Mais conteúdo relacionado Semelhante a Magento: Measuring the Business Impact of Your eCommerce Platform (20) Magento: Measuring the Business Impact of Your eCommerce Platform2. Measuring the
Business
Impact of Your
eCommerce
Platform
Introduction
Market Overview
Peter Sheldon, Forrester Principal
Analyst
The Total Economic Impact of the
Magento Enterprise eCommerce
Platform
Michael Speyer, Forrester
Principal Consultant
© 2013
Q&A
Closing
3. Introduction: Many variables as you look at re-platforming,
upgrading, or expanding your eCommerce platform
Hosting and Infrastructure
Initial Implementation
Time to Market
Maintenance and Upgrades
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Licensing
Anticipated Revenue Lift and ROI
Market Overview
eCommerce and technology trends to
consider as you review your plans
and investments.
Forrester Total
Economic Impact
A framework you can apply to
assessing the cost, revenue and ROI
of your eCommerce technology
investments and the impact they will
have on your business.
4. Introduction: Guest Speakers
Peter Sheldon
Forrester Principal Analyst
Serving eBusiness & Channel
Strategy Professionals
Michael Speyer
Forrester Principal Consultant
Serving Sales Enablement Professionals
© 2013
5. Measuring the Business Impact of Your eCommerce Platform
Total Economic Impact Study: Purpose and Methodology
Key Findings from the Customer Interviews
© 2013
Market Overview
Financial Model
6. In case you missed it, eCommerce is on a tear
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BY
7. By 2017, 10% of total US retail spend will be online, hitting
$370 billion
$370
$345
$319
$291
$262
(US$ billions)
$231
Year-on-year growth
14%
13%
11%
10%
8%
7%
Share of total retail sales
8%
8%
9%
10%
10%
10%
Source: Forrester Research Online Retail Forecast, 2012 to 2017 (US)
© 2013
9. Two thirds of firms will increase spending on eCommerce
technology in 2013
How is your investment in eCommerce technology changing?
Decreasing
2%
Significantly increasing
10%
Staying about the
same
31%
Increasing
56%
Base: 49 eBusiness & Channel Strategy Professionals
Source: Forrester Research Online Retail Forecast, 2012 to 2017 (US)
© 2013
10. Worryingly however, many retailers are
running the show with legacy or home-grown
eCommerce solutions
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11. Almost a quarter of eCommerce sites are powered by homegrown technology
How is your online store supported today?
Full service vendor who also supports fulfillment,
customer service, and marketing
2%
SaaS (on-demand) application
hosted and supported by the
product vendor
4%
None of the above/don’t know
14%
The product vendor
13%
Commercial
application
49%
Open Source
eCommerce Platform
(i.e. Magento
OSCommerce)
8%
Homegrown solution
supported and hosted by our
internal IT staff
22%
Our Internal
IT staff
54%
A third party
service provider
33%
Base: 49 eBusiness & Channel Strategy Professionals
Source: Forrester Research Online Retail Forecast, 2012 to 2017 (US)
© 2013
12. Omni-channel, mobile and content management are top priorities
for retailers in 2014
What are your technology investment priorities for the coming year?
