Information Technology in M.Video - Eldorado
The article is devoted to the creation and development of information systems at M.Video and the combined company after its acquisition of Eldorado.2025: M.Video-Eldorado launched self-service terminals in pilot mode in 28 stores in Moscow and Moscow Region
M.Video-Eldorado Group in pilot mode launches digital technology in the network of stores - self-service terminals (TSO). With their help, customers will be able to independently scan selected goods and pay for them in a cashless format in various ways. The company announced this on March 10, 2025.
At the first stage, self-service zones are open in 28 stores in Moscow and the Moscow region. In case of successful completion of pilot testing, M.Video-Eldorado Group plans to scale this format in other regions. The service has already proven its demand among customers: according to the results of the first days of the terminal in individual stores, up to 50% of all self-service checks pass through them, and up to 25% of checks with the seller's advice.
Шаблон:Quote 'author=said M.Video-Eldorado Group Retail Sales Director David Melik-Kasumov.
The launch of self-service terminals is an important stage in the development of the company's omnichannel services. This shopping format is focused on consumer habits, when convenience, speed and digitalization become key factors in choice. Now the buyer can take the goods from the shelf, approach the terminal, scan the barcode, pay for the purchase with a bank card or through the SBP and immediately leave without waiting for the cashier. If the product requires the removal of anti-theft protection, this can be done with the help of any free store employee.
In addition to regular purchases, terminals allow you to quickly and conveniently receive online orders. It is enough for the customer to enter the order number on the screen, after which the system will automatically send it to the issue area. If the order was paid in advance online, the goods can be picked up immediately at the point of issue. You can also pay through the terminals for orders made by an employee in the store. For example, if the buyer chose a product, but it is not on the trading floor, the consultant can place an order through the seller's mobile application, after which the client simply enters the number at the terminal, makes payment and goes to the issuance zone.
2022: M.Video-Eldorado creates IT company to trade its developments
As it became known, TAdviser"" M of Video El Dorado has allocated IT a business in, separate company which will become an independent player in the market and will provide services to companies from the sphere. retail According to the source, M.Video Dorado is going to sell its internal developments to external customers. More. here
2021
M.Video-Eldorado goes into the clouds: IT infrastructure - ballast, which must be disposed of
As the director of information technology told TAdviser in early November 2021, the M.Video-Eldorado Alexander Sokolovsky company intends to get rid of the physical server IT infrastructure as much as possible during 2022-2023. Thus, M.Video-Eldorado is deploying all new services that are being developed in public clouds, in particular on the platform. Yandex.Cloud
Those enterprise systems that cannot be transferred to the cloud will gradually be transferred to commercial in 2022. DPC "Croc" According to Alexander Sokolovsky, equipment is already being installed at the site. The own data center after the transfer of all systems to commercial sites will be used as a backup, and in 2023 this equipment will move to a commercial site, where it is planned to rent several dozen racks.
The reallocation of IT resources in favor of its own product development and cloud infrastructure is one of the stages of the launched digital transformation process. M.Video-Eldorado relies on the development of the business in the RetailTech format and the creation of a seamless customer experience that unites 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 both on solutions for customers, for example, mobile applications for the seller and client, and for internal processes. In 2022, the total number of employees working in product teams - developers, testers, analysts - will exceed 2000 people.
All our transformations are carried out within the framework of the strategy adopted in 2021, which implies a complete transformation of not only the IT infrastructure, but also 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 using technology in the company. Desacralization of IT is needed. And in itself, the physical IT infrastructure is ballast, from which it is necessary to get rid of if possible, "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 fundamentally changed: 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 must be connected by 4G/5G. As the Chief information officer of M.Video-Eldorado noted in a conversation with TAdviser, there is digital inequality in Russia and not all regions can use 4G, and it is all the more unclear what will happen to 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 very much not want it. 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 its 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 sites.
