magento as a crucial part of digital transformation in b2b industry
TRANSCRIPT
Tom Karwatka Divante.co
Magento as a crucial part of Digital Transformation in B2B Industry.
#mm16cz
ThisCaseStudyShowsHowWeManagedtoReach...
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100.000.000EURonlinerev
B2BisTheHoAesteCommerceFieldRightNow
• Nearly75%ofB2Bbuyerssaybuyingfromane-commercesiteismoreconvenientthatbuyingfromasalesrep.
• 30%oftoday’sB2Bbuyersfinalizeatleasthalfoftheirpurchasesonline.By2017,thiswillnearlyhavedoubledto56%.
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• 60%ofB2Bcompanies-theirB2BbuyersspendmorewheninteracRngwithmulRplechannels.
• OmnichannelB2Bcustomersarealsomorelikelytobecomerepeatandlong-termcustomers.
hAp://divante.co/blog/b2b-ecommerce-2016/
AboutClient-TIM
• TIMSAisthebiggestelectro-technicalgoodsdistributorinPolandandoneofthebiggestintheregion.
• 30yearsofexperienceinthemarket.It’sbeenonWarsawStockExchangesince1998.
• ClientsfromtheconstrucRonbusinessarea.
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GrowthStrategy:eCommerce
• Goal:diversificaRonofbusinessandimprovementofeffecRveness– Expandcustomerbase(new
industries,B2Cclients)– Expandproductrangeandadd
newproductcategories.
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Itisdifficulttoconvincetheemployeestointroducenewideas,especiallysuchradicalones.Moreover,ourvisionand
strategyneedtobeclear-cuttotheBoardofDirectorsandowners.
Wecannotbeginwithouttheirsupportand-asyoucansee-theprojectis
plannedtolastformanyyears.-ArturPiekarczyk,Vice-President
StartofcooperaRon–5.2011
StartoffirstB2Ctestproject–9.2011
NichewebshopwithcablesforB2C
clientsCanTIMsellon-line?Canweacquirenewcustomergroups?
StartofB2Bproject-3.2012
SwitchingtoSCRUM–5.2013
B2Bprojectgoinglive–7.2013
S.W.A.T–11.2013
Majorredesign–8.2014
MovinghosRngfromTIMinternaldatacentertooutside
datacenter–2.2015
AdvancedBigDataproject–1.2016
TimelineofCooperaRon
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Process
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1. Businessrequirements.2. Customerresearch.
Research
• Fieldresearch.• WehadpreviouslycompletedaB2C
project,sowehadsomeinteresRngdataaboutanewtypeofcustomers.
• Researcheswedidinthiscase:CompeRtorsanalysis,Surveys,Benchmarking,Trendanalysis,industryreportsetc.
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InthepictureyoucanseeKasiainoneofourend-clients’faciliRes.Duringthatfieldresearchwelearnedthatsalesrepsprefertocalltheircallcenterandplaceordersdirectlytotheoperator.
AllanalyRcspackagesprovidekeyreports,suchasmostfrequentlyvisitedpages,visitordemographics,bouncerateandmore.
Personas
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• ApersonaisaficRonalidenRty.• Personashelpyoutounderstand
whataclientactuallyneeds.• Usually,wecreate3-4personas
foreachproject.• Apersonagivesthecustomer
dataahumanface.• Personasalsohelppreventsome
commondesignpiialls,whichmayotherwisebeeasytofallinto.
DesignPhase
• Prototyping–changesaremuch.• Weusemockups-theinteracRveprototypes.• Wegetourclientinvolvedinalmosteveryphaseofdesign.
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ConcepRon SelecRonofideas
Prototype1
Prototype3
Prototype2
GeneraRngIdeas Coherent
prototype
Workshop Findings PolishingthePrototype
ResearchFindings
DatafromGA
6clientsofTIM
2potenRalclients
4iteraRonsof
prototypying
UserResearch
DesignProcess
Weworkinteams.Wegenerateideasusingpersonas.
Thenwedopaperprototyping
Ajerthateachteampresentsmockupsanddiscussesthemwithotherteams.Thenwechoosethebestideasandbuildonecoherentmockupprototype.
Workshops
PaperPrototypes
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Concept 1 Concept 2 Concept 3
DigitalPrototypes
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• Digitalversionofprototypes.
• Clickableandwillallowustoconductusertests.
UserTesRng
• Usually6usersareenoughtodetermine80%ofusabilityproblems.
• WedoiteraRvetesRng.Ajertheteststweakthemockupsandtesteverythingagain.
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Inthiscasedesigningwasachallenge:potenRalcustomerseitherhadanexperiencewithonlinestoresorhadnoexperiencewhatsoever.
