 Trend #3: Customization • Entrepreneur Magazine - Dec 2011 70% of product strategists want to offer customized products. • Source: Forrester Research October 2011. Customers are willing to spend at least 25% more to get products built specifically to their needs. • Source: The NPD Group Nov 2011 >35% of U.S. online consumers are interested in customizing product features or in purchasing build- to-order products that use their specs. • Source: Mashable 2011 11
  12. 12. MiTeam (Adidas) LaunchedJune 2012 “We expect the market for personalized and customized footwear, apparel and hardware to grow strongly and evolve further in the coming years and will therefore continue to invest in the space” Adidas Group – Strategic and Operational Opportunities Report 2012 12
  13. 13. Movements in the ApparelIndustry 2012 Industry • Move to local production “Made in the USA, Made in France etc • Move to small batch production, maintaining uniqueness with smaller unit batches • Move to faster turnarounds on product development and deployment • Move towards strong intellectual and copyright controls on apparel • Move towards reduction in sales costs and capital intensive stock holding • Move towards quality and value above volume in apparel production Retail Customers • Move towards internet buying and global uniqueness • Move towards individual and unique customization, personalization 13
  14. 14. Market Challenges Industry dominated by Mass Production Factories in Far East set the rules: • Min Order Qty 1000units+ • Lead Times – 3-6 months + Disconnect between Sales & Design in Europe & Nth America and Production in Far East. Flexibility and change are difficult to manage Customization of technical workwear or performance wear is difficult to manage – changes can invalidate certification Ability to Scale Customization historically has lead to expensive localised customization not globalised solutions Net effect… Pricing – factories charge significant premiums for small batch customized product or do not do it due to fabric and component MOQ’s Inability to significantly scale small batch customization Sales cycle are too long (6 months +) Significant inventory issues 14
  15. 15. Logicmix Software SolutionsLogicmix is a cloud computing company that develops mass customization e-commerce platforms for the apparel sector. The platforms link the user interfaceacross the supply chain directly to the manufacturer a fully vertically integratedsolution for mass customisation Our software: • Makes it easy for apparel brands to provide customized clothing to their customers (B2B and B2C), helping them to satisfy a growing market demand • Helps our customers to significantly reduce their inventory holding, reduce their sales cycle and enhance their net margins • Is built by people with a passion for innovation and delivered by people who have a deep understanding of apparel production and customization Go To Market Strategy • Build on traction in technical work wear sector but then also enter corporate wear, outerwear, sportswear markets and beyond… • Targets are brands that currently have revenues from online sales of less than $180m per annum (larger companies will build their own (eg: Nike & Adidas)) 15
  16. 16. Vision Transforming Products, Brands and Businesses with our meCommerce Cloud 16
  17. 17. Solution Next Gen. Software Platform built with the following key features: Actual Screen Shots from S/ware  Acts as a generic platform (i.e. Not a company’s proprietary system)  Supports Complex Customization Scenarios  In built patented certification engine  Allows Designers to enhance/extend design and product permutations using our builder module.  Supports a variety of product types  Great Visualization  Industrial Strength e-Commerce features  Enterprise System Integration  Manufacture Neutral – software output (BOM, spec sheet) can be utilized by 3rd party manufacturer 17
  18. 18. Business Benefits Increase flexibility of sales model – enabling a high value customer experience Faster cost effective product development and deployment times Increase effective net margin Reduce Lead times significantly • Design • Quotation • Samples • Certification • Production Reduce Inventory significantly • For our customer • For their customers too Improve Production Efficiency • Consolidation/Planning on product, pre-production, component and production 18
  19. 19. Primary Target Markets Non Technical Addressable Market Workwear / Uniform Total Market Size $100 Bn Corporate Wear Technical Customization Accounts for $9 Bn Workwear Market Size $25Bn 9% of this market (20% of workwear / 5% of other) Hi Vis/ Chemical/Waterproof/ Anti Static Sportswear Wholesale Value of $5.5Bn Outerwear Customization market Market Size $5Bn Rainwear Merchandise Software Spend = 1.75% of $95m Fashion wholesale value (1% of retail value) Market Size $75Bn Logicmix Target = 25% $24m 2012 2013 19
  20. 20. Solution Branding 20
