CIO "M.Video/Eldorado" Sergey Sergeyev on TAdviser SummIT - how IT of two retail giants integrated
Sergey Sergeyev, the director of information technology of M.Video/El Dorado, speaking at the TAdviser SummIT conference on May 29, 2019, told how there was an IT integration of two companies within their merge. Consolidation of M.Video and Eldorado began in 2017. The decision that it will be one company with a uniform business model, but two brands became a basis for transformation, including IT.
Transformation of functions, synergies and implementation of IT projects for the centralized functions began in January, 2018. There was a task in a year to come to target an organization structure. The companies used the different systems and different models of receiving services on separate processes. Somewhere it was outsourcing. Also it was required to lead IT systems and processes to a uniform denominator.
Critical milestone in IT integration Sergey Sergeyev calls the moment when both companies passed to work under the uniform legal person and passed to the uniform bek-platform on model of Eldorado. It happened in February, 2019. Officially transformation came to the end in April, 2019, and for July is planned the end of stabilization and transfer to IT support.
The frontal systems at the same time remained two, unlike a bek. Preserving of independence of brands of M.Video and Eldorado in development the solutions front was one of the principles of target architecture of IT as a result of consolidation.
Bek and the frontal systems connects among themselves a layer of microservices which the M.Video company developed more than 3 years. In the course of transformation they were extended also to Eldorado. The director of information technology of M.Video/El Dorado added that all layer of microservices are own development of M.Video.
| ||We use, as a rule, technologies of partners, and we conduct development, - Sergey Sergeyev specified.|| |
The main changes which happened took place in frontal products of Eldorado as it was required to adapt its processes for a number of processes of M.Video, for example, logistic and the management reporting. Processes of M.Video were affected only in rare instances if there was something new that could be adopted from processes of Eldorado.
Sergey Sergeyev noted that the task stood - at first to reduce to a common denominator basic processes, and then only to carry out some improvements.
About TAdviser SummIT
TAdviser SummIT took place in Moscow on May 29, 2019 and attracted more than 640 participants - heads and experts of IT departments of the largest companies and the state departments of Russia, representatives of IT developer and contractors. During the action the prospects of digital transformation of business and state agencies, development of technologies, products and services were discussed. In a plenary part and five thematic sections more than 70 reports were heard. The action took place Sokolniki in 5 halls of Holiday Inn.
"M of Video Eldorado" and SAP submitted the concept of "future shop"
On April 17, 2019 group "M of Video Eldorado" also SAP submitted the concept of "future shop". The pilot project developed based on SAP Cloud Platform shows how mobile technologies work artificial intelligence, machine learning and personalisation in retail to trade. In more detail here.
Issue of Internet orders using the chat-bot and machine learning
On December 25, 2018 years the retail network "M.Video" announced transformation of process of issue of Internet orders in the shops using a bot and machine learning, having reduced receiving time to several minutes. According to this scheme for December, 2018 more than 179 shops of network in 16 largest cities work. Until the end of the first quarter 2019 the project will be developed almost on 200 shops of M.Video network in all million-plus cities.
In 2018 the M.Video network changed approach to issue of Internet orders in the shops. Now the buyer on an input is met by the terminal in which it is enough to specify an order number from SMS. After that the staff of shop receives the notification from the chat-bot on the smartphone, and the first free seller undertakes the order: as the goods are already postponed, it needs only to pick up accessories which are also recommended by a bot. While the seller prepares the order, the client also comes to an issue zone where on the screen its order number and a name of the seller which should bring goods is already displayed. On all process from an entrance zone with the terminal to an exit the shop with purchase is left by less than 7 minutes. In the long term the company expects to accelerate issue up to 5 minutes on all cycle.
