The Complete Transformation from Offline to Online Magento Implementation of a B2B Platform – a Case Study. This case study shows how we managed to reach 100.000.000 EUR of online revenue, within only 3 quarters last year.

1. 1
The
Complete
Transforma1on
from
Offline
to
Online
Magento
Implementa1on
of
a
B2B
Pla;orm
–
a
Case
Study.
Tom
Karwatka,
Divante.co

2. This
Case
Study
Shows
How
We
Managed
to
Reach...
2
100.000.000
EUR
online
rev
aOer
Q3
of
last
year

3. B2B
is
The
HoRest
eCommerce
Field
Right
Now
• Nearly
75%
of
B2B
buyers
say
buying
from
an
e-­‐commerce
site
is
more
convenient
that
buying
from
a
sales
rep.
• 30%
of
today’s
B2B
buyers
finalize
at
least
half
of
their
purchases
online.
By
2017,
this
will
nearly
have
doubled
to
56%.
3
• 60%
of
B2B
companies
-­‐
their
B2B
buyers
spend
more
when
interac1ng
with
mul1ple
channels.
• Omnichannel
B2B
customers
are
also
more
likely
to
become
repeat
and
long-­‐term
customers.
hRp://divante.co/blog/b2b-­‐ecommerce-­‐2016/

4. About
Client
-­‐
TIM
• TIM
SA
is
the
biggest
electro-­‐
technical
goods
distributor
in
Poland
and
one
of
the
biggest
in
the
region.
• 30
years
of
experience
in
the
market.
It’s
been
on
Warsaw
Stock
Exchange
since
1998.
• Clients
from
the
construc1on
business
area.
4

5. Growth
Strategy:
eCommerce
• Goal:
diversifica1on
of
business
and
improvement
of
effec1veness
– Expand
customer
base
(new
industries,
B2C
clients)
– Expand
product
range
and
add
new
product
categories.
5
It
is
difficult
to
convince
the
employees
to
introduce
new
ideas,
especially
such
radical
ones.
Moreover,
our
vision
and
strategy
need
to
be
clear-­‐cut
to
the
Board
of
Directors
and
owners.
We
cannot
begin
without
their
support
and
-­‐
as
you
can
see
-­‐
the
project
is
planned
to
last
for
many
years.
-­‐
Artur
Piekarczyk,
Vice-­‐President

6. Start
of
coopera1on
–
5.2011
Start
of
first
B2C
test
project
–
9.2011
Niche
webshop
with
cables
for
B2C
clients
Can
TIM
sell
on-­‐
line
?
Can
we
acquire
new
customer
groups?
Start
of
B2B
project
-­‐
3.2012
Switching
to
SCRUM
–
5.2013
B2B
project
going
live
–
7.2013
S.W.A.T
–
11.2013
Major
redesign
–
8.2014
Moving
hos1ng
from
TIM
internal
datacenter
to
outside
datacenter
–
2.
2015
Advanced
BigData
project
–
1.2016
Timeline
of
Coopera1on
6

7. Process
7
1. Business
requirements.
2. Customer
research.

8. Research
• Field
research.
• We
had
previously
completed
a
B2C
project,
so
we
had
some
interes1ng
data
about
a
new
type
of
customers.
• Researches
we
did
in
this
case:
Compe1tors
analysis,
Surveys,
Benchmarking,
Trend
analysis,
industry
reports
etc.
8
In
the
picture
you
can
see
Kasia
in
one
of
our
end-­‐clients’
facili1es.
During
that
field
research
we
learned
that
sales
reps
prefer
to
call
their
call
center
and
place
orders
directly
to
the
operator.
All
analy1cs
packages
provide
key
reports,
such
as
most
frequently
visited
pages,
visitor
demographics,
bounce
rate
and
more.

9. Personas
9
• A
persona
is
a
fic1onal
iden1ty.
• Personas
help
you
to
understand
what
a
client
actually
needs.
• Usually,
we
create
3-­‐4
personas
for
each
project.
• A
persona
gives
the
customer
data
a
human
face.
• Personas
also
help
prevent
some
common
design
pi;alls,
which
may
otherwise
be
easy
to
fall
into.

