Digital Transformation at John LewisPaul Kennedy, CIO, APG & CoCIO Summit Sydney, 14 July 2015

au.linkedin.com/in/paulkennedy6/

All opinions are mine, not current or former employers!

Staying Relevant –Customer Expectations Change

http://www.powerretail.com.au/multichannel/john‐lewis‐1bn‐online‐sales‐milestone‐ahead‐schedule/

£1 Billion Online~30% of business

Successful Omni-channelRetailer

Largest UK employee-owned

business

2013: John Lewis

Automated DistributionEfficient and runs 24/7

http://www.logisticshandling.com/articles/2010/03/05/875‐knapps‐warehouse‐solution‐helps‐john‐lewis‐to‐achieve‐record

Optimised Route PlanningEfficient and Customer friendly

https://www.flickr.com/photos/stephenpoole/7863815996https://www.descartes.com/solutions/routing‐mobile‐telematics

Convenient DeliveryWhere and when the customer wants

In store kiosks3rd generation learning from previous versions

Omni‐channel customers spend 2x store only

http://www.retail‐week.com/analysis‐industry‐leaders‐talk‐bricks‐and‐clicks‐at‐retail‐week‐live/5045375.article

New store formatsLower stock holding, customer convenience

Social MediaListen!Respond in real timeAmplify good & bad messages

“a new type of thinking is essential if mankind is to survive and move toward higher levels”Einstein, 1946Source: New York Times ‐May 25 1946, p.13

Enabling Innovation

Innovation Culture

1. Engaged employees – see the benefits for themselves and organisation to innovate

2. Seek ideas at all levels. Engage internal social network (Google Groups, Yammer)

3. Freedom to experiment at low cost

4. Support & recognition for winning ideas

5. Learn from ideas that don’t work as hoped

AppyCustomersInternal team of 2 redesigned app from customer requests

Improved Store FinderBuy NowScan barcode in store to order/wishlist

QR Code PosterSome press but few scans

http://2d‐code.co.uk/john‐lewis‐qr‐code‐poster/

2011 trialLots of press, few sales

Magic Mirror

JLAB ‘Pitch’ JudgesExternal & internal teams pitch solutions to business challenges

http://www.simply‐communicate.com/case‐studies/company‐profile/pitching‐technology‐related‐ideas‐inside‐john‐lewis‐partnership

JLAB Finalists 2014• Localz: In‐store digital engagement using proximity and iBeacon to let retailers know online shoppers arrived as they walk through the door. http://vimeo.com/92114470

• Musaic:  Stream music from any platform to multiple rooms in a house. https://www.youtube.com/watch?v=aK0dEgyUiOg

• SpaceDesigned: Online app allows consumers to create and view virtual 3D rooms & potential new furniture purchases. https://www.youtube.com/watch?v=pc_6wKSsPJE

• Tap2Connect: After‐sales service using smart labels to enable customers and retailers to track product lifecycle and ease on‐going service or repairs.  https://www.youtube.com/watch?v=RHWuIvTaSuo

• Viewsy: In‐store sensors track customers, allowing retailers to better understand offer personalised and services.  http://vimeo.com/51811261.

• More information at www.jlab.co.uk

Agility is criticalBut existing disciplines still matter: security, availability, performance, consistency

‘Big Data’ vs Security

2011 2013

Perfection and when can we ship?

"Legacy" IT 

Efficiency, reliability, security and performance

"Modern" IT

Speed to deliver benefits

Lower risk & cost

Mash up the old & new

=?• Manage risk in each solution space

• Define clear interfaces where needed

• Allow 80% solutions & beta releases

• Pilot in low risk locations, scales or businesses, demonstrate success before rollout

Digital Transformation at John LewisPaul Kennedy, CIO, APG & CoCIO Summit Sydney, 14 July 2015

au.linkedin.com/in/paulkennedy6/