In the chat-bot the same algorithms of machine learning and analysts data, as on the website mvideo.ru which make recommendations to the seller on the most suitable joint products and services are used. As a result the seller leaves to the buyer with already ready offer which as much as possible meets his requirements – demand for additional accessories and services grew by 10% after implementation of "smart" recommendations.
| ||An opportunity to take away the online order within an hour in the nearest shop – one of advantages of M.Video, the pickup allows to plan the day and not to wait for the courier. Besides, the client can estimate and compare different goods and is final decide on purchase. Buyers prefer to take away more than 70% of online orders thus. Our task – to make process of issue the fastest and comfortable. In a project team such format received the name "uberization of the pickup". Now shipment at own expense works by the principle of the taxi – more quickly, more precisely and more effectively. Important and the fact that this approach does shipment at own expense process more personalized: the client knows who will give him the order, and the seller – who waits for it on issue and that to offer this buyer.|
Stanislav Gorshenin, the Head of Department on customer service of M.Video
If all sellers are busy and cannot take the order, the chat-bot redirects the similar notification to employees of a service zone. Thus, service engineers have an opportunity more time to give to basic function — work with returns, repair and exchange. Earlier Internet orders were issued by service engineers in a zone of M.Service in parallel with rendering services that at the raised traffic, for example, before New year, delayed clients in queue.
In the long term this process can be even more personalized thanks to integration into already existing software solutions in working smartphones of employees, so that sellers could see history of the client and discount means available to it (bonuses, coupons, etc.) at once.
The present and the future of IT in "M.Video - Eldorado". The main thing from the report of CIO of Sergey Sergeyev on TAdviser SummIT
On November 29, 2018 Sergey Sergeyev, the CIO of the M.Video — Eldorado group, at the TAdviser SummIT conference told about IT in retail on the example of the company today and tomorrow. It began with the description of the purposes of IT in "M.Video - Eldorado". Sergeyev noted that the purposes in the IT area correlate with the business purposes. At the same time, to deliver the correct requirements in IT, the people understanding both in business, and in IT are necessary. According to Sergeyev, the company went new to the market by product management and entered a role of produktolog in the structure and began to transform traditional information system management in product management.
In retail speed is important, the speaker noted. In IT it can be provided using iterative development – i.e., developments with parts. At the same time the company continues to use also waterfall-development. Also the flexibility is important. Therefore the company separates the systems into parts and uses microservice approach, the speaker explained. As of the end of 2018 in "M.Video - Eldorado" is used about 34 thousand different devices, including mobile, more than 460 specialists, 25 internal IT initiatives and 75 business projects, more than 115 IT systems. Development in the company is conducted also by internal forces, and with attraction of partner resources.
The present of IT in the company is, first of all, in that where the company interacts with consumers to use the easiest and flexible solutions to changes, Sergey Sergeyev told. For a long story of M.Video and Eldorado companies the set of the historical systems collected. For the company it is important to provide their scalability and coexistence with the "easy" frontal systems. For this purpose for the last three years the layer of the middleware coordinating all these systems among themselves was developed. "M.Video - Eldorado" in the present began to give great attention to work with startups.
| ||All change which we do in the company and results have the proved benefit for business confirmed financially and these are 7 billion rubles of turnover as effect of implementation of projects, - Sergey Sergeyev provided data.|| |
Speaking about future IT in the company, he noted that this development R&D in "M.Video - Eldorado" based on an external and internal incubator for search of the new ideas and innovations, cross-system development, growth of investments on digital transformation, transformation of products, prioritization for all changes, etc.
The representative "M.Video - Eldorado" gave examples of technology changes in the company which affected work of business process and interaction with buyers. The first is a data storage. Many have some cards of loyalty from network, also buyers make some actions on the website of the company, there are a story and geography of purchases, social networks, responses about network. These data need to be accumulated, structured, and it is possible to use them at different stages of interaction with the consumer. Data are used in "smart services" based on artificial intelligence and machine learning at each stage of a way of the buyer, Sergeyev tells.
| ||To attract traffic, it is important to understand what to offer to whom to offer and when to offer, - Sergey Sergeyev explained. – When the machine offers the consumer options, it is a bit different in terms of the scope of and to volumes a task in comparison with when it is done by the person. We learned to communicate with the client using the machine and received results: in a pilot project it was plus 58% to average revenue of contact, in a produktiva – plus 20%.|| |
Simplification of the choice of goods for the consumer is important. For this purpose the company organized the smart service considering data from systems: what is looked for most often that the company would like to sell, etc. Considerable part of work "M.Video - Eldorado" in the field of IT is directed to work with the client who left the website who purchased nothing. Define an effective objective the typical problems leading to leaving from the website and creation of the personified scenarios, issue of personal recommendations. To it still it is necessary to go, the speaker noted. It is necessary to change design further, proceeding from what is necessary for the client.