FinalDigitalMockup
GraphicDesign
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• Ittookusonemonthtofinishthegraphicwork.• ToshortentheRmetomarket,inthemeanRme,wecarriedonimplementaRon.
ChoosingtheTechnology
• Since2008sowehavetriedmanyeCommerceplaiorms.
• WhyyoushouldconsiderMagento:– Magentoiscurrentlythemost
populareCommercesojware– Magentoisthemostpopular
plaiormtomigrateto– Youhavetheproducer’ssupport
andanelasRclicensemodel.– Thesojwareprovidesarichsetof
ready-to-usefeatures.– Magento2.0!
17hAp://blog.aheadworks.com/2015/05/ecommerce-plaiorms-popularity-may-2015-two-plaiorms-take-half/
Alexa1milliontopsitessurveyunveiledleadershipofMagentoamongworldtopeCommerceplaiorms.
MagentovsB2BNeeds
Youshouldconsiderthesepoints:• Addingproductsfaster(withphotosandvideos)-PimCoreorAkaneo.• MarkeRngautomaRonthatactuallyworksandiseasytouse-MauRc.• RecommendaRonengine-Hadoop.• SearchthatworkslikeGoogle-FactFinder• CRMallowsyoursalesrepstoworkonyourclients’accounts–OroCRM• CustomB2Bmodules:atreestructureoftheclients'account,payment
methods,flexibleshoppingcart.
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OmnichannelOpenArchitecture
19hAp://divante.co/blog/omnichannel-open-architecture/
IntegraRons
NowadaystheplaBormisconnectedtothefollowingsystems:
• IntegraDonwithCRMsystem:– Sendingclient’sdata– Downloadingclient’sdata– CartsynchronizaDon(price)– Cartdownloading– CartreservaDon– Sendingorders– SendingRFPs– Downloadingoffersforacustomer– Downloadingproductprice– Downloadingproductpriceforacustomer– Downloadinginvoicesdataandinvoicesinpdf– Downloadingorder’shistory– Downloadingorder’sdata
• ProductManagementProgram– Downloadingdataonproductsandcategories– Downloadingcataloguecardsofproductsand
pictures
• WarehouseIntegraDon– Downloadingproductavailability– Downloadingcablesegments
• FactFinderIntegraDon
– Sendingproductdatabase– Downloadingsearchresults
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• IntegraRonsareoneofthehardestproblemsineCommercedevelopment.• CreaRngfailbacks-ifoneofthesystemsisdownweareabletooperate-sRll• Weuseadedicatedsojwareasabufferlayer.
CRMLiveIntegraRon
• CRMintegraRonplaysthekeyroleinthesystem
• BilateralintegraRoninarealRme-themerchantsinTIM’scentralcanedittheshoppingcartsofthecustomersthatarecurrentlyloggedon.
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RecoengineBrowsing
Call
AddtocartClient Consultant
UsersInspireUs
• Onedayaconsultantsfindsanorderfor100lightbulbsandahugeelectricpole.
• Toshipsuchapole,youhavetocarefullyarrangethedelivery.
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DedicatedFuncRons
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DynamicofferYouwanttobuy2kmofthecable.TIMhasa2.5-km-longpieceinstock,they’dlovetogetridof.So,theyofferyoutheir2.5kmcheaperthanyour2km.It’suptoyoutodecidewhichlengthyouwilloptfor.
Theonlinecartisexpanded.YouhaveabunchofspecificfuncRons,likecommunicaRonwiththemerchant,dedicatedpaymentmethods,converRngcarttoanofferinquiryandsoon.
B2BFuncRonstoConsider
ThemostcommonB2BfuncRonsweimplementinourprojects:ü ListofcontractorswithverificaRonü IndividualorcollecRvenegoRaRonofdiscountsü Orderfilesü OffercreaRonü Consultantswhocanaccepttheorderonbehalfofthecustomerbythe
phone/email/duringameeRngü Savingandsharingthecartcontentü FormsofpaymentsthataretypicalofB2B(forinstance:atradecredit)
Inthecaseslikethisone,allthededicatedfuncRonsareimplementedasextraMagentomodules.SoyouaresRllabletoupdateyourMagento.
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Developmentphaseq ScalabilityandPerformanceq Qualityq SLAq EffecRvedevelopmentq DataDrivenCustomerExperience
ImplementaRonandStart-up
TheimplementaRonofthefirstversionofthesystemtookusover14months.
