2022: M.Video-Eldorado creates an IT company to trade its developments
As it became known to TAdviser, M.Video-Eldorado has separated the IT-Business into a separate company, which will become an independent player in the market and will provide services to companies from the retail sector. According to the source, M.Video-Eldorado is going to sell its internal developments to external customers. More details here.
2021
M.Video-Eldorado goes into clouds: IT infrastructure is a ballast that you need to get rid of
According to TAdviser in early November 2021, Alexander Sokolovsky, Director of Information Technology at M.Video-Eldorado, the company intends to get rid of the physical IT server infrastructure as much as possible during 2022-2023. So, all the new services that are being developed, M.Video-Eldorado deploys in public clouds, in particular on the Yandex.Cloud platform.
Those corporate systems that cannot be transferred to the cloud will gradually be transferred to the commercial data center Krok in 2022. According to Alexander Sokolovsky, equipment is already being installed on the site. After transferring all systems to commercial sites, the own data center will be used as a backup, and in 2023 this equipment will be moved to a commercial site, where it is planned to rent several dozen racks.
Reallocating IT resources to your own product development and cloud infrastructure is one step in the digital transformation process. M.Video-Eldorado relies on business development in the RetailTech format and creating a seamless customer experience that combines online and stores, and data analytics as the basis for making all business decisions. Since the beginning of the year, the company has created more than 100 product teams that work on customer solutions, for example, mobile applications for the seller and client, as well as for internal processes. In 2022, the total number of employees working in product teams - developers, testers, analysts - will exceed 2,000 people.
 | All our transformations are carried out in the framework of the strategy adopted in 2021, which implies a complete transformation not only of the IT infrastructure, but also of business processes. Without such global changes, it is impossible to build a new digital business. Therefore, my task is not only to unite IT and business so that they are perceived as a whole, but also, in principle, to "kill" the traditional approach to the use of technology in the company. Desacralization of IT is required. And the physical IT infrastructure itself is a ballast, which, if possible, you need to get rid of, "Alexander Sokolovsky shared with TAdviser. |  |
According to the Chief information officer, three years ago, M.Video-Eldorado spent up to 70% of the IT budget on server support, software licenses, vendor implementations, etc. Now the situation has changed fundamentally: the company uses a product approach, and now up to 85% of the IT budget invests in the development of its own products.
As part of these processes, the company is also considering the possibility of abandoning wired communication channels for trading platforms, all services and store systems should be connected via 4G/5G. As the Chief information officer of M.Video-Eldorado noted in a conversation with TAdviser, there is a digital inequality in Russia and not all regions can use 4G, and it is all the more unclear what will happen with 5G.
| | The model of connecting stores is now being worked out. Where it will not be possible to use 4G, we will use Wi-Fi, although we would really not want this. Our task is to buy Internet access as a service without thinking about servicing networks and equipment, "Alexander Sokolovsky told TAdviser. | |
According to the company, by September 2021, the company received 70% of the turnover via the Internet, including using mobile solutions in the store. Therefore, M.Video-Eldorado intends to stimulate the transfer of users to a mobile application, contactless payment in the application, including using Apple Pay and Google Pay, minimizing the number of cash desks on the sites.
Also in stores, stationary terminals can be gradually abolished - computers in the hall to check the availability of goods. Employees are already using enterprise mobile applications in smartphones that support all stages of working with the client - from its identification to paying for a purchase directly from the shelf.
The infrastructure of the central office will change. For more than a year, about 80% of employees have been working in hybrid mode - completely remotely or with a partial visit to the office, and the company plans to make this format permanent. And the office will be transformed into corporate coworking. Moreover, all the specialists of the central office of M.Video-Eldorado already use mainly working laptops for work.
M.Video-Eldorado has almost 4 times increased the staff of programmers and is preparing to bring its own software to the market
The M.Video-Eldorado group plans to begin supplying IT solutions of its own development to the Russian market in 2023, the company announced this on October 29 at an exit press conference in Tbilisi. The first product offered to Russian retail chains may be video analytics, the company has so far chosen not to talk about others. The video analytics system has already been launched in five M.Video-Eldorado stores, and in 2022 it will be deployed at another 20 sites. The company has already implemented three models of technology use: "lone buyer," "queue management" and "heat cards."
