HarrodsSOA.ppt

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DAVID LLAMAS, HARRODS IT DIRECTOR Managing Master Data & Multi- Channel Initiatives Through SOA “Anything is Possible…” 14 July, 2006

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Transcript of HarrodsSOA.ppt

Page 1: HarrodsSOA.ppt

DAVID LLAMAS, HARRODS IT DIRECTOR

Managing Master Data & Multi-Channel Initiatives Through SOA

“Anything is Possible…”

14 July, 2006

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Harrods Approach to SOA

Phase 1: Single Customer View

Phase 2: Customer Insight

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22

Contents

33

Harrods SOA Vision

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Harrods Approach to SOAHarrods Approach to SOA

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Harrods SOA Vision

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Harrods SOA Vision

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

Everybody sees a Store… but there is more to it!

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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 deliveryDifficulty 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 pointsRapid information sharing throughout• Who, where and what

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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 (Multi-

Functional)• 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!!!

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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

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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

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Harrods SOA VisionBusiness 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

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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

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Today… Point-to-Point Integration

• Lack of end-to-end process visibility• Diversified/Bespoke integration with low or none reusability• Decentralized master data management

Harrods SOA Vision

Server

ConsolidatorTO

POS ServersNTS15NTS16NTS17NTS18NTS19NTS20NTS25NTS26NTS27NTS28NTS29NTS30

ConsolidatorsWPKB0503AWPKB0503B

KB - Riva

Server

Micros Servers:NTS88NTS89NTS90

Airports - Riva

Server

POS Servers:Gat N - NTS82Gat S - NTS83

T1 - NTS84T2 - NTS85T3 - NTS86T4 - NTS87

KB - Micros

SAS ArchiveW2S063\

SAS Archive

OU

TP

UT

SIN

PU

TS

SAP

SAS400CodaRex

SAP

HACS

DirectMailCSS

BT

ExchangeRates

(FEXCO)

CashCounting(Depros)

RetailAnalytics

SIMS

VATRefund

ExecutiveConsole

DMS

MQ Series (IBM)Live Interface (Intellicorp)

GE (1)Claims

AMEXVisa

AccessJCB

Diners

Ralph LaurenKrispy KremeKurt GeigerWaterston's

Di MiloBAA

ConcessionSales Data

Extracts

Fexco (2)Claims

Natwest (3)

Claims

REX

AuthorisationLimits

Stored ValueCards

SASExplorer

InternetOrders

NatwestHot Card

File

GEHot Card

File

CODA

HACSOperators

FexcoBin Ranges

Natwest/GEHot Cards

FexcoExchange Rates

ConsolidatorFROM

OLA Servers:NTS06NTS07NTS08NTS19

NTS1201Settlement

Transaction Details

Flash Sales

FTP

FTP

FTP

Opera

tor Cod

es

Cash Counted by Till with Tender b

reakdown

Daily

TLog

TLog

Sales Information

ResourcePlanning

PriceDiscrepenancy

OutlookReports

LossPrevention

Query onRequest

Compuware

Solve

DM

BeautyChildren's wearFashion Acc.Fine JewelleryHarrods SignatureLadies' wearMen's wearSound & VisionSportsToys

Homes’ wearFurniture

Card Handling

Expense CtrlGift & Bridal

ADACO Food & Beverage

Card Handling

Front-Office

Front-Office

Direct Mail

ExecutiveConsole

DeliveryManagement

ProclarityIncentive Schema

AuditSystem

3rd PartyIntegration

FrontOffice

Back Office Transactional

Database

TransactionalDatabaseKey

SAS

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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

SAP IS-Retail

Server

Server

ConsolidatorFROM

ConsolidatorTO

Server

KnightsbridgeRiva EPOS or Retail

AirportsRiva EPOS or Retail Knightsbridge - Micros

Point of Sale

The Sun JavaTM Composite Application Platform Suite (Java CAPS)

