Keynote Presentation by Joe Ballard of the Sales & Marketingtrack on the SAP Innovate or Die Event. Leuven, 18 June 2014

1. ADAPT YOUR
BUSINESS TO
THE FUTURE OF
COMMERCE
Joe Ballard, Director of Business Consulting,
hybris

2. , especially
if it's about the
future.
Disclaimer:
Prediction is very
difficult
Niels Bohr

3. We don’t have a crystal ball!

4. We do have a rear-view mirror…

5. A lesson from the past

6. EXTINCTIONS…

7. NEW SPECIES…

8. EVOLUTIONS…

9. Even MUTATIONS…

10. THEORY OF NATURAL
SELECTION
“SURVIVAL OF THE FITTEST”
It is not the strongest of
the species that
survives, nor the most
intelligent, but rather the
one most adaptable to
change

11. ADAPTABILITY
PHYSICAL BEHAVIORA
L

12. PHYSICAL
Infrastructure
SW Architecture
Stores / Logistics
BEHAVIORA
L
People
Processes
Principles
ADAPTABILITY

13. “PHYSICAL”
• The way forward is quite clear
The ICEBERG Analogy
“BEHAVIOUR”
• Not so clear!
• Vision
• Ownership
• Organization
• Agility

14. APIs / Omni Commerce Connect
Platform (Scalability, Performance, Security, Integration, Internationalization, Agility)
Order Management
Cross-Channel Fulfillment
Single View of Inventory
MDM: Product and Customer Content
Management
Digital Asset Management
Payment, Tax
and Fraud
User &
Account
Management
B2B B2C
Promotions
and Sales
Programs
Promotions
and Sales
Programs
Social
Commerce
Store
Locator
Reporting Workflow Checkout Cross
Selling
Advanced
Personali-
sation
Pricing
“PHYSICAL”
Typical Platform
14

15. “BEHAVIOURAL”
Typical Team
15

16. HOW
ADAPTABLE
IS
YOUR
BUSINESS?

17. FUTUR
E
OF

18. OMNI-
WHAT?

19. Definitions of “Omni-Channel”
19
“Technology, processes and systems integrated
and aligned so that every channel behaves in the
same way, to the point it makes it difficult to
distinguish between them”
– Andrew McGregor, eCOMMERA
“It’s how we’d do it today if we could start
again”– Philip Green, Arcadia Group

20. • MULTIPLE CHANNELS OF ENGAGEMENT
• EACH CHANNEL IS HIGHLY EFFECTIVE
• … BUT EACH WORKS IN INSOLATION
The 2000 - 2012 world view
“MULTI-CHANNEL”
20

21. PHYSICALDIGITAL
• CUSTOMERS USING MANY MORE TOUCHPOINTS
• PREFERRED EXPERIENCE IS A “LONG AND WINDING
ROAD”
• HIGHER EXPECTATIONS, LOWER LOYALTY 21
The 2013 and beyond world view
“OMNI-CHANNEL”

22. • BREAK THE SILOS!
• RE-ENGINEER THE PROCESSES!
• RE-LEARN YOUR CUSTOMERS! 22
OMNI-CHANNEL
the business response

23. … MASTER DATA Overlaps & Blind-spots. Single Views.
… KPIs, P&L and
ORGANISATION
Measure Channels.
Functional Silos.
Measure Customers.
Experience Owners.
…
SYNCHRONISAT
ION & REACTION
TIMES
Batch mode.
.xls
Overnight.
Web Services.
.xml
Real time.
… PHILOSOPHY
and STRATEGY
Value chains.
Economies of scale.
“Hold your nerve.”
Dynamic ecosystem.
Survival of the fastest.
“Fail fast, learn fast, try again”
… STOCK VISIBILITY Here. There. Everywhere. Accessible and Accurate
YOUR
BUSINESS: MULTI CHANNEL OMNI CHANNEL
CAN YOU
CHANGE?
23

24. 3 things you can do this
year
“ADAPT OR DIE”
1. CEO ACCOUNTABILITY

25. SOME THINGS ARE JUST
TOO BIG TO DELEGATE!
25

26. 3 things you can do this
year
“ADAPT OR DIE”
1. CEO ACCOUNTABILITY
2. EXPERIENCE-LED

27. EXPERIENCES VS. CHANNELS
27
IT FINANCE MARKETING HR
SUPPLY
CHAIN
the Organisation
CHIEF CHIEF CHIEF CHIEF CHIEF
PURCHASE
the Customer Journey

