Digital Transformation at Harrods

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1 Digital Transformation at Harrods Harrods operates in the Luxury end of the retail market where offering customers the wow factor and a unique experience is key. For over 150 years, Harrods has had a rich heritage of driving service excellence through investment and innovation in the customer experience. Consequently, Harrods customers are extremely loyal. They are also widely spread throughout the globe and cannot always visit the flagship store in Knightsbridge, London. Therefore, growth via other channels, such as online, is critical. The percentage of international customers shopping online has grown steadily over the last five years. Offering the same experience across all channels, including online, and reaching out to those customers that do not live near the store became paramount to both meet customers needs and expectations. Expanding the e-commerce business and becoming truly omni-channel was critical to the next stage of the Harrods journey. Growth via other channels, such as online, is critical. 1.

2 Delivering a business transformation from an IT re-platform to an omni-channel programme The customers needs are moving at pace and the challenge for Harrods was to deliver a new platform that could respond to market dynamics and changes to customer behaviour. With this goal in mind, Harrods embarked on a re-platform programme in October E-commerce requirements were outlined; Technology applications and IT suppliers were selected. In June 2015, Harrods requested Project One support to help re-enforce the programme to ensure it was a truly omni-channel business transformation. While the transformation programme started in the e-commerce department, Harrods recognised that to fully achieve their ambition, a crossdepartmental programme of work and staff mobilisation was required. Harrods looked to Project One to provide additional programme leadership capability to scope, shape, mobilise and execute an integrated transformation in the business and IT. It surprised me how quickly Project One got a handle of the challenges and the programme shaped and under control. The governance and structure of the programme were very good. E-Commerce Director, Neil Borer 2.

3 Challenges 1. Not just an IT e-commerce project Delivering an omni-channel solution successfully required many different teams from Customer Loyalty to Distribution to be involved; and their needs and requirements to be catered for. The challenge for the programme leadership was to bring these teams on-board, ensure that the solution was fit for purpose and then delivered it in an environment constrained by the previous technical and supplier decisions An integrated approach An integrated approach, encouraging people to work outside the usual organisational boundaries was required to create a genuinely omni-channel platform that would enable the growth desired. Scope Definition Once the scope was clarified and quantified a phased approach was adopted to provide maximum business benefit as quickly as possible. 4. Structure and Governance The omni-channel nature of the transformation required a new way of operating. Rapidly restructuring the programme to ensure clarity of responsibility and interdependencies between the workstreams was key. To manage these workstreams and the cross-functional nature of the programme, a number of business and technical governance forums were introduced. The structure also needed to remain flexible throughout the delivery to ensure it remained optimal. It was impressive how the Project One individuals came on board of our fast-moving train. They plugged in our capability gap with specific skills and got up-to-speed very quickly. They turned up on Monday and started adding value by 10:00am. IT Director, Jonathan Manley 3.

4 WHAT WE DELIVERED Programme Leadership We provided strong leadership that combined commercial and technical understanding to support the business in making the right decisions. Technical plus Business Change We ensured that the technical delivery was done in conjunction with business change so that the new systems and processes could be efficiently operated to generate business benefits. Communication We joined up different parts of Harrods that traditionally worked and operated independently. Engaging and timely communication was the glue that held the programme together. Programme Delivery We drove the delivery of the transformation by setting up and executing a set of integrated workstreams, plans, risks and issues. Structure We created a structure that covered all aspects of the delivery and ensured accountability for all aspects of the programme. We ensured all members of the team, businesses and board had weekly updated information on the programme RAG, risks and issues. Governance We created governance forums for business and technical decisions at Harrods. Vendor Management We inducted and managed the key vendors developing and testing the key platform systems, constantly challenging them and directing their energies in areas that supported the overall goals. Standards We upgraded project and programme management standards and established the testing function, introducing best practice processes. Given the scale and complexity of the project, upgrading and blending legacy, back-end systems with new, digitally orientated applications, Project One played a fundamental and instrumental role in ensuring all the moving parts were managed and aligned for successful go-live. E-Commerce Director, Neil Borer 4.

5 What we have learned The power of leadership The right programme leadership drives the entire programme through its energy, focus, clarity and pace. The rhythm of the programme, the commitments levels, the passion that drove the hundreds of people to come on board, emanated from the attitude displayed by the leadership of the programme. Communication is key To keep hundreds of people working in different locations on board, a completely new approach to internal communications was needed. However, no matter how much communication you plan and deliver it probably doesn t feel enough! Multiple techniques/mediums were needed, all anchored on the core principles of transparency, honesty and single source of the truth. This required significant energy and determination and more careful and detailed preparation than usual, but it paid off massively in terms of engagement Flexible delivery Different parts of the programme delivered in different ways; some agile and some waterfall. Each methodology was flexed just enough to enable the entire programme delivery to come together via an integrated plan. Step change capabilities The scale of the change Harrods needed to deliver required experience and capability that the business would not typically have to hand internally. Recognising the specific gaps and addressing these through supplementing internal capability with additional specialist and experienced support was imperative. The pace and rhythm of the programme really became defined by the programme lead. Everyone got on board with it, and that drove a lot of the commitment, energy, passion which emanated directly from her. IT Director Jonathan Manley 3. The right structure produces clarity The programme was quickly organised into workstreams, each of them with its welldefined charter outlining key deliverables, responsibilities, milestones and team. This provided each team and team member with the necessary clarity to progress at pace knowing when and how to scale for decisions. The workstreams were supported by a strong governance and meeting structure catering both for the technical and business needs. 5.

6 OUTCOME Harrods new platform and associated business processes went live in May 2017 providing Harrods a solution based on integrated best in class components that provided an excellent baseline for their Omni-Channel ambitions. The website provided a significant step change with the capacity to grow substantially in terms of products, customers and transactional volumes. Neil Borer, e-commerce Director at Harrods, summarised it: Our programme has delivered the foundation needed to propel forward the digital and omni-channel ambitions of the business. We now have the infrastructure in place to manage customer, product, order and stock data seamlessly across the business, whilst at the same time have a web application capable of scaling to the needs of our rapidly growing, global ecommerce business. We have delivered a best-in-class luxury experience to the customer, that meets the needs of our products and how our customers like to browse and shop them. With adaptive/ responsive templates, we are able to ensure consistency across all devices. Given the scale and complexity of the project, upgrading and blending legacy, back-end systems with new, digitally orientated applications, Project One played a fundamental and instrumental role in ensuring all the moving parts were managed and aligned for successful go-live. OUR CLIENTS KNOW That REAL CHANGE DOES MAKE A REAL DIFFERENCE projectone.com 6.