John Lewis IT – a customer focussed service

John Lewis IT – a customer focussed service

Andy Melson

John Lewis – a customer focussed IT service

AgendaJohn 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

JOHN LEWIS BUSINESS CONTEXT(Year to January 2012)

SALES £3.3 bn

SHOPS 29 Dept Stores, 3 Flexible format stores, 7 @Home, online, catalogues

RANGE 350,000 active SKU’s – 30% own brand

STAFF 28,000 staff

• Group Turnover £9 bn approx

• Predominantly UK

• No Shareholders

JL Financial Services

PETER JONESPETER JONES

Trafford

John Lewis Business Model

Ist class customer

service

Value

Never knowingly undersold

Wide assortment

Convenient locations

Quality shop

interiors

‘Britain’s Favourite Department Store’‘Britain’s Favourite Department Store’

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)

Annual Bonus

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)

Customer Service - ‘Making the experience of using the services of the company more rewarding’

Measuring Customer Service in John Lewis

Staff survey – ‘happy staff make happy customers’

40 questions:

Company, branch, department, manager, processes, IT

Influences manager’s pay

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

Focus of IT

Improving customer service

Measuring IT Customer Service

Computer systems support me well in my job? – year 1

Highest branch score

Average branch score

Lowest branch score

Narrowing the IT Service Gap

Measuring IT Customer Service

SERVICE AVAILABILITY(Week Beginning)

2nd

Nov9th 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).

Date Description Cause Resolution of Incident

Resolution of Problem Service Area Affected Down Time

28.12.08To31.01.09

Several Hour + periods of outages or poor performance throughout TP12

Recently updated database

Users bounced off server

Ongoing investigations Partnerlink 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

19.01.09 WMS lost connectivity Server taken offline Server brought back online

Server taken offline to resolve perfomance issues

WMS 5 Mins

Operational Metrics

1000

2000

3000

4000

Incident Logs Open 2007 & 2008

Opened 2007 2358 2292 3065 2688 2698 3443 2789 2711 3403 2695 2500 2986

Opened 2008 2811 2456 2359 2406 2523 3175 2507 2588 3306 2558 2981 3479

Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec J an

98.00

98.50

99.00

99.50

100.00

Online Availability Average YTD

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

98.00

98.50

99.00

99.50

100.00

Operating Deadlines Average YTD

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Online AvailabilityOperating Deadlines

20082007

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

3:00

4:00

5:00

6:00

7:00

8:00

VAT

change

Critical Path Length Incident Logs

Computer systems support me well in my job?

?

Before After

Beauty Facelift