"Lone customer": the system detects a visitor to the store, standing alone for a long time, and signals managers to pay attention to him. "Queue management" assumes that if a queue is formed in the cash desk area, the system will notify cashiers to return to the workplace. "Heat maps" make it possible to see the route of movement of store visitors, where customers are more often delayed and what they pay attention to.
Dmitry Marykin, head of the department for process development and change support at M.Video-Eldorado, told TAdviser that the development of M.Video-Eldorado has already interested retail representatives, and retail chains are ready to deploy it and test it at their sites.
According to the representative of M.Video-Eldorado, the company has long looked at video analytics systems, but the solutions that the market offers for one reason or another did not satisfy the requirements of the business. The main reason - the systems proposed by external developers were unjustifiably expensive and had excessive functionality.
| | As a result, we made a bold collaboration with students of one technical university, who have now become part of the Video Analytics product team. We built our own video analytics: from and to. The development team was asked to make grocery cases and immediately check them according to the principle of "spaghetti" - we throw ourselves against the wall and look at what remains. Now we are testing a way to quickly deploy the system using store employees, "said Dmitry Marykin. | |
M.Video-Eldorado in 2021 adopted a digital transformation strategy, within the framework of which it plans to move away from the traditional retail model and transform into a RetailTech company. Now the group is actively hiring IT specialists and transforming business processes. So, if in 2019 about 400 IT specialists worked at M.Video-Eldorado, then by the middle of 2021 there were already 1,600 of them, and 430 of them were hired in the first half of 2021. Moreover, in 2022, M.Video-Eldorado plans to attract about 500 more developers, testers and analysts.
2020
Creation of the Board of Directors for Strategy and Digital Transformation
Group M.Video-Eldorado"," the Russian a retail company under, to trade electronics and appliances on August 25, 2020 announced the creation of a committee of the Board of Directors on strategy and digital transformation.
The Committee, elected from among the members of the Board of Directors, will assist management and the Board of Directors in determining the key directions of the strategy of the M.Video-Eldorado Group, including the further digital transformation of the Company and the development of the Group's online business.
The committee on strategy and digital transformation included:
- Eldar Vagapov, Non-Executive Director
- Vilen Yeliseyev, Non-Executive Director
- Vladimir Preobrazhensky, independent director
- Alexander Tynkovan, Executive Director
- Enrique Fernandez, Executive Director
Among the key tasks of the committee are the development of a long-term strategy of the Group, taking into account current economic trends and growth potential, the creation of recommendations for the Board of Directors on priority areas in the field of digital transformation and information technology, including priority projects for investment, security issues, strategic partnerships. Alexander Tynkovan was elected chairman of the committee.
| | M.Video-Eldorado has passed all planned and unplanned challenges of recent years above expectations: we successfully completed the integration of Eldorado and the transformation of M.Video into a single Group, which has become one of the largest public retailers in the consumer electronics sector in the world. In less than two years, we have debugged all operational processes as part of the "one company - two brands" strategy, completely transformed into an online business and switched to the ONE RETAIL model, which determines the further vector of development of this business. A dedicated committee of the Board of Directors is a logical step that will allow coordinating the efforts of management and the Board within the framework of long-term planning and further business growth and investment attractiveness of the Group, "said Said Gutseriev, Chairman of the Board of Directors of M.Video-Eldorado Group. | |
| | The M.Video-Eldorado Group is on the verge of technological transformation - in the future, competition will lie not so much in the field of store development or geographical presence, but in the field of technologies and innovations that will allow the retailer to be present in each customer's smartphone 24/7. The Committee under the Board of Directors, combining experts with different experience, will become a consulting platform for management at this important stage of transformation, which will allow the most optimal way to go through this stage of the digital evolution of the company, "said Alexander Tynkovan, President of the M.Video-Eldorado Group, Chairman of the Strategy and Digital Transformation Committee. | |
Start of SMS-signing of credit agreements
On August 7, 2020, the M.Video-Eldorado group announced the launch of the SMS signing service for credit agreements. Now customers can issue an online loan and be identified by phone number without having to sign documents in person in the store or wait for a courier from the bank. The loan agreement is effective only after the buyer receives the order.
