Leaders In Implementing E Commerce Solutions

Neil Stewart and John Millington

Salmon Limited

Leaders in implementing eCommerce solutions

Agenda

• Who are we?

• Why are we here?

• One vision – two approaches

Small company with global reach Successful track record over 17 years c. 130 staff / £12m turnover Privately owned Financially sound Open, honest and responsive approach Strong delivery-focused culture

Systems integration focus Mission critical systems Broad and deep expertise in web based

applications and technologies Specialist skills in application support; testing

and performance tuning Sharing risk with our customers

Diverse interests and practices Interests in retail, finance and insurance, utilities

Focus on eCommerce and portals (B2B and B2C)

Focus on SOA and Enterprise architecture

Application management and support - 25% of the business

Innovative risk/reward models Over 240 fixed price projects delivered

Who are we?

2002

1998

2000

2004

2005

A leading eCommerce Systems Integrator

2007

2006

Salmon’s eCommerce Services

Discovery Strategy and business case Requirements (functional/non-functional),

analysis/gap analysis Asset clarity framework Business process mapping Package/component/tool set selection

Customer interaction design Customer journey mapping Information architecture Customer experience design Web 2.0

Solution implementation Architecture and design Build/test/deploy/training Integration Performance by design

Ongoing services Application support or complete managed

service (hosting via third party) Maintenance and enhancements Monitoring and alerting Web marketing and SEO; capacity

planning; analytics etc Stress testing and performance tuning

Why are we here today?

Our presence in the market tells us that eCommerce is changing in three key ways:

Increasing Opportunity

•Online revenues for 2006 were worth £30.2 billion. (IMRG)

•UK retailers expect online revenues to be 16% of total revenues by 2011, up from 8.5% in 2006 (Gartner, Q1’06)

Increasing Competition

•Only 50% of the top 100 high street retailers are trading online, the rest are coming

•Superstores such as Tesco and Wal-Mart are expanding their online operations Increasing Complexity

•Customers expect rich, personalised online experiences requiring the use of new technologies

•Storefronts are requiring ever deeper integration with back-office systems

How to React?

eCommerce is changing, those trading online will need to change with it

Change is becoming the norm, not an exception

The systems built to trade in the future will have to be capable of evolving with the market and those already in place will need to become flexible

•Reduced time-to-market of new stores addressing niche opportunities

•Rapid deployment of user interface components based on the latest fad

•The ability to change stores rapidly

One Vision – Complementary Approaches

These include:

• Entrants into eCommerce• Retailers• Manufacturers• Any business that sells goods or provides

services directly to consumers, e.g. a business that sells to consumers directly through a catalog

These include:

• Companies who have already made a significant investment in eCommerce

• Those that see storefront integration with the back-office as the next step

• Organisations coming to market for the first time with large, complex, disparate but valuable underlying systems

An on-ramp solution for growing businesses who are either looking to get started or expand their

eCommerce offering.

A means of renewing legacy investment in eCommerce to face the challenges of the future for

customers unsuited to a package solution.

and

Familiar?

Current site is ‘held together by string’

Low cost of entry Sophistication

Familiar?

Current site won’t cope

with Xmas peak


Familiar?

Current site won’t scale to support our business growth


Familiar?

All our efforts are focussed on keeping

the lights on – we can’t drive our business


Familiar?

The business users don’t have control over the

site – we can’t make changes when we want to


Familiar?

We have to rely on a third party to

make changes to the site and they

don’t have the resource to support it


Familiar?

The cost of adding new “commodity”

functionality is high


Familiar?

Internal delivery is focussed on other initiatives and

I would like to work with an outside organisation that

can deliver and manage a “world class”

ecommerce system


Outcome


Rip & Replace Culture

Why you need SAFE™

Current site is ‘held together by string’

Current site won’t cope with Xmas peak

Current site won’t scale to support our business growth

All our efforts are focused on keeping the lights on – we can’t drive our business

The business users don’t have control over the site – we can’t make changes when we want to

We have to rely on a third party to make changes to the site and they don’t have the resource to support it

The cost of adding new “commodity” functionality is high

Internal delivery is focused on other initiatives and I would like to work with an outside organisation that can deliver and manage a “world class” ecommerce system

Salmon’s Application framework for eCommerce SAFE™

SAFE™ is a series of pre-configured,

reusable eCommerce components

developed by Salmon that allows

businesses to quickly leverage the

inherent functionality of IBM WebSphere

Commerce, (widely regarded as the

leading eCommerce solution).

Practice dedicated to IBM WebSphere Commerce

Source Forrester Research, Inc.