eCommerce platform
52%
Multi-channel integration
52%
Web Content Management (WCMS) tools
52%
50%
Customer Relationship Management (CRM) tools
48%
Mobile commerce platforms
Customer Insights and Analytics Systems
40%
Responsive design
40%
33%
Product Content Management (PCM/PIM) tools
Site payment, system security compliance & protection
27%
Site Search
27%
25%
Back-end integration (ERP, Financial Reporting)
17%
Order Management (OMS) tools
POS/Store Systems
15%
Call center systems
15%
Other (please specify)
4%
Base: 49 eBusiness & Channel Strategy Professionals
Source: Forrester Research Online Retail Forecast, 2012 to 2017 (US)
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13. The online channel today influences 40% of offline retail spend
$1723
$1741
$1771
$1780
$1812
$1672
$1103
$1206
$1320
$1429
$1552
$1660
44% of total retail sales
will be impacted by the
Web in 2016
CAGR (2011 to 2016):
9%
$202
$226
$252
$278
$304
$327
2011
2012
2013
2014
2015
2016
(US$ billions)
Source: Forrester Research Online Retail Forecast, 2012 to 2017 (US)
© 2013
14. The right ownership model for platform ownership often depends
on online revenue
Build
Online
Revenue
Tiers
Typical
Business
Models
< $5 million
Market
Place
Buy
$5 million to
$25 million
Open
Source
$100 million to
$1 billion
$1 billion to
$5 billion
Commercial Solution
SaaS or On-Demand > Hosted Managed or On-Premise
SMB (<$25m online revenue)
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$25 million to
$100 million
Build
> $5 billion
Custom
Build
Enterprise (>$25m online revenue)
15. There are pros and cons to consider evaluating ownership
models
SaaS
On-premise
Application
Application
Application
Runtime
Runtime
Runtime
Runtime
Virtualization
Virtualization
Virtualization
Virtualization
Servers
Servers
Servers
Servers
Storage
Storage
Storage
Storage
Networking
Networking
Networking
Networking
Security
Typical business model*
Hosted / Managed
Application
Infrastructure
management
On-demand
Security
Security
Security
Revenue share
Perpetual license + Perpetual license +
hosting fees
hosting fees
Perceptual license
Upgrade effort
Low
Medium
High
High
Application tenancy
Multi
Single
Single
Single
IT skillset required
Low
Low
Medium
High
Managed in-house
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Managed by vendor/hosting partner
16. Measuring the Business Impact of Your eCommerce Platform
Total Economic Impact Study: Purpose and Methodology
Key findings from the customer interviews
© 2013
Market Overview
Financial Model
17. The Forrester TEI methodology is an established ROI framework
focused on impact beyond costs
Framework and Components
“Options” created
•Are there new
opportunities created
for the future?
Cost
•People
•Process
•Technology
Benefits
•Quantified value
•Defined metrics
Flexibility
(Options)
Costs
(Impact on Budget)
RISK
Total
Economic
Impact
Benefits
(Impact on Business)
Uncertainty
Source: August 4, 2008, “The Total Economic Impact™ Methodology: A Foundation For
Sound Technology Investments” Forrester report
•Impact of assumptions
Approach And Methodology
Perform due
Conduct customer interviews onstruct financial model Write case study
C
diligence
© 2013
18. Measuring the Business Impact of Your eCommerce Platform
Total Economic Impact Study: Purpose and Methodology
Key Findings from the Customer Interviews
© 2013
Market Overview
Financial Model
19. Interviewed five merchants with online revenues ranging from
$10 million to $100 million
An online-only novelty fashion accessories retailer serving the US and
EU markets
An online retailer of high-end furniture and home accessories products
A fashion jewelry and accessories merchant that offers collections
curated and designed by in-house stylists
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A retailer of equipment, tools, and supplies
A retailer of luxury apparel, gifts, and accessories
20. Magento Enterprise Edition adoption driven by shortcomings of
current solutions
Revenue loss and downtime triggered by
high traffic
Inability to support sophisticated online
marketing activities
Unfavorable economics associated
with adding new functionality and
updates to existing platforms
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21. The composite organization used for the TEI analysis
TEI analysis based on a composite of the interviewed companies.
Characteristics of the composite organization are:
Operates both brick-and-mortar stores and an eCommerce website and had
$40 million in annual online sales.
Challenges with its pre-Magento eCommerce platform are:
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Inability to scale to handle large spikes in traffic, resulting in instability
and downtime.
Lack of features and flexibility necessary to support more sophisticated
and frequent digital marketing efforts.
Inability to quickly make changes to site content.
22. New eCommerce platform requirements and attributes
Scalability
Flexibility
To easily and rapidly create custom landing pages,
perform catalog updates and other management tasks
Easy Integration
With back-office systems and external marketing services
providers
Rapid Deployment
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To meet growing online traffic volumes
To begin growing their online businesses
23. Qualitative benefits of Magento Enterprise Edition
experienced by the interviewed merchants
Increased Scalability and Stability
“Supports increases in average daily orders from 2,000
per day to 10,000 per day”1
Flexibility to Enable a Broad Range of
Functional Requirements
Integration with 3rd party marketing providers
Enablement of custom business processes
Allowed merchants to support more diverse and frequent
marketing tactics
Major contributor to the overall revenue uplift
Increased Levels of Marketing Activities
Rapid Time-to-market
Deployment times of 6-9 months — Variations due
to project scope, resources used, scope changes
Low Total Cost of Ownership (TCO)
5.8 payback with 158% ROI over three years
SOURCE: Measuring the Business Impact of Your eCommerce Platform, July 2013; 2013 Forrester Research, Inc.
