Naboo Next Gen Customization e-Commerce Platform for New Hire

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e-Commerce Platform for Customization:

e-Commerce Platform for Customization Raymond Leung Director of Product Development

The $64 Question:

Does Customization Really Matter? The $64 Question

It Depends….:

It depends on the products and how much you charge extra © Brandvis 2011 3 It Depends….

Why is customization still not mainstream?:

Manufacturing Process has to be agile enough to support it The Software (or whatever the sales tools) has to support it Price/Cost has to be right Why is customization still not mainstream? © Brandvis 2011 4

The $64,000 Question:

What is the killer app for customization? The $64,000 Question © Brandvis 2011 5

The Keys are…:

Again, those 3 critical success factors Manufacturing Sales Tools Price (set right) / Cost (kept low) The Killer App should glue all three together by: Act as a generic platform (i.e. Not a company’s proprietary system) Great Visualization Supports Complex Customization Scenarios Supports a variety of product types Industrial Strength e-Commerce features Enterprise System Integration The Keys are… © Brandvis 2011 6

The Million Dollar Question!:

Is there such a killer app on the market? The Million Dollar Question! © Brandvis 2011 7

The Good News:

Nope. The Good News © Brandvis 2011 8

Computers:

© Brandvis 2011 9 Computers

Automobile:

© Brandvis 2011 10 Automobile

Individualization for Mid-range Apparels:

© Brandvis 2011 11 Individualization for Mid-range Apparels

Individualization for Low-end Apparels:

© Brandvis 2011 12 Individualization for Low-end Apparels

Pure Play e-Commerce:

© Brandvis 2011 13 Pure Play e-Commerce

Pure Play Configurator:

© Brandvis 2011 14 Pure Play Configurator

Why?:

The (Possible) Bad News Our answers to the first two questions are wrong  The Customization Market is not as relevant as we thought Our assessment on the critical success factors for a killer app is not accurate Another possibility It’s very hard to do Why? © Brandvis 2011 15

Where are we now?:

© Brandvis 2011 16 Where are we now?

Where do we go from here:

Now Closely tied to Brandvis Manufacturing Royalty Pricing Model Only Medium Complexity of Customization Scenarios Limited Reuse of templates No end-user tools for building templates Multi-store / Channel Management too limited/rigid Where do we go from here

Next Gen. Customization Platform:

Code Name: Naboo Manufacturer Neutral. Royalty and Subscription Pricing Highly Visualized, Complex Customization Scenarios Highly Reusable Templates Which are tied to actual Components, Raw Material, thereby enhancing the reuse of product components Next Gen. Customization Platform © Brandvis 2011 18

Next Gen. Customization Platform:

Code Name: Naboo (cont’) Template Builder for End-users Flexible Product Offerings, Catalog and Store management to allow different distributor/channel/region models Integration connectivity to MRP, ERP and CRM Initially Textile only, but the system architecture enable easy extension to other vertical/product types Next Gen. Customization Platform © Brandvis 2011 19

Goals:

© Brandvis 2011 20 Goals

Sweet Spot:

Sweet Spot © Brandvis 2011 21 0% 60% 40% 80% 100% % Configurability Reusing Existing Components Lead Time Demand (How Long customer is willing to wait) ETO BTO/ATO CTO BTS Your Tailor Made Suit Your Yellow M-Size Polo Shirt Your PC Your Car Your NikeID Shoes

Sweet Spot:

Sweet Spot © Brandvis 2011 22 0% 60% 40% 80% 100% % Configurability Reusing Existing Components Lead Time Demand (How Long customer is willing to wait) ETO BTO/ATO CTO BTS

Business Benifits:

Increase flexibility of sales model, the way you want and able to control Reduce Lead times 50-80% Quotation Samples Certification Production Reduce Inventory 10-40% For our customer For their customers too Improve Production Efficiency 10-30% Business Benifits © Brandvis 2011 23

What does Naboo look like?:

What does Naboo look like? © Brandvis 2011 24

From starwars.com :

From s tarwars.com  © Brandvis 2011 25

High Level Components:

Template Engine SelectManager A Desktop Application for Sales Customer Service Reps Manager / C-Level Visual Product Configurator Which is embedded in SelectManager and SelectStore SelectStore Web Store for end-customers (who place order directly) SelectBuilder A Tool to help product engineer/Textile Engineer to create product templates High Level Components

Template Engine:

Template Engine © Brandvis 2011 27

Template Engine:

The heart of Naboo Initially with Textile/Garment Focus Configurable BOM with very complex structures E.g. Selectable and customizable Detachable Items, Linings, Accessories Almost every sub-component can be customized Pluggable Certification Engine: EN471, EN343, ANSI107 Template Engine © Brandvis 2011 28

