Deliver Successful Enterprise Ecommerce Projects
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For more ecommerce webinars visit us at http://www.elasticpath.com/webinars/archive A successful ecommerce project is a beautiful thing. It can raise revenue, reduce cost, and strengthen a brand. Unfortunately, the visibility of ecommerce and the breadth of stakeholders can amplify the usual project risks-availability of IT skills, understanding of business needs, scope control, accurate estimating, and so on. We sifted through the results (and in some cases, debris) of ecommerce projects over the last 10 years to bring you this "on the ground" view of what to do to turn the odds in your favor. Featuring: Gord Janzen, Chief Operating Officer, Elastic Path Software and Atul Jain, Associate General Manager, HCL Technologies
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Deliver Successful Enterprise Ecommerce Projects
- 1. Deliver successful enterprise ecommerce projects Presented by Gordon Janzen, COO, Elastic Path and Atul Jain, Associate General Manager, HCL Technologies Listen to audio using your computer’s microphone & speakers (VoIP) or dial in: United Kingdom: +44 (0) 161 660 8220 United States: +1 516 453 0014 Access Code: 251-153-934
- 2. Introducing Elastic Path Software Provides a flexible, feature-rich framework For enterprises that have unique business requirements and a complex IT environment Over 200 clients rely on Elastic Path #1 ecommerce blog www.getelastic.com
- 3. Introducing HCL Technologies Global technology IT enterprise Focused on “transformational outsourcing” Over 10 years of ecommerce experience Partnership with Elastic Path for best in class ecommerce project delivery practices
- 4. Agenda How are ecommerce projects different from other IT and marketing projects? What business and project management elements are especially important in ecommerce projects? What technical elements predispose an ecommerce project for success? What are the Top 10 things to do before project kickoff?
- 5. Approach Collect experiential data “Hands on” project experiences – 10 sample projects from 10 to 200 person-months Industry stats, analyst and pundit opinions Find common characteristics of projects at the high and low ends of success Split the above into “business” and “technical” factors Provide you with a Top 10 Checklist and practical tools to help you enjoy your next project
- 6. How ecommerce projects are different from other IT projects Relatively low cost with high business Impact and ROI Executive visibility due to revenue and brand impact Direct customer visibility Face direct competition from similar applications with peer companies Potentially very complex architecture Need to ensure scalability, security of transactions and data, fault tolerance aspects Integration with specialized products and 3rd party sites/services Integration with existing legacy systems Cross channel Support ( Web, Online, In Store etc) High rate of continuous evolution High production support requirements
- 7. Business and project management elements important in ecommerce projects Commitment from organization leadership Teamwork and effective, regular communication between business and IT teams Requirements management during the complete project lifecycle Customer experience focus Planning and Management of Integration Dependencies between different sub-groups
- 8. Commitment from Leadership How to make it happen Early involvement Clear goals, presented to all project participants – “Why this project matters to the business” Ideally, translate these into CR, AOV, Traffic and other ecommerce-specific goals – this will greatly help prioritize work if/when the crunch comes Tool - Project Charter that includes a message from the top re: ecommerce goals
- 9. Teamwork How to make it happen Social time people work well with people they like and know ecommerce projects usually involve geographically dispersed teams – spend the money to bring them together Simple communication tools Tools- Agile project plan
- 10. Requirements Management / Customer Experience Focus How to make it happen Involve ALL constituents Storefront: Unlike most internal IT projects (ERP, email, etc.), a key stakeholder is end customers - It’s amazing how few ecommerce projects actually get them involved! Marketing and CSR Systems: have BA’s actually sit and watch them work for a few days on their current tools Strongly consider an Agile approach ecommerce involves a lot of non-IT savvy constituents and a very rapidly changing environment – it is very tough to get the requirements right the first time Tools - Agile overview
- 12. Store Front Design and Architecture
- 13. Integration
- 15. Third Party Solutions Search Engine Optimization
- 16. Solution Architecture How to make it happen Separate backend activities from storefront Keep business rules dynamic and flexible Ensure effective integration with existing legacy systems with min latency Ensure vertical and horizontal scalability Ensure performance and availability Ensure security of business transactions Tools EA tools , BPM Tools
- 17. Store Front Design & Information Architecture How to make it happen Consider industry specific factors Content and Data targeting to end-users should be business controlled rather than having IT dependency UI Should be intuitive, standard and easy to navigate Straightforward checkout process Provide personalized user experience Effective site search capability Build trust of the customers Measure effectiveness of store’s layout and customer’s behavior Tools and Technologies Graphic/Animation Tools, Authoring/Editing Tools HTML, CSS, Java Script, XML, Flex, Action Script, Flash Removting etc.