The contactless loan processing service was launched for customers of the M.Video and Eldorado networks throughout Russia. It can be used by buyers who previously underwent the standard face-to-face procedure for bank verification of their identity using a passport. When filling out a loan application, the client indicates his full name, passport number and mobile phone number. The bank, considering this application, compares the provided data with its database and, if it detects a coincidence, invites the client to undergo a simplified signing procedure and confirm their consent to conclude an SMS contract. A short verification code comes to the phone number, which is enough to make a purchase on credit.
M.Video and Eldorado, together with financial partners, created a deferred financing tool. After signing the contract through SMS, the amount is not immediately transferred to the retailer's account, but is frozen inside the bank. Only after the buyer receives the goods, the transaction is considered completed, the bank transfers money to the retailer and the contract comes into force. Thus, customers are insured against force majeure situations when delivery is delayed, an error occurred during the assembly of the order or the goods did not suit the quality. Moreover, if the client has changed his mind about making a credit purchase, he can refuse to order and cancel the checkout at any time before receiving the goods through the call center, personal account on the site, as well as during courier delivery.
{{quote 'Self-isolation regime and restrictions in the work of non-food retail contributed to the growth of online lending. According to M.Video-Eldorado, in the second quarter of 2020, online purchases on credit increased by a quarter of the year. Positive dynamics persist at the beginning of August 2020 - technology is the driver of growth. For example, in M.Video and Eldorado, customers, in addition to an electronic signature, fill out only one short questionnaire (3-4 fields) and can choose the best conditions among the offers of 9 partner banks. Customers get used to quickly and conveniently placing orders, including on credit, from anywhere using a smartphone. In June 2020, every third loan purchase was made online, "commented Valery Shatkovskaya, director of Financial Services and Services at M.Video-Eldorado Group. }}
The SMS signing service is provided by two of the Group's nine partners online - Home Credit Bank and IFC Mokka. By the end of 2020, M.Video-Eldorado plans to connect four more financial organizations to the service.
Appointment of Alexander Sokolovsky as Information Technology Director
On August 3, 2020, the M.Video-Eldorado Group informed TAdviser about the appointment of Alexander Sokolovsky to the position of information technology director. More details here.
Launch of personal video consultations on the site and in the mobile application
On June 15, 2020, the M.Video-Eldorado network announced the launch of personal video consultations on the site and in the mobile application. The customer can view large household appliances for home, get expert advice and a profitable personalized offer in any convenient place, communicating with the seller through a website or mobile application.
M.Video consultants use smartphones with special software, and can identify the buyer and make personal offers. The online consultation service will now allow them to communicate with customers not only in the trading room, but also in any other place - where it is convenient for the buyer. With the help of a video call with a specialist of the retailer, the buyer will receive comprehensive information about the right product, see the right model of technology from different angles, discuss all the details of the purchase.
Consultants "M.Video" through a video call can not only show equipment in the trading room, but also in real time clarify the presence of the necessary model in the warehouse, compare the price with other offers on the market. The buyer will receive the most profitable offer, taking into account current shares and bonus rubles available to him.
| | M.Video completely transformed into an online business, and within the framework of the ONE RETAIL model, which combined all the advantages of shopping online and in stores, we offer customers a single level of service at all points of contact. For example, you can select a smartphone in the application and pick it up after 15 minutes in the nearest store, or, on the contrary, look into the store, remove the QR code through our mobile application and immediately pay for the purchase by contacting the cash desk. Video consultations are another step in this direction, now our experts can help with the choice not only in the store, but also online. The pilot project showed that every third video consultation ends with a purchase. Experience, personal offers and personal acquaintance with the product play an important role, "says Dagmara Ivanova, managing director of M.Video. | |
On June 15, 2020, the video consultation service is available to users from Moscow, St. Petersburg, Rostov-on-Don, Saratov, Voronezh, Krasnodar, Tver and Kaluga. To communicate with the store through a video call, you need to go to the page of the item of interest on the site or in the M.Video mobile application and click on the "See live" button. The seller will connect to the video broadcast from the store's trading room and demonstrate the refrigerator, washing machine, TV or embedded equipment using his smartphone. The client does not need to turn on video communication.
After consultation, the employee will help to arrange a self-pickup from the store, delivery to the house or send information about the goods to the buyer's mail. In your personal account on the site and in the application, you can pay securely with a bank card or using mobile payment services to reduce the number of social contacts.