3rd PartyIntegration

FrontOffice

Back Office Transactional

Database

TransactionalDatabaseKey

SAS

SASExplorer

SASArchive

RetailAnalytics

Sales IncentiveManagement System

VATRefund

ClaimsGE

ClaimsFexco

ClaimsNatwest

ConcessionSales DataExtracts

DistributionManagement

System

GEHot Card

File

NatwestHot Card

File

Time &Attendance

CashCounting

ExchangeRates

Direct MailCatalogue

Sales System

SingleCustomer

View

SAP

SingleBest

CustomerRecord

SAP IS-Retail

Server

Server

Server

Server

ConsolidatorFROM

ConsolidatorTO

Server

ConsolidatorFROM

ConsolidatorTO

Server

KnightsbridgeRiva EPOS or Retail

AirportsRiva EPOS or Retail Knightsbridge - Micros

Point of Sale

The Sun JavaTM Composite Application Platform Suite (Java CAPS)

3rd PartyIntegration

FrontOffice

Back Office Transactional

Database

TransactionalDatabaseKey

SAS

SASExplorer

SASArchive

RetailAnalytics

Sales IncentiveManagement System

VATRefund

ClaimsGE

ClaimsFexco

ClaimsNatwest

ConcessionSales DataExtracts

DistributionManagement

System

GEHot Card

File

NatwestHot Card

File

Time &Attendance

CashCounting

ExchangeRates

Direct MailCatalogue

Sales System

SingleCustomer

View

SAP

SingleBest

CustomerRecord

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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”

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Phase 1: Single Customer ViewPhase 1: Single Customer View

Harrods SOA Vision

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Harrods SOA VisionToday…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 analysisMarketing

• 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 INTERNETCALL CENTRE

Who is Mary Smith?

Mary Smith

Mary Jones

H Card: 6653225

Tel: 020 363 2689

SW1

Mary Jones

H Card: 6653225

Tel: 020 785 4456

W2

Mary Smith

H Card: 6653225

Tel: 020 756 8754

W2

SITUATION WITHOUT SINGLE CUSTOMER VIEW

CUSTOMER PERCEPTION ACROSS CHANNELS

IN-STORE INTERNETCALL CENTRE

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Harrods SOA VisionTomorrow…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

IN-STORE INTERNETCALL CENTRE

Who is Mary Smith?

Mary Smith

Mary Jones

H Card: 6653225

Tel: 020 363 2689

SW1

Mary Jones

H Card: 6653225

Tel: 020 363 2689

SW1

Mary Jones

H Card: 6653225

Tel: 020 363 2689

SW1

SITUATION WITH SINGLE CUSTOMER VIEW

CUSTOMER PERCEPTION ACROSS CHANNELS

IN-STORE INTERNETCALL CENTRE

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Harrods SOA VisionHarrods SOA/SCV Integration Architecture

USPS

eView

SAP BAPI eWay SQL Server eWay Oracle eWay

X-Ref DB CustomerMaster DB

ReferenceFiles

Standardise Match Survive

Business Rules

SAPDB

SASDB

CSSDB

Distribute&

Synchronise

Address Cleansing and Validation

Service

PAF

The Sun JavaTM Composite Application Platform Suite (Java CAPS)

CAPSCAN

DifferentSilos

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Phase 2: Harrods Customer InsightPhase 2: Harrods Customer Insight

Harrods SOA Vision

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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.

Harrods SOA Vision

Customer Insight

•Single Customer View

•Campaign Management

•••Basket Analysis

Customer Insight•Single Customer View•Campaign Management

•Contact Management•Segmentation•Basket Analysis

Merchandise Insight

•Merchandise Planning

•Assortment Planning

•Revenue Optimisation

Merchandise Insight

•Merchandise Planning•Assortment Planning•Revenue Optimisation

Performance Insight

•Profitability Analysis

•Forecasting & Planning

Performance Insight

•KPI Dashboard /

•Profitability Analysis•Forecasting

Operational Insight

•Data Warehousing

• OLAP Reporting•Loss Prevention

•Fraud Analysis

Operational Insight

•Data Warehousing•OLAP Reporting•Loss Prevention•Fraud Analysis

Business

Insight

Scorecard

BusinessInsight

Harrods Business Insight

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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”

• 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?

Unified Customer Strategy

Call Centre

Web Access

E-MailDirect Sales

Mailing

Customers

CustomerTouchpoints

Harrods SOA Vision

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.

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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

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David Llamas

IT Director

Harrods Ltd

+44 (0) 77 6020 3152

[email protected]

www.harrods.com