About TAdviser SummIT
TAdviser SummIT took place in Moscow on November 29, 2018 and attracted more than 700 participants - heads and experts of IT departments of the largest companies and the state departments of Russia, representatives of IT developer and contractors. During the action the prospects of digital transformation of business and state agencies, development of technologies, products and services were discussed. In a plenary part and five thematic sections more than 70 reports were heard. The action took place in 5 Digital October halls.
Opening of competence center in the field of Data Science
The M of Video Eldorado group entering into PFG "Safmar" of Mikhail Gutseriev announced on August 13, 2018 creation of competence center in the field of analytics of data and machine learning — Digital Retail Data Science Centre. A main objective of creation of the center, told in the company, search of the additional points of growth of business based on data analysis and transition to the automated "smart" services and business processes is. By estimates "M. of Video Eldorado", the technologies based on data analysis will allow the company to cut down operating expenses and will be able to bring up to 5 billion rubles of an additional turnover in the medium term.
In general opening of competence center became the next step in development of the Data Science direction to M.Video. The division will concentrate on development and deployment of mathematical algorithms in business processes of the retailer — marketing, online sales, logistics and personnel management. First of all, Data Science the center will be engaged in solving of tasks of target marketing and optimization of client experience on the website. Some developments in this direction already allow to render the personalized service to each client, proceeding from his preferences and requirements, M. shared in "Video Eldorado". The company analyzes behavior of buyers as online, and offline, for example, the history of purchases, use of bonus points and other discount means, behavior on the website and in shop, viewings, the thrown baskets, responses to marketing communications, SMS and email mailing.
| ||Retail is the hi-tech industry in which the high speed of changes and implementation of innovations are competitive advantage. With respect thereto development of technologies of analytics of data and machine learning has for us a strategic importance. According to world practices clients of M.Video will be able to receive the personalized complex offer in retail and online taking into account their previous interaction with the company. The automated services on the basis of analytics of data also cut down operating expenses and positively influence sales due to return of the clients who left the website, growth of level of conversion and increase in the average check. So, at the end of 2018 Data Science technologies can bring M.Video to 800 million additional online turnover, and in five-year perspective — to five billion rubles — the director of strategic marketing of the M of Video Eldorado group Alexander Erofeyev considers.|| |
The M of Video Eldorado group also studies, pilots and implements the different solutions based on analytics of data and machine learning and in internal processes, including in the field of logistics and personnel management. So, the retailer performs forecasting of daily need for personnel in retail and also demand for management of logistic deliveries. When planning working schedules of personnel and transportation of goods in each of shops the geographic location of shop, traffic, seasonality and also speed of retail sales and potential amounts of shipment at own expense of online orders is considered, explained in the company.
| ||The Data Science direction develops in M.Video about a half-morning of years — during this time we learned to implement algorithms of machine learning and saw their efficiency for business. Opening of competence center in the field of analytics of data assumes both expansion of a range of projects, and commands. At the same time the scope of technology is not limited to client analytics. In the future we also plan projects on increase in efficiency of Internet merchandising and further optimization of a client way on the website and also to management of promotion actions, a product line, drain and retail personnel — the head of Digital Retail Data Science Centre Vladimir Litvinyuk commented on an event.|| |
TAdviser Interview: CIO of M.Video Sergey Sergeyev - about the main IT priorities of retail network
The director of information technology of retail network selling electronics and home appliances M.Video Sergey Sergeyev in July, 2018 in an interview of TAdviser told about integration of sales channels in retail, about work of M.Video on creation of completely seamless One Retail environment and also the trends in the field of trade which are closely connected with process of digital transformation.
Plans for creation of a personnel management system using biometric control
The resident of an IT cluster of Skolkovo Foundation, the Timebook company and M.Video signed in June, 2017 the agreement about cooperation which provides system deployment of personnel management using biometric control of timebook in all shops "M.Video" within a year that will allow the retailer to increase motivation of employees and efficiency of retail. Read more here.
Implementation of CRM
In 2016 M.Video completed system implementation of management of loyalty based on SAP CRM. The company says that the functionality of the module CRM Loyalty allowed the retailer to reduce the period of charge of bonus points and processing of promotion actions till two o'clock from ten. Read more here.