Also, stationary terminals can be gradually abolished in stores - computers in the hall to check the availability of goods. Employees are already using corporate mobile applications in smartphones that support all stages of working with a client - from identifying him to paying for a purchase right at 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 a corporate co-working space. Moreover, all 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
M.Video-Eldorado Group plans to start supplying its own IT solutions to the Russian market in 2023, the company announced on October 29 at a visiting press conference in Tbilisi. The first product offered to Russian retail chains may be video analytics, so far the company has 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 20 more sites. The company has already implemented three models of using the technology: "lone buyer," "queue management" and "heat cards."
"Lone customer": The system discovers a shopkeeper 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 ticket office area, the system will notify cashiers to return to their workplace. "Heat maps" make it possible to see the route of movement of store visitors, then where customers are more often delayed and what they pay attention to.
Dmitry Marykin, head of the process development and change support department 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 and test it at their sites.
According to the representative of M.Video-Eldorado, the company has long been eyeing video analytics systems, but the solutions that the market offers, for one reason or another, did not meet the requirements of the business. The main reason is that the systems offered by external developers were unreasonably 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 product cases and immediately check them on the principle of "spaghetti" - we throw them against the wall and see what remains. Now we are testing a way to quickly deploy the system using store employees, "said Dmitry Marykin. |
M.Video-Eldorado adopted a digital transformation strategy in 2021, 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
Establishment of the Board of Directors for Strategy and Digital Transformation
Group M of Video El Dorado"," the Russian a retail company by, to trade electronics and household appliances August 25, 2020 announced the creation of the Board of Directors Committee on Strategy and Digital Transformation.
The Committee, elected from the Board of Directors, will assist management and the Board of Directors in identifying key areas of M.Video-Eldorado Group's strategy, including further digital transformation of the Company and development of the Group's online business.
The Strategy and Digital Transformation Committee included:
- Eldar Vagapov, Non-Executive Director
- Vilen Yeliseyev, Non-Executive Director
- Vladimir Preobrazhensky, Independent Director
- Alexander Tynkovan, Executive Director
- Enrique Fernandez, chief executive
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 above expectations all planned and unscheduled challenges of recent years: we have 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 within the framework 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. The 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 Said Gutseriev, Chairman of the Board of Directors of M.Video-Eldorado Group. |
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 as in the field of technologies and innovations that will allow the retailer to be present in the smartphone of each customer 24/7. The Committee under the Board of Directors, uniting 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 company's digital evolution, "says Alexander Tynkovan, President of the M.Video-Eldorado Group, Chairman of the Strategy and Digital Transformation Committee. |
Launch of SMS signing of loan agreements
On August 7, 2020, the M.Video-Eldorado group announced the launch of an SMS signing service for loan agreements. Now customers can issue an online loan and pass identification by phone number without the need 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.
Contactless loan processing service was launched for customers of M.Video and Eldorado networks throughout Russia. It can be used by buyers who have previously undergone the standard full-time procedure for bank identity verification using a passport. When filling out an application for a loan, the client indicates his full name, passport number and mobile phone number. When considering this application, the bank compares the provided data with its database and, if it detects a match, invites the client to go through a simplified signing procedure and confirm his consent to conclude an agreement via SMS. 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 instrument. After signing the contract via SMS, the amount does not immediately go 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 agreement 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 product did not suit the quality. Moreover, if the client changes his mind about making a credit purchase, he can refuse the order and cancel the loan at any time before receiving the goods through the call center, personal account on the site, as well as with courier delivery.
{{quote 'The 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 remains at the beginning of August 2020 - technologies are the driver of growth. For example, in M.Video and Eldorado, clients, 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 issued online, - commented Valeria Shatkovskaya, Director of Financial Services and Services at M.Video-Eldorado Group. }}
The service of SMS signing of loan agreements is provided by two of the nine partners of the Group online - Home Credit Bank and Mokka IFC. 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, M.Video-Eldorado Group informed TAdviser about the appointment of Alexander Sokolovsky to the position of Information Technology Director. Read more here.
Launch of personal video consultations on the website and in the mobile application
On June 15, 2020, the M.Video-Eldorado network announced the launch of personal video consultations on the website and in the mobile application. The buyer can watch large household appliances for the home, get expert advice and a profitable personalized offer in any convenient place, communicating with the seller through the 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 on the sales floor, but also in any other place - where it is convenient for the buyer. Using a video call with a retailer specialist, the buyer will receive comprehensive information about the desired product, see the desired model of equipment from different angles, and discuss all the details of the purchase.
