VORWERK DIGITAL THERMOMIX GOES CLOUD

Transcription

1 VORWERK DIGITAL THERMOMIX GOES CLOUD 1

2 AGENDA 1. Three Ingredients for Digital Innovation 2. Ingredient One: a (Digital) Customer-Centric Strategy 3. Ingredient Two: an Organizational Frame for Delivering Digital Innovations 4. Ingredient Three: a Platform for Digital Innovations 5. Learnings and challenges 6. Summary 2

3 VORWERK DIGITAL BEFORE WE START 3

4 What the Thermomix TM5 Does 4

5 How the Direct Selling Model Works Personal demonstration in your home, organized by someone you trust, to experience the appliance with all your senses. 5

6 What s New in the 5th Generation 6

7 How Guided Cooking Works 7

8 How the Thermomix Recipe Platform Works Today ABC123DEF456 8

9 INGREDIENT ONE A (DIGITAL) CUSTOMER-CENTRIC STRATEGY 9

10 The Core of the Thermomix Business Model Utility Significance Quality Customer Satisfaction Customer Loyalty Recommendation Promotor or Advisor 10

11 The Moments of Truth in the Thermomix Business Model When You Choose & When You Use Higher Usage Higher Satisfaction More Recommendations 11

12 The Core of Thermomix Business Model Thermomix Strategy: Daily Usage Utility Significance Quality Customer Satisfaction Customer Loyalty Recommendation Promotor or Advisor 12

13 The Elements of Ecosystems Example: Music Consuming Device Carrying Medium Order & Delivery Mechanism Digital Content meet specific Customer Needs 13

14 Innovation in Ecosystems 14

15 Why People Stay in Ecosystems The Endowment Effect Humans predictably overestimate the value of things they own Not losing something one already owns is more important than acquiring something new The effect increases expontentially with the amount of time and money already invested The Comfort Zone Factor People are by their very nature lazy and will take the path of least resistance most of the time - it is actually hardwired in our brain and helps us to avoid wasting energy The factor is even stronger when it comes to things that have a low probability of adding additional value to their life The impulse to touch a benefit already achieved has to be significantly more intense than the stimulus to acquiring this benefit in the first place The Sunk Cost Fallacy Customers tend to invest money and time for things they have already invested in before in order to justify the earlier investment The effect amplifies in relation to the increase of the total investment even if the probabiliy is high that the loss might be increased 15

16 The TM Ecosystem Cookbooks Cooksticks Apps Advisor Collections Magazines TM Recipe Platform Updates Newsletter Classes Community E-Shop Websites 16

17 The Thermomix Ecosystem The Right Content promotes Daily Usage which ensures Higher Satisfaction and results in More Recommendations 17

18 INGREDIENT ONE THE NEXT STEP THERMOMIX INTERNET OF THINGS 18

19 The Cook-Key: Connecting the Thermomix to the Cloud 19

20 From the Official Communication Get your digital content on your device Personalize your cooking experience Plan your week & set your favorites across apps, websites and on the TM5 6 Months Trial Flatrate for Content 36,- per year for All Access 20

21 INGREDIENT TWO ORGANIZATIONAL FRAME FOR DELIVERING DIGITAL INNOVATIONS 21

22 The Long Way to Get the IT Right High Agility BUT Accidental Instability How much do you need? Level of Focus High Stability BUT Low Agility A B C D E Stage of Maturity 22

23 What the Strategist & Analysts Say Gartner Study (end 2014), titled: Bimodal IT: How to be Digitally Agile Without Creating a Mess, distinguishing between an agile organization, focused on time-to-market, rapid application evolution and tight integration with business units and a traditional IT, focused on stability and efficiency McKinsey Study (end 2014), titled: A twospeed IT architecture for the digital enterprise, recommending a fast-speed, customer-centric front-end alongside a transactional core (...) designed for stability and high-quality data management (and more from Deloitte, Ernst & Young, etc.) 23

24 Thermomix Digital Started in 2012 with Gartner s Model + Systems of Innovation Smart Devices as Platform for Future Innovations Digital Content Business & Marketing Apps / Websites User-Generated Content & Community Functionality Digital Partnerships & User-Data Integration Agility - Change Systems of Differentiation E-Commerce & E-Fulfillment Customer Relationship Management Business Intelligence & Analytics (incl. Big Data) Balance Governance - Systems of Record Enterprise Resource Planning Supply Chain Management Production Management Stability + 24

25 INGREDIENT THREE PLATFORM FOR INNOVATIONS 25

26 Architecture Overview Clients TM5 GUI App Frontends Web Frontends Edge Layer CDN Integration Core Layer API Extensions Order Management TM Cloud Registry MarCoSS Customer Service Features Fulfillment Integration Services Platform Data & Process Extensions Finance & Payment RDPF Search Platform Accounting Media Asset Management 26

27 INGREDIENT THREE - THE NEXT STEP THERMOMIX INTERNET OF THINGS 27

28 Architecture Overview Hybrid Cloud TM5 GUI Clients App Frontends Web Frontends Edge Layer CDN Integration public cloud CSS CSS Edge Data Transformation ( User-to-CK ) GA UDS O+I GA UDS O+I GA UDS O+I GA UDS O+I GA UDS O+I GA UDS O+I private cloud Core Layer API Extensions Order Management Microshop TM Cloud Registry MarCoSS Customer Service Features Fulfillment Integration Services Platform E-Business Platform E-Shop Backend API Extensions Content Managem. System Customer Data Integration Content Rendering Platform RDPF Media Asset Management Data & Process Extensions Search Platform Central Customer Profile Accounting Finance & Payment Logistics Coordination 28