- 19. Top 10 things to do before project kickoff Formation of cross functional core team Define and communicate business-level goals Browser to buyer conversion rate Average order value Targeted traffic to the website Brand penetration generated by marketing Improved time to market Cost savings through more efficient order management Enhance customer satisfaction, loyalty, and trust
- 20. Top 10 things to do before project kickoff Build vs. Buy Decision
- 21. Top 10 things to do before project kickoff Technology decisions Implementation platform (Java/JEE or .NET) Application server, database server etc. Third party solutions and services Tie up with selected external third party vendors Solution architecture blueprinting Develop proof of concept / pilot to bring focus to key areas of concern and take decisions Perform capacity planning Hardware and software license procurement
- 22. Top 10 things to do before project kickoff Plan for data security and fraud prevention Involve data security team to comply with standards such as PCI In-house implementation vs. outsourcing decision
- 23. Top 10 things to do before project kickoff Effective transition of business requirements from business to IT teams Continuous involvement of business during the complete project life cycle Project planning and management Create detailed project plan Establish processes for communication, change control, and issue management Gather required engineering and project management tools Set up development and test environments Ensure availability of trained resources as per the project plan Define roles and responsibilities of all the stake-holders and take their commitment
- 24. Tool List These tools will be available on the Elastic Path website: Project charter Agile software development life cycle Wiki project index Requirements traceability tool Change request tracking tool
- 25. Next month’s webinar Multichannel 2.0: Are you ready for the next generation of commerce channels? Advancements in mobile, interactive digital TV, and in-store digital signage (Multichannel 2.0) will change the face of shopping as we know it—and could even mean the death of POS systems, making commerce platforms even more important to retailers. Presented by Elastic Path ecommerce Analyst Linda Bustos and Product Manager Peter Sheldon Date: Wednesday, May 20, 2009 Time: 9am Pacific/ 12pm Eastern Register at www.elasticpath.com/events
Notes de l'éditeur
- THAO’S SLIDEThank you for joining us today for the webinar “Deliver successful enterprise ecommerce projects”This is a one-hour webinar, which includes time for questions at the end.Please type in your questions at any point in the webinar, and we’ll try to get to as many as we can.Everyone will receive a link to a recording of this webinar within the next day or so.Now it’s my pleasure to introduce our two speakers.
- THAO’S SLIDE:Gord is the Chief Operating Officer at Elastic Path Software.These complimentary ecommerce webinars are brought to you each month by Elastic Path Software.Elastic Path provides a flexible, feature-rich framework for enterprises with unique requirements and complex IT environments.Over 200 clients rely on the Elastic Path framework.Elastic Path also has the #1 ecommerce blog where you can also read a recap of today’s webinar.
- THAO’S SLIDEAtul is the Associate General Manager at HCL Technologies.HCL is a leading global technology IT enterprise, headquartered in India with over 59,000 professionals operating from 20 countries HCL is focused on 'transformational outsourcing', underlined by innovation and value creation, and offers integrated portfolio of services including engineering and R&D, custom and package applications, BPO and IT Infrastructure Management. ecommerce as one of HCL's biggest strength. HCL has over 10 years of experience in designing and implementing ecommerce solutions for various organizations across industry verticals. AMR Research ranks HCL higher than the other offshore companies in overall capability scope with leadership status in ecommerce. Elastic Path and HCL have partnered together to collaborate, discover and propagate "BEST in Class" ecommerce project delivery practices.
