Scalable eCommerce Solutions by kiemtien68

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									The Route to Scalable eCommerce
A Framework for Scalable Web-facing
Retail Applications




                     Craig Harper-Ashton - Head of eCommerce
                            Neil Stewart - Commercial Director
                                                 Prepared: March 2009
Who are Salmon?
Diverse Interests and Practice                      Diverse Interests and Practice
        Global SI, operations in London, New               Interests in retail, finance, insurance
        York, Beijing, Sydney                              and utilities
        Successful track record over 19 years              Focus on enterprise architecture , IT /
        c. 180 staff, c 100 in eCommerce team              business change
        £16.8M turnover                                    Focus on business impact
        Privately owned, financially sound                 Application management and support
        Open, honest and responsive approach               - 25% of the business
        Strong delivery-focused culture and
        focus                                       Innovative Risk Reward Models
Mission critical systems                                   Fixed price
        Broad and deep expertise in web based              Managed risk
        applications and technologies                      Shared reward
        Specialist skills in highly transactional
        systems and solutions e.g. B2B and B2C
        eCommerce, multi-channel integration,
        insurance underwriting
        Customer experience / design
End-to-end eCommerce Project Services

1   Discovery
    Strategy and business case
    Requirements (functional/non-
                                            2   Customer Experience
                                                Design
                                                Customer journey mapping
    functional), analysis/gap
                                                Information architecture
    analysis
                                                Customer experience
    Asset clarity framework
                                                Design
    Business process mapping
                                                Application of Web 2.0
    Package/component/tool
                                                Usability
    set selection



4
    Ongoing Services

    Application support or
                                            3   Solution
                                                Implementation
                                                Architecture and design
    complete managed service
    (hosting via third party)                   Build/test/deploy/training
    Maintenance and enhancements                Performance by design
    Monitoring and alerting                     Data, systems, 3rd party
    Web marketing and SEO;                      Solution Integration
    capacity planning; analytics etc            Implementation of
    Stress testing and performance tuning       Industry best practices
Salmon
Delivering eCommerce Solutions for market leading & challenger brands
A Framework for Scalable
Web-facing Retail Applications
Agenda

 Definitions
    SaaS, out-of-the-box, fully bespoke
 Benefits, Drawbacks
 A Better Way?
 SAFE™
 Commercial approach
            Definitions
SaaS, out-of-the-box, fully bespoke
Definitions

 SaaS
   An application owned, delivered and managed remotely
   by one or more providers.
   The provider delivers an application based on a single
   set of common code and data definitions which are
   consumed in a one-to-many model.
   on a pay-for-use basis or as a subscription based on use
   metrics.
Definitions

 out-of-the-box
   Items, functionalities, or features provided out of the
   box are those that do not require any additional
   installations, plug-ins, expansion packs, or products.
   For tangible products, the phrase "out of the box“
   promotes functions, e.g. “the out of box functionalities
   provided in HP OpenView Service Centre”.
   The connotation is of a system without customisation,
   such that it is usable with a vanilla software installation.
Definitions

 Fully Bespoke
   Refers to software designed and written for a single
   company and/or task.
   custom-made to the buyer's specification.
Benefits and Drawbacks
Benefits and Drawbacks
SaaS

Benefits For the Customer                      Drawbacks For the Customer

   No client/server software installation or     No direct control of the data
   maintenance                                   Dependence on an outsider to run your
   Shorter deployment time                       eCommerce business
   Global availability                           12 -24 month tie-in
   Service Level Agreement (SLA) adherence       What next? „Prisoner‟
   Constant, Smaller, Upgrades                   Security
   Ease of traditional internal I.T. pains       One size fits all
   Redistributable I.T. Budget
   Predictable costs
                                               Drawbacks For the Provider
   One butt to kick

                                                 Monthly focus on customer satisfaction
Benefits For the Provider                        Harder development process
                                                 Compensation issues
   Aggregate operating environment               Success can be a problem
   Predictable revenue stream
   Predictable growth
   Focus on smaller upgrades instead of
   monster patch rollouts
   Sales becomes customer relationship
   management
Benefits and Drawbacks
out-of-the-box

Benefits For the Customer          Drawbacks For the Customer

   Quick to get up and running       Features of packages are designed to be
   Relatively low initial outlay     useful for the greatest number of users and
                                     are developed according to the demands of
   Design templates available        the greatest number of customers. One size
   WYSIWYG                           fits all
                                     Superfluous features
                                     Missing features
Benefits For the Provider            Package drives business not visa-versa
                                     Very costly to add new features
   Repeatability                     Search engine visibility often poor
   Predictabilility                  Fixed Database structure
   Economies-of-scale                „Best practice' not always adhered to


                                   Drawbacks For the Provider

                                     High churn
                                     Innovation at the pace of all
Benefits and Drawbacks
Enterprise bespoke

Benefits For the Customer                         Drawbacks For the Customer

   High flexibility / agility                       Development often requires ROI and TCO
   High differentiation                             assessment, and stakeholder support
   Control over pace of innovation                  Procurement procedures
   Alignment to business processes , not visa-      Multiple internal stakeholders
   versa                                            Multiple partnerships / alliances
   Direct relationship with development partner     Bespoke support
   in locale                                        Longer initial development time
   Typically lower training costs / knowledge       Relatively high initial outlay
   transfer compared to packaged software
   Increased risk management
                                                  Drawbacks For the Provider
   Mix and match / best of breed

