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John Lewis IT – a customer focussed service Andy Melson
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John Lewis – a customer focussed IT service Agenda John Lewis - background, business model and culture John Lewis - Driving customer service standards higher IT in John Lewis - the scale of its operations IT in John Lewis - driving service standards higher Achilles Heel
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JOHN LEWIS BUSINESS CONTEXT (Year to January 2012) SALES£3.3 bn SHOPS 29 Dept Stores, 3 Flexible format stores, 7 @Home, online, catalogues RANGE350,000 active SKU’s – 30% own brand STAFF28,000 staff Group Turnover £9 bn approx Predominantly UK No Shareholders JL Financial Services
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PETER JONES
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Trafford
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John Lewis Business Model Ist class customer service Value Never knowingly undersold Wide assortment Convenient locations Quality shop interiors ‘Britain’s Favourite Department Store’
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John Lewis’s Culture ‘ Pbop’ – powered by our principles Communication Customer service – external and internal customers As an Employee Weekly dept/comm training meetings Directorate and Department Forums in HQ Ad hoc meetings when needed for particular issues As an Employee Weekly dept/comm training meetings Directorate and Department Forums in HQ Ad hoc meetings when needed for particular issues As a Co-owner Central Council, Branch Council Weekly branch and company magazines AGM Annual results (bonus announcement) As a Co-owner Central Council, Branch Council Weekly branch and company magazines AGM Annual results (bonus announcement)
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Annual Bonus
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John Lewis’s Culture ‘ Pbop’ – powered by our principles Communication Customer service – external and internal customers As an Employee Weekly dept/comm training meetings Directorate and Department Forums in HQ Ad hoc meetings when needed for particular issues As an Employee Weekly dept/comm training meetings Directorate and Department Forums in HQ Ad hoc meetings when needed for particular issues As a Co-owner Central Council, Branch Council Weekly branch and company magazines AGM Annual results (bonus announcement) As a Co-owner Central Council, Branch Council Weekly branch and company magazines AGM Annual results (bonus announcement)
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Customer Service - ‘Making the experience of using the services of the company more rewarding’ Buyers – select the assortment that enhance the experience Shop design – shop layout easy to navigate, merchandise attractively displayed IT - simple processes, great system availability Marketing – set customer expectation, don’t over promise Merchandisers/ Logistics – ensure stock is available
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Measuring Customer Service in John Lewis Mystery shoppersCustomer complaintsStaff surveyAnonymous letters Highlighting exceptional service
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Staff survey – ‘happy staff make happy customers’ Increase staff perception Increase customer perception Increase sales 40 questions: Company, branch, department, manager, processes, IT Influences manager’s pay
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IT in John Lewis IT Staff Development and Application Support - 300 (inc JohnLewis.com) - London and flexible offshore resource Technical Support/Data Centre/Infrastructure – 250 (shared with Waitrose) - Bracknell/London Staff - 50% Grad recruits / 25% experienced / 25% ex busines Turnover low (tracks industry by under 50%) Systems Portfolio – 60% in-house/40% package ……. but changing Infrastructure – most systems on-line, mainframe - centric, DB2/CICS/COBOL/JAVA etc. Hardware in Branches & D Cs 10,000 PCs and 15,000 printers 3,500 Registers using POS systems at 60 locations 4,000 Hand-Held Terminals 2,500 cordless phones Systems 50m + POS transactions per year, 99.95% reliability 45,000 Gift Lists (£70m sales) 600+ Call Centre ‘seats’ answer 130,000+ calls per week 140,000 new products a year 30,000 price changes processed on a average day Replenishment systems process 4,000 new supplier orders every day
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Focus of IT Simple processes Ease of access to JL Accurate & timely data Easy and secure payment Service after the sale Service in the home Outstanding availability Improving customer service
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Measuring IT Customer Service Anonymous letters (customer complaints?) Staff Survey – ‘computer systems support me well in my job?’ Systems performance and reporting it clearly
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Computer systems support me well in my job? – year 1 +7 +2 -5 Highest branch score Average branch score Lowest branch score
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Narrowing the IT Service Gap Closer relations with local IT Promote IT In branches Launching new systems innovatively
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Measuring IT Customer Service Anonymous letters (customer complaints?) Staff Survey – ‘computer systems support me well in my job?’ Systems performance and reporting it clearly
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SERVICE AVAILABILITY (Week Beginning) 2 nd Nov 9th Nov 16th Nov 23rd Nov 30th Nov 7th Dec 14th Dec 21st Dec 28th Dec 4th Jan 11th Jan 18th Jan 25th Jan Key Customer Facing System (CSS & POS) Key Customer Facing System (Telephony). Key Distribution Systems (DLX & DCMCS) Key Buying Systems (Assortment Replenishment & WSSI). Key Financial System (Peoplesoft) Key Personnel System (Partnerlink) Victoria IT Service (SAN & Network Infrastructure). DateDescriptionCause Resolution of Incident Resolution of ProblemService Area Affected Down Time 28.12.08 To 31.01.09 Several Hour + periods of outages or poor performance throughout TP12 Recently updated database Users bounced off server Ongoing investigationsPartnerlink users Multiple Hour + 28.01.09 PCs hanging and difficulty logging onto the network Caused by SMS issuing server reboot commands Server reboots Ongoing investigations with Microsoft Head office and some branch servers 30 Mins 19.01.09WMS lost connectivityServer taken offlineServer brought back online Server taken offline to resolve perfomance issues WMS5 Mins
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Operational Metrics 98.00 98.50 99.00 99.50 100.00 Online Availability Average YTD FebMarAprMayJunJulAugSepOctNovDecJan 98.00 98.50 99.00 99.50 100.00 Operating DeadlinesAverage YTD FebMarAprMayJunJulAugSepOctNovDecJan Online Availability Operating Deadlines 20082007 Feb MarAprMayJunJulAugSepOctNovDecJan 3:00 4:00 5:00 6:00 7:00 8:00 VAT change Critical Path LengthIncident Logs
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Computer systems support me well in my job?
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?
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BeforeAfter Beauty Facelift
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