3. Customer Survey Methodology
User of Surveys
We determined that due to the complex multi department nature of our product offering, a
survey would not adequately address are information gathering needs.. Template based Mass
Customisations solutions cross many departments (Sales, Design, Procurement, Manufacturing
etc)
Face to face interviews (11 Interviews)
It was decided focus on face to face interviews with demonstrations to senior executives and
decision makers with the following companies.
Greater than €50M Less than €50M
3
4. Large companies V’s Small
Companies Findings
Large companies V’s Small Companies
• Large companies 50M <
• Large legacy product issues – holding products that are obsolete but cater to a
few clients.
• Huge portfolio of products
• Product innovation is slow and measured
• Big department divide – Many small decision makers
• Slow to move and evolve – Current systems are adequate for what they want and
change has not been forced on them
• Customization seen as a necessary evil they must deal with
• Smaller companies 50M >
• No legacy product issues
• Tight well controlled products – links well with supply chain
• One to two key decision makers
• Open to product and market innovation
• Customization seem as the means of differentiating themselves and providing
greater flexibility
4
5. Software Requirements Findings
Software UI
• Wanted a virtual wardrobe/virtual dressing
• Wanted their catalogues digitised
Software Backend
-Wanted integration with back office systems
SAP, Oracle etc
Software Store
• Multi-lingual, Multi-currency,
• full shopping cart facilities including fixed product
• Content Management
5
6. Findings
Business Model Conclusions
• Mass Customization business model is a desirable model in theory for our potential work wear
clients. But they are also constrained by their circumstances. To move to a mass customization
model requires detailed revision of their supply chain and all the elements that touch it. We may
be early with the template mass customization model for large companies in this marketplace.
There is no compelling reason for these large companies to redefine their supply chain regardless
of how beneficial the model may be.
• The model to be adapted quickly may require a transition model to adapt the UI aspect of our
template mass customization model to meet current demand, while the supply chain
(infrastructural aspects) of mass customization are modified over a longer period of time.
• The turnkey solution for some clients is a desired option (Software and manufacturing services for
small batch ordering of apparel). This is an easier way to apply the business model where there is
strong internal resistance to change. All the hard work is done outside the internal structures of
the company.
• The ability to touch the customer (Sell directly too or influence) while not a defining requirement
is seen as extremely important for our clients. This can get very complicated if the clients sells
through 3rd party distributors. A mass customisation model passing through a 3rd party can get
severely disrupted and elongated. It is not as effective a model as when dealing directly with the
consumer.
• The value of the product is important for low price, high volume products, the benefits of mass
customization are limited unless manufacturing methods allow for capital intensive solutions
6
7. Findings
Sales and Marketing Conclusions (Overcoming First Mover Distinction)
• Dealing with the decision makers and the decision makers. It has come clear from the face to face interviews that
there in large companies there are many decision makers and even thought the primary decision maker may back
you the process of implementation may last along time without support of departmental decision makers. We
need to target our presentations to be broken up by department and address the concerns of every department.
This will form the basis for getting consensus over implementation of the solution
• Dealing with supply chain lag to the software. There can be a big infrastructural lag between implementing the
software and have the ability to scale the mass customized product production. This lag needs to be managed at
the product design level and in combination with procurement. We need to map the stages of implementation
better so that large companies can see a road map for implementation of software along side the product
production model.
• Large companies v’s Small companies. Large companies like the solution and see this model as the future of their
business, but are weary of the complexity of implementing it based on current infrastruture. They want a
incremental step towards our model not total implementation. Also the decision making process is slow within
these organisation and can take years.
• Mass Customisation Total Solution. For the smaller companies they require a turnkey solution, they have no
manufacturing ability for small batch ordering even based on our Template Mass Customization model
• The target markets. We should look at a more open target market, as customization is a current trend, talking to
venture capitalists and business accelerators may be an option.
• New entrants
• VC’s
7
8. Findings
Software Development Conclusions based on our face to face interviews there are a number of
software modules that can be expanded on and developed.
• UI developments
• Virtual dresser for customized and fixed garments
• Ability to sell both customized and fixed garments together
• Logo management system to allow reuse of logo’s across many garments and to tag final
logo’s and logo formats for printing and/or embroidery.
• BOM development – expansion of the current BOM module to allow for more complex
BOM scenarios
• Technical files output development
• Backend Developments
• Stories on Integration with backend solutions, SAP, Oracle etc.
• Stories on Integration with online CRM solutions, Salesforce etc.
• Developing with the customer UI focus and backend focus
• We need to work with a development client on all future module development, and
develop a strategic plan for software development with these customer.
