Joe Ballard - Adapt your business to the future of commerce

ADAPT YOUR BUSINESS TO THE FUTURE OF COMMERCEJoe Ballard, Director of Business Consulting,

hybris

, especially if it's about the future.

Disclaimer:

Prediction is very difficult

Niels Bohr

We don’t have a crystal ball!

We do have a rear-view mirror…

A lesson from the past

EXTINCTIONS…

NEW SPECIES…

EVOLUTIONS…

Even MUTATIONS…

THEORY OF NATURAL SELECTION

“SURVIVAL OF THE FITTEST”

It is not the strongest of the species that survives, nor the most intelligent, but rather the one most adaptable to change

ADAPTABILITY

PHYSICAL BEHAVIORAL

PHYSICAL

InfrastructureSW ArchitectureStores / Logistics

BEHAVIORAL

PeopleProcessesPrinciples

ADAPTABILITY

“PHYSICAL”

• The way forward is quite clear

The ICEBERG Analogy

“BEHAVIOUR”

• Not so clear!

• Vision

• Ownership

• Organization

• Agility

APIs / Omni Commerce Connect

Platform (Scalability, Performance, Security, Integration, Internationalization, Agility)

Order Management

Cross-Channel Fulfillment

Single View of Inventory

MDM: Product and Customer Content Management

Digital Asset Management

Payment, Tax and Fraud

User & Account

Management

B2B B2CPromotionsand Sales Programs

Promotionsand Sales Programs

SocialCommerce

Store Locator

Reporting Workflow Checkou

tCross

Selling

Advanced

Personali-

sation

Pricing

“PHYSICAL” Typical Platform

14

“BEHAVIOURAL” Typical Team

15

HOW ADAPTABLE ISYOUR BUSINESS?

FUTUREOF

COMMERCE

OMNI-WHAT?

Definitions of “Omni-Channel”

19

“Technology, processes and systems integrated and aligned so that every

channel behaves in the same way, to the point it makes it difficult to distinguish

between them”– Andrew McGregor, eCOMMERA

“It’s how we’d do it today if we could start again”– Philip Green, Arcadia Group

B C

• MULTIPLE CHANNELS OF ENGAGEMENT• EACH CHANNEL IS HIGHLY EFFECTIVE• … BUT EACH WORKS IN INSOLATION

The 2000 - 2012 world view“MULTI-CHANNEL”

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PH

YS

ICA

LD

IGIT

AL

STIMULATION EVALUATION PURCHASE USE LOYALTY

• CUSTOMERS USING MANY MORE TOUCHPOINTS• PREFERRED EXPERIENCE IS A “LONG AND

WINDING ROAD”• HIGHER EXPECTATIONS, LOWER LOYALTY 21

The 2013 and beyond world view“OMNI-CHANNEL”

• BREAK THE SILOS!• RE-ENGINEER THE PROCESSES!• RE-LEARN YOUR CUSTOMERS!

B C

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OMNI-CHANNELthe business response

… MASTER DATA Overlaps & Blind-spots. Single Views.

… KPIs, P&L and ORGANISATION

Measure Channels.

Functional Silos.

Measure Customers.

Experience Owners.

… SYNCHRONISATION & REACTION TIMES

Batch mode.

.xls

Overnight.

Web Services.

.xml

Real time.

… PHILOSOPHY and STRATEGY

Value chains.Economies of scale.“Hold your nerve.”

Dynamic ecosystem.Survival of the fastest.

“Fail fast, learn fast, try again”

… STOCK VISIBILITY Here. There. Everywhere. Accessible and Accurate

YOURBUSINESS: MULTI CHANNEL OMNI CHANNEL

CAN YOU CHANGE?

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3 things you can do this year

“ADAPT OR DIE”

1.CEO ACCOUNTABILITY

SOME THINGS ARE JUST TOO BIG TO DELEGATE!