- GORD’S SLIDEGreat mix of attendees – IT, marketing, ecommerce specialists – so looking forward to Q+A and sharing different perspectivesI’ve been involved in ecomm since late 90’s – from “panic to get online”, stocks rose 20% day if announced “thinking of going online”; through meltdown; into ecomm as a viable business; and now BAU but continued rapid innovationIt’s this immediacy of interaction with suppliers, customers, employees that make ecommerce projects so different; for IT, it means a level of visibility and impact not seen in many other apps; for marketing it means a sometimes unfamiliar and mysterious infrastructure in the mixToday we’ll try to respect all perspectives and look for some bottom lines that may help unify the team around ecomm projectsSo first question is – how different?Our goal, btw, is to help you reduce the risk of missing time/spec/budget on next ecomm-related project by 10%.We’re going to filter down to 5-6 key things to do and tools to help.We’ve all heard the stats that say 30-50% of projects that involve IT miss their targets… If we can help you take that risk to 20-40% we’ll have succeededSo, about 15 minutes on each area, 3 key bullets for each, one idea and tool for each bullet = 6 takeawaysAnd then, since we all love a top 10 list, what are the pre-project to do’s
- GORD’S SLIDEWanted to keep this very close to the metal, so started by looking at projects EP, HCL had done, and some that our staff had done priorAlso talked to our analysts (industry, not psycho…) and other punditsGroup high/low success, listed factors, split between business and technology
- GORD’S SLIDEThese are things that are not necessarily unique to ecommerce projects, but that are exaggerated with them relative to other types of projectsCompared to opening equivalent revenue-potential physical stores, usually cheaper and fasterVery visible to all 4 key players– execs, competitors, staff, and especially, customersecommerce investments represent relatively small expenditures with the ability to exert significant positive influence when compared to store-level initiatives, which may required large expenditures, training, broad organizational alignment, and riskA customer centric approach to the website design for usabilityIntegration with Payment, Web Analytics, Business Intelligence and Reporting, Search, Content ManagementIntegration with 3P services like PowerReviews for Reviews and ratingIntegration with CRM, Supply Chain Management, Inventory Management, ERP, Fulfillment, Financial system etcIn e-commerce as no where else it is all about the data, the ability to collect, display and act on data streams in a timely and efficient mannerThere is great focus changing the site content, Search and Navigation, Catalog Design based upon Web Analytics, observed customer behavior
- GORD’S SLIDEDeployment and operations needs significant attention and planning; availability and business continuity issues also need to be addressedChange Request Management to ensure the cost is under control and at the same time important business requirements are not missed
- GORD’S SLIDETool - CHARTER
- GORD’S SLIDETool – Wiki project index
- GORD’S SLIDETool – Agile flow doc (EP version)You wouldn’t think of doing an ERP re-build without involving your accounts payable people... Why do we do ecommerce projects without involving customers?GORD NEEDS TO TRANSITION FROM THIS SLIDE AND HAND IT OFF TO ATUL. MUST GIVE ATUL CONTROL OF PRESENTATION.
- ATUL’S SLIDEecommerce site represents the business face and brand of an organization to the external world. A truly effective website reflects not only image of the business, but also its objectives. A good ecommerce site is a perfect combination of form ( how it looks) and function ( what is does). The site must be aesthetically pleasing in order to catch the audience attention at the same time it should be informative and functional to provide value to the customer to get them to come back. When a site’s architecture is well conceived, the user experience is positive and the purchasing process is simple. But if the architecture is flawed, the user experience will be poor and the site’s financial performance will suffer. It is therefore important to put focus on both technical and design aspects of the site. Over recent years, the Web has matured from a simple functionality like browsing to being able to cater to intricate processes such as end-to-end financial transactions. During this period, technologies have grown more sophisticated, users have come to require a richer experience, and companies have found numerous ways to generate sales online. The technologies available today to power ecommerce sites are more efficient than before and can be adapted for any organization’s particular need. These are some of the technical elements that influence an ecommerce project Solution ArchitectureUse architecture and design patters that separate backend activities from storefrontDynamic business rules and flexibility in the systemThe architecture should not impose tradeoff between performance, scalability and the business controlled flexibility that the system providesMost of the business rules in the system should be business controlled rather than having IT dependencyProvide