TheAgileStartup

Integrating Magento with SAP - Overview

Last December I wrote about how we were dedicating 2011 to integrating Magento with SAP's Business Suite platform (R3, ECC, All-in-One) via our b2b2dot0 service.  We've learned a lot in the past seven months and today, on the eve of Office Relief's ecommerce website going live; I'm going to start to share some of our findings with the community as a whole.

b2b2dot0's SAP Integrated B2B eCommerce Webshops are great for business!

Is there a direct correlation between providing our SAP Integrated Webshop to your customers and the performance of your company?  Well, I've always felt that there was and now there is corroborating evidence.

Thule Rules! - B2B eCommerce Channel Conflict Update

Last week I posted on a problem that I had uncovered with the Thule Distribution Channel.  I was desperately in need of finding a replacement key for my car top carrier before the long Memorial Day holiday weekend.  What I found was that Thule had set up an intermediary service called Shopatron that in the name of preserving the integrity of their distribution channel, was actually standing in the way of a timely delivery of that key. 

Today I want to update my experience and give a very loud shout out to Steve D. who is Thule's Internet Manager!  He not only found, and professionally responded to my blog post, but he personally expedited my key order.  I hope Thule knows how wonderful an employee Steve D. is.  In my experience, he is a rare find and Thule is truly lucky to have him in their employ!

Dealing With B2B eCommerce Channel Conflict

There is a right way, and a wrong way, for a Brand Owner to deal with channel conflict. 

The right way delivers a win-win-win solution to the entire demand chain. 

The Manufacturer drives traffic to their website and educates their potential customers 100% in accord with their brand promise.  If the consumer chooses to buy the product right then and there, the Manufacturer makes sure their distribution channel gets the order and fulfills and services it according to their contractual agreement.  In return, the distribution channel gets to "own" the customer and receive fair compensation in return for their services.  The consumer gets the right product at the right time at the right price.  Everyone plays their role like a fine tuned orchestra. 

Perfection.

The wrong way makes the end consumer pay the price for harmony in the distribution channel.

Unfortunately, I find myself on the receiving end of this lesson as I write this blog post.  It concerns my grandson, a missing key to a Thule car carrier, and the upcoming Memorial Day holiday.

It started innocently enough last Thursday with a call from my daughter.  She and her family live outside of Philadelphia, PA and I live in Raleigh, NC.  Since we were going to be meeting in Arlington, VA (exactly half way between us) over the weekend, she suugested that I bring our Thule car top carrier and give it to her as discussed weeks ago.  That would make it easier for her to pack all of the paraphernalia that a young family of three (and their dog) would need to spend the Memorial Day weekend with us the following week.

"What a great idea" I thought.

I went to retrieve it from the attic, the Thule's resting place for the past 7 years since our last documented camping trip.  It was just where I'd left it, with all of the hardware required to mount it to a car roof, safely locked inside of it.  Unfortunately, I had no idea where the key was so, off to the web I went.

A quick google search revealed that I wasn't the only person on the planet in this predicament.  This truly is a great use of social media!  The solution to my problem was just a click away at the Thule website.  Armed with the serial number engraved on the lock, I was able to place an order for a replacement key.  Unfortunately, I was only given one shipping method to choose from and that was for the painfully slooowwww 3-7 business days.  No overnight or express!  I placed the order nevertheless and received the following order confirmation moments later. 

That's when I started to understand what was going on with my order.  It wasn't being managed by Thule at all!  It was being managed by a company called Shopatron who supposedly was doing Thule and their dealers a favor. 

Not!

Here is a part of the order confirmation that I received:

There are two immediate problems with the order. 

First of all, the order total is only an "estimated" total.  It could go up based on taxes.  (Never mind that I'm already paying $4.95 to ship a $2.75 part...I would have paid more to get it quicker if it could keep the peace within the family!)

Second, only "standard shipping" was available...and noone to talk to, or write to, to inquire!

The bottom half of the order confirmation was even more confusing:

1. They left a space for other items that I might be interested in but there weren't any?  Aside from selling me a new lock if the key didn't work, if it was me, I would have tried to sell me an updated carrier.  Mine had to have been 15 years old!
2. Who am I really buying this from?  Thule?  Shopatron?
3. Better yet, who is going to support me?  There are two different phone numbers and a website to call.  I'm hoping I get the right key the first time around.
4. Lastly, just in case things really go bad, I can always write a letter to Shopatron Order Support at the PO Box given.  Really?

So what's going on here?