IBM WebSphere Commercewidely regarded as the industry leading e-commerce solution

About SAFE™

A genuine on-ramp solution that caters for all of a company’s on-demand needs

Leverages a strategic scalable platform (IBM WebSphere Commerce) exploiting its rich functionality

Provides you with a working store within weeks with typically 70-80% of the capability needed to do business online, with your customers, partners or suppliers

Fast ROI & low cost of entry (reduced development costs and timescales)

Businesses benefit from an already functionally rich, scalable solution that can be customised to differentiate

SAFE™ eliminates the risk of having to “rip & replace”, meeting existing and future integration and multi-channel requirements

Typical Project Approach

The SAFE Approach

Early deliverable (NOT a prototype)

Focus on differentiation not commodity

Ability to see the design on real system not paper

Early visibility of “admin tools” to business users

Focus on functional and non functional requirements

Salmon Application Framework for eCommerce

> 250% Sales Growth

> 60% Visitors Growth

Live in < 90 Days

What is SR4?

A methodology that allows for the creation of a renewed eCommerce platform integrated with back-office systems

Centred upon a maturity model to allow for targeted investment Pragmatic and focused on reusing existing components where possible Technology neutral Recognises and takes account of differing appetite for spend amongst customers Derived from industry best-practice drawing heavily from the service-oriented world Employs a reference model to guide implementation Perfect for defining a roadmap towards excellence whilst delivering interim benefits Maps well to other methodologies such as RUP, XP and waterfall Backed-up by a dedicated architecture practice with expertise in the delivery of

Service Oriented Architecture solutions

Current StateCurrent State

The Problem it Tackles

Target StateTarget State

InterwovenInterwoven

EndecaEndeca

SAPSAP

OracleOracle

Composition Layer

Site A Site B Site C

Service Bus

Interwoven

Endeca

SAP

Oracle

Store Components

Search Stock Content

Delivery

Site B

Site A

Stock

Basket ContentSearch

Checkout Delivery

How Does SR4 Meet the Challenge?

Targeted investment Based on the Salmon Reference Model it identifies the various capabilities required by

stores and how these are currently delivered The SR4 Maturity Model is then used to assess each capability’s need for renewal

Flexible platform Control of the composition and configuration of store components is removed from the

site itself and held by a separate layer Integration with back-end systems makes use of service-orientation via a Service Bus

Low-risk change In most cases it is possible to create the new platform without changing the core

business logic This creates a highly flexible platform where sites can be composed from store

components that are loosely coupled to the underlying back-end systems The overall problem of delivering an eCommerce solution is simplified through the

separation of concerns

SR4 in Action

RoadmapRoadmap

ResearchResearch RecommendRecommend RealiseRealise

revise (iterative)

{control}

{conceptual}

{logical}

{physical}

SR4 Artefacts

Research Recommend Realise

Business Requirements spec

Process Model

Process Design Specification

Service design Specification

Application Architecture Design

System Functional Specification

Technical Architecture Design

Information Architecture Design

Technical Specification

Business Case

Service Requirements Spec

Technical Architecture Spec

System Requirements Spec

Roadmap

{Assembly}

Test Plan

Test Script

Deployment Plan

Migration Strategy

Training Strategy

Code

Non Functional Specification

User Interface Specification

Audit & Monitor Design

Maturity Assessment Plan Support Plan

Maintenance Plan

Business

System

Service

Technology

Infrastructure

Service Interface Specification

{interface}Service

Infrastructure Architecture Spec

Service Level Agreement

Architect

Business Analyst

System Analyst

Developer

Tester

Prog/Proj Manager

Strategy

Policy

Infrastructure Architecture Design

Strategy Plan

Vision Goals Objectives

Programme Plan

Project Plan

Financial Model

Organisational Model

Enterprise Architecture

Asset Mgmnt. Plan

Repository

Registry

Principles

Policy Plan

Relationship Contracts

Change Plan

Conclusions

Many business are investing once again

E-commerce is set to be above 14% of total retail in next 5 years

But a least double that from net-influenced sales

An integrated multi channel is key to future growth

-But can also drive short term individual channel goals

-Mapping customer behaviours across channels is key

-Then aligning your business and IT strategy

There will be even more channels in the future, not less

-Mobile will be mainly service orientated

-DTV will grow

-Interactive TV will depend on broadband

New channels will impact the marketing spend first

-As retailers fight for consumer awareness and loyalty

Thanks

If you would like to receive more information on SAFE™ or

receive a copy of our SOA manifestos

SOA What! Or SOA There!

please hand us your business card during the break

or email

Neil Stewart - [email protected]

John Millington - [email protected]