Template Engine:

Pricing Calculator Fixed Cost Based Calculation based on configuration and material selection Component Sharing Among different templates: Helps stream line and digitize companies’ entire catalog Help customer to manage their product catalog by linking shared components to different product/templates, parts (stocking items or CTO/BTO items), raw material Reduces Time to market for template Template Engine © Brandvis 2011 29

SelectManager:

SelectManager Desktop Metaphor Yet still accessed via Web Browser Option to package it as installable application (AIR maybe) Geared toward more complex tasks Clerical Tasks like order processing Managerial Tasks like BI, Complex Order Searches, Or Chart Administrative Tasks like company, catalog, user, role, and system management © Brandvis 2011 30

SelectManager:

SelectManager Make full use of screen real-estate. Resizing with the container (browser, for example) Keyboard Navigation, drag and drop Corporate Identity (logo) supported BUT no re-skinning of System Manager per Company (unless they pay) . We might have different default skin but that is. Tightly integrated to backend. Meaning some closed API . Not customizable per customer . If they have feature requests, it will be fall into software releases. Each company/subsidiary will their own URL for System Manager © Brandvis 2011 31

SelectManager Login:

SelectManager Login © Brandvis 2011 32

Dashboard:

Dashboard © Brandvis 2011 33

Dashboard :

Overview for other User with Admin Privilege Sales Report Total Sales Invoiced/Breakdown Total Sample Sales/Breakdown Total Production Sales/Breakdown Sample/Production Order ratios Best Yielding Users RSS Feed for New Orders Orders for Approval Best Viewed Design Best Purchased Templates/Products Dashboard © Brandvis 2011 34

Switching Module:

Switching Module © Brandvis 2011 35 Module Icon: show the current Module. Click to bring up the Module Switcher

Catalog Browsing :

Multi -Picture Preview Keyword/Tag and advanced Search/Filter function Category View/Group by Category Multi-View (List, Grid, and “Closet”) Most Recently Viewed Product Most Popular Product Product Comparisons Catalog Browsing © Brandvis 2011 36

Style List View:

© Brandvis 2011 37 Style List View

Product Info with Suggestion:

© Brandvis 2011 38 Product Info with Suggestion

The Designer:

The Designer © Brandvis 2011 39

Visual Product Configurator/Designer :

For user to configure their end-product Not for Textile Engineers to create templates Realistic Multi- View Visualization of product configurations Real time Configuration Summary, Unit Price Calculation that are updated when a change is made to the configuration immediately Save Designs Email Design Detail Design Summary, export to PDF Visual Product Configurator/Designer © Brandvis 2011 40

Designer in action:

© Brandvis 2010 41 Designer in action Property Editor (Detail Not Shown) Product Info callable from Designer Configuration Summary (Collapsible) Garment Hierarchy

Other Features:

Quotation Management Order Management Offer Management Multi -Store, Virtual Catalog Management User Management Other Features © Brandvis 2011 42

Quotation Management :

Integrated real-time shipping rates from UPS, FedEx Time Expiry of Quotation Quotation for Digital Products (3D Models) Quotation for Samples Quotation for Productions Detail Pricing Calculation based on Design, Offerings (which includes Multi-level Uplift, Discount, Volume Discount, Size Surcharge, per user/per product) Email Quotation, Export to PDF Quotation Management © Brandvis 2011 43

Order Management :

Order Placement by Quotation Confirmation Order Status and History Multi-level Order Approvals Order Status update notification via email Order on behalf of other owned users Manufacturing BOM /Work Order Generation from configuration in orders Supports Structured BOM with sub-components/sub-assemblies Cost estimation for orders Order Management © Brandvis 2011 44

Offer Management :

Create endless offerings from templates/products that consists of: Multi-tier Pricing Uplift Discount Volume Discount Sizing Surcharge Group Product Offerings as Virtual Catalogs Offer Management © Brandvis 2011 45

Multi-Store, Virtual Catalog Management :

Setup Parent/Child Companies Setup Virtual Catalogs as Subsets from Master Catalogs and assign to different Store/Company Assign different virtual catalogs to users Create Fixed Products out of templates and put it in a Catalog Multi-Store, Virtual Catalog Management © Brandvis 2011 46

User Management :

Role Based Security with User Level Permission Revocation Permissions assignments to Roles User Owners (Users can own and manage other users and their orders ) User Registration Requests New Users Activation User Management © Brandvis 2011 47

Agents:

Agents © Brandvis 2011 48

What are Agents:

