DAVID LLAMAS, HARRODS IT DIRECTOR
Managing Master Data & Multi-Channel Initiatives Through SOA
“Anything is Possible…”
14 July, 2006
Harrods Approach to SOA
Phase 1: Single Customer View
Phase 2: Customer Insight
11
22
Contents
33
Harrods SOA Vision
Harrods Approach to SOAHarrods Approach to SOA
11
Harrods SOA Vision
Harrods SOA Vision
Harrods Knightsbridge Store• Annual revenues circa 550m GBP (>970m USD) in one single
store• 5.25m annual visitors (350,000 average in one day)• > 1,000 tills in one location• 16 directorates
• Beauty, Homes’ wear, Ladies’ wear, Men’s wear, Children’s wear, Fashion Accessories, Fine Jewellery, Food and Beverage, Furniture, Harrods Signature, etc.
• 254 departments
Harrods is a Multi-Channel Retailer• Offline Store• Online Direct Mail and Internet… focus on growth opportunities
Everybody sees a Store… but there is more to it!
Harrods SOA Vision
Retail Industry Drivers today
Margins are thin • Low product profitability• Too much reliance on mark down selling• Cost reductions are important
Competitive pressure• Focused on the customer experience while optimizing the labor
resources to support deliveryDifficulty in building loyal customers through global brands and superior customer service• Adaptability to customer preferences• Communicate a consistent message and brand experience across all
customer touch pointsRapid information sharing throughout• Who, where and what
Harrods SOA Vision
Harrods Drivers
Our New Motto: “Anything is possible…”
Multi-Functional & Multi-Channel• Product & services diversification means different business processes• Different business processes have different requirements (Multi-
Functional)• But also, different customers have different requirements (Multi-Channel)• Different requirements need different solutions• Maintaining many solutions is expensive
… Providing every product & service and meeting high customer's expectations is complex and expensive!!!
Harrods SOA Vision
Harrods IT Drivers
Current CIO pains• Current architecture does not support the needs of the business• Complex technical environment that is difficult and expensive to
manage• Systems not integrated
Harrods IT Vision is to provide our business with a long term, agile, flexible, and cost effective infrastructure• Agility• Flexibility• Low cost• Greater efficiency• Moving towards “The Predictive Enterprise”• Improved customer service• Effective supply chain and vendor collaboration
Harrods SOA Vision
…
Goals and Objectives • Reduce complexity of Architecture• Leverage existing systems• Provide Real-Time information• Drive towards a Predictive Enterprise• Maintain a Competitive Edge• Reduce On-Going Costs, but remain AGILE
Harrods IT Strategy• SOA architecture target to maximise investment in legacy and
investment in new application suites• Overhaul of legacy systems over 3 years• Installation of key applications and replacement of proprietary
systems with industry best-of-breed leading products• Integration across all platforms to deliver true business decision
support in real-time
Harrods SOA VisionBusiness Benefits and SOA Efficiencies
Some of the Business Process Benefits…• Multi-channel Loyalty programs• Multi-channel Promotions strategy• Homogeneous customer experience• Unified multi-channel customer service• IT resource utilization – Enterprise wide Shared Services• Future IT Composite Applications• Multi-channel Customer Insight
Development Efficiencies• Increasing service reuse and reducing development costs• Reducing time to deployment of new services
Operational Efficiencies• Reducing infrastructure and management costs• Improving end-to-end process visibility, security, and/or control• Streamlining root cause analysis and automating triage
Harrods SOA Vision
Other SOA Efficiencies…
Business Efficiencies• Accelerating time-to-market of critical business applications and
processes• Enabling easier compliance with policies (security, business, regulatory)
from all functional areas• Maintaining business continuity across the enterprise through real-time
response to security, performance or availability breaches• Seeing business metrics in real time
Integration Efficiencies• Reducing integration cost and complexity through the use of industry
standards• Seamlessly interoperating with, and leveraging the capabilities of, key
third-party infrastructure solutions such as identity management systems, directory services, enterprise management systems
Today… Point-to-Point Integration
