With retailers putting their eggs in one basket with flexible, scalable, out-of-the-box Saas eCommerce solutions, it is important that all things are considered during the vendor selection phase. This presentation outlines key things to consider when you are selecting a SaaS eCommerce vendor/platform.
2. A balance between flexibility and cost
On
Demand
Out of
the box
Fully
Customisable
Licensed
Software
More Flexible
Highersetupcosts
3. Licensed Software is “so last season”
Custom Licensed Managed SaaS
Component, CPU
based pricing
Rolled-into-one usage
based pricing
More retailer
involvement
Less retailer
involvement
4. ‘Enterprise’ licensed software
Number of mentions of ‘enterprise’ in a sales pitchNumber of mentions of ‘enterprise’ in a sales pitch
CIOParanoiaCIOParanoia
5. What does ‘enterprise’ actually mean?
To the CIO To the Business
True in the world of
licensed, on premise
software
SaaS removes these issues as it takes
the reliability, support and security
aspects away from the organisation
7. “By 2013, 40 % of e-commerce deployments will use a
complete SaaS e-commerce solution and 90 % of e-
commerce sites will subscribe to at least one SaaS-
based service”
Gartner Inc, SaaS Impact on
eCommerce, 2008
8. On Demand delivery
model
On Demand delivery
model
Automated upgradesAutomated upgrades
Merchandising ControlMerchandising Control
Access anywhereAccess anywhere
Multi-tenantMulti-tenant
Low TCOLow TCO Low RiskLow Risk
Out of the boxOut of the box
It’s a confusing market…
12. A platform means different things to different people
PIM CMS
Commerce
Engine
Search
Engine
DAM
Promotions
engine
Personalisation
engine
Reporting
MV TestingCRM engine
I.T. Commercial Marketing Web Team Finance
13. Benefits of a consolidated platform ecosystem
Product
Merchandising
Testing
Targeting
Reporting
CRM
Social
Promotions
15. The old world of platform as a product
Promotions
Product info
Banners
Sites
New pages
New Layouts
Transactional capabilities
SEO
Widgets
Microsites
Analytics
Tagging
Integration
Hosting
Business IT
16. The new world of platform as a service
Initial set up
Legacy system
integration
Sites
New Pages
Layouts
Transactional capabilities
SEO
Widgets
Microsites
Analytics
Tagging
Business IT
17. Never underestimate the bits the customer can’t see
Storefronts
WebsiteWebsite FacebookFacebook MobileMobile
In storeIn store AffiliateAffiliate Call CentreCall Centre
Business & Developer tools
APIsAPIs MerchandisingMerchandising Personalisatio
n
Personalisatio
n
PromotionsPromotions TestingTesting ReportingReporting
It is relatively easy to create
these when you have the
right business and developer
tools
These tools enable you to
create and manage
storefronts
20. You will never get everything out of the box
Customizations
Reference Application
Back office Integration layer
Back endBack end
The split
between these
could be costly
21. Ask for a reference application
Business
requirements
Reference
Application
Reference app
functionality
you actually use
Think about the 80:20 rule…
22. Requirement: the platform should cater for a telco data
model
‘Out of the box’
Phone
Tariff
Bolt-ons
Client interpretation
Phone
Tariff
Bolt-ons
Insurance
Bundles
Sim only
Customisation is
costly and causes
problems down the
line with ‘out of the
box’ upgrades
23. The best of both worlds…
Standards based server side script
Standards based client side script
support
APIs
Web services
Business configurable data model
extensions and business logic,
True multi-site and international
Truly Unique Storefronts
Reference application
DEVELOPMENT TOOLKIT
24. …and don’t forget about pre-integrations
Retailer applications and web services
ATG Commerce
ATG Content Admin
ATG Business Control Centre (BCC)
ATG Search
ATG Customer Intelligence
Middleware
26. Be thorough when defining your roadmap
Strategic CustomerBusiness User
Roadmap
27. Vendor roadmap
Client requirements Customisations
= cost
A product roadmap does not necessarily mean more capabilities
TimeTime
CapabilitiesCapabilities
28. Regular relevant product releases and consider upgrade
impact of customizations
This usually varies
according to the amount
of customization you do
Vendor roadmap
Client roadmap
TimeTime
34. Your organisation – is it ready for SaaS?
Agile
Develop
In-house
Fully
Outsource
Waterfall
Reduced flexibility
Longertimetomarket
Here you will struggle
with time to market
Here you will struggle
with constant change
This is the perfect
balance between time to
market and business
flexibility
35. It is fashionable to migrate your web platform
“you generally migrate your web platform every 3 or 4 years”
Changes in leadership
Newwebplatforms
38. Things to look for in a vendor pitch or RFI response
Focus on value and not just cost
No mentions of the word ‘enterprise’
Live reference application demo deployed on their cloud
Clear roadmap focused on delivery of business capability and not just gloss
Pre-integrations with other Third Party solutions
Developer tool-kit based on open standards
Robust, global infrastruture including DR, CDN
Security ‘out of the box’
Clear platform scope
An agile way of working
39. Ben Adams – Founder & Director
benadams1@gmail.com
/in/benjadams
@benadams2009
Thanks for listening!
