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AN ECOMMERCE PLATFORM MANIFESTO: !What Retailers Must Deliver to Outperform the Competition
featuring
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Jason WallisChief Technology Officer, Mozu
Peter is a VP & Principal Analyst at Forrester Research serving ebusiness & channel strategy professionals. He focuses on eCommerce technologies and solutions.
Peter SheldonVP & Principal Analyst, Forrester Research
Jason Wallis, CTO, brings almost 20 years of experience to Mozu and is responsible for driving the next generation of the commerce platform.
An eCommerce Platform Manifesto: What Retailers Must Deliver to Outperform/Surpass the Competition
Peter Sheldon, VP & Principal Analyst
May 5, 2015
@peter_sheldon
eCommerce continues on a path of explosive growth
© 2015 Forrester Research, Inc. Reproduction Prohibited 5
Consumer online spend in the US will reach $414 billion by 2018
Source: 2014 Global eBusiness & Channel Strategy Online Survey
© 2015 Forrester Research, Inc. Reproduction Prohibited 6
US B2B online spend will dwarf consumer spend, reaching $1 trillion by 2018
© 2015 Forrester Research, Inc. Reproduction Prohibited 7
Online sales growth remains robust for almost all retailers
Source: The State of Retailing Online 2015: A Shop.org study conducted by Forrester Research
8 © 2015 Forrester Research, Inc. Reproduction Prohibited
Germany 2015: €40B ($49B) 2018: €55B ($75B)
US 2015: $325B 2018: $414B France
2015: €34B ($36B) 2018: €47B ($50B)
UK 2015: €56B ($60B) 2018: €71B ($76B)
Projected online retail sales by country
Mexico (incl. C2C) 2015: $3.4B 2018: $5.7B
Brazil (incl. C2C) 2015: $22B 2018: $35B
China (incl. C2C) 2015: $594B 2018: $990B
India (incl. C2C) 2015: $7.2B 2018: $24B
Japan 2015: $71B 2018: $93B
Australia (incl. C2C) 2015: $27B 2018: $36B Argentina (incl. C2C)
2015: $4.1B 2018: $7.0B
Source: Forrester Research Online Retail Forecast, 2013 To 2018 (US); Forrester Research Online Retail Forecast, 2013 To 2018 (Western Europe); Forrester Research Online Retail Forecast, 2014 To 2019 (Asia Pacific); Forrester Research Online Retail Forecast, 2013 To 2018 (Latin America)
International online spend is outpacing US growth
28% of online transactions are now from mobile & tablet devices
© 2015 Forrester Research, Inc. Reproduction Prohibited 10
At most online retailers, mobile & tablet traffic now exceeds desktop
© 2015 Forrester Research, Inc. Reproduction Prohibited 11
YOY growth in mobile sales is staggering
Source: The State of Retailing Online 2015: A Shop.org study conducted by Forrester Research
© 2015 Forrester Research, Inc. Reproduction Prohibited 12
As a consequence, commerce technology budgets remain very healthy
Source: 2014 Global eBusiness & Channel Strategy Online Survey
4 key threats are driving firms to replatform their commerce technology
© 2015 Forrester Research, Inc. Reproduction Prohibited 14
Existing homegrown platforms simply have too many miles on the clock
#1 › Experiencing:
• Platform outages • Subpar performance • Difficult maintenance • Outdated tools • Skill shortages
© 2015 Forrester Research, Inc. Reproduction Prohibited 15
Existing platforms are not Omni-channel ready
#2 › Retailers need:
• Integrated product merchandising and pricing • Associate tools for in-store customer engagement • Increased inventory visibility • “Out of the box” Omni-channel tactics
#3 – Existing platforms can’t provide sophisticated data insights
#3
Existing platforms can’t provide sophisticated data insights
› Firms need to leverage real-time data insights to drive more efficient and sophisticated:
• Marketing • Merchandising • Pricing • Inventory optimization • 360° view of the customer
© 2015 Forrester Research, Inc. Reproduction Prohibited 17
Today’s buyer expects much, much more from their eCommerce platform
#4 › They need to support:
• Core commerce functionality • Experience Management • Product Information Management • Omni-channel Order Management • In-store Associate Enablement
Welcome to era of the Suite
What does the future hold for commerce technology?
© 2015 Forrester Research, Inc. Reproduction Prohibited 21
Open source & SaaS solutions will benefit as home grown and legacy solutions are retired
Source: 2014 Global eBusiness & Channel Strategy Online Survey
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© 2015 Forrester Research, Inc. Reproduction Prohibited 22
Open source & SaaS platforms move upmarket
© 2015 Forrester Research, Inc. Reproduction Prohibited 23
Retirement of legacy platforms will drive investment in re-platforming programs
Source: 2014 Global eBusiness & Channel Strategy Online Survey
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› B2B industries such as manufacturing and wholesale are set to increase significantly in the next five years.
› European and Asian B2B markets have the highest growth potential.
› Wholesale trade, pharmaceuticals, and oil and gas will show vast adoption of B2B commerce channels.
B2B firms are set to invest heavily in commerce
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You can drown in the !Wave of Accelerating Change!
• Mobile Adoption • Inventory Visibility • Blended Channels • Mobile and In-store POS • Social Trends • Empowered Associates • Multiple Platforms
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Or you can ride it!!