For broadcasts, the Eyezon service is used, which allows you to integrate the script and organize video calls on the pages of the site and in the mobile application. Through a special menu, users ask for advice and the text can ask a question of interest.
| | Our service is interesting in that it makes it possible to use a personal approach in online sales to stores and sites with a completely different assortment in size, the breadth of geography and the volume of daily traffic. Switching to this sales format takes a short time. At the same time, the buyer can see with his own eyes the quality of the chosen product or service wherever he is. We believe that it is ONE RETAIL approach, the ideologist of which is M.Video, and personalized communication with customers will be in demand in completely different conditions, notes Dragorad Knezi, co-founder and CEO Eyezon. | |
Start a contactless return or exchange service
On May 22, 2020, the M.Video retail chain announced the launch of a pilot for contactless return or exchange of equipment purchased by customers in retail stores and on mvideo.ru. The service is available both for large and small household appliances, as well as for digital gadgets costing from 2,990 rubles and is provided free of charge throughout Russia. To issue a contactless return to customers, it is enough to contact the contact center and, without leaving the house, issue an application by providing the necessary data. If the goods are returned of proper quality, it is enough to send the buyer's name, phone number, address, order number, photo of the goods, packaging and serial number to the 24@mvideo.ru, as well as, if there are quality complaints, a description of the fault. After the end of the pilot, the function of issuing returns will appear on the site and in the mobile application.
Applications accepted at the contact center go to the region's flagship store or purchase store. Then employees contact the customer to agree on the date and time of the removal of small equipment or the arrival of the master to evaluate the state of large devices. Within two to three days, service specialists decide on the return of funds or, if the equipment is faulty and is on warranty service, its transfer to the manufacturer's service center. If the payment was made online through the website, application or link, the purchase amount is automatically returned to the customer's account within the period established by the card issuing bank. In the case when the client paid for the equipment with a card or cash in the store or courier upon delivery, during the pilot he will be invited to the store for a refund, and after the end of this stage the return will become completely contactless as with online payment.
| | As part of the ONE RETAIL strategy, we have developed and implemented dozens of initiatives to translate the processes of consulting, payment and receiving goods into contactless, digital format. Even services that always involved live contact with the buyer are modified to meet, on the one hand, our quality and safety standards, and on the other, the expectations of customers to receive high-quality digital service and pleasant emotions from communicating with the brand. If the purchase did not like, it can now be easily and quickly returned, even without coming to the store in person, noted Stanislav Gorshenin, Director of Client Experience Management at M.Video.
| |
During the quarantine period, the M.Video-Eldorado Group extended the period of return or exchange of good goods, which by law is 14 days. All purchases in M.Video and Eldorado, including online orders, can be returned or exchanged within 60 days, and non-working goods can be returned or exchanged within 30 days from the date of purchase.
Open sales through Ozon
On April 27, 2020, M.Video and Eldorado announced the opening of sales of household appliances and electronics through the Ozon marketplace. At individual showcases "M.Video" and "Eldorado" on Ozon will be presented about 80% of the range of retailers: digital gadgets, smartphones, laptops, accessories, gaming products, large and small household appliances for the kitchen, home and self-care, including refrigerators, embedded household appliances, washing and dishwashers, TVs, coffee machines, vacuum cleaners, cooking devices, etc. - only about 20,000 items. Customers will be able to make purchases using both M.Video and Eldorado promotions and Ozon privileges.
| | The M.Video-Eldorado group is a major retailer of household appliances and electronics in Russia and one of the leading online players, having special expertise in its segment. Various collaborations in e-commerce provide partners with additional benefits, strengthening the advantages of each of the brands. M.Video and Eldorado already have a positive experience with the marketplace goods.ru, and a partnership with Ozon is another step in strengthening the Group's leadership in the technology and electronics market. We see mutual interest - the marketplace receives a ready-made, qualitatively built product category with an actual assortment and competitive prices, the Group - access to an additional audience, which differs in consumption style from our regular customers, to other cities of presence, notes the commercial director of the M.Video-Eldorado Group Oleg Muravyov
| |
Consumers will be able to choose equipment, make and pay for orders on Ozon, while they will be able to access all the advantages of a multi-category Internet platform: a high level of service, delivery for April 2020 to more than 6,500 settlements in the country (including contactless delivery to the door in the largest cities of Russia), as well as Ozon Premium subscription privileges. Commodity prices will fully match retailers "own offerings, including discounts in federal stocks.