www.function22.co.uk 39
Notes de l'éditeur
But that’s a hard thing to achieve
1. Historically platform selection is balance between flexibility and cost
- they can be delivered as on-demand solutions or licensed/on-premise solutions
- Some platforms come ‘out of the box’ with preconfigured functionality and integrations and others verge on a fully customisable toolkit for building your ecommerce site.
- Customisable solutions are more flexible to develop but at a greater cost of ownership
- on demand solutions have a lower set up cost, quicker time to market but at the expense of flexibility
However the delivery models of SaaS is beginning to blur the boundaries between the delivery and type of solution… and hence reducing the need to offset cost and flexibility against each other
2. This is how delivery models are evolving
Because the delivery models have evolved from the old world of custom build, on-premise component based solutions with ‘CPU’ pricing.
To Managed or SaaS solutions with lots of components rolled-into-one usage based pricing
With on demand solutions, all these components are rolled up into a single monthly, quarterly or annual fee, usually based on some sort of volume (visitors, orders). Maintenance, upgrades, base functionality and infrastructure are all managed by the vendor.
Custom: Applications and services are developed entirely by the retailer or a third party to
the retailer’s specifications. Application is owned by the retailer and is not commercially available for license to other retailers. The retailer or third party is responsible
for ongoing maintenance, enhancements, and problem resolution
Licensed: Applications are licensed for usage from an ISV. The retailer typically pays a onetime license fee and annual maintenance fees, which provide ongoing enhancements, bug fixes, and patches. Licensed applications are supported on hardware
platforms operated by the retailer or outsourced to a provider selected by the retailer
Managed Services: The retailer pays a third party, often the license ISV, to host e-commerce applications. The managed service provider takes responsibility for installing software,
hardware, and upgrades, working to achieve a negotiated SLA. Managed services
can support either custom or licensed application
SaaS: The retailer pays for the usage of applications from a SaaS provider. SaaS providers
offer either hosted e-commerce solutions only, or can be an ISV that also provides
managed services for its licensed applications as a deployment option. In both
managed services and SaaS options, the retailer typically takes responsibility for
customization, loading and maintaining the data, reporting and analytics, campaign development, and delivery
3. In the world of SaaS the word ‘enterprise’ is becoming irrelevant
The CIO likes the word enterprise… but I don’t
Because the word enterprise means different things to different people
The CIO needs reliable, robust and low risk software, and in the old world of on-premise licensed software ‘enterprise’ software was the answer
Very Important
Very big
Very secure
Lots of clients
But for the business users it meant:
Reliability over flexibility
IT admin over business user
Integration over customization
Security over practicality
SaaS delivery models have removed the reliability, support and security risks away from the organisation… its about web services and SOA, a mash up of disparate solutions rather than the physical containment of them in an organisation
So Enterprise means nothing in a SaaS eCommerce, a true SaaS solution can scale to whatever size you want it to
Gartner says SaaS is becoming pretty important in the eCommerce space
I can vouch for that from my experience
Chances are yourselves or someone in your organisation is thinking about investing in a SaaS solution – you may even use one already and not really know it.
it’s a very confusing market, with lots of new terminology. It’s a sales persons dream!
On demand: delivers capacity when the retailer needs it, e.g. Christmas peak
Automated upgrades: Free upgrades several times a year providing additional ecommerce functionality on a frequent basis
Merchandiser and developer control: The detachment of the infrastructure puts all focus on the business tools used to control the site, so the focus can be on merchandising and sophisticated customization. Perfect for a reactive industry like retail where differentiation and keeping one step ahead is a major success factor
Access anywhere: being in the cloud, SaaS applications can be accessed anywhere through a browser/web connection. No need to go through an IT root canal to get VPN access.
Multi-tenant architecture: drives cost efficiency for retailer when run on a single instance
Low total cost of ownership: customer does not assume ownership for maintenance and installation and associated costs
Economies of scale passed to the customer: such as IT resources for support that can be called in on an as needed basis rather than internal resources
And its easy to make mistakes
So here are 6 lessons learned from my experience, I hope they are helpful to you all
1. If you are thinking about replatforming onto a SaaS platform, or assessing the vendors out there it is important to define the scope of what you are actually trying to deliver
There is always a risk you can get down the line in a re-platform project and realise that the solution you have signed up to doesn’t do what you assumed it would, or at least not the way you thought it would
2. an ecommerce or multi-channel platform means different things to different people
Ask your IT guys, they’ll say it’s a commerce engine. Ask your web team, they want merchandising tools. Ask marketing, and they want CRM capabilities.