effective integration with existing legacy systems with minimum latency Legacy Systems: CRM, Supply Chain Management, Inventory Management, ERP, Fulfillment, Financial system, Merchandising etcEnsure performance, availability and scalability of the solution based upon expected peak load and throughput requirements Ensure vertical and horizontal scalabilityFailover is the mustEnsure security of business transactions at various levels Separate backend activities from storefrontMake them asynchronous when possible Store Front / Data Model / Information Architecture Usability is key to the successful ecommerce site60% of web users never return to a site after a bad experience.Should be intuitive, standard and easy to navigate Straightforward checkout processPersonalized user experience System should create its knowledge to provide recommendations based on actual users behavior instead of Static recommendations. For Cross Sell, Up sells, Affinity Selling.Provide effective site search capability Provide Seamless Cross-channel experience Emphasize upon the information security provided by the site Measure effectiveness of store’s layout and customer’s behavior Content and Data targeting to end-users should be business controlled rather than having IT dependency Security Considerations ecommerce application involves lot of sensitive data transfers and it is an always important to make sure that system minimal or no Security threats. There are lot General Security Guidelines and also each country also have their own ecommerce that needs to be followed.ecommerce implementations requires well designed and managed support system for security.According to a survey, the revenue lost due to online fraud has grown from $1.5 billion in 2004 to $3.6 billion in 2007.Network Security - Use of Firewalls and Network Intrusion Detection System to prevent and detect unauthorized intrusionsApplication Security – Secured / Encrypted transfer of sensitive customer data. Ensure PCI Data Security Standard (DSS) compliance to store, process and transmit credit card information Integrationecommerce solution needs integration between several disparate applications and systemsThese systems must be interconnected and seamlessly integrated to realize their full potential Integration Components Web Services ( SOAP and REST) Service Oriented Architecture (SOA) – Allows separate business functions to be exposed as services. Useful when there are a disparate set of applications that cannot be integrated because of technology limitations ESB Middleware – supports implementation of SOA within the enterprise Search Engine OptimizationMost effective marketing strategy An estimated 80% of store traffic and 55% of purchases begin at a search engineSpecific focus on SEO guidelines while designing the ecommerce site Third party Solutions Consider specialized 3rd party product solutions and services available instead of developing yourselfecommerce Platform Web AnalyticsBusiness Intelligence and ReportingSearch EngineContent ManagementOrder management Identity Management Payment Processing TaxStore LocatorReviews and rating Choose the solution carefully based Business requirements ( Apply 80-20 rule), Flexibility, Budget and skill availability ProsFeature Richness Faster implementationOptimal performance Reduced complexity Higher maintainability and future extensibility ConsIntegration ChallengesSkill Availability Ensure Optimal use of framework and out of the box features provided by the third party solution
- ATUL’S SLIDESolution ArchitectureUse architecture and design patters that separate backend activities from storefrontDynamic business rules and flexibility in the systemThe architecture should not impose tradeoff between performance, scalability and the business controlled flexibility that the system providesMost of the business rules in the system should be business controlled rather than having IT dependencyProvide effective integration with existing legacy systems with minimum latency Legacy Systems: CRM, Supply Chain Management, Inventory Management, ERP, Fulfillment, Financial system, Merchandising etcEnsure performance, availability and scalability of the solution based upon expected peak load and throughput requirements Ensure vertical and horizontal scalabilityFailover is the mustEnsure security of business transactions at various levels Separate backend activities from storefrontMake them asynchronous when possible
- ATUL’S SLIDEStore Front / Data Model / Information Architecture Usability is key to the successful ecommerce site. 60% of web users never return to a site after a bad experience.Information architecture defines webpage progressions, user options, and the steps that comprise key website goals. It is vital that the architecture conform to content and categories, and clearly represent business needs Should be intuitive, standard and easy to navigate Consider industry specific factors such as Business Brand IdentityIndustry TypeTarget Audience Web Site’s purpose and goalsStraightforward checkout processPersonalized user experience System should create its knowledge to provide recommendations based on actual users behavior instead of Static recommendations. For Cross Sell, Up sells, Affinity Selling.Provide effective site search capability Provide Seamless Cross-channel experience Build trust by emphasizing upon the information security provided by the site Measure effectiveness of store’s layout and customer’s behavior Content and Data targeting to end-users should be business controlled rather than having IT dependency
