Web Technology in METRO Group retailing strategyFierce competition at home necessitates overseas expansion as METRO Group adopts Internet technologies to underpin consolidation and drive growth Background Challenge [ Return to Top ] Solution Workshops with Cisco's Internet Business Solutions Group (IBSG) lent METRO insight into how Cisco's own eTransformation could provide invaluable experience and help in METRO'S own web enablement. A Net Readiness survey followed the discussions with the intention of creating a management framework for the company's Internet activities. METRO acknowledged Cisco was a clear leader in portals and took advantage of Cisco's considerable experience in the area. The company is in the process of creating a uniform user interface that will be recognisable by any member of staff and that will also be personalised to suit day-to-day business activities. Portal functionality will be defined by role but in a wider sense it will also feature special content groups relating to specific functions. It will also include e-learning through virtual classrooms. Further options include an interactive CXO communication channel. Portal use will not be restricted to work only topics – wider lifestyle and entertainment information will also be included. An essential component within the process was to eliminate all non-value creating activities. The company had already begun this by web enabling its vast supply chain operation, which not only achieved the goal of improving processes and cutting costs but also propelled mymetro activity, by enabling METRO to concentrate resources into front end activities to aid in brand-building activities. It also aimed to transfer an existing client server EDI system onto a web platform to further drive familiarity with web technologies and improve supply chain operations. A further important aspect of METRO's strategy was to leverage advanced retail technologies as a testing ground to introduce a ‘store of the future' that would feature technologies designed to improve the customer shopping experience. For example, Cisco's Content Delivery Networking (CDN) would deliver content and data from a central source to any number of network-based delivery points, including plasma screens and personal shopping assistants. This allowed the company to dynamically change content to reflect changing sales offers and product and store information. [ Return to Top ] Results mymetro take up will be throughout the organisation but a particular focus is being given to enabling mymetro access at store level. In stores, METRO is planning to introduce the delivery of portal content through PDAs and Cisco IP phones. The store of the future opened to a rapturous reception at the beginning of May 2003 and has been hailed as an example of how to use technology to place customers at the forefront of a company's strategies. [ Return to Top ] Next Steps What Cisco Offers
Zygmunt Mierdorf, Executive Board Member and CIO, points out that improving shareholder value depends upon improving efficiency and international expansion. He explains: "The company recognises that growth is not only dependent on giving customers what they need: it is also significantly dependent on its workforce adapting to the processes that will cut costs and help drive growth. Our exploration of technology use for employees has been an incredible success with our people and we will continue to introduce new technologies as they evolve." Further Reading Metro Group Snapshot
July 22, 2003 [ Return to Top ] |