10. Design
Phase
• Prototyping
–
changes
are
much.
• We
use
mockups
-­‐
the
interac1ve
prototypes.
• We
get
our
client
involved
in
almost
every
phase
of
design.
10
Concep1on
Selec1on
of
ideas
Prototype
1
Prototype
3
Prototype
2
Genera1ng
Ideas
Coherent
prototype
Workshop
Findings
Polishing
the
Prototype
Research
Findings
Data
from
GA
6
clients
of
TIM
2
poten1al
clients
4
itera1ons
of
prototypying
User
Research
Design
Process

11. We
work
in
teams.
We
generate
ideas
using
personas.
Then
we
do
paper
prototyping
AOer
that
each
team
presents
mockups
and
discusses
them
with
other
teams.
Then
we
choose
the
best
ideas
and
build
one
coherent
mockup
prototype.
Workshops

12. Paper
Prototypes
12
Concept 1 Concept 2 Concept 3

13. Digital
Prototypes
13
• Digital
version
of
prototypes.
• Clickable
and
will
allow
us
to
conduct
user
tests.

14. User
Tes1ng
• Usually
6
users
are
enough
to
determine
80%
of
usability
problems.
• We
do
itera1ve
tes1ng.
AOer
the
tests
tweak
the
mockups
and
test
everything
again.
14
In
this
case
designing
was
a
challenge:
poten1al
customers
either
had
an
experience
with
online
stores
or
had
no
experience
whatsoever.

15. Final
Digital
Mockup

16. Graphic
Design
16
• It
took
us
one
month
to
finish
the
graphic
work.
• To
shorten
the
1me
to
market,
in
the
mean1me,
we
carried
on
implementa1on.

17. Choosing
the
Technology
• Since
2008
so
we
have
tried
many
eCommerce
pla;orms.
• Why
you
should
consider
Magento:
– Magento
is
currently
the
most
popular
eCommerce
soOware
– Magento
is
the
most
popular
pla;orm
to
migrate
to
– You
have
the
producer’s
support
and
an
elas1c
license
model.
– The
soOware
provides
a
rich
set
of
ready-­‐to-­‐use
features.
– Magento
2.0!
17
hRp://blog.aheadworks.com/2015/05/ecommerce-­‐pla;orms-­‐popularity-­‐may-­‐2015-­‐two-­‐pla;orms-­‐take-­‐half/
Alexa
1
million
top
sites
survey
unveiled
leadership
of
Magento
among
world
top
eCommerce
pla;orms.

18. Magento
vs
B2B
Needs
You
should
consider
these
points:
• Adding
products
faster
(with
photos
and
videos)
-­‐
PimCore
or
Akaneo.
• Marke1ng
automa1on
that
actually
works
and
is
easy
to
use
-­‐
Mau1c.
• Recommenda1on
engine
-­‐
Hadoop.
• Search
that
works
like
Google
-­‐
Fact
Finder
• CRM
allows
your
sales
reps
to
work
on
your
clients’
accounts
–
OroCRM
• Custom
B2B
modules:
a
tree
structure
of
the
clients'
account,
payment
methods,
flexible
shopping
cart.
18

19. Omnichannel
Open
Architecture
19
hRp://divante.co/blog/omnichannel-­‐open-­‐architecture/

20. Integra1ons
Nowadays
the
plaBorm
is
connected
to
the
following
systems:
• IntegraDon
with
CRM
system:
– Sending
client’s
data
– Downloading
client’s
data
– Cart
synchronizaDon
(price)
– Cart
downloading
– Cart
reservaDon
– Sending
orders
– Sending
RFPs
– Downloading
offers
for
a
customer
– Downloading
product
price
– Downloading
product
price
for
a
customer
– Downloading
invoices
data
and
invoices
in
pdf
– Downloading
order’s
history
– Downloading
order’s
data
• Product
Management
Program
– Downloading
data
on
products
and
categories
– Downloading
catalogue
cards
of
products
and
pictures
• Warehouse
IntegraDon
– Downloading
product
availability
– Downloading
cable
segments
• FactFinder
IntegraDon
– Sending
product
database
– Downloading
search
results
20
• Integra1ons
are
one
of
the
hardest
problems
in
eCommerce
development.
• Crea1ng
failbacks
-­‐
if
one
of
the
systems
is
down
we
are
able
to
operate
-­‐
s1ll
• We
use
a
dedicated
soOware
as
a
buffer
layer.