According to the assortment of digital and small household appliances, M.Video and Eldorado plan to work on the marketplace using Ozon logistics facilities - retailers supply goods to fullfilm factories, where they are stored, processed, together with other goods are collected in orders and sent to customers. Large-sized equipment - refrigerators, washing and dishwashers, TV with a large diagonal, will be delivered to customers by the resources of the M.Video-Eldorado Group. Any Ozon customer can make an order regardless of the place of residence - delivery times will be calculated automatically, based on their remoteness of the selected region.
| | The marketplace format is suitable not only for small and medium-sized businesses, but also for large retail networks, which, thanks to external online platforms, can significantly increase their audience and sell their products throughout the country without any restrictions. Ozon's monthly audience for April 2020 is 40 million users, and our regular customers are used to making a variety of purchases at Ozon - from essential goods to electronics, household appliances and everything that may be needed for remote work and study, says Director of Business Development at Ozon Sergey Pankov
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Creating Retail Innovation Tech Alliance
On February 25, 2020, the M.Video-Eldorado Group told TAdviser that together with X5 Group, Beeline and Hoff, they created an alliance to find and introduce innovations. Retail Innovation Tech Alliance (RITA) will look for technological solutions both in the Russian market and at international startup sites. More details here.
Dismissal of Chief information officer Sergey Sergeyev
In January 2020, TAdviser became known that Sergey Sergeyev left M.Video/Eldorado. The company confirmed this information, saying that he left at the end of December. More details here.
2019
Digital Transformation Strategy
Data from the presentation "Digital Transformation Group" M.Video Eldorado ": we include the future!" Marcheva Irina, November 2019 CNews FORUM.
ONE RETAIL
A program that will allow the M.Video Eldorado Group to become a true retailer of the future. We combine all sales channels to be always close to customers. We create an ecosystem with no boundaries between us, customers and partners!
mRTD (REAL TIME DEALING)
A new format of interaction with customers in retail stores with a personal approach to each customer! With the help of a tablet, the seller can quickly choose the ideal solution for the client (+ bonuses, promotional codes, installments)
OMNI BASKET
A service that allows you to select an item in retail
M. BROKER
The brokerage platform, deployed in the trading networks M.Video and Eldorado, provides buyers with access to credit programs of partner banks. Having selected the product in the store, the buyer can contact the representative of the brokerage platform and issue a loan application, which will be sent to the partners' banks for consideration.
CUSTOMER MOBILE APPLICATION
Scan, compare, read reviews and get personal offers
FORWARDER MOBILE APPLICATION
Allows real-time tracking of delivery status, receiving changes on orders, building routes
Em.Life
A mobile application for employees of the company that allows you to use all key services of the company in single window mode
Intelligent recognition of retailers and automatic time and attendance
Launch payment through SBP in two stores in Moscow
September 30, 2019 VTB said that together with the Group "" M.Video-Eldorado began a pilot project for payment through Express Checkout in two stores - Moscow one under each brand. In the near future, it is planned to scale the possibility of making payments through SBP to all stores of chains M.Video and "" in. El Dorado According to Russia the company's estimates, in a year the share of payments through SBP will reach 4% in the turnover of the M.Video-Eldorado Group.
| | VTB is actively working on the application of the Fast Payment System and is ready to offer customers various options for its use in the C2B payment market - both through dynamic QR codes and static ones, commented on Elena Zulina, deputy head of the transactional business department, senior vice president of VTB
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| | As part of its strategy, VTB develops various cashless payment services and seeks to provide customers with the possibility of an alternative method of digital payment. The emergence and development of this payment instrument will significantly increase the quality of financial services and the attractiveness of cashless settlements for buyers, and for trade and service enterprises significantly reduce the cost of acquiring. Payment using the QR code is another important step in the history of the transition of the company from paper notes to cashless transactions, noted Alexey Kirichek, head of the acquiring department, VTB vice president
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{{quote 'author = emphasized M.Video-Eldorado Group CFO Ekaterina Sokolova'According to the Group's estimates, the share of fast payments in the company's turnover after the first year after deployment can reach 4%. We see great potential in the development of modern payment instruments in retail, which we could reduce the calculation time for the client and make the process as comfortable as possible, bank solutions based on SBP can become one of these technologies, }}
Extension of biometric recording of working time to Eldorado
On September 5, 2019, the M.Video-Eldorado group reported that it had extended the staff time accounting system, based on biometrics, to the Eldorado retail chain. More details here.
