Enterprise Retail Case Studies - leveraging lean practices.

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2. • 63,000 employees
(1,800 technology)
• $12.5B in revenue

3. 3
.com
CUSTOMER CUSTOMER
.com
Context: Our Business & Technology Challenge
Our business ambitions have dramatically increased in terms of complexity, scale &
speed and technology is increasingly critical in all parts of our business
Technology as The Key Enabler

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8. BIO VP
BIO Director
Project
Manager
iPhone App
Product
Owner
iPad App
Product
Owner
Rack App
Product
Owner
IT VP
IT Director
Mobile App
Delivery
Engineering
Scrum Masters &
Test
IT Director
API Delivery
API, Mobile App,
Web Production
Support
Organizational Structure - Before
Shared Services
(Infrastructure,
Configuration
Management, etc….)
Off-Shore Teams

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20. Quality & Throughput
June 13 Sep 13 Dec 13 Mar 14 June 14
Bugs
Features per month
Sep 14

21. Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Release 1
Release 2
= BEFORE
= NOW
RESULTS:
DEPLOYMENT/RELEASE
FREQUENCY

22. Lead & Cycle Time
Dec 13 Mar 14 June 14
Lead Time
Cycle Time
Sep 14

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28. Technology VP
Technology
Director
In-Store Demand
Customer
Satisfaction (CSAT
& Customer
Reviews)
On-line Demand
(specifically related
to App Sales)
Organizational Structure - Now
• All resources needed to deliver value are embedded in the squads
• Accountable for feature delivery and production
• Aligned to business outcomes
Squad Structure

31. STORY: RESTAURANT RE-CONCEPTS
Some context:
• 11 re-concepts completed in 2013
• 44 planned in 2014
• 30+ high impacting incidents in 2 months
Initial suggestion – “you need to triple the size
of your team….”
Response – “that’s one way to solve it….”

32. RESULTS: RESTAURANT CONTINUOUS IMPROVEMENT

33. Savings of 8.1 days!!
139 servers have been
delivered on avg. 8 days
faster than H1 2014
• Value Stream Map & Problem
Solving
• Changes to the intake process,
this is what the customer
wanted first
• Hyper focused on the
customer experience
• Product owner role
“worries about the
customer all day
everyday”
• Data driven – built new
reporting and dashboard and
watch them daily
• Next up
• Continue making
improvements (automate,
eliminate, re-factor)
• Add SQL database to the value
stream
• Pull in other key groups i.e
Security
STORY:
SERVER
PROVISIONING

34. MAS
Service
MMS
Service
Events
Service
RESPONSYS
(3rd Party
email
Vendor)POS
PB
COM
WEB
LOYALTY
Credit
Mailroom
Enterprise
Service Bus
Customer Email
Communication Application
Productivity improvement – Customer & team focus
eLaaS – ESB Logging as a Service
Previous Conditions:
 Project teams didn’t have visibility
into their error conditions within
ESB. This caused the team to
manually proxy the information to
our consumers
 Example:- For Customer Email
Communication, the ESB team spent
40 hrs per week manually debugging
and proxying error transactions
Countermeasure Implemented:
 eLaaS enabled the marketing team to
track errored transactions through a
dashboard.
 ESB team does not spend any time in
manual debugging
Productivity improvement - 90% +

35. STORY: Automation of Deployments to the Enterprise Service Bus
Deployment Automation
 Automated static code analysis, code compilation and
deployment
 Efficiency gained over manual processes – almost 90%
 Time taken
 (a) Before automation – 1.5 hrs per service
 (b) After – under 10 mins
 This enables
 A single person to kick-off the deployment compared to 4
people manually.
 Speed and repeatability of deployment allows for weekly
deployment cadence rather than every other week.
Leader of this team…”it’s about the mindset and behaviors. I learned so much in VSM
training and about lean/CI techniques, allows us to teach. Everything is about the
customer.”
Voice of customer – All ESB customers were invited to give inputs.

36. What I want to leave you with….
• PEOPLE - #1 asset
• Everything we build should be about the customer –
ask ourselves “would the customer value that?”
• Passionate belief in continuous improvement as a
critical component of how we get work done in the
future – need to create a learning culture
• Be persistent….”keep going”
• Leaders HAVE to evolve

37. If I could wave a magic wand, every leader in the
organization would….
• Honor Reality
• Become a student - Go & See (not Go & Tell)
• Become a teacher – Learning Culture
• Problem Solving
• Improvement Kata
• Lead by Example (actions matching words)
• Ask Why and Articulate Why

38. TECH (R)evolution - NorDNA

39. Our current challenges….
• Measurement, specifically throughput
• Training (Push vs. Pull) – how aggressive
should we be?
• Expense pressures – making sure we don’t fall
back into our old way of making decisions

40. QUESTIONS?