  21. 21. High Level Components Template Engine Visual Product Configurator • Which is embedded in SelectManager and SelectStore SelectManager • A Desktop Application for • Sales • Customer Service Reps • Manager / C-Level SelectStore • Web Store for end-customers (who place order directly) SelectBuilder • A Tool to help product engineer/Textile Engineer to create product templates 21
  22. 22. Design Goals Generic Platform Enterprise Integration Visualization Features SelectEX Competition e-Commerce Support Complex Features Customization Product Variety 2 2
  23. 23. Template Engine
  24. 24. Template Engine The heart of Naboo Initially with Textile/Garment Focus Configurable BOM with very complex structures • E.g. Selectable and customizable Detachable Items, Linings, Accessories • Almost every sub-component can be customized Pluggable Certification Engine: • EN471, EN343, ANSI107 24
  25. 25. Template Engine Pricing Calculator • Fixed • Cost Based Calculation based on configuration and material selection Component Sharing Among different templates: • Helps stream line and digitize companies’ entire catalog • Help customer to manage their product catalog by linking shared components to different product/templates, parts (stocking items or CTO/BTO items), raw material • Reduces Time to market for template 25
  26. 26. SelectManager 26
  27. 27. SelectManager Desktop Metaphor Yet still accessed via Web Browser Option to package it as installable application (AIR maybe) Geared toward more complex tasks • Clerical Tasks like order processing • Managerial Tasks like BI, Complex Order Searches, Or Chart • Administrative Tasks like company, catalog, user, role, and system management 27
  28. 28. SelectManager Login 28
  29. 29. SelectManager Catalog Browsing In this example, the user is browsing catalog by template, looking at configurations shared by others 29
  30. 30. SelectManager Search Order and Review The user is using advanced search to find orders that have been “approved”. The right pane is showing the search result details and its order history 30
  31. 31. SelectManager Order Processing The user is trying to push the order to the next “state” 31
  32. 32. The Designer 32
  33. 33. Visual ProductConfigurator/Designer For user to configure their end-product Realistic Multi-View Visualization of product configurations Skinnable Real time Configuration Summary, Unit Price Calculation that are updated when a change is made to the configuration immediately Save Designs Email Design Detail Design Summary 33
  34. 34. Designer in SelectStore User is configuring a panel color. On the right is a collapsible configuration summary and dynamic EN471 Class calculation. Its template engine to make sure all rules are enforced 34
  35. 35. Designer in SelectManager User is configuring a logo with Dynamic pricing based on logo types 35
  36. 36. SelectStore
  37. 37. SelectStore Purely target End User One primary goal: Get the order It is essentially a shopping cart but with configurable templates at its core rather than fixed products • Design a piece of garment • Get a quotation • Confirming order • Check order status Each store instance can have their own skin, URL, catalog, pricing, etc. 37
  38. 38. SelectStore Browse the store, pick a quick start design 38
  39. 39. SelectStore Customize the details, step by step, change color, add logo, play around with options 39
  40. 40. SelectStore Add to shopping cart and check out with credit cards or paypal 40
  41. 41. SelectBuilder 4 1
  42. 42. SelectBuilder This is a desktop application that targets Textile Engineers or Product Configuration Engineers to help them create advance templates more easily Create Configurable BOM like structure for templates with ease Manager Reusable Parts and Reusable Components Rules definitions and management Link to items from Part/Raw material database to use in templates Import template design artifacts (pictures, drawings, vector graphics) to create the visualization of the product templates Glue everything together and export deployable template to the platform 42
  43. 43. SelectBuilder in Action Assemblies also linked to visual resources 43
  44. 44. SelectBuilder in Action Add More Rules 44
  45. 45. SelectBuilder in Action When all the pieces are tied together, you get a highly visualized and highly configurable model 45
  46. 46. Customer Surveys
  47. 47. Demo/Concept Review • Top 10 Workwear Supplier in Europe • €180M Turnover • Product Champion – Gunter Messen (Alsico Managing Director)Presented the demo to Gunter Messen on the 1st November 2012Liked:• The template supply chain solution involved in our Mass Customisation platform• The Visualisation solution of our Platform• The end to end solution for Mass CustomizationConcerns:• Cost of the platform• The effect the change to a template Mass Customized supply chain model may have on his existing infrastructure.Result:• Interested in a trial once we have finalised our software solution development.