29 LEARNINGS AND CHALLENGES FINDINGS FROM BUILDING, TESTING AND RUNNING A CUSTOM BUILT IOT PLATFORM FOR THERMOMIX 29

30 Two important things upfront we tried to never forget: IoT turns (at least for consumer products): 1. Customers into Users 2. Products into Services 30

31 What is key in designing a great service? (...but not our focus today)

32 1. Understand your users 2. Understand all elements of your service and your organisation s capabilities + DNA to build + deliver your service 3. Plan + organize the interactions between people, infrastructure + communications 4. Identify + accept gaps and find the right partners 5. Think iteratively, start small grow big

33 Our focus today:

34 What are the right ingredients to a IoT service for consumer products?

35 Ingredient #1: Users expect an IoT Service to always be fast 35

36 How to be fast? Without a Global Caching Layer Thermomix in the Past CH Thermomix Private-Cloud 36

37 How to be fast? With a Global Caching Layer Thermomix Digital Ecosystem today DE CH US-East SG AU Thermomix Private-Cloud Global Availability Edge-Layer Locations 37

38 How to prove that we deliver fast and customers are happy? With a Customer Centric Monitoring Approach System & Process Monitoring + Alerting DE / AT / PL / CZ FR CH ES 24/7 Customer-Centric SLA Monitoring + Alerting US/MX AUS / TW / CN Amazon Cloud Hosting + Monitoring Country Monitoring Private Cloud Hosting 38

39 How to prove that we deliver fast and customers are happy? With a Customer Centric Monitoring Approach Define + Monitor SLAs from a user s perspective! Constantly monitor key journeys with the user s eyes + don t rely on system monitoring 39

40 Ingredient #2: Users expect an IoT Service to always be available 40

41 How to guarantee that we are always available? mein-thermomix.de mythermomix.fr mio-bimby.it misrecetathermomix.mx mythermomix.tw my-thermomix.com.au 41

42 How to guarantee that we are always available? mein-thermomix.de mythermomix.fr mio-bimby.it misrecetathermomix.mx mythermomix.tw my-thermomix.com.au X 42

43 How to guarantee that we are always available? misrecetathermomix.mx mein-thermomix.de mythermomix.fr mio-bimby.it mythermomix.tw my-thermomix.com.au X 43

44 Ingredient #3: Users expect an IoT Service to always be secure 44

45 How to make sure the platforms stays secure and privacy is being respected? Encrypt all traffic and all user data, for private and public cloud using latest technology standards and protocols. (SSL/SHA-256/AES-256/RSA-256) 45

46 Ingredient #4: Building a Hybrid-Cloud means dealing with even more Complexity 46

47 How much did the complexity grow? From 10 components in 3 environments in 1 region to Private-Cloud 32 components in 6 environments In 1 region = 192 components + Public-Cloud 68 components in 6 environments in 4 regions = = components Hybrid-Cloud Components 47

48 Why did complexity grow? Due to the larger amount of envirnoments, and because... Private & Public Clouds are very different Infrastructure People Processes Tools 48

49 How do we deal with complexity? Automation, Automation, Automation Infrastructure Software Network Storage Firewall Server Operating System Application Loadbalancer Database DNS It s all Software Configuration Tools 49

50 How do we deal with complexity? Automation, Automation, Automation Network Server Loadbalancer resource "aws_vpc" "main" { cidr_block = " /16" } provider "aws" { region = "us-east-1" } resource "aws_instance" "web" { ami = "ami-408c7f28" instance_type = "m4.large" tags { Name = "vorwerkwebapp" } } resource "aws_elb" vorwerk-webapp-elb { name = "foobar-terraform-elb" availability_zones = ["us-east-1a", "us-east-1b"] listener { instance_port = 8000 instance_protocol = "http" lb_port = 443 lb_protocol = "https" } } 50

51 Ingredient #5: Always on and auto-scaling means growing costs. Cost and utilization control is a must-have to stay in budget / stay profitable. 51

52 Cost & Utilization control In 2016 there are 252 Workdays (69%). Do you really need your whole nonproduction infrastructure the other 31%? 5% 5% 15% 75% After 2y of project we require to see in realtime, which component costs how much every minute Compute Storage Traffic Database 52

53 How we monitor and optimize cost and utilization? Automation using Infrastructure-As-Code Destroy and recreate every Environment with the Push of a Button, in Minutes 53

54 SUMMARY IOT = VALUE CREATION STRATEGY IOT = SERVICE = THINK USER-CENTRIC IOT = USERS WANT AVAILABILITY, SPEED, PRIVACY IOT = MUCH MORE COMPLEX THAN ON-PREMISE IOT = REQUIRES DIFFERENT SKILLS & ORG STRUCTURE IOT = SCALING & ALWAYS-ON = TIGHT COST CONTROL SUCCESS IN IOT REQUIRE AUTOMATION & INFRASTRUCTURE-AS-CODE 54

55 VORWERK DIGITAL THANK YOU 55