• Lack of end-to-end process visibility• Diversified/Bespoke integration with low or none reusability• Decentralized master data management
Harrods SOA Vision
Server
ConsolidatorTO
POS ServersNTS15NTS16NTS17NTS18NTS19NTS20NTS25NTS26NTS27NTS28NTS29NTS30
ConsolidatorsWPKB0503AWPKB0503B
KB - Riva
Server
Micros Servers:NTS88NTS89NTS90
Airports - Riva
Server
POS Servers:Gat N - NTS82Gat S - NTS83
T1 - NTS84T2 - NTS85T3 - NTS86T4 - NTS87
KB - Micros
SAS ArchiveW2S063\
SAS Archive
OU
TP
UT
SIN
PU
TS
SAP
SAS400CodaRex
SAP
HACS
DirectMailCSS
BT
ExchangeRates
(FEXCO)
CashCounting(Depros)
RetailAnalytics
SIMS
VATRefund
ExecutiveConsole
DMS
MQ Series (IBM)Live Interface (Intellicorp)
GE (1)Claims
AMEXVisa
AccessJCB
Diners
Ralph LaurenKrispy KremeKurt GeigerWaterston's
Di MiloBAA
ConcessionSales Data
Extracts
Fexco (2)Claims
Natwest (3)
Claims
REX
AuthorisationLimits
Stored ValueCards
SASExplorer
InternetOrders
NatwestHot Card
File
GEHot Card
File
CODA
HACSOperators
FexcoBin Ranges
Natwest/GEHot Cards
FexcoExchange Rates
ConsolidatorFROM
OLA Servers:NTS06NTS07NTS08NTS19
NTS1201Settlement
Transaction Details
Flash Sales
FTP
FTP
FTP
Opera
tor Cod
es
Cash Counted by Till with Tender b
reakdown
Daily
TLog
TLog
Sales Information
ResourcePlanning
PriceDiscrepenancy
OutlookReports
LossPrevention
Query onRequest
Compuware
Solve
DM
BeautyChildren's wearFashion Acc.Fine JewelleryHarrods SignatureLadies' wearMen's wearSound & VisionSportsToys
Homes’ wearFurniture
Card Handling
Expense CtrlGift & Bridal
ADACO Food & Beverage
Card Handling
Front-Office
Front-Office
Direct Mail
ExecutiveConsole
DeliveryManagement
ProclarityIncentive Schema
AuditSystem
3rd PartyIntegration
FrontOffice
Back Office Transactional
Database
TransactionalDatabaseKey
SAS
Tomorrow… Service Oriented Architecture
• Composite applications provide an end-to-end business solutions improving visibility
• Unified/Standard reusable integration• Master Data Management identifies unique entities across databases
Harrods SOA Vision
SAP IS-Retail
Server
Server
ConsolidatorFROM
ConsolidatorTO
Server
KnightsbridgeRiva EPOS or Retail
AirportsRiva EPOS or Retail Knightsbridge - Micros
Point of Sale
The Sun JavaTM Composite Application Platform Suite (Java CAPS)
3rd PartyIntegration
FrontOffice
Back Office Transactional
Database
TransactionalDatabaseKey
SAS
SASExplorer
SASArchive
RetailAnalytics
Sales IncentiveManagement System
VATRefund
ClaimsGE
ClaimsFexco
ClaimsNatwest
ConcessionSales DataExtracts
DistributionManagement
System
GEHot Card
File
NatwestHot Card
File
Time &Attendance
CashCounting
ExchangeRates
Direct MailCatalogue
Sales System
SingleCustomer
View
SAP
SingleBest
CustomerRecord
SAP IS-Retail
Server
Server
Server
Server
ConsolidatorFROM
ConsolidatorTO
Server
ConsolidatorFROM
ConsolidatorTO
Server
KnightsbridgeRiva EPOS or Retail
AirportsRiva EPOS or Retail Knightsbridge - Micros
Point of Sale
The Sun JavaTM Composite Application Platform Suite (Java CAPS)
3rd PartyIntegration
FrontOffice
Back Office Transactional
Database
TransactionalDatabaseKey
SAS
SASExplorer
SASArchive
RetailAnalytics
Sales IncentiveManagement System
VATRefund
ClaimsGE
ClaimsFexco
ClaimsNatwest
ConcessionSales DataExtracts
DistributionManagement
System
GEHot Card
File
NatwestHot Card
File
Time &Attendance
CashCounting
ExchangeRates
Direct MailCatalogue
Sales System
SingleCustomer
View
SAP
SingleBest
CustomerRecord
Harrods SOA Vision
Progress to date…
• SCV go-live Monday, 24th April 2006• Core SOA Architecture, Q3 2006• Harrods multi-channel Customer Insight Implemented, Q4 2006• Harrods multi-channel Merchandise Insight Implemented, Q2 2007
Single Customer View is a pre-step to a robust multi-channel retail CRM
architecture… “Having a database of customer records is just data,
having a clean and accurate database of customer records is
INFORMATION”
Phase 1: Single Customer ViewPhase 1: Single Customer View
Harrods SOA Vision
22
Harrods SOA VisionToday…Customer Databases
• Multiple incompatible data sources • Duplication of records• No sharing of information• Inability to recognize the customer at
different touch points• No contact management, campaign
history or analysisMarketing
• No coordinated contact strategy across channels. Best customers are bombarded with marketing offers
• Store Credit Card database is primary source for marketing programs
• No data available to encourage cross-sell/channel shopping
• Little campaign analysis
IN-STORE INTERNETCALL CENTRE
Who is Mary Smith?
