The need to provide an omni-channel buying experience touches all industries, and the auto-parts business is no exception. In this session, hear how auto parts industry leader Genuine Parts is leveraging hybris to pivot their business into a digitally oriented commerce engine that drives higher levels of value and service to B2B customers, and more revenue for the company.
7. Who is Genuine Parts Company?
Genuine Parts Company, founded in 1928, is a service
organization engaged in the distribution of automotive
replacement parts, industrial replacement parts, office
products and electrical/electronic materials. The
Company serves tens of thousands of customers from
more than 2,600 operations and has approximately
39,000 employees.
With over 87 years of distribution expertise, GPC's
commitment and reputation for just-in-time service
position us as a critical partner in our customers'
success.
NYSE: GPC
10. Today – At Home And Work, “Digital” Is A Persistent
Layer Of Our Lives
11. We’ve been digitally focused for 15 years, but…
Without someone thinking about “digital” across the enterprise full time
it’s quite common for this to happen internally…
It feels the same way to the customer too.
12. Our approach to “digital strategy”
• Understand our customers like never
before
• Improve time to market
• Stop redundant investments
• Build a community of like-minded
digital natives
• Manage and measure digital channels
like any other asset
• Grow top-line
• Grow bottom-line
• Build our brand(s)
Focus Areas Business Measures
13. “I still prefer my local NAPA for
most parts, but Amazon is pretty
damn convenient...”
So why are we doing all of this?
14. Our digital framework
6.0 Shared Platform
Build a core set of information technology, infrastructure and process that provides a common foundational platform for digital
business
7.0 Organization, Governance and Change
Ensure the linkage between delivering value of the strategic roadmap and the enabling organization structure
5.0 Integrated Business
Optimize and actively manage core enabling capabilities required to attain digital goals including channel strategy and
management, and fulfillment
1.0 Customer
Experience
2.0 Digital
Marketing
3.0 Content
Management
(Web/Product)
4.0 Analytics &
Insights
Establish the brand-
defining customer digital
interaction layer across all
touch points and deepen
relationships with key
customer segments
Plan, execute, and
manage campaigns that
drive traffic (existing and
new customers) through
the purchase funnel
Manage and deliver
relevant content that
engages with internal and
external stakeholders to
drive measurable results
Provide foundation,
insights, and forecasting
into customers
relationships, marketing
and digital effectiveness
to drive increased sales
Provide compelling and relevant experiences to grow share of wallet and retain
customers
Increase customer acquisition and brand awareness via digital marketing
Optimize channel mix and pricing based on customer preferences to drive uplift
Establish a CoE to implement and share leading digital capabilities
15. Why hybris?
Digital Foundation
hybris Commerce
B2C B2B
…
Product Analytics Asset
Mgmt
Digital
Mktg
Content,
CRM,
Social,
Tag, etc.
Why hybris?
#1 – It complements our business strategy
How?
• Provides top-tier functionality and architectural options for B2C and B2B
• Allows centralized administration and management across instances, geographies, and
implantations
• Provides a foundation for growth with shared logical and physical architecture, components,
cockpits, templates, content, assets
16. My observations and lessons learned
There is no “digital” strategy only business strategy
17. My observations and lessons learned
Plan the 12 course meal, but serve tapas
18. My observations and lessons learned
Plan the 12 course meal, but serve tapas
You must interact and observe your customers regularly to learn – not just
during a phase in a project.
19. My observations and lessons learned
Be flexible with a bias towards
solving the problem, not the
technology
Take comfort in knowing it won’t
be right (the first time)
– Assess, Adapt, Adjust,
Repeat
Don’t celebrate the failure – but
what the failure has taught you.
Genuine Parts was founded in 1928 and today is a very large diversified distribution company. We operate 11 businesses in 4 large segment and you are most likely familiar with one of our brands, NAPA Auto Parts.
NAPA stands for the National Automotive Parts Association and started in 1925 as a buying group. There were 28 original members and Genuine Parts was NOT one of them. We joined in 1928 and over the next 85 years we gradually acquired the other members of NAPA as well as several other businesses to make up the company we are today. In the world of NAPA we have approximately 6000 stores with approximately 5000 being independently owned.
We also have large businesses in the Industrial, Office Products, and specialty Electrical and Electronics space.
With the exception of NAPA Auto Parts stores and the retail customers we attract there – our customers are other businesses. Each with varied needs and complex environments in which they operate. Since we don’t truly manufacture anything, we exist to serve our customers and provide them the right parts and material, at the right place, at the right time.
Our business is probably similar to a lot of your businesses. Unique processes, supply chains, and dynamics that making consistent growth harder and harder to achieve.
Let’s take a closer look at the complexity in our customer base…
We serve a truly diverse set of individuals and organizations. They have rules, regulations, systems, processes, and most importantly, expectations that are ever changing. We are scrappy and entrepreneurial and people just get it done. That is an amazing underpinning to all of our businesses and makes our culture unique. It’s also a great asset to leverage as you rally people together to solve problems. And, I’m sure we are not unique, but the problems keep coming every day. The pace of business is expanding and the demands externally and internally continue to increase.