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Consumer Shopping Behavior Forever Changed with the Launch of the iPhone
1990s ECOMMERCE "IS BORN Early vendors "supplied the basics "of ecommerce: "listing products and accepting payments
2000s MOBILE RISES Mobile devices forced retailers to maintain both traditional and mobile-friendly sites
2010s MULTI-CHANNEL EXPLODES Proliferating sales channels require retailers to create a seamless experience both on- and offline
TODAY LIMITLESS COMMERCE Today’s business is truly omni-channel, requiring a modern platform that provides limitless extensions
2007 IPHONE ARRIVES The invention of the iPhone and rapid adoption of mobile devices transforms the world of online shopping
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Embrace Agility and Innovation
In-store
Online
Drives innovation Unified digital experience Rapid development Faster time-to-market
Modern Technology Stack
Native Mobile
Responsive Theme
REST API
SaaS
Business Critical Applications
Commerce
Fulfillment
ERP
POS
Commerce solutions built on a flexible SaaS platform are setting a new standard for performance and innovation
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Mozu Openness Powers Innovation
OPEN SOURCE SDKS!Speed up time to market development by programming in popular languages
UNLIMITED SANDBOXES!Unlimited pre-production testing environments to validate development work
REFERENCE STORES!Leverage open source Mozu applications and reference architectures to jump start development
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Consistency Across Devicesü Consistent shopping across all devices is key
ü Shoppers want the ability to begin shopping on one device and end on another
ü Building, managing and maintaining separate sites for different devices is a thing of the past
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Streamlined Content Management
MASTER CATALOG
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Providing Convenience for Customers
ü 51% of customers used mobile to check in-store availability and 24% reserved a product for in-store pick-up
ü Retailers need to be transparent on inventory levels and communicate where customers can find them in-store
ü Empower sales associates in stores to aid in product discovery and decision making
ü 51% of customers use mobile to check in-store availability and 24% reserve a product for in-store pick-up
ü Retailers need to be transparent on inventory levels and communicate where customers can find them in-store
ü Retailers should empower sales associates in stores to aid in product discovery and decision making
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CUSTOMER EXPERIENCE
Stores, Kiosks Call Centers
Mobile, Tablet, PC’s
COMMERCE MANAGEMENT
REST APIMulti-Tenant SaaS
MOZU DEV CENTER
Theme Development
Widget Development
APP DEVELOPMENT Native App
Integrations
Catalog
Reports
Customers Orders
Publish
Locations
Marketing Site Builder
SDKs Hyp
r The
me
Engin
e
Applications
Mozu Platform
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Jelly Belly Experiences Sweet Growth
35
Challenges!• Replace homegrown system • Focus on expanding online sales • One platform for B2C, B2B and consolidated
content sites WW
Solutions!• Cost efficient SaaS platform • Consistent experience across mobile • Scale operations with master catalog • Empower eBusiness team to quickly update
products, promotions and content
Results!• Mobile revenue increased from 2% to 32% • Record sales the week after launch • Happy eBusiness team
“Migrating from our homegrown platform to Mozu has given Jelly Belly the power and agility to innovate.”
Brandon Finch—Director of eBusiness, Jelly Belly
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TonZof Products. TonZof Growth. TonZof Innovation.
“We selected Mozu for our massive new Tonzof.com ecommerce site because it strikes the perfect balance of modern features, flexibility and value.
Compared to the other solutions we considered, nothing else even came close to the power and potential of Mozu.”
Ben Skigen—VP of eCommerce & Marketing +
Challenges!• Limited product attributes • Unreliable site updates • Slow site, performance issues
Solutions!• Admin tool simplified, sped up site updates • Mozu’s tech stack provided a faster, more
reliable site • Mozu’s open API made it simple to integrate
with TonZof’s proprietary systems
Results!• Launched with over 500K SKUs in less than
6 months • 10x faster for marketing to make site updates • Lightening fast & mobile friendly experience
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Sigma Beauty. Beautiful eCommerce.
“We knew we needed an enterprise level platform that would accommodate our growing needs. That was the most important
strategic decision. Going into the project, we felt nervous but were confident in our partners”
Annie Westman—Director of Strategy
+ Challenges!
• Engage a younger demographic • Limited mobile experience • Wanted to develop custom features
Solutions!• Face Chart: Visual showcase of cosmetics on
virtual face • Free gift with purchase: personalized and
segmented gifts with different purchases • Dynamic pricing: unique catalogs and price lists
across customer segments • Responsive mobile sites
Results!• Unique experiences that disrupt the market • Marketing is now empowered to create custom
digital experiences • Consistent, engaging experiences across
devices including mobile
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Mozu | The Cloud Commerce Platform
Connected Digital Experiences
• Natively responsive and adaptive design • Unmatched Site Speeds • Personalization with customer segments • Smart searching using SOLR • Lookbooks and product clustering • Streamlined checkout
Empowered Marketing Teams
• Fully integrated CMS • Drag and drop widgets • Extensive promotions • Site builder • Order management • Master catalog across sites • Robust transaction and customer
reporting • SEO optimized
Innovative Technology
• Open API • Unlimited dev sandboxes • Open source SDKs • True multi-tenant SaaS • Hypr theme engine • Custom widget development • Application development • Unmatched multi-layer security • 99.9% uptime guarantee • App marketplace
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