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StartofcooperaRon–5.2011
StartoffirstB2Ctestproject–9.2011
StartofB2Bproject-3.2012
SwitchingtoSCRUM–5.2013
B2Bprojectgoinglive–7.2013
S.W.A.T–11.2013
Majorredesign–8.2014
MovinghosRngfromTIMinternaldatacentertooutside
datacenter–2.2015
AdvancedBigDataproject–1.2016
ScalabilityandPerformance
• ReplicaRonofthedatabasetospeed
upreadingoperaRonandbalancethetraffictodatabase
• Usingacachesystem–inthiscaseMemcachedwasreplacedbyRedis
• UsingascaAeredfilesystem(GlusterFS)
• UsinganhAp-reverse-proxysystemVarnishthatspeedsuploadingpagesandstaRcfiles
• UsingPerconaDBinsteadofMySQLforthedatabase
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NewRelicPerformanceReport,ELKStack+Kibana
EnsuringQuality
• Theextrariskfactor:abignumberofintegraRons.
• Ajereveryroundofchanges,wedotheperformancetesttoverifythattheapplicaRonworksbeAer.
• Tokeepthequalityhigh,weuse– 2phaseCodeReview– versioncontrolsystem,– RckeRngsystem(whereallcommunicaRonwith
theclienthappens)– monitoringsystem–Incinga,Jenkins+Selenium
+ELKStacktomonitorintegraRons
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Weuseseparateenvironmentsfordevelopers,tests,andproducRon.
SLA
• 250.000EUROdailyrev.• Wemustbeabletoreactunder1hourand
prepareaworkaroundforanyproblem.• “DivanteS.W.A.T.”–aspeciallyformedunit
working24/7.• ThemembershipisopRonalbuttosignup
everymemberhastopassanofficialexam.• Membersgetspecialbonusesaddedto
monthlysalary.• Thegroupresponsibility-ifSLAisviolated
onanywebsite,nobodygetstheirbonus.
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DivanteS.W.A.T.isaunit,thatcoverssecurityoftheplaiormandreactASAPwhenthesystemisdownoranemergencyhappens.
SLA > 99.9%
EffecRveDevelopment
• TomaintaineffecRvedevelopmentofprojectwecreatedadedicatedteam
• SCRUMgivesTIMthecontrolandqualitytheyneed.
• SCRUMteam– ProductOwner– 4Developers– 1FrontEndDeveloper– 1Tester
• ConRnuousdelivery-Ansible,Phing
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Source:hAps://en.wikipedia.org/wiki/ConRnuous_delivery
ToensureconRnuousdeliveryweautomatethetestsanddeployment.
Deployment time <5 min
DataDrivenCustomerExperience
WeusedataonalargescaletoimproveUserExperienceforTIM’sclients.Toinspireyou-onTIM’sexamaple:• 97%ofcustomersprefferone
specificviewofproductlist–„miniatures”
BusinessResults
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Theshareofonlinesalesintotalsalesintermsofincome
TheshareofonlinesalesintotalsalesintermsofNo.ofproducts
Thenumberoftheproductsorderedonlineisgrowingfasterthanthetotalvalueofonlinesales.ThatmeansthattheonlinesaleshavebiggerpotenRaltodiversify.Ontopofthat,smallerbutmorefrequentpurchasesbuildcustomerloyalty.
B2Bprojectgoinglive–7.2013
Q3,2015
• Ajerthefirstyear:– 50%ofonlinesales– Over50.000.000EUR
onlinerev– 25.000products
• Ajer3years–Q1-Q3– 67%ofonlinesales
(85%ofproducts)– Over100.000.000EUR
onlinerev– 125.000products
BusinessResults
• ThisprojecthasbeenahugesuccessforTIM.
• Theyachievedtheirbusinessgoals:– Diversityofbusiness– Alotofnewcustomers– ImprovedbusinesseffecRveness
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ClientstesRmonials:hAps://www.youtube.com/watch?v=-QumO63G_7M&list=PLuXGEsfZdwIUuaIJTEd3PDSUQLilYVu9a&index=3
TIMclient’sreallyliketheB2Be-Commercewebsite
HarvardBusinessReviewhaswriAenanarRcleaboutTIMrecently.TheProjectwasshownasatruedigitaltransformaRon.
What’sNext?
• ImprovingtheretenRonofclientsthroughBigDataanalysisandpersonalizedrecommendaRons.
• AutomatedpricingopRmizaRon-thenextbigthingwewanttopursue.
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IntheForresterresearchfrom2014-BuildingTheB2BOmniChannelCommercePlaiormOfTheFuture
• AutomatedpricingopRmizaRon–62%• PersonalizedrecommendaRons–56%• UseofwearablecompuRngindistribuRon
centers–49%• Sensorsinshipments/products–46%• Robots/automaRonindistribuRoncenter/
supplychain–34%• Shoppingcartabandomentanalysis–32%
B2Be-Commercetechnologiestoinvest
ThankYou!
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WebaseontheexperRsewe’vegotfromanumberofB2BprojectsandgeneralizeittofindthegoldrulesofB2BeCommerce.