25

3 things you can do this year

“ADAPT OR DIE”

1.CEO ACCOUNTABILITY

2.EXPERIENCE-LED

EXPERIENCES VS. CHANNELS

27

IT FINANCE MARKETING HRSUPPLYCHAIN

the Organisation

CHIEF CHIEF CHIEF CHIEF CHIEF

ENGAGE

EVALUATEPURCHASE DELIVER

SERVICEthe Customer Journey

28

IT FINANCE MARKETING HRSUPPLYCHAIN

ENGAGE

EVALUATEPURCHASE DELIVER

SERVICE

CHIEF CHIEF CHIEF CHIEF CHIEF

OMNI-CHANNEL CHANGE MANAGEMENT TEAM

BUSINESS-AS-USUAL MANAGEMENT TEAM

RECONCILLIATION

3 things you can do this year

“ADAPT OR DIE”

1.CEO ACCOUNTABILITY

2.EXPERIENCE-LED

3.LEARN TO FAIL… FAST

, double your failure rate.

On failure:

If you want to succeed faster

Thomas Watson (founder of IBM)

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Make failure ACCEPTABLE in your culture

CELEBRATEDETOXIFYREMOVE FEAR

SET UP THE CONDITIONS FOR EXPERIMENTATION

3 things you can do this month

“ADAPT OR DIE”

1. ASK YOUR BOSS who is accountable for all this?

2. ASK YOUR PEOPLE how do we innovate better and faster?

3. LOOK OVER YOUR SHOULDER search your top 20 products on Amazon/ Alibaba

joe.ballard@hybris.com

Thank you!

@jballard_tweets

APPENDIX

PEOPLE-STRUCTURE

STRATEGY- Define the

Vision

GOVERNANCE- Ensure Quality &

Consistency

EXECUTION- Tasks &

Delivery

Typically is:

InconsistentIncoherent, uncoordinatedLacks P&L / Logical ArchitectureIndecisive, un-empoweredINEFFECTIVE

IsolatedUnder-resourcedToothlessIGNORED

Talented and well-resourcedIn a siloMicro-managedSKILLED but UNDER-OPTIMISED

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Typically is: Should be:

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PEOPLE-STRUCTURE

STRATEGY- Define the

Vision

GOVERNANCE- Ensure Quality &

Consistency

EXECUTION- Tasks &

Delivery

Should be:ConsistentCoherentRigorousDecisiveEmpowered

Integrated with wider business- Consistent experiences- Consistent processes- All ties back to StrategyQA focused, resourced, empowered

Embedded into wider businessAligning with Governance- KPIs/Measurements- Processes- Technologies

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PEOPLE-STRUCTURE

STRATEGY- Define the

Vision

GOVERNANCE- Ensure Quality &

Consistency

EXECUTION- Tasks &

Delivery

OMNI-CHANNEL ORDER MANAGEMENT

Delivering a total customer experience is about engaging across touchpoints in a relevant, contextual way.

DISCOVER

SEARCH

RESEARCH

GET HELP

COMPARE

PERSONALIZE

SHAREEVANGELIZE

USE

TRUST

FRIEND

DECIDEPURCHASE

• INTERACTIVE

• E-MAIL

• PAID SEARCH

• SEO

• DISPLAY

• MOBILE (NOTIFICATION/SMS)

• PRINT

• WEB

• COMPANY WEBSITE

• MOBILE

• BRANCH/STORE

• CALL CENTER

• SOCIAL

Customer Experience Management

Commerce Logic

Processes (order management, …)

BACK OFFICE

Customers forced Integration of Digital with the Real World: problems really started then

ERP Ware-house

StoreSystem

CRM Data-pools

Suppliers

Data (products, customers, orders, inventory)

hybris OmniCommerce for B2C and B2Bone Technology Stack, modern Architecture

OmniCommerce Connect

Platform (Scalability, Performance, Security, Integration, Internationalization, Agility)

Order Management

Cross-Channel Fulfillment

Single View of Inventory

MDM: Product and Customer Content Management

Digital Asset Management

Payment, Tax and Fraud

User & Account

ManagementB2B B2C

Promotionsand Sales Programs

Promotionsand Sales Programs

SocialCommerce

Store Locator Reporting Workflow Checkout Cross

SellingAdvanced Personali-

sationPricing

REAR VIEW MIRROR – in more detail

HARDWARE >50%

USER INTERFACE

BROWSING

SHOPPING

POINT OF SALE

FULFILMENT

SALES ASSOCIATES

“THINGS”

Customers are IN CONTROLAnd we call this: MULTI-CHANNEL

OMNI-CHANNEL