Back in 2000, when the whole eCommerce industry was abuzz about "disintermediation" Shopatron had a brilliant idea.  They went to major Brand Owners and simply said, "Keep your distribution channels happy.  If you are going to take an order on your website, pass it on to your distributors/dealers to fulfill.  This will keep them happy and they will continue to sell/support your products". 

Seriously.  My order gets posted to a website, where Thule's dealers get to log in at their leisure to decide whether or not they want to fulfill it.  The one lucky dealer who services my zip code is usually the one that is given first dibs.  Meanwhile, since I placed my order on Friday, three days have already passed.

Wouldn't it be easier if Thule took my order, shipped it out of their warehouse, and passed the commission to my local dealer?  I know I'd be happier.

According to the Shopatron website over 1000 brands and 12,000 of their retail partners have signed up in the ensuing years.  But that doesn't make them right.  That just makes them behind the times. 

Unfortunately, the bar has risen in the last decade.  With free 2 day shipping from Amazon and unquestioned returns processing by Zappos, I really don't think that waiting a week to "maybe" get a replacement key will cut it.

If Thule doesn't want to take orders on their website (which might make sense for their business model), they would be better served to help me find an online dealer that can take my order in real time.  All they did with the Shopatron process was delay my order, give me confusing information and potentially inaccurate processing.

Thule and their dealers may be living in peace, but I have a locked car top carrier that will not be adding any value to my Memorial Day holiday!

Sam

Reinventing the Web Channel to Maximize Sales and Customer Satisfaction

When the Oracle speaks you have to listen. 

So when "Reinventing the Web Channel to Maximize Sales and Customer Satisfaction" by Oracle's recently purchased ATG product line came across my inbox, I had to read it...and boy am I glad that I did.  It's wonderful! (For your convenience, you can download a copy here)

Using the "F" Word in Business

I had the honor of presenting to a group of budding entrepreneurs this past week at a local (Raleigh, NC) Council for Entrepreneurial Development Fastrak course.  I spoke on Market Analysis and followed an NC State Graduate School Instructor who presented an overview of Market Research.  He ended his 60 minute lecture by introducing me as the person who would explain "what to do with all of the Market Research that everyone in the room was now equipped to gather". 

Feeling the pressure, I stood up in front of the room, scanned the crowd, took a deep breath and started my presentation with... the "F" word.  

The Dark Side of On-Line Customer Services - AmEx Lays Off 1500

The headline into today's Raleigh, NC newspaper, the News and Observer (N&O) reads: "AmEx Will Cut 1,500 Jobs in Greensboro".

Why? 

According to the N&O article:

"As customers shift to electronic bill paying and online customer service, the volume of calls the center handles has dropped."

On-Demand B2B Webshops for SAP Business All-in-One

SAP's Business All-in-One is a brilliant offering designed to allow a small to mid size corporation to transition onto a fully integrated ERP platform in less than 4 months. 

Five Things You'll Never Hear from EDI Lovers

I used to loathe EDI (electronic data interchange).  Its promise to totally automate the industrial supply chain with "hands free" computer-to-computer interchange of key business documents seemed to threaten the fundamental existence of b2b2dot0.  We had a bit of drama at b2b2dot0 last week that...once again...reinforced the fact that while hype may make our job difficult, reality presents our opportunities. 

Uptick in Manufacturer eCommerce Spending on the Horizon

I just came across this Manufacturing Computer Solutions article that bodes well for our future here at b2b2dot0.  IDC Manufacturing Insights and hybris cosponsored this industry study which underscored the virtues of making the types of investments that we've been advocating for the past 2.5 years.

B2C eCommerce in an SAP Integrated World

I'm not sure why, but over the past several weeks the marketplace has repeatedly drawn us into conversations about the B2C (business to consumer) business model.  That got me to thinking about what the B2C model actually is...from a business, technical and SAP perspective...and how it differs from the B2B (business to business) model that is our namesake...b2b2dot0.  Most importantly, it got me to thinking about what we have to do to in order to support these business models...in an Agile way.

Today I start a series of posts on this topic. 

Thinking Document Management? Think Esker.

I just came across a post with this title over at the itelligence blog.  That reminded me that I've yet to formally announce our relationship with Esker, which we entered into at the end of last year.  So that's the subject of today's post.

Increasing Revenue Via an SAP B2B Order Management Website

The economy must be turning around. Over the past couple of years most of our conversations were about  investing in an SAP Integrated B2B Order Management website in order to save internal operating costs.  Now we're starting to hear more companies talking about justifying their investments by having to demonstrate that they are capturing new business.  So that got me to thinking.  Can a B2B Order Management website really generate incremental revenues for a company?