                                                    Reuse is low as IP is retained by customer
Benefits For the Provider                           Risk Management

   Highly innovative
   High profile
   High value
A better way?
eCommerce conundrum




                                                           Higher
           Higher




                                                           Complexity
 Revenue




                                                            Solution
                                                           Lower
           Lower




                    Lower                         Higher
                            Effort & Investment
                                 over time
Why SAFE™?
Big Picture
    Continued shift from eCommerce -> MC eCommerce -> Cross Channel retailing continues
1   unabated


2   Endemic eCommerce platform failure as eCommerce operations mature
    1st and 2nd generation sites being replaced


    Increasing demand for strategic eCommerce solutions that;
3   Support low cost of entry & have rich functionality & features
    An underlying technology platform that delivers scalability & flexibility
    Support innovation without technical or contractual limitations

    End of one-size/vendor fits all approach, with growing need for seamless integration of data,
4   systems and solutions as an enabler of rapid eCommerce Differentiation
    e.g. Check and Reserve, Reserve and Collect, Advantage Card


           Opportunity to ‘package’ our 10+ years eCommerce experience –
           enabling customers to leverage this IP in the form of one solution,
           available in 3 commercial models with;
           >   A proven eCommerce project delivery methodology
           >   Reusable components that align with worldwide eCommerce best practices
           >   Fully tested and pre-configured elements and modules
           >   Production-ready solution combining software and services
SAFE™
Technical Components                                    Web Properties and Channels
                                                                             Sales Centre
                                                            Trial
              Robust underlying platform
                                                          Brand #1
               IBM WebSphere Commerce
                                                                                            International
               Pre integrated components                                                         Site
        Pricing, Orders, Product, Scheduled Jobs

                  Managed hosting                                                                  Kiosk
             100% uptime with Rackspace
                                                                               Core web
                                                                                                     Mobile,
                                                                               property
                                                                                                     Pervasive
                   SAFE™ features


                                                                                                     POS
                      UI Design

                3 CSS compliant designs
                                                            Brand
                                                         Extensions
                     Deployment                         (Kids, luxury,
                                                          Seasonal)
             UAT >> Staging >> Production
                                                                                      B2B       Test Market
               Pre-integrated options
   Omniture, Coremetrics, Magic Zoom, Market Advisor,                x   n
                     Google Maps
Commercial Approach
SAFE™
Commercial Approach




                                                                                Higher
            Higher




                                                                                Complexity
  Revenue




                                                                                 Solution
                             A. SaaS   Sold “as-Is”, as a service on
                                       a visitor or revenue basis
                                       p/m/y, single instance,




                                                                                Lower
            Lower




                                       managed service


                     Lower                                             Higher
                                       Effort & Investment
                                            over time
SAFE™
Commercial Approach




                                                                                  Higher
            Higher




                                                                                  Complexity
  Revenue




                                                                                   Solution
                                                     B. out-of-the-box
                                                          Sold “as-Is”




                             A. SaaS   Sold “as-Is”, as a service on
                                       a visitor or revenue basis
                                       p/m/y, Single instance,




                                                                                  Lower
            Lower




                                       managed service


                     Lower                                               Higher
                                       Effort & Investment
                                            over time
SAFE™
Commercial Approach




                                                                                              Higher
            Higher




                                                                         C. Enterprise
                                                                            Bespoke
                                                                           Dedicated




                                                                                              Complexity
  Revenue




                                                                           infrastructure,




                                                                                               Solution
                                                                           single instance,
                                                                           significant
                                                     B. out-of-the-box     customisation

                                                          Sold “as-Is”




                             A. SaaS   Sold “as-Is”, as a service on
                                       a visitor or revenue basis
                                       p/m/y, Single instance,




                                                                                              Lower
            Lower




                                       managed service


                     Lower                                                           Higher
                                       Effort & Investment
                                            over time
                         www.halfords.com

                         250% Sales Growth

                     > 60% Visitors Growth

                             Live in < 90 Days

We are committed to providing a leading shopping
 experience and Salmon has been instrumental in
    this process. We have worked with Salmon to
       evolve Halfords.com in accordance with our
customers‟ shopping habits and to ensure that our
      online offering is reflective of our customers‟
    expectations. This investment has centred on
      improving search, convenience, service; and
                          cross-channel optimisation

                                          Jan 2009
Head of Service and Channel Development
                                                                         Salmon Ltd
                                                                    64 Clarendon Road
                                                                               Watford
                                                                          Hertfordshire
                                                                            WD17 1DA
                                                            Tel: +44 (0) 1923 320 000
                                                           Fax: +44 (0) 1923 320 023
                                                                     info@salmon.com




                       Unique Approach • Unique Solutions




            Salmon LLC            Salmon Asia Pacific                   Salmon China Limited
  220 Old Country Road                  (Pty Limited)                  605 Zhongchen Building
                 Mineola   Level 1, 299 Elizabeth Street                     Lize Zhongerlu #1
         NY 11501-4271                     Sydney NSW       Wangjing Science & Technology Park
United States of America                      Australia                       Chaoyang District
                                                  2000                          Beijing 100102
 Tel: 001 516 742 7888                                                                    China
 Fax: 001 516 742 9169        Tel: +61 (0)2 8251 0044
                              Fax: +61 (0)2 8251 0097               Tel: +86 (0) 10 6439 8779
                                                                    Fax: +86 (0) 10 6439 8665

								
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