Roman Desyatov, M.Video: Outsourcing allows to change flexibly resources on development and support of online store

Roman Desyatov: Throughout the history of the existence our company interacts with a large number of IT partner whose services and services we use – when it is reasonable, natural. We gave support of online store in respect of operation to outsourcing of Jet Infosystems company at the time of transition to the new industrial Oracle Commerce platform. Jet Infosystems – our reliable and entrusted partner, support and operation of IT systems is their business which they successfully do many years. At the same time several other our IT partner continue to be engaged in development of functionality of the website. As for a situation in general on the market, as far as I know, at that time broadcast of the website on outsourcing was not a trend in the Russian retail. Anyway, M.Video made such decision proceeding from the interests and within own IT strategy.

Roman Desyatov: It is partly connected, of course. Before passing to the new platform, we began to develop e-commerce actively. To us an opportunity to flexibly scale resources on development and support of the website became important. It would be inefficient to gather own IT staff, the competent specialist needs to be taught at least half a year. Besides load of the website is uneven therefore also it is difficult to make use of IT specialists rational. It is much more logical and more profitable to address the IT partner having staff of professionals capable to provide a permanent load by switching between projects or different sections of work. And one more important point for benefit of outsourcing – need to provide support of online store in the round-the-clock mode. By own efforts it would be difficult to implement it to us.

Roman Desyatov: The online store takes very important place in the concept of omnichannel of M.Video. I will begin with essentially important thesis: the it is easier for client to switch between the companies providing the same goods or service the high level of customer service quality is more important. When the buyer comes to retail store and the probability that he will go to look for goods in other shop because of too slow or unfriendly seller begins to communicate with the consultant, exists, but she is not so great. Something similar occurs and when the client called call center: he begins to communicate with the living person, there is an emotional connection. On the Internet there are enough one-two clicks to switch to the page of other retailer therefore in online store the convenience and comfort to the buyer should be maximum.

Otherwise the client will just leave to the competitor. And the second important point – today most of clients (more than 50% in a case) begin the acquaintance to the company with M.Video on the Internet: at first visit the website, check existence of goods, compare characteristics, look at the prices, and only then call in call center or go to shop. Thus, the online store is also the business card of the retailer. And even if the client purchased nothing on the website, but was satisfied and went to shop, then, most likely, the retailer and the client as a result will get positive experience of interaction.

Roman Desyatov: In technology aspect it means serious integration and centralization of all information systems. For today there are about 60 points of integration into the web platform thanks to what through online store all services are available to the client. For example, thanks to integration of CRM with a technology platform of online store the loyalty program "M.Video is the Bonus" works not only at purchase of goods in retail store, but also upon purchase via the website.

Roman Desyatov: The Jet Infosystems company initially serviced all infrastructure of the website – and at the network layer, both at the level of the hardware, and regarding balancing of loading. We decided that consolidation of support of the web application and the infrastructure will give to our partner the chance to control that occurs at all levels of a system. Thus, it has all opportunities quickly to reveal and solve a problem. If we gave support of the web application to other contractor, I assume that there would be a set of the conflicts with localization of the arising problems and separation of areas of responsibility, and it could lead to falling of level of service. Also thanks to transfer of support to Jet Infosystems it was succeeded to reduce the cost of support of the web platform significantly.

Alexey Uchamprin: The M.Video company received the uniform web shop, responsible for functioning: Jet Infosystems completely is responsible for operability of an end product. In addition we render to M.Video services of operation of IT infrastructure, support and administration of SAP BASIS and also service of the second support line of the application software of the CRM system. However, being large integrator with a large amount of competences, we if necessary help our partner and with those areas which formally are beyond contract commitments.

Roman Desyatov: The core of the platform is the solution Oracle Commerce (the former name – Oracle ATG), the database – Oracle, the operating system – LINUX. About 80 physical and virtual servers which include both production environment, and environments for development and testing are involved in a landscape.

Alexey Uchamprin: Integration is very close. The most part of a management system for master these and different settings is concentrated in structure of the central Enterprise resource planning of SAP, but there are management systems for loyalty directly in shops, a number of other solutions. All of them are integrated not only with online store through 60 points mentioned above, but also with a number of systems, external in relation to a corporate information structure of M.Video (for example, generation of digital codes which are on sale via the website is implemented by an external system).