8
9. Conclusions
Over all Conclusions
• Our business proposition is a desirable model but the adaption speed may be slow
with large companies within our initial target sector. It is worth pursuing this project
past the OAP stage and into the OEP stage
• Internal dynamics in companies play a big role in the decision making process of
adaption of our solution. This can slow the process down considerably.
• We need to determine the balance of our effort between big target customers and
small target customers. We should also explore more dynamic sectors such as the
ones including retail.
• We felt that requirements are becoming more complicated but matching target
customer size might be getting smaller. One of the possible solution is to make make
SelectEX as a plugin to other eCommerce Platforms
• We need to think and adapt our solution to a more current model, the leap we are
asking large companies to make with the current system is big, a transitional model
incorporating some of there current key requirements is needed. We need to
integrate fixed product more into our template model. This can be done over a period
of time during a trial period with clients.
9
11. Customization…growing
global demand
10 Start-up trends that will be huge in 2012 Trend #3:
Customization
• Entrepreneur Magazine - Dec 2011
70% of product strategists want to offer customized
products.
• Source: Forrester Research October 2011.
Customers are willing to spend at least 25% more to
get products built specifically to their needs.
• Source: The NPD Group Nov 2011
>35% of U.S. online consumers are interested in
customizing product features or in purchasing build-
to-order products that use their specs.
• Source: Mashable 2011
11
12. MiTeam (Adidas) Launched
June 2012
“We expect the market
for personalized and
customized footwear,
apparel and hardware
to grow strongly and
evolve further in the
coming years and will
therefore continue to
invest in the space”
Adidas Group –
Strategic and
Operational
Opportunities Report
2012
12
13. Movements in the Apparel
Industry 2012
Industry
• Move to local production “Made in the USA, Made in France etc
• Move to small batch production, maintaining uniqueness with smaller unit
batches
• Move to faster turnarounds on product development and deployment
• Move towards strong intellectual and copyright controls on apparel
• Move towards reduction in sales costs and capital intensive stock holding
• Move towards quality and value above volume in apparel production
Retail Customers
• Move towards internet buying and global uniqueness
• Move towards individual and unique customization, personalization
13
14. Market Challenges
Industry dominated by Mass Production
Factories in Far East set the rules:
• Min Order Qty 1000units+
• Lead Times – 3-6 months +
Disconnect between Sales & Design in Europe & Nth
America and Production in Far East. Flexibility and
change are difficult to manage
Customization of technical workwear or performance
wear is difficult to manage – changes can invalidate
certification
Ability to Scale Customization historically has lead to
expensive localised customization not globalised
solutions
Net effect…
Pricing – factories charge significant premiums for small
batch customized product or do not do it due to fabric
and component MOQ’s
Inability to significantly scale small batch customization
Sales cycle are too long (6 months +)
Significant inventory issues
14
15. Logicmix Software Solutions
Logicmix is a cloud computing company that develops mass customization e-
commerce platforms for the apparel sector. The platforms link the user interface
across the supply chain directly to the manufacturer a fully vertically integrated
solution for mass customisation
Our software:
• Makes it easy for apparel brands to provide customized clothing to their
customers (B2B and B2C), helping them to satisfy a growing market demand
• Helps our customers to significantly reduce their inventory holding, reduce
their sales cycle and enhance their net margins
• Is built by people with a passion for innovation and delivered by people who
have a deep understanding of apparel production and customization
Go To Market Strategy
• Build on traction in technical work wear sector but then also enter corporate
wear, outerwear, sportswear markets and beyond…
• Targets are brands that currently have revenues from online sales of less than
$180m per annum (larger companies will build their own (eg: Nike & Adidas))
15
17. Solution
Next Gen. Software Platform built with the
following key features:
Actual Screen Shots from S/ware Acts as a generic platform (i.e. Not a
company’s proprietary system)
Supports Complex Customization
Scenarios
In built patented certification engine
Allows Designers to enhance/extend
design and product permutations using
our builder module.