It’s an interesting contrast in also thinking about the fact that our systems and processes have been a foundational part of our success since the beginning. Each of our businesses have done what they’ve needed to do to serve the customer and the results have followed.
There is one factor in our business that’s become abundantly clear to us:
Our customers expectations have changed dramatically from the experiences they are having as consumers.
The rise of the smart device combined with the rise of mobile data connection speeds has seen an exponential growth in the consumer experiences available…
The very act of “going online” doesn’t exist anymore. What once was an experience of sitting at a desk and deliberately choosing to go “online” has changed. Ask a teenager, they exist online – all the time.
Digital is social
Digital is commerce
Digital is about interconnectedness
And digital is still about efficiency
Think about your expectations for fast wi-fi and the conveniences you are entitled to engaging with your cable company via twitter, or changing your mobile phone plan via text….Ever been pissed you can’t post that awesome pic to Facebook at the Macklemore concert? No? Just me, I guess.
The point is – those expectations translate into your perception of customer service, ease, convenience, flexibility, partnership in your professional life.
These are our customers – if not today – than certainly tomorrow. Our job is to make their jobs easier and make ourselves as sticky as possible.
Now, back to GPC…we’ve been providing our customers the tools they need and expect for a long time, but we’ve been doing that in siloes…
So, about two years ago we took at hard look at the things we should be doing to continue to evolve how we engage our customers and try to stay innovative and agile. The competition is thinking about how to put us out of business every day…If we’re not thinking about that too, we’re in trouble. So, we’ve taken a deliberate approach to defining a set of outcomes and initiatives.
So, as these efforts tend to do, we immediately deployed an army of people to start implementing every new technology possible in a desperate attempt to be relevant…
BUILD SLIDE
Okay, not even close.
We are distributors – We need to keep things simple. We struggle with complex directions and tend to breathe through our mouths. We needed a clear approach to our digital strategy. We decided that it was critical to define “digital” in very simple terms and keep it focused on business metrics. It’s not about the technology, it’s not about the latest and greatest devops-responsive-JSON-mobile-attribution-cross-sell whichamajig. It needs to be about the approach we will use to:
Understand our customers like never before
Improve time to market
Stop redundant investments
Build a community of like-minded digital natives
Manage and measure digital channels like any other asset
And, if we do those things, we expect to grow top-line, bottom-line, and grow our brands by being as relevant as ever to our customers.
We’ve assembled this framework to use in addressing our opportunities. We categorize our efforts into these buckets to map out the capabilities we are building and the dependencies areas have on one another.
[BUILD SLIDE]
The most important thing about this framework is the filter we use to ensure we don’t get caught up in the digital tactics, but clearly align them to some fundamental building blocks.
Now, looking at the foundations of our digital efforts, we made the best decision we could have made in choosing a Ferrari. We are in no way ready to drive a Ferrari…We are mouth-breathers after all…That said, we have wisely chosen to invest in the future capability we know we will need across B2C and B2B.
We are building a platform that we expect to support the needs of all of our businesses and that’s the potential we thought made the most sense…
We are currently implementing B2C and are rapidly expanding to B2B initiatives in multiple groups.
B2C has been a great proof point for us in numerous capabilities. Think back to the previous slide and the foundation we needed to put in place to improve our offerings across digital marketing, product management, customer experience, and of course, the technology itself.
We are well underway, but our roadmap is constantly evolving. We are doing qualitative and quantitative primary and secondary research with our customers and their customers to ensure we are providing experiences that meet their needs – both spoken and unspoken…That work is instrumental in informing our roadmap and helping drive collaboration across our teams…Rarely is digital a siloed effort. We touch so many other business processes and systems from stores to supply chain to back-end financial reconciliation.
So, we are well underway – and with that – I wanted to share some lessons learned and hopefully they will provide a morsel or two for you in your efforts.
With my apologies to Dana and Zuul….
There is no “digital” strategy – only business strategy
You must remember to focus on the business. Don’t make it about the technology…
Roadmaps are grand gestures…Make sure you figure out how to deliver appetizers along the way to your business leaders. They like toys to play with so make sure you are delivering regularly
There is no real way to keep up. And big businesses like ours can’t necessarily be as nimble as a small .com – LISTEN and OBSERVE. Learn how to leverage your differentiators in what you are offering.
And finally, as a digital leader, you must work extra hard to earn the trust and respect of both business and IT. Stay focused on the business.
You also must be an active coach in helping your teams learn that digital affords you the ability to iterate. Release and learn. Evolve.
And as a final point – there is a lot of talk about fail fast…Well, in my business, that’s a tough concept to sell. Failure isn’t a good thing. So, that makes driving innovation even more challenging. The key in my experience, is that you must improve. Prove that you and your teams are learning when things don’t go exactly as planned…Be vocal about the learnings, not necessarily the failure.