© 2013
24. Measuring the Business Impact of Your eCommerce Platform
Total Economic Impact Study: Purpose and Methodology
Key Findings from the Customer Interviews
© 2013
Market Overview
Financial Model
25. Interviewed five merchants with online revenues ranging from
$10 million to $100 million
3-year forward looking analysis
Uses a 10% discount rate for Present Value and Net Present Value
calculations
© 2013
Accounts for all costs and benefits reported by the interviewed
customer
All costs and benefits are adjusted for variance, uncertainty and risk
as described in the TEI methodology
26. New eCommerce platform requirements and attributes
License fees
Professional Services
$324,000 for initial deployment
$537,150 for ongoing support
Internal Labor
$476,732 for initial deployment, ongoing
maintenance, upgrades to back-end systems
Hosting Services
© 2013
$98,206 for three production servers and one
nonproduction server
$337,632 for bandwidth, server hosting, load
balancing, content delivery network (CDN), and
a firewall
27. 3-year benefits included in the financial analysis
For composite merchant with $40m in annual online sales
eCommerce uplift
attributable to the
Magento platform
$3,960,893 20% of total revenue uplift is
attributed directly to the Magento platform
$147,719 for prior platform software license
maintenance
Costs Avoided
$350,533 for prior platform maintenance and
upgrades
$147,719 for software development when using
pre-built extensions from Magento Connect
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28. Risks and drivers of variance in costs and benefits
The percentage of total revenue uplift attributable to the Magento platform also
affect the final return on investment (ROI) value.
Costs avoided for licensing and maintenance fees associated with the prior
platform will vary with the type of platform used and the scale of the prior
implementation.
© 2013
Incremental revenues will vary with each merchant’s ability to effectively utilize
Magento Enterprise Edition’s features, its marketing effectiveness, and other
activities that stimulate purchasing activity.
Magento licensing fees will vary with the number of servers and the level of
support purchased.
29. Three Year Risk Adjusted Cash Flow
Initial
Costs
Year 1
Year 2
Year 3
Total
PV
($420,960)
($537,802)
($544,282)
($551,086)
($2,054,130)
($1,773,730)
$1,413,400
$1,801,760
$2,422,672
$5,637,832
$4,594,156
$875,598
$1,257,478
$1,871,586
$3,583,702
$2,820,426
Benefits
Net Benefits
ROI
Payback Period
© 2013
($420,960)
159%
5.8 months
32. Contact us today to see how Magento can help you realize your
eCommerce vision.
Schedule a thirty-minute personalized demo.
We'll assess your needs and discuss how they can be met with the
powerful capabilities of Magento Enterprise Edition.
© 2013
OWNED
BY
Notas do Editor Peter Sheldon
Peter serves eBusiness & Channel Strategy Professionals. He focuses on eCommerce technologies and solutions, including B2C and B2B eCommerce platforms, mobile commerce solutions, digital in-store technologies, and digital commerce.
Michael Speyer
Michael is a senior consultant on Forrester's Technology Sales Enablement team. He develops methodologies for measuring the value of business technology products to enable business case justification needs of technology buyers.
Source: http://zewar.wordpress.com/2010/10/04/726/
Source: http://zewar.wordpress.com/2010/10/04/726/
A retailer of equipment, tools, and supplies. The primary purposes of its eCommerce site are to accommodate online sales and to provide product and store information.
An online-only novelty fashion accessories retailer serving the US and EU markets. The retailer conducts all of its business through its eCommerce site.
An online retailer of high-end furniture and home accessories products. The retailer operates multiple stores throughout the US and relies on its website to provide production and store information and to support online sales and order management.
A fashion jewelry and accessories merchant that offers collections curated and designed by in-house stylists. The retailer uses its eCommerce platform to support its network of independent sales agents.
A retailer of luxury apparel, gifts, and accessories. This retailer uses Magento to power its online factory outlet.