Supports a variety of product types
Great Visualization
Industrial Strength e-Commerce
features
Enterprise System Integration
Manufacture Neutral – software
output (BOM, spec sheet) can be
utilized by 3rd party manufacturer
17
18. Business Benefits
Increase flexibility of sales model – enabling a high value customer experience
Faster cost effective product development and deployment times
Increase effective net margin
Reduce Lead times significantly
• Design
• Quotation
• Samples
• Certification
• Production
Reduce Inventory significantly
• For our customer
• For their customers too
Improve Production Efficiency
• Consolidation/Planning on product, pre-production, component and
production
18
19. Primary Target Markets
Non Technical Addressable Market
Workwear /
Uniform Total Market Size $100 Bn
Corporate Wear
Technical Customization Accounts for $9 Bn
Workwear
Market Size $25Bn 9% of this market
(20% of workwear / 5% of other)
Hi Vis/ Chemical/
Waterproof/ Anti Static Sportswear Wholesale Value of $5.5Bn
Outerwear Customization market
Market Size
$5Bn
Rainwear
Merchandise Software Spend = 1.75% of $95m
Fashion wholesale value (1% of
retail value)
Market Size $75Bn Logicmix Target = 25% $24m
2012 2013
19
21. High Level Components
Template Engine
Visual Product Configurator
• Which is embedded in SelectManager and SelectStore
SelectManager
• A Desktop Application for
• Sales
• Customer Service Reps
• Manager / C-Level
SelectStore
• Web Store for end-customers (who place order directly)
SelectBuilder
• A Tool to help product engineer/Textile Engineer to create product templates
21
22. Design Goals
Generic Platform
Enterprise
Integration Visualization
Features
SelectEX
Competition
e-Commerce Support Complex
Features Customization
Product Variety
2
2
24. Template Engine
The heart of Naboo
Initially with Textile/Garment Focus
Configurable BOM with very complex structures
• E.g. Selectable and customizable Detachable Items, Linings, Accessories
• Almost every sub-component can be customized
Pluggable Certification Engine:
• EN471, EN343, ANSI107
24
25. Template Engine
Pricing Calculator
• Fixed
• Cost Based Calculation based on configuration and material selection
Component Sharing Among different templates:
• Helps stream line and digitize companies’ entire catalog
• Help customer to manage their product catalog by linking shared components
to different product/templates, parts (stocking items or CTO/BTO items), raw
material
• Reduces Time to market for template
25
27. SelectManager
Desktop Metaphor
Yet still accessed via Web Browser
Option to package it as installable application (AIR maybe)
Geared toward more complex tasks
• Clerical Tasks like order processing
• Managerial Tasks like BI, Complex Order Searches, Or Chart
• Administrative Tasks like company, catalog, user, role, and system management
27
29. SelectManager Catalog Browsing
In this example, the user is browsing catalog by template, looking at configurations
shared by others
29
30. SelectManager Search Order and Review
The user is using advanced search to find orders that have been “approved”. The right
pane is showing the search result details and its order history
30
33. Visual Product
Configurator/Designer
For user to configure their end-product
Realistic Multi-View Visualization of product configurations
Skinnable
Real time Configuration Summary, Unit Price Calculation that are updated when
a change is made to the configuration immediately
Save Designs
Email Design
Detail Design Summary
33
34. Designer in SelectStore
User is configuring a panel color. On the right is a collapsible configuration summary
and dynamic EN471 Class calculation. Its template engine to make sure all rules are
enforced
34
37. SelectStore
Purely target End User
One primary goal: Get the order
It is essentially a shopping cart but with configurable templates at its core
rather than fixed products
• Design a piece of garment
• Get a quotation
• Confirming order
• Check order status
Each store instance can have their own skin, URL, catalog, pricing, etc.
37
42. SelectBuilder
This is a desktop application that targets Textile Engineers or Product
Configuration Engineers to help them create advance templates more easily
Create Configurable BOM like structure for templates with ease
Manager Reusable Parts and Reusable Components
Rules definitions and management
Link to items from Part/Raw material database to use in templates
Import template design artifacts (pictures, drawings, vector graphics) to create
the visualization of the product templates
Glue everything together and export deployable template to the platform
42
47. Demo/Concept Review
• Top 10 Workwear Supplier in Europe
• €180M Turnover
• Product Champion – Gunter Messen (Alsico Managing Director)
Presented the demo to Gunter Messen on the 1st November 2012
Liked:
• The template supply chain solution involved in our Mass Customisation platform
• The Visualisation solution of our Platform
• The end to end solution for Mass Customization
Concerns:
• Cost of the platform
• The effect the change to a template Mass Customized supply chain model may have
on his existing infrastructure.
Result:
• Interested in a trial once we have finalised our software solution development.
48. Demo/Concept Review
• Top 5 Workwear Supplier in France
• €80M Turnover
• Product Champion – Bruno Blanchard (Mulliez- Flory
Purchasing Director)
Presented the demo to Bruno Blanchard on the 3st November 2012
Liked:
• The Visualisation solution of our Platform
• The end to end solution for Mass Customization
• Ability to consolidate small orders from templates
Concerns:
• Cost of the platform
• Could his own manufacturers get access to the system
Result:
• Interested in a trial once we have finalised our software solution development, but
not necessarily pay for it.
