Archive for the 'online marketing' Category

Managing a multi-vendor e-commerce project

(This is a piece I wrote for the retail solutions conference guide.)


If you’re a retailer or a consultant involved in choosing an e-commerce solution, the approach you take, and in particular where to start the process, is critical. You might start with a decision on the underlying application server (Microsoft or Java, for example). Some look for something that fits well with a system they already have (like their ERP or warehouse management system), or with a “must-have” application or consumer offering, like facet-based navigation. Others start from the ownership or implementation model: are you looking for a hosted solution or something you can host and support yourself? Perhaps you would like your own unique instance of the application you can adapt totally to your needs? Do you need to be live in 12 weeks, or will you be doing a detailed analysis and customisation project? Subjective feel about fit with the vendor or vendors often carries a lot of weight, and budget is always a deciding factor.

In practice, many people come out of this process with a solution that is quite complex: the level of flexibility and integration offered by many products today, and the long lists of existing integrations seen in so many vendor presentations make choosing a hybrid solution a normal outcome. This raises some difficulties that must be considered when choosing the partner or partners who will deliver the project, but it also raises some real issues about the nature of the solution for the people who have to operate it once it is live.

The problems around project delivery relate to responsibility and complexity. Let’s say you’ve chosen a search product, a base commerce application, an image and video delivery tool, and a payment service provider, and you need integration with your existing warehouse and ERP. Who’s going to take responsibility for making all of those pieces fit together? Do you have the right people in-house to do the complex technical management that’s required, or will you use a consultant? Will you appoint one of your vendors to manage the overall implementation? Who will lead and manage end-to-end testing of the fully integrated solution? If you don’t consider this basic governance and accountability, problems are certain to arise. Aside from these questions, you need to consider who will manage the technical integration of all the pieces. All sorts of different interfaces are required between systems: these need to be specified, developed (or adapted from existing ones) and tested. Someone needs to make sure all the interfaces click together. This isn’t trivial, and it seems it’s sometimes assumed to happen by collaborative means: our experience is that it’s a lot simpler and a lot less risky for all partners if one party to the project is explicitly identified as being the lead for management, integration and verification of the solution.

If you’ve completed a successful multi-vendor e-commerce project, there remain questions about the integration of management tools, and their impact on the efficiency of your back office. I was recently at a presentation for a site content personalisation tool, and it became clear that whatever the benefits the tool had in terms of user experience, conversion and basket value, it was going to make the retailer’s management task a lot more complex. When a retailer chooses different vendors for different parts of the solution, it adds many steps to the management processes. Workflow for these tasks sometimes seems to be under-played in solution definition, and end-to-end documentation and testing seem to get lower priority than they ought. Let’s take  the  example of adding a new product and putting it on promotion – this really should be quite simple and yetthe merchandiser might have to use the base commerce platform, the search management console, and an image management console to get everything up and running.

This is a problem that some of the big vendors with a comprehensive offering would suggest they have the answer for: if you buy their product, it all fits together, and all the tools are integrated, so management is easy. It’s worth remembering that several of these products have been built by acquisition, and weren’t designed in an integrated way, so the reality may not be what is promised in the literature. We would recommend customers to choose a base product, like Microsoft Commerce Server, that works well for most of their requirements, and only add to it in really high value areas: most people should challenge customisation and additional complexity wherever it’s introduced into a solution.

In the longer-term, we would expect much easier integration between all the diverse products that are on the market. The evolution of web services as a standardised and flexible way for applications to talk to each other already makes it easier for applications to integrate in many ways. For example, putting data into the big search products today is a matter of generating some XML from your product catalogue and firing it into the index server. We’ve built our own management tools on top of web services so that they can be integrated and re-used in all sorts of ways, but it would be really exciting if we could integrate the management tasks of multiple vendor products in this way: as vendors expose more of their management capabilities to systems integrators as web services, we should be able to turn my new product example into a single page transaction in the future.

E-commerce continues to be an exciting and innovative space to be involved in technically, so we can expect to see a host of ideas coming forward to manage complexity, both in project delivery and management of the solution once it’s live, in the coming years.