What is SAP's CRM Really Being Used For?

Last October, SAP announced that they were offering free CRM licenses to the market.  Coincidentally, over the course of the next several months, we heard of many defections away from SAP CRM and a couple of others where it was evaluated and dismissed as an unaffordable B2B eCommerce offering for the mid-market. 

So that got me to wondering...who was actually using SAP's CRM and what were they really doing with it? 

The Value of SAP Order Status According to Google

Over the last several months, we've had several conversations with manufacturers who have told us that their primary means of receiving orders from their customers is via EDI or FAX/email. Furthermore, because of their desire to provide superb customer services to their customers, that was not going to change in the near future.  They reasoned that if that was their customers' preferred way to interact with them, who were they to tell them otherwise?  They certainly were not going to ask their customers to retype their orders into an eCommerce website!

Taking SAP B2B eCommerce Websites Internationally

We spent the better part of 2009 deploying our service internationally.  In fact, a quick scan of Google Analytics shows that our client's customers transacted business with them through our SAP Integrated b2b websites from over 50 countries around the world.  Blount really led the charge this year by deploying language specific microsites to France, Germany, Russia, Belgium, Sweden, the UK and Canada.

SAP Divests the EcoHub to Their User Groups

I would love to see that press release title in 2010.  But I won't. 

In this day and age of social marketing, Twitter, Facebook, and concepts like yelp and Angie's List, isn't the SAP market mature enough to support itself by cataloging and reviewing third party offerings and service providers on their own?   I just don't get it.  Actually, I do.  It's about control. 

John Wookey Evolves SAP's Cloud Story

Last June, six months into John Wookey's tenure as head of SAP's cloud offerings, I wrote about his view of the world at the time.  It was mostly based on this presentation that Mr. Wookey gave at the SIIA OnDemand Europe Conference. 

SAP Attempts to Discredit the Cloud

CIO Magazine recently published an interview with SAP's Chief Technology Officer, Vishal Sikka, entitled "Cloud Won't Do for Critical Applications".  Frankly, not only did I find his comments quite disingenuous, but considering our experiences of the past year and a half, they were deliciously ironic.

Key Trends in B2B Ecommerce: Complimentary Forrester Research Valued at $1749

An ecommerce platform provider called Elasticpath is co-sponsoring this webinar along with Forrester Research. I've been following the presenter, Brian Walker, on Twitter (@bkwalker) for quite awhile now and based on his tweets, I have no doubt that this will be an informative webinar.  Besides, a free $1749 report is ample reward for an hour of my time :-)

Helmuth Guembel and Sapience 2009

Helmuth Guembel is an iconoclastic ex-Gartner Analyst who is currently a partner at Strategy Partners. I learned about Helmuth last week as a result of Dennis Howlett's "Irregular Enterprise" blog post entitled "SAP's feet put to the fire".  This led me to Helmuth's blog where I learned that he is taking on one of my personal favorite battles, SAP's licensing policies towards internet users. I instantly became a fan of Helmuth, and was compelled to reach out to him, if for no other reason than to encourage him on.  We spent an hour on skype a few days later.

b2b2dot0 Goes to Budapest

b2b2dot0's Executive Management team just concluded our second annual Management Retreat.  We rented an apartment in Budapest for a week in order to celebrate our accomplishments, get a bunch of things done, and lay the groundwork for the upcoming year and beyond.  Today's blog post will share the highlights of our week together.

"We can't accept phone or fax orders, sorry."

It's right there on Velo Orange's home page.  They actually have the chutzpah to tell their customers that phone and fax orders are not accepted.  What?  Are they crazy?  Isn't that poor customer service?  Aren't they afraid that they'll lose business?  Or are they "crazy like a fox"?

SAP offers "free" CRM for ERP buyers

This was the headline of a CIO Magazine article last week.  It's an old story being replayed in these lingering stressed economic times. Take a product that noone seems to be buying, give it away for free, and hope to eventually make some money down the road in maintenance fees.

mySAP.com T-shirt - Ten Years Later

I just got back from one of my last training rides before I set off next week on my third annual, week long, bicycle crossing of North Carolina.  This year, the roughly 500 miles of scenic country road cycling begins in the Blue Ridge Mountain town of Blowing Rock and ends one week later at the beachfront town of Surf City.  But that's not the subject of today's blog.  

The t-shirt that I threw on after today's ride is.