21. CRM
Live
Integra1on
• CRM
integra1on
plays
the
key
role
in
the
system
• Bilateral
integra1on
in
a
real
1me
-­‐
the
merchants
in
TIM’s
central
can
edit
the
shopping
carts
of
the
customers
that
are
currently
logged
on.
21
Reco
engine
Browsing
Call
Add
to
cart
Client
Consultant

22. Users
Inspire
Us
• One
day
a
consultants
finds
an
order
for
100
light
bulbs
and
a
huge
electric
pole.
• To
ship
such
a
pole,
you
have
to
carefully
arrange
the
delivery.
22

23. Dedicated
Func1ons
23
Dynamic
offer
You
want
to
buy
2
km
of
the
cable.
TIM
has
a
2.5-­‐km-­‐long
piece
in
stock,
they’d
love
to
get
rid
of.
So,
they
offer
you
their
2.5
km
cheaper
than
your
2
km.
It’s
up
to
you
to
decide
which
length
you
will
opt
for.
The
online
cart
is
expanded.
You
have
a
bunch
of
specific
func1ons,
like
communica1on
with
the
merchant,
dedicated
payment
methods,
conver1ng
cart
to
an
offer
inquiry
and
so
on.

24. B2B
Func1ons
to
Consider
The
most
common
B2B
func1ons
we
implement
in
our
projects:
ü List
of
contractors
with
verifica1on
ü Individual
or
collec1ve
nego1a1on
of
discounts
ü Order
files
ü Offer
crea1on
ü Consultants
who
can
accept
the
order
on
behalf
of
the
customer
by
the
phone
/
email
/
during
a
mee1ng
ü Saving
and
sharing
the
cart
content
ü Forms
of
payments
that
are
typical
of
B2B
(for
instance:
a
trade
credit)
In
the
cases
like
this
one,
all
the
dedicated
func1ons
are
implemented
as
extra
Magento
modules.
So
you
are
s1ll
able
to
update
your
Magento.
24

25. Development
phase
q Scalability
and
Performance
q Quality
q SLA
q Effec1ve
development
q Data
Driven
Customer
Experience
Implementa1on
and
Start-­‐up
The
implementa1on
of
the
first
version
of
the
system
took
us
over
14
months.
25
Start
of
coopera1on
–
5.2011
Start
of
first
B2C
test
project
–
9.2011
Start
of
B2B
project
-­‐
3.2012
Switching
to
SCRUM
–
5.2013
B2B
project
going
live
–
7.2013
S.W.A.T
–
11.2013
Major
redesign
–
8.2014
Moving
hos1ng
from
TIM
internal
datacenter
to
outside
datacenter
–
2.
2015
Advanced
BigData
project
–
1.2016

26. Scalability
and
Performance
• Replica1on
of
the
database
to
speed
up
reading
opera1on
and
balance
the
traffic
to
database
• Using
a
cache
system
–
in
this
case
Memcached
was
replaced
by
Redis
• Using
a
scaRered
file
system
(GlusterFS)
• Using
an
hRp-­‐reverse-­‐proxy
system
Varnish
that
speeds
up
loading
pages
and
sta1c
files
• Using
PerconaDB
instead
of
MySQL
for
the
database
26
New
Relic
Performance
Report,
ELK
Stack
+
Kibana

27. Ensuring
Quality
• The
extra
risk
factor:
a
big
number
of
integra1ons.
• AOer
every
round
of
changes,
we
do
the
performance
test
to
verify
that
the
applica1on
works
beRer.
• To
keep
the
quality
high,
we
use
– 2
phase
Code
Review
– version
control
system,
– 1cke1ng
system
(where
all
communica1on
with
the
client
happens)
– monitoring
system
–
Incinga,
Jenkins
+
Selenium
+
ELK
Stack
to
monitor
integra1ons
27
We
use
separate
environments
for
developers,
tests,
and
produc1on.