Consultants "M.Video" through a video call can not only show the equipment on the trading floor, but also in real time to clarify the presence of the desired model in the warehouse, compare the price with other offers on the market. The buyer will receive the most favorable offer taking into account the current shares and the bonus rubles available to him.
M.Video has completely transformed into an online business, and within the framework of the ONE RETAIL model, which combined all the advantages of online and in-store purchases, we offer customers a single level of service at all points of contact. For example, you can choose a smartphone in the application and pick it up in 15 minutes in the nearest store, or, conversely, look into the store, remove the QR code through our mobile application and immediately pay for the purchase at the checkout. 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 Dagmar 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 product of interest on the site or in the M.Video mobile application and click on the "Watch Live" button. The seller will connect to the video broadcast from the store's trading floor and demonstrate the refrigerator, washing machine, TV or embedded equipment using his smartphone. The client does not have to turn on video communication.
After consulting, the employee will help to arrange a pickup from the store, home delivery or send information about the goods to the buyer's mail. In your personal account on the site and in the application, safe payment with a bank card or using mobile payment services is available in order to reduce the number of social contacts.
For broadcasts, the Eyezon service is used, which allows you to integrate the script into the pages of the site and into the mobile application and organize a video call. Through a special menu, users request advice and can ask a question of interest with text.
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, breadth of geography and volume of daily traffic. The transition to this sales format takes a short time. At the same time, the buyer can verify with his own eyes the quality of the selected 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 of Eyezon. |
Launch 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 and for digital gadgets costing from 2,990 rubles and is provided free of charge throughout Russia. To issue a contactless return, buyers just need to contact the contact center and, without leaving their homes, issue an application, providing the necessary data. In the event of a return of good quality, it is enough to send to the buyer's 24@mvideo.ru full name, phone number, address, order number, photo of the goods, packaging and serial number, as well as, if there are complaints about quality, a description of the malfunction. After the end of the pilot, the functionality of processing returns will appear on the website and in the mobile application.
Applications accepted at the contact center go to the region's flagship store or purchase store. Employees then contact the customer to agree on the date and time for the removal of small equipment or the arrival of a foreman to assess the condition of large devices. Within two or three days, service specialists make a decision on the return of funds or, if the equipment is faulty and is under warranty, its transfer to the manufacturer's service center. If the payment was made online through a 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 a 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.
Within the framework of the ONE RETAIL strategy, we have developed and implemented dozens of initiatives to translate the processes of consulting, payment and receipt of goods into contactless, digital format. Even services that have always assumed live contact with the buyer are modified to meet, on the one hand, our quality and safety standards, and on the other, customer expectations to receive high-quality digital service and pleasant emotions from communicating with the brand. If the purchase did not appeal, it can now be easily and quickly returned without even coming to the store in person, noted Stanislav Gorshenin, Director of Client Experience Management at M.Video.
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During the quarantine period, M.Video-Eldorado Group extended the period for the return or exchange of serviceable goods, which, according to the law, is 14 days. All purchases at M.Video and Eldorado, including online orders, can be returned or exchanged within 60 days, non-working goods can be returned or exchanged within 30 days from the date of purchase.
Opening 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. On separate windows "M.Video" and "Eldorado" on Ozon will be represented about 80% of the range of retailers: digital gadgets, smartphones, laptops, accessories, gaming products, large and small household appliances for kitchen, home and self-care, including refrigerators, built-in household appliances, washing and dishwashers, televisions, coffee machines, vacuum cleaners, cooking appliances, etc. - a total of about 20,000 items. Customers will be able to make purchases using both M.Video and Eldorado promo offers and Ozon privileges.