Agents are what people usually called “Wizards” (Personally, I don’t like the word “wizard mode” that much, so I was looking for some other names, anyways) Feel free to suggest others Coach? Experts? © Brandvis 2011 49 What are Agents

Agent in SelectManager:

© Brandvis 2011 50 Agent in SelectManager

SelectStore:

SelectStore Purely target End User One primary goal: Get the freaking order Only a handful of supporting tasks to achieve that goal will be included in the Store: Design a piece of garment Get a quotation Confirming order Check order status All Functional API’s are open . Our customer can design their own store if they want. We will have default store design(s). Customer can redesign their store based on the source code of our design or hire us to do that. © Brandvis 2011 51

SelectStore:

SelectStore is essentially a simplified version of System Manager which only access the open API but with some fundamental differences: Fixed Width Usually. No login required until it really has to: When you save/load designs When you place an order However, It should be able to reuse a lot of components from System Manager Each company (parent or subsidiary) has their own URL © Brandvis 2011 52 SelectStore

SelectStore:

© Brandvis 2011 53 SelectStore

SelectStore with Designer:

© Brandvis 2011 54 SelectStore with Designer

SelectBuilder:

SelectBuilder © Brandvis 2011 55

SelectBuilder:

This is a desktop application that targets Textile Engineers or Product Configuration Engineers to help them create advance templates more easily Create Configurable BOM like structure for templates with ease Link to items from Part/Raw material database to use in templates Import template design artifacts (pictures, drawings, vector graphics) to create the visualization of the product templates SelectBuilder © Brandvis 2011 56

Branding, Packaging, Pricing Model:

Branding, Packaging, Pricing Model

Initial Branding Design:

Initial Branding Design © Brandvis 2011 58

Initial thought on Packaging:

Template Engine Designer SelectStore SelectManager Core (with limited Admin and Managements Feature only) © Brandvis 2011 59 Initial thought on Packaging Core SelectManager Pro (with all features enabled) SelectBuilder

Initial thought on Packaging:

Tablet version of SelectManager, may include support of offline mode © Brandvis 2011 60 Initial thought on Packaging Connectivity Add-ons ERPs such as SAP CRMs such as SFDC

Top line / Pricing Model:

We should have a more robust business model that follows a healthy Software Business Unit Instead of backend loaded Royalty Model Only Software License Royalty (case by case consideration) Subscription Based on Number of Users Number of Business Entities Number of Stores Consulting Service Implementation Consulting Template Building Top line / Pricing Model © Brandvis 2011 61

Summary:

Does Customization Really Matter ? What is the killer app for customization ? Is there such a killer app on the market? The 10 Million Dollar Question though: Are we too early? Will we be there when the market matures? Think Newton and iPad Summary © Brandvis 2011 62

Thank You!:

Thank You! © Brandvis 2011 63

Backup Slides:

Backup Slides

Lessons Learned:

For Admin/Customer Service Garment Configuration User Management Order Processing/Approval Design Examination Lessons Learned For End User Design Garment Place Order Quotation Ordering Transaction Status © Brandvis 2011 65 With SelectPortal, we found that we are trying to achieve too many purpose with one web interface.

What about Textile Eng., Sales & Designer:

What about Textile Eng., Sales & Designer Not to mention: No tools for Textile Engineer to configure templates No good interface for sales/designers to create garment design on behalf of clients © Brandvis 2011 66

Naboo UI:

Naboo UI As a result, Naboo’s UI will not be one but three! Template Builder Help Textile Engineers and Template deployers to configure template The Store (Web metaphor) A simplistic interface to do design, place order and check order status System Manager (Desktop metaphor) For Customer Service to process/examine orders Administrator to setup users, systems etc Sales to design garments, submit orders and perform advance order management without going through the Store which is designed to be simplistic for end users This Presentation will focus on the Store and System Manager UI © Brandvis 2011 67

SelectManager:

SelectManager All functionalities are grouped into subsystems (Or Apps, I hate to call it Apps but couldn’t find a better word for it) Allow URL Change among Apps Disallow URL Change within an Module (thereby encourage AJAX usage) System will determine what subsystems this user will have access to System will remember the last Module that the user was on when he leaves/expires the session © Brandvis 2011 68

Designer in action:

© Brandvis 2010 69 Designer in action

2011 Top line:

© Brandvis 2011 70 2011 Top line Templates 20,000 Royalty-based 18,600 Internal Royalty 70,000 User-based 180,000 Support 13,500 One time 100,000 Projects 100,000 Total 502,100

Bottom Up Budget:

© Brandvis 2011 71 Bottom Up Budget

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