The client develops, manufactures and sells a wide array of electronics products to both the business and consumer markets. Senior executives believed it was time to improve its responsiveness to customers and establish a more direct link through an expanded commerce effort. Hitachi Consulting rebuilt the client’s existing Boot site in order to create a fully functional store. In its first holiday season, the updated store drove: 0 0 0 a more than 35 percent increase in orders a greater than 100 percent increase in site visits an over 50 percent increase in revenue
Case Study: Complete commerce Solution for the U. S. Operation of a Global Consumer Electronics Company Business Challenge The client wanted to establish a more direct link to consumers through its Business to Customer (Boot) operations while minimizing the negative impact on its core business. They were particularly interested in expanding their commerce channel to meet this objective. A solution which would be built on a long term view of both their business and technical environments was necessary. There was limited understanding of the requirements or such an effort. The ideal product mix to be sold online had not been defined Target sales had not been tested against external benchmarks or internal capabilities 0 End-consumer segmentation or shopping patterns/preferences were unclear 0 The existing commerce platform did not have sufficient capacity to handle the increases in transaction volume implied by the Client’s targets 0 The level of investment and organizational change required was not understood The Solution The Hitachi Consulting team created an integrated Boot commerce strategy that provided a lit-year blueprint for supporting target growth and increased profitability.
The corresponding technology strategy was designed to support a planned expansion that 0 A recommended commerce organization and business processes Economic forecasts and pro formal financial would include Boot capability, in addition to increased Boot functionality. The commerce strategy included: Recommended product mix A segmentation and marketing strategy A targeted customer experience The team then designed and implemented the expanded store, according to the Eng term technical vision. It includes the following components: 0 IBM Webster Commerce Enterprise 6. IBM Webster Application Server 6. 0 Content Repository – Interwoven Teammates Taxation Module – Integration with Vertex Site Analytics – Webmasters Payment Systems – Payment Call Center – Web Sphere Commerce Sales Center 6. 0 Product Tours – Selection Customer Ratings and Reviews- Vacationer Integration – 50-plus inbound/outbound interfaces, including a third- party logistics vendor Commerce Industry By Annuitants Consumer Electronics Company Business Benefits Despite difficult economic conditions, the 2008 holiday shopping season proved to be a great success.
As a result of the transition support and enhancements Hitachi Consulting provided, the store was ready. The client realized significant success during the four-day period between Black Friday and Cyber Monday, including: 0 0 a more than 35 percent increase in orders, a greater than 100 percent increase in site visits, and 0 an over 50 percent increase in revenue. In addition, the solution developed and implemented by Hitachi Consulting has questioned the client to handle projected growth in site usage, and to support its long term strategic objectives.
The new store is: 0 Efficiently scalable to support increasing transaction volume as site usage grows 0 Sufficiently flexible to allow for modifications and enhancements that would support changing business conditions Able to support future planned expansions for Boot capabilities About Hitachi Consulting Corporation As Hitachi, Ltd. ‘s (NYSE: HIT) global consulting company, Hitachi Consulting is a recognized leader in delivering proven business and IT solutions to Global 2000 impasses.
With a balanced view of strategy, people, process and technology, we work with companies to understand their unique business needs, and to develop and implement practical business strategies and technology solutions. Hitachi Consulting client base includes nearly 25 percent of the Global 100 and many leading midstream companies. From business strategy development through application deployment, we help clients quickly realize measurable business value and achieve sustainable ROI. Hitachi Consulting – Inspiring your next
In year five, the client expects that the store will bring the following benefits: commerce sales growth in excess of 70 percent CARR 0 Representation for all retail product categories 0 The ability to process over MM visitors and MM transactions annually 0 Improved profit margins over traditional channels of more than 30 percent 0 Return on Investment of more than 35 percent Building the Market Responsive Company SMS is an approach that enables Hitachi Consulting to help consumer electronic companies prepare and respond quickly to changing external conditions that impact their equines.
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