Name the airline…

Back this weekend from a fantastic holiday, all researched and arranged using the Internet. It’s fantastic to think about how much travel has been changed by sites like TripAdvisor, and the sites produced by even small hotels are getting so good. There were only 2 bad experiences throughout the whole trip, both down to the same company, who used to be a client of mine. Can you guess who:

  • Is desperate to get their customers to check in online?
  • Changes booked seats (checked in online) at the departure gate, so that people who didn’t bother to check in online can be kept seated together?
  • Markets exhaustively and expensively to independent travellers, to maximise their yield by cutting out agents and tour operators?
  • Oversells a 747-300 by 22 seats, and has the same situation on every flight on that route for the next 3 months?
  • Lies about a smaller plane having been sent (and by the way, what plane do most airlines have that is bigger than a 747-300?) so there aren’t enough seats?
  • Prioritises the customers of agents and tour operators over independent travellers (who bought their tickets the day the seats came online) when deciding who gets bumped, because it can’t afford to upset their big stakeholders?

I bet anyone who’s travelled with this airline in the last 12 months can name them. The point is that online services and advertising need to be backed up and executed on in the actual business: doing it in the advertising isn’t enough.

I’m not angry, but I am flying Virgin next time!

Asus eee - open source support

Last week I bought an Asus eee laptop. It’s a tiny machine, weighing less than 2 pounds with a 7 inch screen, and it runs Linux as its operating system.

The experience so far has been really good. The machine works well, the software’s great, and for £250 I’ve got a machine that’s faster and more enjoyable to use than my very expensive work laptop. But what’s really impressive is the way that support, enhancement, improvement, has been taken up by the users of these machines.

Asus themselves provide some support, but the really good stuff is on blogs and wikis that have been set up by people who have bought the machines themselves.

If you compare http://vip.asus.com/ with  http://wiki.eeeuser.com/ it’s obvious that the open source offering is better, more up to date, and more responsive than the manufacturer’s. This is a very interesting trend. Actually, I’m happier that there is this community developing and that so much open information is out there than if I was reliant on a secretive, commercially sensitive company. Probably it’s so noticeable here because the eee is a Linux (i.e. open source) machine. You don’t see wikis cropping up for all products, so what makes one more or less likely to be a community hit?

Some extremely targetted advertising

Facebook targetted advertising

Facebook is doing something very interesting in allowing advertisers to buy specific networks. This ad was (I presume) created for members of the Agency.com network. It’s extremely targetted: it mentions Agency.com by name, and it’s advertising a service people at our company could very well be interested in.

This kind of thing is valuable, makes minimal use of personal data and would seem like an example where they’ve been very smart.

Shame about the creative though…

Google print ads are using QR codes

Google have started selling print ads in the US, which is an interesting venture in its own right, but the most interesting thing in this example is the extent to which they’re using the ads to drive potential customers online.

QR code on SJ Merc

Aside from the URLs in the ad, we’re also encouraged to search Google for specific search terms (doubtless incredibly well optimised for this advertiser). There’s also a QR code, or 2-d bar code, which is a machine readable image that contains a link or other information. The software to read these isn’t widely available yet, but the more organisations like Google support them, the more people will install the software. Next year, a large number of phones will probably have the QR code reader installed at the factory, so we can expect use of QR codes to become a lot more common.
Thanks to Blognation for the story.

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$50 billion dollars shrinking fast

http://adverlab.blogspot.com/2007/11/ad-zappers-for-facebook.html lists a variety of plug-ins for Firefox that will remove contextual ads from your Facebook experience.

It might get a bit tricky charging for ads that are being removed at the browser. Whether they’re counted as valid ad impressions before they’re removed isn’t made clear in the article.

Go the Fleet!

Ebbsfleet United's crest

A few months ago I put myself on the mailing list for something called myfootballclub, a group that was going to attempt to raise enough support and money to buy a football club. The subscribers would then be involved in setting the direction of the team, player selection and such like.