CIO " M.Video/Eldorado " Sergey Sergeyev on TAdviser SummIT - about how IT of two retail giants united
Sergey Sergeyev, Director of IT M.Video/Eldorado, speaking at the TAdviser conference SummIT May 29, 2019, told how IT integration of the two companies took place as part of their merger. The association of M.Video and Eldorado began in 2017. The basis for the transformation, including IT, was the decision that it would be one company with a single business model, but two brands.
The transformation of functions, synergies and implementation of IT projects for centralized functions began in January 2018. The task was to reach the target organizational structure in a year. Companies used different systems and different models for obtaining services in individual processes. Somewhere it was outsourcing. And it was necessary to bring IT systems and processes to a single denominator.
Sergey Sergeyev calls the turning point in IT integration the moment when both companies went to work under a single legal entity and switched to a single back platform according to the Eldorado model. This happened in February 2019. The transformation was officially completed in April 2019, and the end of stabilization and transfer to IT support is planned for July.
There are two frontal systems left, unlike the back. Maintaining the independence of M.Video and Eldorado brands in the development of front-line solutions was one of the principles of the target IT architecture as a result of unification.
Back and front systems connect a layer of microservices that M.Video has developed for more than 3 years. In the process of transformation, they were extended to Eldorado. Director of IT M.Video/Eldorado added that the entire layer of microservices is M.Video's own development.
| | As a rule, we use partner technologies, and we conduct development ourselves, "said Sergey Sergeyev. | |
The main changes that occurred took place in Eldorado's front products, as it was necessary to adapt its processes to a number of M.Video processes, for example, logistics and management reporting. The M.Video processes were affected only in rare cases, if there was something new that could be adopted from the Eldorado processes.
Sergey Sergeyev noted that the task was to first lead to a common denominator of the main processes, and then only make some improvements.
О 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 major companies and government departments of Russia, representatives of IT developers and contractors. During the event, the prospects for the digital transformation of business and government agencies, the development of technologies, products and services were discussed. More than 70 reports were delivered in the plenary and five thematic sections. The event was held in 5 halls of the Holiday Inn Sokolniki.
M.Video-Eldorado and SAP introduced the concept of a "store of the future"
On April 17, 2019, the group M.Video-Eldorado"" SAP presented the concept of a "store of the future." The pilot project, developed on the basis SAP Cloud Platform of, shows how mobile technologies work, and artificial intelligence machine learning personalization in retail. to trade More. here
2018
Issue online orders using chat bots and machine learning
On December 25, 2018, the M.Video retail chain announced the transformation of the process of issuing online orders in its stores using bot and machine learning, reducing the time to receive to several minutes. According to this scheme, as of December 2018, more than 179 chain stores operate in 16 largest cities. By the end of the first quarter of 2019, the project will be deployed at almost 200 M.Video chain stores in all million-plus cities.
In 2018, the M.Video network changed its approach to issuing online orders in its stores. Now the buyer at the entrance meets a terminal in which it is enough to indicate the order number from the SMS. After that, store employees receive an alert from a chat bot to their smartphone, and the first free seller takes over the order: since the goods have already been postponed, he only has to pick up accessories that the bot also recommends. While the seller is preparing the order, the customer also comes to the issue area, where his order number and the name of the seller who should bring the goods are already displayed on the screen. The entire process takes less than 7 minutes from the entrance zone with the terminal to leaving the store with the purchase. In the future, the company expects to accelerate the issuance of up to 5 minutes for the entire cycle.
