>>APMG 8119: DIGITAL ENTERPRISE

High-end fashion boutique offering “plus size” clothing for women A small family-owned business Brick & Mortar Store - Mt Eden Road - in 2008 Online shopping - themillhouse.co.nz - in 2013 Business Background

>>APMG 8119: DIGITAL ENTERPRISE Retail industry focuses on:  effective stock & margin management  Resource optimization  Staff rostering  Customer satisfaction Clothing retail industry:  High margins  Low productivity  Intense competition Fashion retail industry trends:  Local (Zebrano, Frontline) and global competition  Digitalization (online & offline)  Innovative business models (Burberry, Rent the Runway, Style Mint) Industry Overlook

>>APMG 8119: DIGITAL ENTERPRISE Manufactures Retailers Customers Challenges: intense competition difficulty in differentiation low switching costs growing customers expectations The Retail Business Model goods communication Brick-and-mortar stores Online stores

>>APMG 8119: DIGITAL ENTERPRISE Customer Relationships Revenue through relationships Taking first mover advantage Winning customer’s preference Lead the few players in the market Customer Segments Affluent, plus size ladies Channels Their brick and mortar store in the Mt Eden – Auckland is the only distribution centre. Website works as the channel for gaining 50% of their revenue Revenue Creation

>>APMG 8119: DIGITAL ENTERPRISE For what value are our customers really willing to pay? homemade brand higher quality designer clothes value generated by meeting uncommon needs For what do they currently pay? need fulfilment they experience with the company which is not easy to find in the common market. Revenue Creation

>>APMG 8119: DIGITAL ENTERPRISE Retail Cost Structure Context Size Supply/Production Technology Process Turbulence Organisation structureFormalisationIT AdoptionCentralisation Technocratic specialization labour Integration Retail Cost Structure

>>APMG 8119: DIGITAL ENTERPRISE Cost Creation - The Mill House EMPLOYEE Marketing Cost Security and Payment gateway

>>APMG 8119: DIGITAL ENTERPRISE Key Partnership Marketing agency

>>APMG 8119: DIGITAL ENTERPRISE Key Resources and Activities – driving the business Moss Obi, Chocolate, Ashley, Fogel, Sakaguchi, Trelise Cooper, Paula Ryan Employees at The Mill House Marketing Agency Technology Partner Security for customer details- iTheme Payment Partner- Paypal express Courier & Delivery Major Cost Contributor Outsourced partners

>>APMG 8119: DIGITAL ENTERPRISE Brick-and-mortar store:  High quality & Prestige  Convenience  Customized customer service / Style advice  Refined premises  Guest parking  Prize draws Online store:  Content (Product & Information)  Customer Experience  Platform (Internal & External) Value Creation

>>APMG 8119: DIGITAL ENTERPRISE POSITIVE:  Terms and Conditions: precise and easily found  New collections immediately appear on web site NEGATIVE:  whole range of stock is not available online  product description is very limited  No information about size fitting  No additional information (blog, articles, lookbooks, links)  No customer reviews or testimonials  The content is maintained by the Sales Manager Digital Content (product & information)

>>APMG 8119: DIGITAL ENTERPRISE POSITIVE:  web-site layout is appealing and easy to use  order and payment process is simple and safe NEGATIVE:  limited product range creates serious threats of losing potential customers  product display is confusing  no possibility to select products by categories; it is only available to browse by brand and size  absence of proper inventory controlling system results in the possibility to order a product which is already out of stock Customer Experience

>>APMG 8119: DIGITAL ENTERPRISE  The only platform delivered through the web site is an online retail shopping platform, which is simple and standardized, however lacking any enhanced options  Facebook is the only social media platform, which is utilized mostly as a one way business-to customer informative channel, without fostering interaction with clients Platform

>>APMG 8119: DIGITAL ENTERPRISE Digital Transformation

>>APMG 8119: DIGITAL ENTERPRISE  CUSTOMER VALUE MANAGEMENT  SUPPLIERS AND PARTNERS INTEGRATION  PRACTICAL IMPLICATIONS TO FURTHER DIGITALIZATION: Product range Content Usability Customer engagement Mobile-friendly Responsible staff Industry engagement (communication platform) Addittional services Recommendations:

>>APMG 8119: DIGITAL ENTERPRISE