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PUBLIC
Jumbo Cheung, SAP
October17,2017
Scaling Commerce in a Global Economy
2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Strategies for Global Business
Regional Commerce Characteristics
Performance! Performance! Performance!
Q&A
Agenda
Strategies for
Global Business
4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Going global is based on the
level of localization that you
are ready to accept and on the
trade-off between flexibility
and efficiency.
International strategy model
Global
strategy
Transnational
strategy
Home replication
strategy
Multi-domestic
strategy
high
highweak
Pressuresforglobalintegration
Pressures for local responsiveness
5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Core model specifications
Four layers of identity to build a core
model
Core functionalities in SAP Hybris solutions
1.
2.
3.
4.
Company e-business model
Brand and market specifications
Country specifications
Platform
Regional Commerce Characteristics
7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Asia
§ Cash on delivery
§ Payment at convenient store
§ Payment by loyalty points or
credit points
§ Rising trend in mobile
§ Installments for expensive items
§ Complex and high variety of
promotion rules
§ Marketplace integration
§ Enormous order volume
§ Lower conversation rate 1.5% to
2%
§ Dispatch from stores
Europe, the Middle
East, and Africa
§ Multicountry deployment
§ Cross-country shipping
§ Personal data regulation
India
§ Dispatch from stores
§ Cash on delivery
§ High throughput for page visit
§ Enormous order volume
North America
§ PayPal is mandatory
§ External tax calculation
§ Conversion rate: 2.5% to 4 %
Latin America
§ Social media integration
§ Multiple payments for single
order
Regional commerce characteristics in retail
8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
“It is no use saying “We are
doing our best.”
You have to succeed in doing
what is necessary.
– WinstonChurchill
Performance! Performance! Performance!
9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Content delivery network (CDN)
§ To cache static content from Internet layer
– Saving network throughputfrom Web service
Page cache
§ Mainly to cache a page fragment, to reduce cost for page rendering
– Varnish page cache
– Page fragment cache
– CMS component cache
Data cache
§ To reduce effort for page fragment data that would not change constantly
such as product data, stock information, and price information
– PS DTO cache
Page performance
Web
SAP Hybris
solutions
DB
Traffic
10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Cart calculation
§ Reduce frequency, if
– Complex promotion rules
– Strict coupon validation
– Big shopping cart
Stock level for POS
§ Amount of POS stock
would affect some UI design
Cart performance
Database tuning
§ Database indexes
– Stock level
– Restrictions
§ Database partitioning
– Inactive promotions
§ Housekeeping
– Expired carts and
entries
Cart performance refers to
time to complete “Add to
cart” and cart calculation.
It is relevant in that it
affects the cart
abandonment rate.
11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
After a blooming event,
order process comes to
a critical process to
recognize revenue on
the book.
Order processing performance
Database tuning
§ Database connection
§ Database index
– Stock level
§ Database partitioning
– Inactive orders and order entries
§ Housekeeping
– Inventory events
– Close order process
§ Other customization
– Caching stock level
– Warehouse capacities
12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Questions?
Contact information:
Jumbo Cheung
Senior Consultant
SAP Hybris (SAP), Hong Kong
jumbo.cheung@sap.com
Thank you.

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Scaling Commerce in a Global Economy

  • 1. PUBLIC Jumbo Cheung, SAP October17,2017 Scaling Commerce in a Global Economy
  • 2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Strategies for Global Business Regional Commerce Characteristics Performance! Performance! Performance! Q&A Agenda
  • 4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Going global is based on the level of localization that you are ready to accept and on the trade-off between flexibility and efficiency. International strategy model Global strategy Transnational strategy Home replication strategy Multi-domestic strategy high highweak Pressuresforglobalintegration Pressures for local responsiveness
  • 5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Core model specifications Four layers of identity to build a core model Core functionalities in SAP Hybris solutions 1. 2. 3. 4. Company e-business model Brand and market specifications Country specifications Platform
  • 7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Asia § Cash on delivery § Payment at convenient store § Payment by loyalty points or credit points § Rising trend in mobile § Installments for expensive items § Complex and high variety of promotion rules § Marketplace integration § Enormous order volume § Lower conversation rate 1.5% to 2% § Dispatch from stores Europe, the Middle East, and Africa § Multicountry deployment § Cross-country shipping § Personal data regulation India § Dispatch from stores § Cash on delivery § High throughput for page visit § Enormous order volume North America § PayPal is mandatory § External tax calculation § Conversion rate: 2.5% to 4 % Latin America § Social media integration § Multiple payments for single order Regional commerce characteristics in retail
  • 8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ “It is no use saying “We are doing our best.” You have to succeed in doing what is necessary. – WinstonChurchill Performance! Performance! Performance!
  • 9. 9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Content delivery network (CDN) § To cache static content from Internet layer – Saving network throughputfrom Web service Page cache § Mainly to cache a page fragment, to reduce cost for page rendering – Varnish page cache – Page fragment cache – CMS component cache Data cache § To reduce effort for page fragment data that would not change constantly such as product data, stock information, and price information – PS DTO cache Page performance Web SAP Hybris solutions DB Traffic
  • 10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Cart calculation § Reduce frequency, if – Complex promotion rules – Strict coupon validation – Big shopping cart Stock level for POS § Amount of POS stock would affect some UI design Cart performance Database tuning § Database indexes – Stock level – Restrictions § Database partitioning – Inactive promotions § Housekeeping – Expired carts and entries Cart performance refers to time to complete “Add to cart” and cart calculation. It is relevant in that it affects the cart abandonment rate.
  • 11. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ After a blooming event, order process comes to a critical process to recognize revenue on the book. Order processing performance Database tuning § Database connection § Database index – Stock level § Database partitioning – Inactive orders and order entries § Housekeeping – Inventory events – Close order process § Other customization – Caching stock level – Warehouse capacities
  • 12. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Questions?
  • 13. Contact information: Jumbo Cheung Senior Consultant SAP Hybris (SAP), Hong Kong jumbo.cheung@sap.com Thank you.