I’ve had experience where people have heard about a solution we have been procuring and actually assumed it delivers something they are looking for
Its really important to define your customer and business mission statements for any platform selection, and stick to it
Ask the ecommerce software vendors, and they’ll tell you it does everything perfectly
Important rules to make sure the solution or platform your are buying into meets your business needs:
Clearly defined objectives and share this across all departments (IT, business, marketing) on what you are ‘replacing’ or ‘enhancing’
3. And if you are thinking of SaaS, it’s a good opportunity to consolidate your platform ecosystem into a truly web service based one
Look at existing processes and systems and consolidate
Don’t get stung with additional solution procurement and integration down the line
Preintegrations and get as many products within the same solution as possible otherwise integration becomes an issue and reduces the benefits of the SaaS offering
And talking of what the platform means to different departments, its really important to start any selection process with the business user at the forefront of your mind
1. In the old world of ‘Platforms as a Product’ in the on-premise world there was heavy IT involvement in projects, especially due to the fact that hosting of the application was so tied up with what it could do
2. But that’s all changed now. So be absolutely clear what you can do with your new platform! Define lots of business user use cases and make sure it ticks the boxes! All the things on the left should be business configurable tasks with NO IT INVOLVEMENT
What business tools do the web team currently use to manage the websites?
What are the pain points with these tools?
What additional capabilities do they require?
What level of ability to you need to develop on your new platform?
2. Because the business user tools (and these could be web merchandising teams or front end deveopers) enable you to do a lot with your platform
Web teams tend to focus on the delivery of the front end of a website. Its not surprising given how prominent it is in the organisation and how tightly coupled it is to trading and ultimately profit.
But to create storefronts, you need tools. So make sure whatever you are going for has the tools to enable you to create unique storefronts
So make sure you know what tools are available to your business and development teams to create your propositions
Which brings us onto the next point. Its really important to define what ‘out of the box’ means when selecting a SaaS provider
Because you never know whats in there unless you have a look, you could be in for a nasty surprise
1. SaaS ecommerce platforms solution should enable a level of customization
But be warned – customization = cost!
2. Its always valuable to ask for a reference application. When assessing any ‘out of the box’ or reference application functionality, make sure you remember the 80:20 rule
You may find that only 20% of your total platform requirements are catered for in the reference application, and 80% is irrelevant to your business needs.
Make sure you ask for a reference application – and not just a demo! Hands on experience with the tools before your buy them is important.
Try-before-you-buy, evaluation versions are always great way to eliminate the initial hurdle.
3. Also consider the interpretation of ‘out of the box’ requirements. Here is an example
Detail vs high level, heres an example
What functionality does your business require?
What does the reference application deliver ‘out of the box’ in terms of functionality?
What will you use out of this?
Assess the deficit
Get into a low level of detail certainly around data structures.
4. When we talk about ‘out of the box’ we are not just referring to functionality. The tools included with the reference application are very important.
SaaS ecommerce solutions have a reputation of being very inflexible with customisation. However in my esperience it is possible to source a platform that is kept current with e-commerce best practice…
…But also offers the ability to differentiate with customized functionality
SaaS platforms by nature are built on standards based frameworks and service oriented architecture offering extensible and flexible frameworks for creating applications.
Multi-tenancy usually means a common code base, however this should not necessarily limit customization opportunities.
It is important to assess whether the SaaS platform you are interested in supports the following:
Standards based server side and client side scripts: allows creation of rich, customized applications
APIs: allows outside applications to interface with your application
Web services:
Business configurable data model extensions: allow you to create additional attributes and databased objects without SI support
Busess configurable logic: allows business to define and implement rules without SI support
5. And also another benefit of SaaS solutions the web service nature of SaaS platforms enables quicker pre-configured integrations of external solutions
e.g. ratings and reviews, rich media, payment service provider, analytics, CRM, self help soltions
But
Be wary of the difference between ‘Preferred partner’ and pre-integration. Don’t get caught out. Pre-integration in my view is a bit of configuration, a few lines of code and an on button.
Consider the integration of one external solution into another. For example if you are wanting to measure your rich media (image zoom and video players) performance, you will need to integrate that with your analytics solution also.
In reality: integration is never an off-the-shelf offering. Remember – Even a band-aid needs peeling, sizing cleaning the wound before you apply it to the wound. It is not magic. So take time to understand the off the shelf offering before investing in additional Third Parties
The on demand nature of a SaaS platform means that you should in theory by able to benefit from automated upgrades and additional functonality delivered in a rolling schedule of roadmap releases.
Define your platform roadmap. Be concise about what you want to deliver in terms of your ecommerce platform.