  48. 48. Demo/Concept Review • Top 5 Workwear Supplier in France • €80M Turnover • Product Champion – Bruno Blanchard (Mulliez- Flory Purchasing Director)Presented the demo to Bruno Blanchard on the 3st November 2012Liked:• The Visualisation solution of our Platform• The end to end solution for Mass Customization• Ability to consolidate small orders from templatesConcerns:• Cost of the platform• Could his own manufacturers get access to the systemResult:• Interested in a trial once we have finalised our software solution development, but not necessarily pay for it.
  49. 49. Demo/Concept Review • Top 5 Workwear Laundry Supplier in Europe • €1.1Billion Turnover • Product Champion – Peter Taylor (CWS-Boco - COO)Presented the demo to Peter TaylorLiked:• The supply chain elements of our Mass Customization platform• Template model based design• The end to end solution for Mass Customization• Ability to consolidate small orders from templatesConcerns:• Internal resistance to changing existing design and product model• How to manage the transition from 9000 unique products to 50 Mass Customization templates?Result:• Interested in a trial once we have finalised our software solution development, added us to possible tender list for upcoming project in this area.
  50. 50. Summary Clear Strategic Direction; Balanced risk/reward opportunity Large and clear market opportunity Logicmix enables: • Focus on value added high margin returns • Expansion of customer profiles and sectors • Increased scalability Logicmix well placed to execute due to: • Low cost infrastructure • Management team in place • Support from existing customers 50
  51. 51. AppendixAppendix 1 - Analyzing Failure in Mass CustomizationAppendix 2 - Logicmix reduces risk of Mass Customization failuresAppendix 3 - Mass Customization PortalsAppendix 4 – More Product Info 51
  52. 52. Analyzing Failure in MassCustomizationBut on the other, there are two more specific reasons for failures of MC companies, according to ourresearch:First, difficulties encountered by the studied MC companies may be ascertained to possible inadequacies oftheir toolkits. Many of the toolkits that we studied do not follow the design principles suggested as successfactors by previous research: Only 55% instantly visualize consumer input, less than 20% of vendors make useof peer input in the design process, 61% do not provide information on progress of purchasing process. Only22% allow customers to share their creations with others, just to mention a few shortcomings. The reality oftoolkits clearly falls behind the academic research on design parameters of successful toolkits, suggesting alarge shortcoming in transferring research into practice.Secondly, problems in making mass customization work may also lay elsewhere. In an exploratory survey of 68entrepreneurs and consultants active in the MC business (conducted in Oct. 2009), for instance, we discoveredthat detecting customer idiosyncratic needs and creating flexible fulfillment processes are considered asmore serious concerns (average score=4.0/5 and 3.9/5) than creating toolkits that support the sales process(average score=3.5/5). This research, the preliminary results of the Customization500 study, and manyinteractions with managers during case-study based research show that profiting from mass customization isnot an easy task!The MC Graveyard: Ideas that did not make it: YouTailor & Shirts Onthefly the full stories about YouTailor and SHIRTS ONTHEFLY , head over to by blogging colleague Heiko Vogelgesang ! 52
  53. 53. Logicmix reduces risk of MassCustomization failures “First, difficulties encountered by the studied MC companies may be ascertained to possible inadequacies of their toolkits.” Logicmix Designer Module, Manager Module, Mobile Module and provide a comprehensive toolkit for nearly all mass customization scenarios “detecting customer idiosyncratic needs and creating flexible fulfillment processes are considered as more serious” Logicmix Builder Module and manage module, manage the information and supply chain complexities of customization. 53
  54. 54. Mass Customization Portals 54