49. Demo/Concept Review
• Top 5 Workwear Laundry Supplier in Europe
• €1.1Billion Turnover
• Product Champion – Peter Taylor (CWS-Boco - COO)
Presented the demo to Peter Taylor
Liked:
• The supply chain elements of our Mass Customization platform
• Template model based design
• The end to end solution for Mass Customization
• Ability to consolidate small orders from templates
Concerns:
• Internal resistance to changing existing design and product model
• How to manage the transition from 9000 unique products to 50 Mass Customization
templates?
Result:
• Interested in a trial once we have finalised our software solution development, added
us to possible tender list for upcoming project in this area.
50. Summary
Clear Strategic Direction;
Balanced risk/reward opportunity
Large and clear market opportunity
Logicmix enables:
• Focus on value added high margin returns
• Expansion of customer profiles and sectors
• Increased scalability
Logicmix well placed to execute due to:
• Low cost infrastructure
• Management team in place
• Support from existing customers
50
51. Appendix
Appendix 1 - Analyzing Failure in Mass Customization
Appendix 2 - Logicmix reduces risk of Mass Customization failures
Appendix 3 - Mass Customization Portals
Appendix 4 – More Product Info
51
52. Analyzing Failure in Mass
Customization
But on the other, there are two more specific reasons for failures of MC companies, according to our
research:
First, difficulties encountered by the studied MC companies may be ascertained to possible inadequacies of
their toolkits. Many of the toolkits that we studied do not follow the design principles suggested as success
factors by previous research: Only 55% instantly visualize consumer input, less than 20% of vendors make use
of peer input in the design process, 61% do not provide information on progress of purchasing process. Only
22% allow customers to share their creations with others, just to mention a few shortcomings. The reality of
toolkits clearly falls behind the academic research on design parameters of successful toolkits, suggesting a
large shortcoming in transferring research into practice.
Secondly, problems in making mass customization work may also lay elsewhere. In an exploratory survey of 68
entrepreneurs and consultants active in the MC business (conducted in Oct. 2009), for instance, we discovered
that detecting customer idiosyncratic needs and creating flexible fulfillment processes are considered as
more serious concerns (average score=4.0/5 and 3.9/5) than creating toolkits that support the sales process
(average score=3.5/5). This research, the preliminary results of the Customization500 study, and many
interactions with managers during case-study based research show that profiting from mass customization is
not an easy task!
The MC Graveyard: Ideas that did not make it: YouTailor & Shirts Onthefly
http://mass-customization.de/customization_trends/
For the full stories about YouTailor and SHIRTS ONTHEFLY , head over to egoo.com by blogging colleague Heiko Vogelgesang !
52
53. Logicmix reduces risk of Mass
Customization failures
“First, difficulties encountered by the studied MC companies may be ascertained to
possible inadequacies of their toolkits.”
Logicmix Designer Module, Manager Module, Mobile Module and provide a
comprehensive toolkit for nearly all mass customization scenarios'
“detecting customer idiosyncratic needs and creating flexible fulfillment
processes are considered as more serious”
Logicmix Builder Module and manage module, manage the information and supply
chain complexities of customization.
53
54. Mass Customization Portals
http://mass-customization.de
http://www.egoo-journal.com/
http://mass-customization.info/
54
Notes de l'éditeur
Increase flexibility of sales model A lot of people misunderstand, with a customization solution, you have to provide customizable products. But that’s not true. You can have fixed products if that’s the only. The key is the process of pushing your model to the ability to do 100%Customomize to Order. Once you have done that, everything can be tied back to a much more managed and controlled set of existing components no matter if you are selling a bunch of products with hundreds of ways to customize or hundreds of fixed product with no customizationReduce Lead timesQuotation SamplesCertificationProductionReduce InventoryFor our customer You don’t need stock up components AND finished goods as much to meet demand (can’t be done with BTS)For their customers too Since they have much better visibility lead time and can do small batches of the exact configuration that they want, they don’t need to stock up as much eitherImprove Production Efficiency With Neo, even if they don’t have advance ERP/MRP, since everything is tied back to managed component, that alone will already help them on production optimization, capacity forecast, scheduling etc.
SelectEXStands for SelectExchangeUmbrella branding term for all Products
It should showSystem defaultYour previous designOther designs shared by othersWhen you click on a particular design, you can view the corresponding design summary on the “Design Summary” TabClick on the + button on the toolbar to create a new design based on selection or Click “select” (Not so sure about this)