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DAVID LLAMAS, HARRODS IT DIRECTOR Managing Master Data & Multi-Channel Initiatives Through SOA “Anything is Possible…” 14 July, 2006 Harrods SOA Vision Contents 1 2 3 Harrods Approach to SOA Phase 1: Single Customer View Phase 2: Customer Insight Harrods SOA Vision Harrods Approach to SOA 1 Harrods SOA Vision Everybody sees a Store… but there is more to it! Harrods Knightsbridge Store • Annual revenues circa 550m GBP (>970m USD) in one single store • 5.25m annual visitors (350,000 average in one day) • > 1,000 tills in one location • 16 directorates • Beauty, Homes’ wear, Ladies’ wear, Men’s wear, Children’s wear, Fashion Accessories, Fine Jewellery, Food and Beverage, Furniture, Harrods Signature, etc. • 254 departments Harrods is a Multi-Channel Retailer • Offline Store • Online Direct Mail and Internet… focus on growth opportunities Harrods SOA Vision Retail Industry Drivers today Margins are thin • Low product profitability • Too much reliance on mark down selling • Cost reductions are important Competitive pressure • Focused on the customer experience while optimizing the labor resources to support delivery Difficulty in building loyal customers through global brands and superior customer service • Adaptability to customer preferences • Communicate a consistent message and brand experience across all customer touch points Rapid information sharing throughout • Who, where and what Harrods SOA Vision Harrods Drivers Our New Motto: “Anything is possible…” Multi-Functional & Multi-Channel • Product & services diversification means different business processes • Different business processes have different requirements (MultiFunctional) • But also, different customers have different requirements (Multi-Channel) • Different requirements need different solutions • Maintaining many solutions is expensive … Providing every product & service and meeting high customer's expectations is complex and expensive!!! Harrods SOA Vision Harrods IT Drivers Current CIO pains • Current architecture does not support the needs of the business • Complex technical environment that is difficult and expensive to manage • Systems not integrated Harrods IT Vision is to provide our business with a long term, agile, flexible, and cost effective infrastructure • • • • • • • Agility Flexibility Low cost Greater efficiency Moving towards “The Predictive Enterprise” Improved customer service Effective supply chain and vendor collaboration Harrods SOA Vision … Goals and Objectives • • • • • • Reduce complexity of Architecture Leverage existing systems Provide Real-Time information Drive towards a Predictive Enterprise Maintain a Competitive Edge Reduce On-Going Costs, but remain AGILE Harrods IT Strategy • SOA architecture target to maximise investment in legacy and investment in new application suites • Overhaul of legacy systems over 3 years • Installation of key applications and replacement of proprietary systems with industry best-of-breed leading products • Integration across all platforms to deliver true business decision support in real-time Harrods SOA Vision Business Benefits and SOA Efficiencies Some of the Business Process Benefits… • • • • • • • Multi-channel Loyalty programs Multi-channel Promotions strategy Homogeneous customer experience Unified multi-channel customer service IT resource utilization – Enterprise wide Shared Services Future IT Composite Applications Multi-channel Customer Insight Development Efficiencies • • Increasing service reuse and reducing development costs Reducing time to deployment of new services Operational Efficiencies • • • Reducing infrastructure and management costs Improving end-to-end process visibility, security, and/or control Streamlining root cause analysis and automating triage Harrods SOA Vision Other SOA Efficiencies… Business Efficiencies • • • • Accelerating time-to-market of critical business applications and processes Enabling easier compliance with policies (security, business, regulatory) from all functional areas Maintaining business continuity across the enterprise through real-time response to security, performance or availability breaches Seeing business metrics in real time Integration Efficiencies • • Reducing integration cost and complexity through the use of industry standards Seamlessly interoperating with, and leveraging the capabilities of, key third-party infrastructure solutions such as identity management systems, directory services, enterprise management systems Harrods SOA Vision Today… Point-to-Point Integration KB - Riva INPUTS Server Consolidator TO KB - Micros Airports - Riva POS Servers NTS15 NTS16 NTS17 NTS18 NTS19 NTS20 NTS25 NTS26 NTS27 NTS28 NTS29 NTS30 Consolidators WPKB0503A WPKB0503B Server POS Servers: Gat N - NTS82 Gat S - NTS83 T1 - NTS84 T2 - NTS85 T3 - NTS86 T4 - NTS87 Server Micros Servers: NTS88 NTS89 NTS90 GE Hot Card File Natwest Hot Card File Cash Counting (Depros) Exchange Rates (FEXCO) FrontOffice Consolidator FROM Card Handling HACS Stored Value Cards Solve HACS Operators OUTPUTS Direct Mail CSS TLog Compuware Delivery Management SAS Archive W2S063\ SAS Archive Executive Console Executive Console SAS400 Coda Rex REX CODA Expense Ctrl Gift & Bridal Food & Beverage ADACO DMS Audit System NTS1201 Settlement FTP Claims GE (1) Card Handling Claims Fexco (2) SAS Explorer Query on Request VAT Refund Resource Planning Outlook Reports Price Discrepenancy Loss Prevention Claims Natwest Retail Analytics Concession Sales Data Extracts Ralph Lauren Krispy Kreme Kurt Geiger Waterston's Di Milo BAA SIMS Incentive Schema DM Proclarity Key AMEX Visa Access JCB Diners (3) Transactional Database Front Office Homes’ wear Furniture Internet Orders FrontOffice SAS Natwest/GE Hot Cards Fexco Exchange Rates Fexco Bin Ranges OLA Servers: NTS06 NTS07 NTS08 NTS19 BT Direct Mail Authorisation Limits 3rd Party Integration • Lack of end-to-end process visibility • Diversified/Bespoke integration with low or none reusability • Decentralized master data management SAP MQ Series (IBM) Live Interface (Intellicorp) SAP Beauty Children's wear Fashion Acc. Fine Jewellery Harrods Signature Ladies' wear Men's wear Sound & Vision Sports Toys Back Office Transactional Database Harrods SOA Vision Tomorrow… Service Oriented Architecture • Composite applications provide an end-to-end business solutions improving visibility • Unified/Standard reusable integration • Master Data Management identifies unique entities across databases Harrods SOA Vision Progress to date… • • • • SCV go-live Monday, 24th April 2006 Core SOA Architecture, Q3 2006 Harrods multi-channel Customer Insight Implemented, Q4 2006 Harrods multi-channel Merchandise Insight Implemented, Q2 2007 Single Customer View is a pre-step to a robust multi-channel retail CRM architecture… “Having a database of customer records is just data, having a clean and accurate database of customer records is INFORMATION” Harrods SOA Vision Phase 1: Single Customer View 2 Harrods SOA Vision Today… Who is Mary Smith? Customer Databases • • • • Multiple incompatible data sources Duplication of records No sharing of information Inability to recognize the customer at different touch points • No contact management, campaign history or analysis Mary Smith CUSTOMER PERCEPTION ACROSS CHANNELS Marketing • No coordinated contact strategy across channels. Best customers are bombarded with marketing offers • Store Credit Card database is primary source for marketing programs • No data available to encourage cross-sell/channel shopping • Little campaign analysis IN-STORE CALL CENTRE INTERNET SITUATION WITHOUT SINGLE CUSTOMER VIEW Mary Smith Mary Jones Mary Jones H Card: 6653225 H Card: 6653225 H Card: 6653225 Tel: 020 756 8754 Tel: 020 785 4456 Tel: 020 363 2689 W2 W2 SW1 Harrods SOA Vision Tomorrow… Who is Mary Smith? Marketing • Unified brand experience across all touch points • Concentrate marketing resources on best customers • Target customers with personalized offers through multiple channels • In-Store, Direct Mail, Web, TM • Customer segmentation and modelling • Understanding of cross department sales to motivate cross-sell • Closed-loop analysis and continuous optimization • Ability to measure campaign ROI • Test, learn and refine Mary Smith CUSTOMER PERCEPTION ACROSS CHANNELS IN-STORE CALL CENTRE INTERNET SITUATION WITH SINGLE CUSTOMER VIEW Mary Jones Mary Jones Mary Jones H Card: 6653225 H Card: 6653225 H Card: 6653225 Tel: 020 363 2689 Tel: 020 363 2689 Tel: 020 363 2689 SW1 SW1 SW1 Harrods SOA Vision Harrods SOA/SCV Integration Architecture Different Silos SAP DB SAS DB CSS DB SAP BAPI eWay SQL Server eWay Oracle eWay The Sun JavaTM Composite Application Platform Suite (Java CAPS) Distribute & Synchronise Address Cleansing and Validation Service Reference Files Standardise Match eView Business Rules CAPSCAN PAF Survive USPS X-Ref DB Customer Master DB Harrods SOA Vision Phase 2: Harrods Customer Insight 3 Harrods SOA Vision Harrods Business Insight Main Issues/Opportunities • Lack of a consistent or coordinated customer contact / relationship strategy across our directorates and channels • The primary source of data for marketing campaigns comes from our Store Card database. • There is very little campaign analysis or rigorous pre-launch campaign planning and no data is available to encourage department cross-sell or cross-channel shopping. • Traditional operating frameworks for merchandise pricing strategy, range planning and forecasting that limit our competitive advantage. Performance PerformanceInsight Insight • Customer CustomerInsight Insight • Single Single Customer View Customer KPI Dashboard / Scorecard View • Campaign Management Campaign Management • Profitability Profitability Analysis Analysis Forecasting & Planning • Forecasting • • Contact Management • Basket Analysis • Segmentation • Basket Analysis Business Business Insight Insight • Data DataWarehousing Warehousing • OLAP OLAPReporting Reporting • Loss LossPrevention Prevention • Fraud Analysis Fraud Analysis Operational OperationalInsight Insight • Merchandise Planning Merchandise Planning • Assortment Planning Assortment Planning • Revenue Optimisation Revenue Optimisation Merchandise MerchandiseInsight Insight Harrods SOA Vision Customers Customer Relationship Management “CRM is the business strategy that aims to understand, anticipate, manage and personalize the needs of an organization's current and potential customers” • • • • Call Customer Centre Touchpoints Who are our best customers? What can we do to ensure they are retained? How can similar customers be attracted? How can the overall customer profitability be improved? • How can the right customers be targeted at the right time with the most appealing merchandise / marketing strategy? E-Mail Web Access Direct Sales Unified Customer Strategy Goals and Objectives • To provide Harrods with an ‘Operational’ CRM solution that enables the alignment of departmental strategies that will communicate a consistent message and brand experience across all customer touch points. Mailing Harrods SOA Vision Summary & Recommendations • Check whether SOA is the right solution for your business requirements… Take into account the cost you spend every year redeveloping interfaces, how difficult is to maintain a point-to-point multi-channel solution or to manage your systems landscape, and what are your business missed opportunities by not having a flexible architecture • Align your future SOA projects with the business requirements to build the IT proposal with SOA • Once your are convinced about SOA, get your business to buy into SOA to reach financial support • Choose the right SOA solution according to its technical capabilities (openness , based on standards, good performance, good management capabilities, good development environment, flexibility), supported by a reliable supplier with a long term vision David Llamas IT Director Harrods Ltd +44 (0) 77 6020 3152 [email protected] www.harrods.com