Alexey Uchamprin: Any changes surely are exposed to preliminary testing in the corresponding environment. This in what among other the Jet Infosystems company which is responsible for safety of functioning of online store is engaged. At the same time testing of releases is performed more carefully, to it representatives of business are attracted – to estimate new functionality. We test also those solutions which, it seems, were not modified to be convinced that their functionality did not suffer (these are so-called regression tests). Installation of updates in productive operation is made almost daily, and we surely check them at test stands. First, we are convinced that updating solves the problem, secondly, - that does not cause errors at joint work with other components of online store.

We are going to increase the speed of changes in functionality of a system – in the nearest future updates will be performed every two weeks, and a target reference point – new functionality every week.

Alexey Uchamprin: It is connected with the fact that business changes promptly and expects from us the same fast reaction to the ideas, wishes and requirements.

Alexey Uchamprin: It is several test environments, they are grouped in development teams. In fact, it is the functional copy of the system which is in commercial operation. Entirely amount of data is not involved in a test environment, but in the functional plan a system is constantly supported in current status.

Roman Desyatov: The share of Internet sales grows every year, turnover increases, costs because of idle times therefore we, naturally, want to have high availability of the website grow. And this one party of a question. Other aspect – is a certain limit of availability above which it is senseless to require because there are technical issues which less than in a definite time cannot simply be solved. Further toughening of SLA (the agreement on the level of service) will lead to the fact that our partner will assume big financial risks, to get on penalties more often, but it is essential objectively to improve the indicators will not be able. It is not interesting to us, especially to our partners therefore we agreed on a certain general digit with which all agree.

Alexey Uchamprin: When choosing the SLA parameters the customer among other factors very attentively estimates service cost. In this case were compared the cost of our services (which depends on availability indicators) with possible losses from idle time of web shop (which depend on availability indicators too). The existing metrics of SLA – just result of the reached optimum.

Roman Desyatov: From M.Video of SLA the special manager controls. It is in close and permanent contact with the service manager Jet Infosystems who spends the most part of time directly in our territory. Through an incident management system the manager of M.Video obtains all information concerning incidents, to each of which the corresponding priority then its solution is controlled is appointed. On start of the project there were separate situations when the moment of the financial responsibility arose, but we always found a common language and managed to make so that the similar moments were not any more. Lately there are no serious complaints concerning work of our partner.

Alexey Uchamprin: The service manager selected from outside Jet Infosystems is given almost unlimited authority in the company – for example, it can involve to the solution of an incident quickly any our specialist at any time. The fact that service manager spends the most part of the working hours in the territory of the customer allows us to understand better requirements of M.Video business divisions and more quickly to react to their requirements.

Roman Desyatov: Signing of the contract on support of online store not only increased availability of the website, but also was for M.Video, certainly, profitable in the economic plan. We made the corresponding calculations.

Alexey Uchamprin: There is no "miracle". Jet Infosystems more than 20 years is engaged in provision of services of operation of IT infrastructure and software therefore the corresponding business processes at us are smoothly running almost ideally. And it means that we can offer the customer reasonable price at high quality of services.

Roman Desyatov: Earlier following to IT-Innovations was mainly destiny of the IT companies and also banks and telecommunication companies, however in recent years the retail sector also actively looks for in this direction of an opportunity for differentiation from competitors and obtaining competitive advantage.

It is already not enough to modern buyer to have experience of interaction convenient in every respect with shop – the client needs to be admired, surprised in all canals of interaction today, be it retail store or the shelf of online store.

Roman Desyatov: The world becomes faster, innovations in the market appear more and more, and the range of IT solutions relevant now can change already tomorrow. Today we are focused on mobility and the personalized content. Within the first direction we plan start of mobile applications, and both for clients, and for sellers that they could provide the client with any necessary information, including detailed characteristics of goods and even the price of competitors. In respect of the personalized content we try to do offers, interesting and useful to buyers, on the basis of data which clients voluntarily provide us.

Alexey Uchamprin: In our opinion, trends strongly did not exchange in connection with the crisis phenomena. Retail two things still interest: decrease in own costs due to work automation (from here interest in robotic cash desks and other similar solutions) and the means allowing to gain and tie the client. It both CRM, and targeting of offers and many other things.

Roman Desyatov: For large retailers outsourcing of IT support of online store, by our experience, is effective also in terms of increase in availability of the website, and economically, and, therefore, and is perspective.

Alexey Uchamprin: We see a certain interest from retailers in similar services. The matter is that in the market there are a lot of suppliers who brilliantly implement Internet trade automation software, and here with professional high-quality operation of such complexes a situation not so iridescent.