Modernizing the Enterprise for Digital Commerce · î ì í ó } ^ Ç u / v } } } u u } } o ' u , X o o Z ] P Z Z À X

© 2017 Adobe Systems Incorporated & commercetools GmbH. All Rights Reserved.

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Modernizing the Enterprise for Digital CommerceThe Case for Experience-driven Commerce backed by Microservices

June 13th 2017

Errol DengerDirector, Commerce Strategy

Kelly GoetschChief Product Officer


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About the Speakers

Microservices

CloudCommerce

About KellyAbout Errol


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Retail is Fundamentally Changing in Three Ways


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Retail Is More Competitive Than Ever

51¢SHARE OF U.S. E-COMMERCE GROWTH

24¢SHARE OF U.S. TOTAL RETAIL GROWTH


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Commerce is Now Everywhere

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More Devices

Increasingly Mediated


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Consumers Expect More, Faster, Better

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Deploys 50 Million Times a Year

http://www.slideshare.net/apigee/i-love-apis-2015-microservices-at-amazon-54487258


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Digital Transformation is Necessary to Survive and Thrive


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Retailers and brands, especially are going through end-to-end digital transformations to avoid obsolesce

Over the last 50 years, the average lifespan of companies on the S&P 500 has shrunk from 60 to 18 years

Year

s

75

65

55

45

35

25

15

5

1930 1940 1950 1960 1970 1980 1990 2000 2010


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Winners in Today's Economy are Succeeding Because of Digital Transformation

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APIs are the New Currency of Commerce

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Software is How Companies Differentiate Themselves

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"More and more major businesses and industries are being run on software and delivered as online services—from movies to agriculture to national defense. Many of

the winners are Silicon Valley-style entrepreneurial technology companies that are invading and overturning established industry structures"


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IT Can’t Hold Back Organizations

I’m sorry, but that payroll upgrade

comes first. You’ll have to wait

To get that done, you’ll need to file a ticket

That change will have to wait for our next build in three

months

Our architecture committee hasn’t signed off on that

integration yet

We’ve already used up our hardware budget

for the year

I’m frustrated that my important cool new app is prioritized the

same as payroll


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What is “Finished”?

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Inventory Promotions Pricing Catalog Cart Shipping

Application

Datastore

Infrastructure

Experience Management

Application

Datastore

Infrastructure

Application

Datastore

Infrastructure

Application

Datastore

Infrastructure

Application

Datastore

Infrastructure

Application

Datastore

Infrastructure

Dozens of Clients

Marketing Control of Experiences

Discrete Microservices

Daily or Hourly Production Releases


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Step by Step Guide to Digital Transformation


/© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 15

First and foremost…Digital Transformation should not look like this!

Big Bang approaches never work


/© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Digital Transformation is a Journey…

And the journey of a thousand miles begins with a single step

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Be Comfortable Building Software Rather Than Buying It

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By 2020, 75 percent of application purchases supporting digital business will be "build," not "buy.”

Forecast Analysis: Enterprise Application Software, Worldwide, 2Q15 Update.


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Consume Granular “Building Blocks” – Not Full Packages

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Your CodeHighly innovative, differentiated, etc

AWS Console

Building Block

Building Block

Building Block

Building Block

Building Block

Building Block

Building Block

Building Block

Building Block

Building Block

Building Block

Building Block

Where you’re not differentiating, consume building blocks from 3rd

party cloud vendor

Adobe Experience Manager


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Need to Shift From Horizontal to Vertical Orientation

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Typical Enterprise Organization Structure

Head of IT

Head of Operations

Head of DBAs Head of Infrastructure Head of App Dev Head of UI

Head of Development

Service-based OrganizationAPI

ApplicationDatastore

InfrastructureInventory Service

API


InfrastructurePricing Service

API


InfrastructureProduct Service

API


InfrastructureDiscount Service


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Business process engineering - back-end

One layer of APIs (but separate stacks) that underlie their entire business, with UIs becoming essentially disposable These APIs become your products

"Real" omnichannel

Build or consume functionality as discrete APIs from 3rd party vendors, like commercetools

DevOps - shorten time to deployment Cloud - infinite and rapid elasticity. Consume functionality as discrete services Microservices - small vertical teams that build and expose granular pieces of business

functionality to the enterprise or external developers

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Customer Engagement - front-end. Owned by Adobe

Journey map - for external customers, of course. But also for internal customers of your "product" as well as 3rd party developers Use design thinking approach

Model experiences using AEM. Map the experiences back to APIs Build the APIs using microservices

Buy the APIs from a 3rd party vendor, like commercetools

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Who's on the Right Path to Digital Transformation?


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After 106 years in business,

©2017 McGraw-Hill Education. Confidential and Proprietary. Not for redistribution.


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Disruptive technology and shifting consumer behavior

Text book

Text book with digital access and

supplemental materials

100% digital course building based on

smaller components of digital content

Textbook with other

supplemental print materials

FUTURE

©2017 McGraw-Hill Education. Confidential and Proprietary. Not for redistribution.


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/©2017 McGraw-Hill Education. Confidential and Proprietary. Not for redistribution. 26

Experience

Content Commerce

Search

EasyNavigation

ProductRatings

Personalization

Mobile

LoyaltyPrograms

DemonstratedEfficacy ofProducts

StrongProductContent

CompanyInfo

Justfor funThought

Leadership

Tablet

A world class, singular ecommerce and digital publishing destination for finding and accessinglearning solutions that delivers a personalized customer experience.


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Many Access Points

©2017 McGraw-Hill Education. Confidential and Proprietary. Not for redistribution. 274% increase in conversion rate

Continuous InnovationLaunched a new brand strategy led by mobile optimized website in 123 days

3 Time Codie Winer


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Adobe’s Digital Transformation Journey

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• Global rank 82

• ~ 500M visits/month

• peak 1B visits/month

• Site is run and managed by LOB: Marketing with Product Manager input

“We listened, we experimented, we evolved… we embraced a continuous innovation strategy”


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Inflection Point

Dynamic and responsive,across every device

Track results andpredict outcomes

Personalized and consistent

Make Manage Measure

Business Model Online Purchase

Perpetual to Subscription Segmented to Immersive


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Adobe Utilizes Experience Manager as the Common Platform

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/All Rights Reserved @2017 31


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Development driven by REWE Digital, the technology arm of REWE Group

€50b+ revenue overall 330k+ employees Fully adopted Spotify’s

organizational model

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REWE Digital Uses Spotify’s Organization Model

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The commercetools API-first platform provides the communication layer for Microservices

• 80 services with a expected growth up to 260

• Each team supports approx 15 -20 services

• Each service exposed through an API


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How to Get Started?


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Invest in Real Experience Management


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Work With Your VendorsWe’ll Support You


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Sign Up for Our Free Workshop

How does this point of view (Experience Driven Commerce powered by Microservices) align with and power your unique business model

Before and After Positioning New customer journey New business process

Experience Process View

Commerce Process View

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New! Migration White Paper for Oracle Commerce Customers

The 3 reasons why it’s time to move on The 6 facets of a next generation

commerce platform Why experiences matter and how Adobe

can play a crucial role The 5 required competencies for change A detailed walk-through of a powerful first

step

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Thank You

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Documents

Modernizing the Enterprise for Digital Commerce · î ì í ó } ^ Ç u / v } } } u u } } o ' u , X o o Z ] P Z Z À X