28. 28
IT FINANCE MARKETING HR
SUPPLY
CHAIN
PURCHASE
CHIEF CHIEF CHIEF CHIEF CHIEF
OMNI-CHANNEL CHANGE MANAGEMENT TEAM
BUSINESS-AS-USUAL MANAGEMENT TEAM
RECONCILLIATION

29. 3 things you can do this
year
“ADAPT OR DIE”
1. CEO ACCOUNTABILITY
2. EXPERIENCE-LED
3. LEARN TO FAIL… FAST

30. , double your
failure rate.
On failure:
If you want to
succeed faster
Thomas Watson (founder of IBM)

31. 31
Make failure ACCEPTABLE in your culture
CELEBRATE
DETOXIFY
REMOVE FEAR
SET UP THE
CONDITIONS FOR
EXPERIMENTATIO
N

32. 3 things you can do this
month
“ADAPT OR DIE”
1. ASK YOUR BOSS
who is accountable for all this?
2. ASK YOUR PEOPLE
how do we innovate better and faster?
3. LOOK OVER YOUR SHOULDER
search your top 20 products onAmazon/Alibaba

33. joe.ballard@hybris.com
Thank you!
@jballard_tweets

34. APPENDIX

35. PEOPLE-STRUCTURE
STRATEGY
- Define the
Vision
GOVERNANC
E
- Ensure Quality &
Consistency
EXECUTIO
N
- Tasks &
Delivery
Typically is:
Inconsistent
Incoherent, uncoordinated
Lacks P&L / Logical Architecture
Indecisive, un-empowered
INEFFECTIVE
Isolated
Under-resourced
Toothless
IGNORED
Talented and well-resourced
In a silo
Micro-managed
SKILLED but UNDER-OPTIMISED
35

36. Typically is: Should be:
36
PEOPLE-STRUCTURE
STRATEGY
- Define the
Vision
GOVERNANC
E
- Ensure Quality &
Consistency
EXECUTIO
N
- Tasks &
Delivery

37. Should be:
Consistent
Coherent
Rigorous
Decisive
Empowered
Integrated with wider business
- Consistent experiences
- Consistent processes
- All ties back to Strategy
QA focused, resourced, empowered
Embedded into wider business
Aligning with Governance
- KPIs/Measurements
- Processes
- Technologies
37
PEOPLE-STRUCTURE
STRATEGY
- Define the
Vision
GOVERNANC
E
- Ensure Quality &
Consistency
EXECUTIO
N
- Tasks &
Delivery

38. OMNI-CHANNEL ORDER MANAGEMENT

39. Delivering a total customer experience
is about engaging across touchpoints in a relevant, contextual way.
DISCOVER
SEARCH
RESEARCH
GET HELP
COMPARE
PERSONALIZE
SHARE
EVANGELIZE
USE
TRUST
FRIEND
DECIDE
PURCHASE
• INTERACTIVE
• E-MAIL
• PAID SEARCH
• SEO
• DISPLAY
• MOBILE (NOTIFICATION/SMS)
• PRINT
• WEB
• COMPANY WEBSITE
• MOBILE
• BRANCH/STORE
• CALL CENTER
• SOCIAL

40. Customer Experience Management
Commerce Logic
Processes (order management, …)
BACK OFFICE
Customers forced Integration of Digital with
the Real World: problems really started then
ERP Ware-
house
Store
System
CRM Data-
pools
Suppliers
Data (products, customers, orders, inventory)

41. hybris OmniCommerce for B2C and B2B
one Technology Stack, modern Architecture
OmniCommerce Connect
Platform (Scalability, Performance, Security, Integration, Internationalization, Agility)
Order Management
Cross-Channel Fulfillment
Single View of Inventory
MDM: Product and Customer Content
Management
Digital Asset Management
Payment, Tax
and Fraud
User &
Account
Management
B2B B2C
Promotions
and Sales
Programs
Promotions
and Sales
Programs
Social
Commerce
Store
Locator
Reporting Workflow Checkout Cross
Selling
Advanced
Personali-
sation
Pricing

42. REAR VIEW MIRROR – in more
detail

43. HARDWARE
>50%

44. USER INTERFACE

45. BROWSING

46. SHOPPING

47. POINT OF SALE

48. FULFILMENT

49. SALES ASSOCIATES

50. “THINGS”

51. Customers are IN CONTROL
And we call this: MULTI-CHANNEL
OMNI-CHANNEL