Chat bots use the same machine learning algorithms as analysts data on the mvideo.ru website, which give advice to the seller on the most suitable related products and services. As a result, the seller goes to the buyer with an already ready-made offer that meets his needs as much as possible - the demand for additional accessories and services grew by 10% after the introduction of smart recommendations.
| | The ability to pick up your online order within an hour in the nearest store is one of the advantages of M.Video, a pickup allows you to plan your day and not wait for a courier. In addition, the customer can evaluate and compare different products and finally decide on the purchase. More than 70% of online orders, buyers prefer to pick up in this way. Our task is to make the issuance process as fast and comfortable as possible. Within the project team, this format was called "pick-up uberization." Now the pickup works on the principle of a taxi - faster, more accurate and more effective. It is also important that this approach makes the self-delivery process more personalized: the client knows who will give him the order, and the seller - who is waiting for it to be issued and what to offer to this buyer. | |
If all sellers are busy and cannot take the order, the chatbot forwards a similar notification to the service area employees. Thus, service engineers get the opportunity to devote more time to the main function - working with returns, repairs and exchanges. Earlier, Internet orders were issued by service engineers in the M.Service zone in parallel with the provision of service services, which, with increased traffic, for example, before the New Year, delayed customers in line.
In the future, this process can be even more personalized due to integration with existing software solutions in employee work smartphones, so that sellers can immediately see the customer's history and available discount funds (bonuses, coupons, etc.).
The present and future of IT in M.Video - Eldorado. The main thing from the report of CIO Sergey Sergeyev on TAdviser SummIT
On November 29, 2018, Sergey Sergeyev, Director of Information Technology at the M.Video-Eldorado Group, at the TAdviser SummIT conference, spoke about IT in retail today and tomorrow on the example of his company. He began by describing IT goals in M.Video - Eldorado. Sergeyev noted that IT goals correlate with business goals. At the same time, to put the right requirements in IT, you need people who understand both in business and in IT. According to Sergeyev, the company went new to the market through product management and introduced the role of product specialists in its structure and began to transform the traditional management of information systems in product management.
Speed is important in retail, the speaker noted. In IT, it can be provided with iterative development - that is, part development. At the same time, the company continues to use waterfall development. Flexibility is also important. Therefore, the company divides its systems into parts and uses a microservice approach, the speaker explained. As of the end of 2018, M.Video-Eldorado uses about 34 thousand different devices, including mobile devices, more than 460 specialists, 25 internal IT initiatives and 75 business projects, more than 115 IT systems. Development in the company is carried out both internally and with the involvement of partner resources.
The real IT in the company is, first of all, to use the easiest and most flexible solutions where the company interacts with consumers, said Sergey Sergeyev. Over the long history of M.Video and Eldorado, many historical systems have accumulated. It is important for the company to ensure their scalability and coexistence with "light" front systems. To this end, over the past three years, a layer of intermediate software has been developed that links all these systems to each other. A lot of attention "M.Video - Eldorado" in the present began to pay to work with startups.
| | All the changes that we make in the company, and the results have a proven benefit for the business, confirmed financially, and this is 7 billion rubles of turnover as an effect of the implementation of projects, the Sergey Sergeyev cited. | |
Speaking about the future of IT in the company, he noted that this is the development of R&D in M.Video-Eldorado based on an external and internal incubator to search for new ideas and innovations, cross-system development, increasing investment in digital transformation, product transformation, prioritization for all changes, etc.
The representative of M.Video-Eldorado gave examples of technological changes in the company that affected the work of the business process and interaction with buyers. The first is data accumulation. Many have some loyalty cards from the network, also buyers make some actions on the company's website, there is a history and geography of purchases, social networks, and responses about the network. This data needs to be accumulated, structured, and can be used at different stages of interaction with the consumer. The data is used in "smart services" based on artificial intelligence and machine learning at each stage of the buyer's path, Sergeyev says.
| | In order to attract traffic, it is important to understand what to offer, who to offer and when to offer, "explained Sergey Sergeyev. - When the machine offers the consumer options, this is a slightly different task in scale and volume compared to when a person does it. We learned to communicate with the client using the machine and received results: in the pilot project it was plus 58% of the average revenue from contact, in production - plus 20%. | |
Simplifying the choice of goods for the consumer is important. For this, the company organized a smart service that takes into account data from systems: what they most often look for, what the company itself would like to sell, etc. A significant part of the work of M.Video - Eldorado in the field of IT is aimed at working with a client who has left the site who has not bought anything. The aim is to identify typical problems leading to departure from the site, and create personalized scenarios, issue personal recommendations. This is still to be done, the rapporteur noted. Then you have to change the design based on what the client needs.
