Final project evaluation by pairs

1. azEstilo
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Final Project Execution
Version: 2023.03.22

2. azEstilo
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Document Control
Version Control
Version Date Changed By E-mail Change
2023.03.22 2023.03.22 Victor A Jimenez Victorjimenez1@kpmg.com Initial version
Stakeholder Review
# Name E-mail Version Date
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Contents
1. Introduction. ........................................................................................................................................4
2. Identification of the mega trend that impacts the company......................................................4
3. Use of models to assess the areas of the company.......................................................................5
4. Description of the disruptive technology that will help the business............................................6
5. Identification of the barriers that will be presented with the use of the selected technology. 8
6. Conclusions..........................................................................................................................................9

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1. Introduction.
azEstilo is a traditional internet sales site, recently changed owners and the new board decided
to relaunch the site with a different approach focusing more in offering global sales for local
artisans with a technical differentiator from our competitors.
Also, the new owners are launching new the business areas that would like to introduce to the
new site.
We as a company want the new site to be more focused in customers, driven by marked demand
and fueled by technology, that is why we started a digital transformation program.
Our goal is to increase the effectiveness of our business operations and customer relations. This
is the first part of the program that encompasses the identification of mega trends that impacts
our company, an assessment of our plan, identify business process that requires more attention
meaning process with higher impact by the megatrends, and with a non-favorable assessment,
derived from the evaluation models we used and identify the technology which could help to
transform this process.
Our Top Company priorities:
Growth
Customer/User Experience
Technology Modernization
2. Identification of the mega trend that impacts the company.
These are the two mega trends that may have an impact in our company:
Empowered customer
We need to invent our future with customers and make sure we deliver rich experiences. The first
step will be to create stores that serve as showrooms with specialist in showing our catalogue
based in customer´s profile and give them the possibility to be in touch with our brand and give
us feedback to implement the best ideas so they feel are treated as stakeholder rather than a
simple customer.

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Behavioral economy
As we are starting to introduce products from a wide variety of local artisans, we need to help
customer finding the right product offering a wider range of filters and suggestions based on their
profile and navigation history. We also want to introduce the decoy effect so customers can decide
faster between two options when we present a third option that is less desirable. The options we
could implement should always consider transparency, customer benefit and ease to opt out.
3. Use of models to assess the areas of the company.
We used two models to evaluate our business ideas, Porter's 5 Forces and PESTEL analysis.
A. Porter’s five forces:

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B. PESTEL Analysis:
Based in the analysis we identify two areas we need to improve:
a. Empower customers by implementing digital showrooms, a process to attract innovative
ideas from customers implementing a rewards program based in successful ideas
implemented and be able to add the ideas as fast as possible on the website.
b. Implement AI for searchability in our website and improve customer suggestions based
in their historical behavior.
4. Description of the disruptive technology that will help the
business.
a. For empowering customers and helping us to deliver new ideas as fast as possible we
want to implement a Superapp for our website.
A supperapp is an app that provides customers with a set of core features, along with
access to independently created miniapps. The superapp is built as a platform to deliver
consistent and personalized app experiences. (Gartner)

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Benefit: That will help us creating new apps that will satisfy customers approved ideas and
could be easily integrated in the mail website.
b. For implementing AI, we decided to go with Adaptive AI, so we can use it not only for
elevating our search capabilities and customer preferences but for other processes as
well.
The value of operationalized AI lies in the ability to rapidly develop, deploy, adapt and
maintain AI across different environments in the enterprise. (Gartner)
Benefit: With Adaptive AI we can maximize our value by establishing AI engineering
practices to standardize AI delivery process.

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5. Identification of the barriers that will be presented with the use of
the selected technology.
a. Implementing a Superaap in our website would require 1 to 2 years.
- We need to be very strict in implementing data privacy and security for adding
miniapps that could be very time consuming and requires an investment in
technology.
How to avoid: We are moving our private site to AWS so we can hire security
advise and implementation of security tools by subscription, so we won´t get all the
infrastructure security costs.
- The goal is not to implement commercial apps in our site but more of having the
capability of add new features via an app or deprecate one that is not in use in an
agile manner, that data could only be obtained with constant interaction with our
customers.
How to avoid: We are going to launch Pulse surveys with our customers regularly
so we can have a constant way to listen our customers and empowered them using
a rewards program for each idea implemented.
b. Implementing Adaptive AI requires 2 to 3 years.
- Need to prepare our staff or hire new staff with AI skills.
How to avoid: To avoid this problem, we are planning to have a technology partner
with experienced team that can help us in making the right progress and overcome
any roadblock without trial-and-error solutions.
- Need to prepare a data Infrastructure that could not be cheap.
How to avoid: We agreed in collaborating and partnership with AI specialist as the
lead and training our internal team so we can speed up implementation, make our AI
solution stronger and cheaper.

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6. Conclusions
As an initiative of the new management to relaunch the website and position the business as the
best platform for local artisans to sell their products worldwide, the digital transformation strategy
was launched.
To achieve this goal, two mega trends were prioritized: Empowered customer y Behavioral
economy that are very aligned with the final strategy of increase our growth empowering the
customer/User Experience and Technology Modernization.
The result of the evaluation models showed the gaps we need to cover to implement our ideas
using disruptive technologies as Superapps and Adaptive AI. Although the roadmap implies one
to three years of effort, we detected solutions to reduce that time to adoption as migrating our site
to AWS and make partnerships with vendors with expertise to reduce the curve of leaning for our
internal teams and time to implement.
We are going to use Agile frameworks to develop the work ahead and empower our internal team
to provide a career path that could be attractive and avoid employee churn.
This approach gave the company board a target and future state that helped to get their approval
to start our Digital Transformation