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 give partners additional benefits, strengthening the advantages of each of the brands. M.Video and Eldorado already have positive experience with the goods.ru marketplace, and 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, well-built product category with a current assortment and competitive prices, the Group - access to an additional audience, which differs in style of consumption from our regular customers, to other cities of presence. noted by Oleg Muravyov, Commercial Director of M.Video-Eldorado Group
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Consumers will be able to choose equipment, arrange and pay for orders on Ozon, while they will have access to all the advantages of a multi-category Internet site: 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. The prices of the goods will be fully consistent with retailers' own offers, including discounts under federal shares.
In terms of the assortment of digital and small household appliances, M.Video and Eldorado plan to work on the marketplace using Ozon's logistics facilities - retailers supply goods to fulfillment factories, where they are stored, processed, together with other goods are collected in orders and sent to customers. Large equipment - refrigerators, washing and dishwashers, TV with a large diagonal, will be delivered to customers by the resources of M.Video-Eldorado Group. Any Ozon client 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 chains, which, thanks to external online platforms, can significantly increase their audience and sell their goods 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 on 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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Creation of Retail Innovation Tech Alliance
On February 25, 2020, M.Video-Eldorado Group told TAdviser that it had formed an alliance with X5 Group, Beeline and Hoff to find and implement innovations. Retail Innovation Tech Alliance (RITA) will look for technological solutions both on the Russian market and on international startup sites. Read more here.
Sacking of Chief information officer Sergei Sergeyev
In January 2020, TAdviser became known that Sergei Sergeyev left M.Video/Eldorado. The company confirmed this information, saying that he left at the end of December. Read more here.
2019
Digital Transformation Strategy
Data of the presentation "Digital transformation group" M.Video Eldorado ": we include the future!" Marceva Irina, November 2019 CNews FORUM.
ONE RETAIL
A program that will allow M.Video Eldorado Group to become a real retailer of the future. We combine all sales channels to be always there for customers. We create an ecosystem structure in which there are no boundaries between us, customers and partners!
mRTD (REAL TIME DEALING)
New format of interaction with customers in retail stores with a personal approach to each customer! The seller using a tablet will be able to quickly find the ideal solution for the client (+ bonuses, promotional codes, installments)
OMNI BASKET
A service that allows you to select an item in a retail
M.BROKER
The brokerage platform, deployed in the M.Video and Eldorado retail chains, 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 credit application, which will be sent to the partners for consideration.
CLIENT MOBILE APPLICATION
Scan, compare, read reviews and receive personal offers
FORWARDING AGENT MOBILE APPLICATION
Allows you to track delivery status in real time, receive changes by order, build routes
Em.Life
Mobile application for company employees, which allows you to use all key services of the company in "one window" mode
Intelligent Retail Employee Recognition and Automatic Time Accounting
Launch of payment through SBP in two stores in Moscow
On September 30, 2019 VTB , he announced that, together with the Group, they M of Video El Dorado began a pilot project to pay 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 the chains M.Video and. Dorado According to Russia the company's estimates, in a year the share of payments through SBP will reach 4% in the turnover of M.Video-Eldorado Group.
VTB is actively working on the use of the Fast Payment System and is already ready to offer customers various options for its use in the S2V payment market - both through dynamic QR codes and static ones, commented Elena Zulina, Deputy Head of 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 opportunity of an alternative method of digital payment. The emergence and development of this payment instrument will significantly improve the quality of financial services and the attractiveness of non-cash payments for buyers, and for trade and service enterprises, significantly reduce acquiring costs. Payment using a QR code is another important step in the history of society's transition from paper bills to cashless transactions, |
{{quote 'author=emphasized Ekaterina Sokolova, CFO of M.Video-Eldorado Group' 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 time of settlements for the client and make the process as comfortable as possible, bank solutions based on SBP can become one of such technologies, }}
Extension of the biometric time accounting system to Eldorado
On September 5, 2019, the M.Video-Eldorado group announced that it had extended the staff time accounting system based on biometrics to the Eldorado retail chain. Read more here.
CIO M.Video/Eldorado Sergei Sergeyev at TAdviser SummIT - how the IT of the two retail giants united
Sergei Sergeyev, IT Director of M.Video/Eldorado, speaking at the TAdviser SummIT conference on May 29, 2019, told how the IT integration of the two companies took place as part of their merger. The merger 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.