- ATUL’S SLIDEIntegrationA typical ecommerce solution needs integration between several disparate applications and systemsThese systems must be interconnected and seamlessly integrated to realize their full potential Integration Components Web Services ( SOAP and REST) Service Oriented Architecture (SOA) – Allows separate business functions to be exposed as services. Useful when there are a disparate set of applications that cannot be integrated because of technology limitations ESB Middleware – supports implementation of SOA within the enterpriseSecurity Considerations ecommerce application involves lot of sensitive data transfers and it is an always important to make sure that system minimal or no Security threats. There are lot General Security Guidelines and also each country also have their own ecommerce that needs to be followed ( such as US has TC Database)ecommerce implementations requires well designed and managed support system for security.According to a survey, the revenue lost due to online fraud has grown from $1.5 billion in 2004 to $3.6 billion in 2007.The password based security mechanisms are no longer sufficient to meet the requirements of the modern systems.Network Security - Use of Firewalls and Network Intrusion Detection System to prevent and detect unauthorized intrusionsApplication Security Input validation : All data, whether it is supplied by customers or read from a cookie or database, needs to be validated for type, length, format and range. Any data that isn't well-formed and correct should be rejectedWhen data is requested from a database, use parameterized queries and stored procedures to help prevent SQL injection attacks.The data that is sent back to the client needs to be encrypted Database Security - ecommerce database needs to reside on a separate server, which also should be hardened and protectedEnsure PCI Data Security Standard (DSS) compliance to store, process and transmit credit card information Search Engine OptimizationMost effective marketing strategy An estimated 80% of store traffic and 55% of purchases begin at a search engineSpecific focus on SEO guidelines while designing the ecommerce site Third party Solutions Consider specialized 3rd party product solutions and services available instead of developing yourselfecommerce Platform Web AnalyticsBusiness Intelligence and ReportingSearch EngineContent ManagementOrder management / Fulfillment SystemCustomer Service Identity Management Payment Processing TaxStore LocatorReviews and rating Choose the solution carefully based Business requirements ( Apply 80-20 rule), Flexibility, Budget and skill availability ProsFeature Richness Faster implementationOptimal performance Reduced complexity Higher maintainability and future extensibility ConsIntegration ChallengesSkill Availability Ensure Optimal use of framework and out of the box features provided by the third party solution
- ATUL’S SLIDEFormation of Cross Functional Core Team Business, Sales, Marketing, IT, PMO Define and communicate business-level goals Website goals and measurable objectives need to be established and communicated to the team. These goals define the measurement criteria for website's future success or failure. The goals can be in terms of the expected outcome from the site Browser to Buyer Conversion rateAverage Order Value (AOV)Targeted Traffic to the web-siteBrand Penetration generated by marketing Improved time to marketCost Saving through more efficient order managementEnhance Customer Satisfaction, Loyalty and trust
- ATUL’S SLIDEBuild v/s Buy DecisionBuild/Buy (SaaS, Build, Buy, ecommerce Platform, MSP) decision is based upon requirements and resources Requirements Complexity ( Catalog, B2B, B2C, support for multiple channels etc) Time to Market (Urgency) Uniqueness (In Business Model or Solution)Strategic Importance Data securityIntegration ( with internal and external systems)ResourcesTechnical capabilities ecommerce capabilities Budget
- ATUL’S SLIDETechnology DecisionsTechnology is the backbone for any online or ecommerce business and it is critical to invest in an appropriate technology solution that best meets the business needsIt includesImplementation Platform - JEE or .NETApplication Server Database Server Third Party Solutions and Services ( CMS, Search etc.)These are some of the important factors for the technology decisionsBusiness requirements - how closely the technology or product addresses the requirementEase of integration with the existing systemsMost large organizations have existing code written in a variety of languages, and have a number of legacy systems. It is vital that corporations be given an efficient, rapid path to preserve and reuse these investments. This legacy integration often is one of the most challenging tasks to overcomeAvailability of skillsBudgetTie up with selected external third party vendors Payment GatewaysThird Party Payment Service Providers (PayPal, Cyber Source etc.)Tax ( Taxware) Reviews and Ratings ( PowerReviews)Fulfillment Partner Solution Architecture Blueprinting The purpose of solution architecture blueprinting is to bring focus to key areas of concern for the enterprise, highlighting the decision criteria and context for each domainTake Architecture Decisions such as Service Oriented Architecture (SOA)Develop POC to take architectural decisions Capacity / Infrastructure PlanningCapacity PlanningHardware and Software License Procurement
