Achieving the Ultimate TTM with ATG

Ernst de Haan, E-commerce Architect, Deli XL Oracle CRM Day (April 18, 2012)

✓ Daily Fresh✓ Chilled Fresh

✓ Dry Groceries✓ Frozen

✓ Non-Food

✓ 1K suppliers✓ 30K customers

✓ 80K products✓ millions of consumers?

Horeca

Markets

Institutions

Catering

Vision

Passion for servicePassion for food

± € 11.000M / yr105K employees

± € 750M / yr2K employees

This Presentation

The Prelude

The Plan

The Project

The Pilot

Conclusion

Questions

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Deli XL joined Bidvest in 2005

Our results improved rapidly !

04/05 05/06 06/07 07/08 08/09

…but then came the storms.

TheEconomy

TheCompetition

MarketDynamics

This Presentation

The Prelude

The Plan

The Project

The Pilot

Conclusion

Questions

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…but we are ready for it !

2009

2012

After an intense preparation…

Mercurius prepared us for the next sprint…

…and helped Deli XL to score!

Strategy

Customers Suppliers

FrontOffice

BackOffice

Differentiation Standardization

1

2

Simplify & enhance effectiveness of operating model.

Reinforce value proposition to market.

> ERP:

> WarehouseManagement:

> E-commerce:

Software Selection

Software Selection: E-commerce

> Long list:> ATG> Hybris> IBM> Intershop> Microsoft> SAP

shortlist > Why > merchandising

capabilities> personalization> customer focus> leader (Gartner)> growth platform

(multi-site)

This Presentation

The Prelude

The Plan

The Project

The Pilot

Conclusion

Questions

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bol.com → Ernst → Deli XL

> I thought I knew e-commerce> …but that was B2C

> E.g.: conversion rate:> bol.com: …> Deli XL: 100%

Q1

Q2

Q3

Q4

2010

Online presence

Regular B2Cwebshop (ATG)

B2B ordering site with purchase lists (AS/400)

Payment Online, during checkout Invoices

Volumes Large catalog,millions of products

Catalogs organized by logistical processes

Personali-zation

Recommendations,targeted campaigns,

etc.

Different catalogs, prices, delivery schemes, etc.

CRM Statistics, segmentation, service center, etc.

We know each one. Personally; we go there!

Types of orders Random Recurring, e.g. same products every week

Like the old days, before the Web kicked in:first authenticate…

…then select your delivery date.

Then you can pick the stuff you want to order.

Yes, there is a product detail page.

Example: Deli XL Customer

> offline

> when he calls, he says his name

> …then immediately hangs up

> …and expects us to call back

> …which we do.

Yes, this is Holland

Project Status @ Q4, 2010

> Business readiness: very limited

> ATG expertise: very limited

> Project approach: waterfall

> Integration strategy: big bang

Q1

Q2

Q3

Q4

2010

Translation

> Business does not know what is coming

> …the scope is carved in stone

> …there are many dependencies

> …we are planning a big bang

> …we do not have local experts

Q1

Q2

Q3

Q4

2010

Translation

> Business does not know what is coming

> …the scope is carved in stone

> …there are many dependencies

> …we are planning a big bang

> …we do not have local experts

Q1

Q2

Q3

Q4

2010

Ow… kay…

How often should we be able to do a release?

One a year should do.

That’s… not a lot. Are you sure?

Perhaps 2…

Q1

Q2

Q3

Q4

2010

Analysis of Legacy System

AS/400

organisations, sub-orgs, web accounts, products, customer-specific assortments, DC-specific assortments, prices, promotions, ordering schedules, delivery schedules per temp. stream, exclusive suppliers, product (de)blocking, weighted articles, units of

Q1

Q2

Q3

Q4

2011

Analysis of Legacy System

AS/400

organisations, sub-orgs, web accounts, products, customer-specific assortments, DC-specific assortments, prices, promotions, ordering schedules, delivery schedules per temp. stream, exclusive suppliers, product (de)blocking, weighted articles, units of

Q1

Q2

Q3

Q4

2011

Nope: that will not map to the ATG model

Updated Plan

> Agile approach> Start development ASAP> Closely involve the business> Start building now> Address integrations ASAP

> Local ATG expertise

> High quality standards

Q1

Q2

Q3

Q4

2011

We could aim for releasing once every 3 weeks?

Nah, once every 6 weeks is more than enough.

Q1

Q2

Q3

Q4

2011

Execution

> Smart Architecture> separation of concerns — embrace change

> Small team of experts> started with 4 developers, scaled up to 8

> Continuous Delivery> from developer to Production within an hour> can do multiple releases a week

Q1

Q2

Q3

Q4

2011

(gap)

Smart Architecture

AS/400 ATG 10

SAPsome new data

data and oldbusiness logic nice and shiny

shop 1 shop 2 …

Smart Architecture

AS/400 ATG 10

SAPsome new data

data and oldbusiness logic nice and shiny

shop 1 shop 2 …

GigaSpaces

Small Team of Experts

> Initially specialists only> ATG, GigaSpaces, UNIX, test automation> 10+ years

> Scale up with ‘juniors’ (4+ years)

> Moving to mixed on-/offshore team

Continuous Delivery (CD)

Without CD With CDProduction release time Days/weeks Minutes

Release stress High Low(business as usual)

Risk of a software release High LowTTM Difficult & variable Good & consistentValidate small business case Slow & costly Fast & low cost

Quickly react to issues Typically slow& hence expensive

Fast& hence cheap

Level of automation Scattered at best Very high

Continuous Delivery is Not Magic

> It requires:> time & money> experts to set it up> maintenance

> …and in return it brings:> faster turn-around time> options for the business> severe stress reductions for IT

This Presentation

The Prelude

The Plan

The Project

The Pilot

Conclusion

Questions

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Uh, sure…

Could we do a release, 1 week after the previous?

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2012

Initial Release Planning

> Release 1:> First Pilot release — 3 customers> Full functionality

> Release 2:> One week later — add 27 customers

> Release 3:> Three weeks later — optimizations

> etc.

Q1

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2012

No. But we could do an interim release 2 days later?

I know the first release is due tomorrow…

Q1

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2012

…but can we add something small ?

…that would be really nice!

Excellent, thanks!

Unified site, shop and search

See the catalog, even when not logged in.Plus: recommendations, pictures, etc.

Redesigned product detail page

First Customer Reactions

It looks similar to a webshop

Where is my purchase list?

I didn’t know you could offer all this!

It looks nice!

What’s different? I will keep using the phone

Status @ now

> Pilot customers �> Suppliers �> Business �> Incrementally adding customers

> Business leverage growing

> New initiatives – e.g.

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2012

Next Steps

> Finetune storefront (×- & upsells, etc.)

> More business initiatives

> ATG Customer Service Center (CSC)

> Integrate ATG & marketing campaigns

> etc.

Q1

Q2

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2012

This Presentation

The Prelude

The Plan

The Project

The Pilot

Conclusion

Questions

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Success Factors

> Mature technology (ATG & GigaSpaces)

> Local expertise (Mindcurv)

> Continuous Delivery

> Small team size

> Dedication & hard work

This Presentation

The Prelude

The Plan

The Project

The Pilot

Conclusion

Questions

1

2

3

4

5

6

@delixl / @ernstdehaan

ernst-de.haan@delixl.nl

New ATG site:beta.delixl.nl