Transformation of functions, synergies and implementation of IT projects for centralized functions began in January 2018. The task was to come to the target organizational structure in a year. Companies used different systems and different models of obtaining services on individual processes. Somewhere it was outsourcing. And it was necessary to bring IT systems and processes to a single denominator.
Sergei Sergeyev calls the turning point in IT integration the moment when both companies switched 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.
At the same time, there are two front systems left, unlike the back. Maintaining the independence of the M.Video and Eldorado brands in the development of front-line solutions was one of the principles of the targeted IT architecture as a result of the merger.
Back and front systems connect a layer of microservices that M.Video has been developing for more than 3 years. In the process of transformation, they were also distributed to Eldorado. M.Video/Eldorado IT Director added that the entire layer of microservices is M.Video's own development.
We use, as a rule, partner technologies, and we are developing the development ourselves, - said Sergei Sergeyev. |
The main changes that took place took place in the frontal products of Eldorado, since 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.
Sergei Sergeyev noted that the task was to first bring the main processes to a common denominator, and then only make some improvements.
О TAdviser SummIT
TAdviser SummIT was held in Moscow on May 29, 2019 and attracted more than 640 participants - heads and experts of IT divisions of the largest companies and government departments of Russia, representatives of IT developers and contractors. During the event, the prospects for digital transformation of business and government agencies, the development of technologies, products and services were discussed. More than 70 reports were made in the plenary part and five thematic sections. The event was held in 5 halls of the Sokolniki Holiday Inn.
M.Video-Eldorado and SAP presented the concept of the "store of the future"
On April 17, 2019, the group "" and M of Video El Dorado SAP introduced the concept of a "store of the future." A pilot project developed on the basis SAP Cloud Platform shows how mobile technologies work, and artificial intelligence machine learning personalization in retail. to trade More. here
2018
Issuing online orders using a chatbot 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 a bot and machine learning, reducing the receiving time 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 on almost 200 stores of the M.Video chain in all million-plus cities.
In 2018, the M.Video chain changed its approach to issuing online orders in its stores. Now the buyer is greeted at the entrance by a terminal in which it is enough to indicate the order number from SMS. After that, the store employees receive a notification from the chatbot to their smartphone, and the first free seller takes over the order: since the goods have already been postponed, he can only pick up accessories, which the bot also recommends. While the seller is preparing the order, the client also comes to the delivery area, where his order number and the name of the seller who should bring the goods are already displayed on the screen. It takes less than 7 minutes from the entrance area with the terminal to leaving the store with the purchase. In the future, the company expects to speed up the issuance of up to 5 minutes for the entire cycle.
The chatbot uses the same machine learning algorithms analysts data as on the mvideo.ru website, which give recommendations to the seller on the most suitable related goods and services. As a result, the seller goes to the buyer with a ready-made offer that meets his needs as much as possible - the demand for additional accessories and services increased by 10% after the introduction of "smart" recommendations.
The ability to pick up your online order within an hour at the nearest store is one of the advantages of M.Video, the pickup allows you to plan your day and not wait for the courier. In addition, the client can evaluate and compare different products and finally decide on the purchase. Buyers prefer to pick up more than 70% of online orders 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 "pickup uberization." Now pickup works on the principle of a taxi - faster, more accurate and more efficient. It is also important that this approach makes the pickup process more personalized: the client knows who will give him the order, and the seller knows who is waiting for it and what to offer this buyer. |
If all sellers are busy and cannot take the order, the chatbot redirects a similar notification to the employees of the service area. Thus, service engineers get the opportunity to devote more time to the main function - working with returns, repairs and exchange. Earlier, Internet orders were issued by service engineers in the M. Service zone in parallel with the provision of 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 employees' work smartphones, so that sellers can immediately see the client's history and the discount funds available to him (bonuses, coupons, etc.).