I find a good way of doing this is to split it into three – look at your strategic business goals, and align these with business user and customer use cases relating to your platform.
Conso0lidate these into a roadmap document and prioritise/phase accordingly
Product roadmap release schedule
Define your business roadmap
Match yours against theirs
What about third party preferred integrations?
Is an acquisition on the horizon?
2. You then have a basis to look at your technology reoadmap and plot against theirs
Two things to note
First that in the long term, your roadmaps may end up diverging away from one another, meaning you have to build more and more customisations in the long run. This defeats the point in SaaS – where you should get benefit of regular product developments
3. Another thing to note is the time it actually takes to take advantage of new product releases. Generally a SaaS vendor will take care of upgrades of their core reference application. Anything additonal may end up either costing money to upgrade of
If you have overcustomised your platform, it may take longer to upgrade to the same level of functionality as the reference application.
Get a product roadmap release schedule and match it against your roadmap. Try and align it as much as possible – for example if you want a certain feature now, rather than customising it you might wait until it comes as part of the platform.
SaaS platforms take the performance cosiderations out of the hands of the retailer. This is great, as it reduces the need for IT involvement, infrastructure investment, monitoring, load balancing, scaling etc
So when a SaaS vendor says they have a global datacentre, make sure global really does mean global.
Especially important when you are setting up multi-territory websites. E.g. if the hypothetical cloud is based in the States, and all your sites are european, then you may have problems with latency and performance
What is my website(s) domain(s)?
Which countries will customers access it from?
Where are the servers?
What about DR and backup?
2. Black cloud rained on our party when we realised a. our global datacantre was actually all based in the states and content delivery wasn’t included. Can lead to massive costs in the long run. As far as I’m concerned if a vendor offers a fully fledged SaaS platform they should include CDN.
What is my website(s) domain(s)?
Which countries will customers access it from?
Where are the servers?
Is content caching included?
Never underestimate performace considerations even on the cloud
DR and backup
3. PCI: Out of the box SaaS platforms should cater for PCI compliance. This is generally true when they have a preferred payment service provider. If you intend to deviate from the preferred provider, and do a custom integration, consider the overhead of PCI compliancy with the new integration.
Safe harbour: this is only applicable when the vendor you pick is based in the States and they are going to be handling EU customer data on their servers.
Accessbility: any out of the box application with a user interface should cater for Level A or AA WCAG
Country specific compliancy: consider things like country specific regulations relating to payment, accessbility, data transfer
Distance selling: rules around import and taxes
VAT: How does it handle vat increases and complicated tax issues
It is pointless having a flexible customizable framework if your project methodology and vendor relationship does not allow you to take advantage.
Generally we can plot your business project methodology on an axis of Agile to Waterfall
And the build and maintenance of the system on an axis of in-house to fully outsourced.
An agile project methodoly is well suited to SaaS ecommerce platforms. The reduced reliance on internal IT support to ‘get things done’ means quicker time to market therefore a more agile project methodology is preferred.
SaaS ecommerce platforms provide opportunity for a hybrid model of in house and SI supported development. This means a business can focus on developing the customer facing propositions rather than relying on IT involvement.
Market moving, dynamic – depends on what your site can currently do
How far can you push existing platform
Why is this important?
You will migrate your web platform, there is no doubt about it. You probably won’t be around in 3 years and neither will most of your team, the people that helped you procure it.
Make your replacements lives easier
IP – you technically don’t own any of the platform out of the box. Make sure contractually your customizations and storefronts are Interllectual Property. Cost of ownership may be low but IP gains are also low.
Web services – takes some functionality out of the realm of your web platform (e.g. ratings and reviews, maps, rich media). Reduces the risk factor when migrating away from your commerce platform. Independent
Market moving, dynamic – depends on what your site can currently do
How far can you push existing platform
Why is this important?
You will migrate your web platform, there is no doubt about it. You probably won’t be around in 3 years and neither will most of your team, the people that helped you procure it.
Make your replacements lives easier
IP – you technically don’t own any of the platform out of the box. Make sure contractually your customizations and storefronts are Interllectual Property. Cost of ownership may be low but IP gains are also low.
Web services – takes some functionality out of the realm of your web platform (e.g. ratings and reviews, maps, rich media). Reduces the risk factor when migrating away from your commerce platform. Independent
Sell the value not the cost: Software sales have traditionally been focused on automation, efficiency with cost as the centerpiece. Cost is a tricky thing to sell. When you try to sell the cost benefits to a room full of people (IT people much less) you know where their thoughts go straight away – their jobs. In these bad times, none of us want to be out of work. So unless you are dealing with a senior management, downplay the cost element and instead focus on the value your solution delivers. Any one smart would figure out that a good solution will eliminate resource overheads. So do your homework on what else is bothering that prospect and mention the intangible value your product delivers i.e., “frees them up to do that other project”.