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Customer-Focused Success Built on a Relationship Transcending the Years
Technology Category
- Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries
- Retail
Applicable Functions
- Sales & Marketing
- Business Operation
Use Cases
- Supply Chain Visibility
- Inventory Management
Services
- Cloud Planning, Design & Implementation Services
- System Integration
The Challenge
The company, a global federation of autonomous DIY retailer networks, was facing challenges due to rapid year-over-year growth, disparate data systems, complex per-brand needs, and a transition from products to solutions. The market was being disrupted by large online retailers, changing international trade agreements, and customers who wanted the power of mobile and the web when they shop. The company needed to pivot from merely selling products to selling service-based solutions. This required preparing all of its businesses, operating in different countries and under differing regulatory regimes, to be agile enough to offer new capabilities, new products, and new service models for a changing type of consumer.
About The Customer
The customer is a global federation of autonomous companies that operates one of the largest Do-It-Yourself (DIY) retailer networks in the world. Its brands, which are sold in more than a dozen countries, help millions of customers turn their home improvement and decorating dreams into reality. The company is known for its focus on sustainable homes and generates revenues in the tens of billions each year. Despite facing challenges from large online retailers and changing international trade agreements, the company has maintained strong growth of more than 4 percent a year.
The Solution
The company partnered with Software AG to implement a range of solutions, including webMethods for integration and business process management, and ARIS for Enterprise Architecture in Italian markets. The two companies created a co-innovation team to find new ways to monetize creative solutions and workflows. The company also proposed a new billing format, moving from a per-solution billing to being billed per transaction. This allowed the company to scale what it paid in a way directly coupled to its own profitable transactions, eliminating risk. The focus on per-transaction billing meant that as the company increased capacity, both companies benefited. From April 2016 to July 2017, transactions being handled increased from 300,000 a month to 1.3 billion.
Operational Impact
Quantitative Benefit
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