Present and future IT at M.Video - Eldorado. The main thing from the CIO report by Sergei Sergeyev at TAdviser SummIT
On November 29, 2018, Sergei Sergeyev, Information Technology Director of M.Video - Eldorado Group, at the TAdviser SummIT conference , spoke about IT in retail today and tomorrow using the example of his company. He began by describing the goals of IT 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 for the market by managing products and introduced the role of productors 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, development in parts. At the same time, the company continues to use waterfall development. Flexibility is also important. Therefore, the company separates 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, 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, so that where the company interacts with consumers, use the easiest and most flexible solutions to change, said Sergei Sergeyev. Over the long history of M.Video and Eldorado companies, many historical systems have accumulated. It is important for the company to ensure their scalability and coexistence with "light" front systems. To do this, over the past three years, a layer of intermediate software has been developed that links all these systems to each other. Great attention "M.Video - Eldorado" in the present began to pay 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 Sergei 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 on the basis of an external and internal incubator for finding new ideas and innovations, cross-system development, growth of investments 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 the accumulation of data. Many have some kind of loyalty cards from the network, also buyers perform some actions on the company's website, there is a history and geography of purchases, social networks, 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 every stage of the buyer's path, says Sergeyev.
To attract traffic, it is important to understand what to offer, who to offer and when to offer, - explained Sergei 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 a machine and got the results: in the pilot project it was plus 58% of the average revenue from contact, in production - plus 20%. |
It is important to simplify the selection of goods for the consumer. To do this, the company has organized a smart service that takes into account data from systems: what are most often looking 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 left the site and did not buy anything. The goal was set to identify typical problems leading to leaving the site, and creating personalized scenarios, issuing personal recommendations. This has yet to be pursued, the speaker noted. Then it is necessary 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 divisions of the largest companies and government departments of Russia, representatives of IT developers and contractors. During the event, the prospects for digital transformation of business and government agencies, the development of technologies, products and services were discussed. More than 70 reports were made in the plenary part and five thematic sections. The event was held in 5 halls of Digital October.
Launch of the Data Science Competence Center
The M.Video group, Dorado which is part of the PFG, "Safmar" Mikhail Gutseriev on August 13, 2018 announced the creation of a center of competence in the field of analysts data 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 switch to automated "smart" services and. According business processes 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 the next step in the development of the Data Science direction at 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 client experience on the site. Some developments in this direction already allow to provide a 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 the high speed of change and innovation is 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 clients will be able to receive a personalized comprehensive offer in retail and online, taking into account their previous interaction with the company. Automated data analytics services also reduce operating costs and positively affect sales by returning customers who have 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 M.Video-Eldorado group. |
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. Thus, the retailer predicts the daily need for staff in retail, as well as demand for logistics supply management. When planning work schedules for personnel and transportation of goods to each store, the geographical location of the store, traffic, seasonality, as well as the speed of retail sales and potential volumes of pickup of online orders are taken into account, the company explained.
The Data Science direction has been developing at M.Video for about half a century - during this time we learned to implement machine learning algorithms and saw their effectiveness for business. The opening of the data analytics competence center involves both expanding the range of projects and teams. However, the scope of the technology is not limited to client analytics. In the future, we are also planning projects to improve the efficiency of Internet merchandising and further optimize the client path on the site, as well as manage promotions, product assortment, stock and retail personnel, "commented Vladimir Litvinyuk, head of the Digital Retail Data Science Center. |
Interview with TAdviser: CIO M.Video Sergei Sergeyev - about the main IT priorities of the retail network
electronic engineers M.Video Sergei Sergeyev In July 2018, the IT Director of the retail chain for the sale and household appliances in an interview with TAdviser spoke about the integration of sales channels in, about retail M.Video's work to create a completely seamless One Retail environment, as well as trade trends closely related to the digital transformation process.
2017: Plans to establish a human resources management system using biometric controls
Resident, Skolkovo Foundation IT Cluster company "" and Timebook (Timebook) M.Video entered into a cooperation agreement in June 2017, which provides for the deployment of the system Human Resources Management biometric using timebook control in all M.Video stores during the year, which will allow the retailer to increase employee motivation and retail efficiency. More. 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 has allowed the retailer to reduce the period for earning bonus points and processing promotions to two hours from ten. Read more here.
IT passport of projects in M.Video - Eldorado
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