О TAdviser SummIT
TAdviser SummIT was held in Moscow on November 29, 2018 and attracted more than 700 participants - heads and experts of IT departments of major companies and government departments of Russia, representatives of IT developers and contractors. During the event, the prospects for the digital transformation of business and government agencies, the development of technologies, products and services were discussed. More than 70 reports were delivered in the plenary and five thematic sections. The event was held in 5 halls of Digital October.
Opening the Data Science Competency Center
The M.Video-Eldorado group, part of the Safmar PFG Mikhail Gutseriev, announced on August 13, 2018 the creation of a competence center in the field of data analytics and machine learning - Digital Retail Data Science Center. The main goal of creating the center, the company said, is to find additional business growth points based on data analysis, and to switch to automated smart services and business processes. According to M.Video-Eldorado estimates, technologies based on data analysis will allow the company to reduce operating costs and will be able to bring up to 5 billion rubles of additional turnover in the medium term.
In general, the opening of the competence center was another step in the development of the Data Science direction in M. Video. The division will focus on the development and implementation of mathematical algorithms in the retailer's business processes - marketing, online sales, logistics and personnel management. First of all, the Data Science Center will solve the problems of targeted marketing and optimization of customer experience on the site. Some developments in this direction already allow you to provide personalized service to each client, based on his preferences and needs, shared in M.Video-Eldorado. The company analyzes the behavior of customers both online and offline, for example, the history of purchases, the use of bonus points and other discount funds, behavior on the site and in the store, views, abandoned baskets, responses to marketing communications, SMS and email mailings.
| | Retail is a high-tech industry in which high-speed change and innovation are a competitive advantage. In this regard, the development of data analytics and machine learning technologies is of strategic importance to us. In accordance with global practices, M.Video customers will be able to receive a personalized comprehensive offer in retail and online, taking into account their previous interaction with the company. Automated services based on data analytics also reduce operating costs and positively affect sales by returning customers who left the site, increasing conversion rates and increasing the average check. So, at the end of 2018, Data Science technologies can bring M.Video up to 800 million additional online turnover, and in the five-year term - up to five billion rubles, "said Alexander Erofeev, director of strategic marketing at the M.Video-Eldorado group. | |
The M.Video-Eldorado Group also studies, pilots and implements various solutions based on data analytics and machine learning, and in internal processes, including in the field of logistics and personnel management. So, the retailer predicts the daily need for retail staff, as well as demand for logistics supply management. When planning the work schedules of personnel and transportation of goods to each of the stores, the geographical location of the store, traffic, seasonality, as well as the speed of retail sales and the potential volumes of self-delivery of online orders are taken into account, the company explained.
| | The direction of Data Science has been developing in M.Video for about half a morning - during this time we learned to introduce machine learning algorithms and saw their effectiveness for business. The opening of the data analytics competency center involves both expanding the range of projects and teams. At the same time, the field of application of the technology is not limited to client analytics. In the future, we also plan projects to increase the efficiency of Internet merchandising and further optimize the client path on the site, as well as manage promotions, product range, drain and retail personnel, "commented Vladimir Litvinyuk, head of Digital Retail Data Science Center. | |
Interview with TAdviser: CIO M.Video Sergey Sergeyev - about the main IT priorities of the retail network
electronic engineers M.Video Sergey Sergeyev In July 2018, the Director of IT for the retail chain for the sale of household appliances in an interview with TAdviser spoke about the integration of sales channels in, about the retail work of M.Video to create a completely seamless One Retail environment, as well as trends in trade closely related to the digital transformation process.
2017: Plans to create a human resources management system using biometric control
The resident of the Skolkovo Foundation IT cluster, Timebook and M.Video entered into a cooperation agreement in June 2017, which provides for the deployment of a personnel management system using timebook biometric control in all M.Video stores during the year, which will allow the retailer to increase employee motivation and retail efficiency. More details here.
2016: CRM Implementation
In 2016, M.Video completed the implementation of a loyalty management system based on SAP CRM. The company says that the functionality of the CRM Loyalty module allowed the retailer to reduce the period of bonus points and promotion processing to two hours from ten. More details here.
IT passport of projects in M.Video - Eldorado
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