A couple of months ago they emailed me to say they had enough supporters to collect our money (£35 per supporter) and that they were in discussion with various football clubs about acquisitions. I paid my £35, frankly wondering whether anything more would happen, or whether someone was going to an awful lot of trouble to con me.

This morning I found out that we’d bought Ebbsfleet United, a team in the Conference League, currently in 9th place, and it all seems to be legitimate, because it’s been reported all over the media. All I know about the team so far is that they’re based in Kent, and if they get promoted they’ll be in the Football League for the first time in their history. Oh, and their nickname is “the Fleet”, imaginatively enough.

Their website is down this morning, because of high volumes of traffic. The Wisdom of Crowds thesis is about to be tested in a very interesting way. It’s a very English web 2.0 story.

Christmas is ever so early this year

From the Snow Valley blog it seems that Amazon are going to offer same day delivery on Christmas Eve, if you order certain products, and your delivery is to London or Birmingham. Good news for those of us who leave Christmas shopping to the last minute. It got me thinking about how early Christmas seemed to start this year, though. At the risk of sounding like an old git, it used to be that if you saw any Christmas advertising before November 5th, it was too early. It seemed to start in October this year.

There are lots of reasons for this, but the one I think is the most interesting is the shift in Christmas shopping from offline to online. If we need to wait for deliveries, and the Royal Mail made sure that was the case this Autumn, then we need to remember to order earlier. So it seems likely advertisers brought everything forward a bit to allow for that.

QR codes - a worthwhile implementation

We’ve been keen to do something with QR codes for some time, and have run up against practical obstacles to their effectiveness each time, so it’s good to see an example that does make sense. Thanks to Blognation for the details.

QR codes are 2 dimensional bar codes. They look a bit like this normally.

Mark Hopwood blog QR code

This one directs you to my blog, since it contains the URL “blog.markhopwood.com”.

The idea is that you download a piece of software to your phone, then when you see one of these funny squares, you take a photo of it with your phone, and you’re directed to a website with related content. In the newspaper example, people reading an article about Radiohead might see one that links to a mobile site with one of their videos on it.

Why is this idea better than others I’ve seen (like this one that Iain Tait pointed out). The basic problem is that the software isn’t pre-installed on all our mobile phones yet, like it is in Japan. So the experience when you see one of these posters is pretty shallow. No software, no link. Maybe you think it looks cool, but that’s about it.

But if your favourite newspaper or magazine starts using them, you’ll have lots of reasons to download the software in each edition. And because it’s something printed, in your hand, rather than something on a poster or the side of a bus, you’ll still have all those QR codes when you’ve downloaded the software. And they can print instructions (like the ones below) on what to do when you see one of the codes. In short, there’s a bigger incentive to get the software, instructions and help with getting it, and it’s clear that it’s an ongoing thing. So it’s more likely to get used.

Welt Kompakt's QR code instructions

The best thing is that once you’ve loaded the software for your newspaper, you’ll have it the next time you see a poster in the street, so it’s driving technology adoption across the board.

The trials of UK start-up funding

This article in Director (the monthly magazine of the Institute of Directors) contrasts the start-up options of the US with those of the UK. The US situation sounds extremely favourable:

  • Rents are low
  • Investors are very open to investing in start-ups
  • Bright people want to work in start-ups, rather than big established businesses
  • The market is huge compared to the UK, meaning you need a much smaller share of the customer base to be a success, and you don’t have to do lots of translating if you don’t want to

There are several people in the article who started out in the UK and moved to California to really get their businesses off the ground. From personal experience, I’ve seen a wide range of ways that funding can be obtained for start-ups in the UK, but it is really hard work, and it sounds a lot easier in the US.

It was nice to read about some UK success stories, though, including Zoomf.com:

But a growing cluster of successes is beginning to provide UK graduates with an alternative. Zopa, Garlic, Monitise, OnOneMap, Nestoria, Zoomf and Zubka are all original, scalable UK tech firms. Says Klein: “Not only is there access to an amazing ecosystem of talent, but you now have sophisticated venture capital. People are being myopic when they think of Silicon Valley as the only place to build Web businesses.”

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