- ATUL’S SLIDEPlan for data security and fraud preventionInvolve data security team to comply with standards such as PCI In-house Implementation v/s Outsourcing decision Implementation partner decision based upon availability of skills internally, budget, time to marketIn-House Implementation ProsGives full control over the project Knowledge Retention - Keep the talent and knowledge in-house, allowing for future enhancements, modifications and redesigns ConsLimited Expertise - Internal team should have required level of expertise in the required technologies and products Outsource Implementation ProsAccess to the wide-range of specialized skill-set to manage end-to-end implementation Lower Operating CostLess management overhead Greater Resource Flexibility Reduction in the development time Increase focus on core business Access to world-class standard and processes Shared Risk ConsLack of control on the project Security of Intellectual Property Cross-cultural issues How to choose the right SI partner Availability of technical skills across range of technologies and products Available Customer Case Studies and References – Showcasing experience in developing similar solution Understating of business - Through Existing or Past Working Relationship Strong Processes and Methodologies – To bring efficiencies Proposed Solution and Approach – demonstrate understanding of requirements and creativity in approach ecommerce Expertise Pricing Governance Model - To address the risks and other challenges Ability to handle post deployment tasks such asSupport and maintenanceDeployment ManagementPerformance Management Operational support (system monitoring, data management)Managed HostingCall Center Support
- NEED TO GET CONTROL OF PRESENTATION BACK FROM ATUL.Effective transition of Business requirements from Business to IT Team Continuous involvement of Business during the complete project life cycle IT team should have good understanding of the Functional and Non Functional Requirements. Project Planning and Management Processes Create detailed project plan – consider triple constraints : scope, time, costKeep provision for exhaustive testing in Dev, Integration, Staging and Production environments with multiple browsers Define guidelines for Communication, Change Control and Knowledge ManagementGather required tools for project planning, management and tracking Ensure availability of trained resources as per the project plan – Solution Architects, Business Analysts, UCD experts, Project Manager, Developers, Testers, DBA, System Admin, Release engineers. Define roles and responsibilities of all the stake-holders and take their commitmentThe criteria for decision-making and resource allocation throughout the project need to be clear, and these should be agreed between IT and marketing
- THAO’S SLIDE:Thank you Atul. All of the tools mentioned by Gord and Atul will be available for download. That link will be emailed out to all webinar attendees in the next day.Now let’s take your questions.Questions for Atul:1. What are the main reasons for ecommerce project failure ?How should we choose a right SI Partner?Questions for Gord:1. What advice do you have for a new PM in ecommerce? What skills/tools should I work on first?2. How can I get more customer involvement in my site design? It's hard for me to get direct feedback from customers.
- THAO’S SLIDEThat’s all the time we have today.Again we will be emailing all webinar ttendees a link to today’s recording in the next day or so.Please joining us next month for our webinar “Multichannel 2.0: Are you ready for the next generation of commerce channels?”Thank you Gord and Atul for sharing your stories and insights with us today.Thank you everyone for joining the webinar and submitting your questions.While the retail store, call center, print catalog and website (Multichannel 1.0) still play key parts in multichannel retail, a new generation of shopping channels is emerging. Advancements in mobile, interactive digital TV, and in-store digital signage (Multichannel 2.0) will change the face of shopping as we know it—and could even mean the death of POS systems, making commerce platforms even more important to retailers.Play futurist with Elastic Path ecommerce Analyst Linda Bustos and Product Manager Peter Sheldon and explore the emerging technologies of mobile, interactive digital TV, digital signage and other Internet-enabled devices. This one-hour webinar will cover the possibilities and challenges for both IT and marketing professionals:How are retailers and shoppers already using Multichannel 2.0?What are technology vendors building to enable Multichannel 2.0?What are the technological barriers and how can you bypass them?How will you prepare for the next wave of shopping channels?