Mary Smith
Mary Jones
H Card: 6653225
Tel: 020 363 2689
SW1
Mary Jones
H Card: 6653225
Tel: 020 785 4456
W2
Mary Smith
H Card: 6653225
Tel: 020 756 8754
W2
SITUATION WITHOUT SINGLE CUSTOMER VIEW
CUSTOMER PERCEPTION ACROSS CHANNELS
IN-STORE INTERNETCALL CENTRE
Harrods SOA VisionTomorrow…Marketing
• Unified brand experience across all touch points
• Concentrate marketing resources on best customers
• Target customers with personalized offers through multiple channels
• In-Store, Direct Mail, Web, TM• Customer segmentation and
modelling• Understanding of cross department
sales to motivate cross-sell• Closed-loop analysis and continuous
optimization • Ability to measure campaign ROI • Test, learn and refine
IN-STORE INTERNETCALL CENTRE
Who is Mary Smith?
Mary Smith
Mary Jones
H Card: 6653225
Tel: 020 363 2689
SW1
Mary Jones
H Card: 6653225
Tel: 020 363 2689
SW1
Mary Jones
H Card: 6653225
Tel: 020 363 2689
SW1
SITUATION WITH SINGLE CUSTOMER VIEW
CUSTOMER PERCEPTION ACROSS CHANNELS
IN-STORE INTERNETCALL CENTRE
Harrods SOA VisionHarrods SOA/SCV Integration Architecture
USPS
eView
SAP BAPI eWay SQL Server eWay Oracle eWay
X-Ref DB CustomerMaster DB
ReferenceFiles
Standardise Match Survive
Business Rules
SAPDB
SASDB
CSSDB
Distribute&
Synchronise
Address Cleansing and Validation
Service
PAF
The Sun JavaTM Composite Application Platform Suite (Java CAPS)
CAPSCAN
DifferentSilos
Phase 2: Harrods Customer InsightPhase 2: Harrods Customer Insight
Harrods SOA Vision
33
Main Issues/Opportunities• Lack of a consistent or coordinated
customer contact / relationship strategy across our directorates and channels
• The primary source of data for marketing campaigns comes from our Store Card database.
• There is very little campaign analysis or rigorous pre-launch campaign planning and no data is available to encourage department cross-sell or cross-channel shopping.
• Traditional operating frameworks for merchandise pricing strategy, range planning and forecasting that limit our competitive advantage.
Harrods SOA Vision
Customer Insight
•Single Customer View
•Campaign Management
•••Basket Analysis
Customer Insight•Single Customer View•Campaign Management
•Contact Management•Segmentation•Basket Analysis
Merchandise Insight
•Merchandise Planning
•Assortment Planning
•Revenue Optimisation
Merchandise Insight
•Merchandise Planning•Assortment Planning•Revenue Optimisation
Performance Insight
•
•Profitability Analysis
•Forecasting & Planning
Performance Insight
•KPI Dashboard /
•Profitability Analysis•Forecasting
Operational Insight
•Data Warehousing
• OLAP Reporting•Loss Prevention
•Fraud Analysis
Operational Insight
•Data Warehousing•OLAP Reporting•Loss Prevention•Fraud Analysis
Business
Insight
Scorecard
BusinessInsight
Harrods Business Insight
Customer Relationship Management“CRM is the business strategy that aims to
understand, anticipate, manage and personalize the needs of an organization's current and potential customers”
• Who are our best customers?• What can we do to ensure they are retained?• How can similar customers be attracted?• How can the overall customer profitability be
improved?• How can the right customers be targeted at the
right time with the most appealing merchandise / marketing strategy?
Unified Customer Strategy
Call Centre
Web Access
E-MailDirect Sales
Mailing
Customers
CustomerTouchpoints
Harrods SOA Vision
Goals and Objectives • To provide Harrods with an ‘Operational’ CRM solution that enables
the alignment of departmental strategies that will communicate a consistent message and brand experience across all customer touch points.
Harrods SOA Vision
Summary & Recommendations
• Check whether SOA is the right solution for your business requirements… Take into account the cost you spend every year redeveloping interfaces, how difficult is to maintain a point-to-point multi-channel solution or to manage your systems landscape, and what are your business missed opportunities by not having a flexible architecture
• Align your future SOA projects with the business requirements to build the IT proposal with SOA
• Once your are convinced about SOA, get your business to buy into SOA to reach financial support
• Choose the right SOA solution according to its technical capabilities (openness , based on standards, good performance, good management capabilities, good development environment, flexibility), supported by a reliable supplier with a long term vision
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