28. SLA
• 250.000
EURO
daily
rev.
• We
must
be
able
to
react
under
1
hour
and
prepare
a
workaround
for
any
problem.
• “Divante
S.W.A.T.”
–
a
specially
formed
unit
working
24/7.
• The
membership
is
op1onal
but
to
sign
up
every
member
has
to
pass
an
official
exam.
• Members
get
special
bonuses
added
to
monthly
salary.
• The
group
responsibility
-­‐
if
SLA
is
violated
on
any
website,
nobody
gets
their
bonus.
28
Divante
S.W.A.T.
is
a
unit,
that
covers
security
of
the
pla;orm
and
react
ASAP
when
the
system
is
down
or
an
emergency
happens.
SLA > 99.9%

29. Effec1ve
Development
• To
maintain
effec1ve
development
of
project
we
created
a
dedicated
team
• SCRUM
gives
TIM
the
control
and
quality
they
need.
• SCRUM
team
– Product
Owner
– 4
Developers
– 1
Front
End
Developer
– 1
Tester
• Con1nuous
delivery
-­‐
Ansible,
Phing
29
Source:
hRps://en.wikipedia.org/wiki/Con1nuous_delivery
To
ensure
con1nuous
delivery
we
automate
the
tests
and
deployment.
Deployment time <5 min

30. Data
Driven
Customer
Experience
We
use
data
on
a
large
scale
to
improve
User
Experience
for
TIM’s
clients.
To
inspire
you
-­‐
on
TIM’s
examaple:
• 97%
of
customers
preffer
one
specific
view
of
product
list
–
„miniatures”

31. Business
Results
31
The
share
of
online
sales
in
total
sales
in
terms
of
income
The
share
of
online
sales
in
total
sales
in
terms
of
No.
of
products
The
number
of
the
products
ordered
online
is
growing
faster
than
the
total
value
of
online
sales.
That
means
that
the
online
sales
have
bigger
poten1al
to
diversify.
On
top
of
that,
smaller
but
more
frequent
purchases
build
customer
loyalty.
B2B
project
going
live
–
7.2013
Q3,
2015
• AOer
the
first
year:
– 50%
of
online
sales
– Over
50.000.000
EUR
online
rev
– 25.000
products
• AOer
3
years
–
Q1-­‐Q3
– 67%
of
online
sales
(85%
of
products)
– Over
100.000.000
EUR
online
rev
aOer
Q1-­‐Q3
– 125.000
products

32. Business
Results
• This
project
has
been
a
huge
success
for
TIM.
• They
achieved
their
business
goals:
– Diversity
of
business
– A
lot
of
new
customers
– Improved
business
effec1veness
32
Clients
tes1monials:
hRps://www.youtube.com/watch?v=-­‐
QumO63G_7M&list=PLuXGEsfZdwIUuaIJTEd3PDSUQLilYVu9a&index=3
TIM
client’s
really
like
the
B2B
e-­‐Commerce
website
Harvard
Business
Review
has
wriRen
an
ar1cle
about
TIM
recently.
The
Project
was
shown
as
a
true
digital
transforma1on.

33. What’s
Next?
• Improving
the
reten1on
of
clients
through
BigData
analysis
and
personalized
recommenda1ons.
• Automated
pricing
op1miza1on
-­‐
the
next
big
thing
we
want
to
pursue.
33
In
the
Forrester
research
from
2014
-­‐
Building
The
B2B
OmniChannel
Commerce
Pla;orm
Of
The
Future
• Automated
pricing
op1miza1on
–
62%
• Personalized
recommenda1ons
–
56%
• Use
of
wearable
compu1ng
in
distribu1on
centers
–
49%
• Sensors
in
shipments/products
–
46%
• Robots/automa1on
in
distribu1on
center/
supply
chain
–
34%
• Shopping
cart
abandoment
analysis
–
32%
B2B
e-­‐Commerce
technologies
to
invest

34. Thank
You!
Tom
Karwatka
Divante.co
hi@divante.co
3
We
base
on
the
exper1se
we’ve
got
from
a
number
of
B2B
projects
and
generalize
it
to
find
the
gold
rules
of
B2B
eCommerce.