House of Fraser Real World Experience Using Microsoft Technology

1. House of FraserReal World Experience Using Microsoft Technology Andrew Bond Development Services Manager House of Fraser

2. Agenda • Background • B2b integration • Web services for CRM • Conclusions and the future • Questions

3. House of Fraser - background • Britain's leading designer brands retailer • 53 Stores across the UK • 1300 Suppliers • 120,000 documents per year

4. IT infrastructure • Traditionally Oracle based • Increasingly heterogeneous environment • Increasing Microsoft technology

5. BLT ASB AFT COPOS QOSY ECP HDL SWG DRW MFP WCP COPOS EDI SKD DLY EDI EDI KYF XOI EDI CUI WKD COPOS ASB EDI RMO JIA HCO KFC AJT DKE BST VUH FQA Point to point internal integration

6. B2b 2003 strategic review – situation analysis • 50% of orders (350 suppliers) sent over EDI • 50 suppliers providing EDI invoices • 50 suppliers receiving EDI sales • 60 suppliers providing EDI advance shipping notices for X-docking in Distribution Centre

7. B2b Existing architecture Suppliers Purchase Order Cycle Systems Catalogue 3rd parties 3rd parties NonEDI EDI Recruit Recruit Paper Extranet Proprietary EDI software HOF Systems MerchandisingFinancialsCustomer ordering MerchandisingRange planningCustomer ordering

8. House of Fraser aims • No paper based communication • Lower cost barriers by reducing dependence on EDI VANs* • Increased supplier communication • Vendor managed inventory • Reduce maintenance overheads for B2B systems by 50% *VAN – Value Added Network – 3rd party provider EDI services

9. House of Fraser aims • Integrating a supplier should be equivalent to adding a user to a system and not like integrating a new system! *VAN – Value Added Network – 3rd party provider EDI services

10. Problems • Number of adhoc pilots • Proprietary, specialist skills, difficult to configure • Lack of buy in to 3rd party service providers • 3rd party’s interests not HoFs interests • Expensive and difficult to add new trading partners • Cost of EDI VANs • Expensive and difficult to configure for new file types (e.g. XML)

11. Why choose BizTalk 2004 ? • A platform that provides everything • Best strategic fit with IT strategy • Ability to generate a revenue stream • Simple to administer • No change for existing suppliers

12. Partners are important • Covast • Microsoft’s recommended partner • Embedded within BizTalk 2004 • History of EDI connectivity experience • AS2 knowledge and experience • Includes UK-specific EDI translation capabilities

13. Partners are important • Solidsoft • Strategic integration advisors of choice • The UK’s premier BizTalk specialists • Collaborative and results orientated project implementation approach • Applied industry understanding to make a resilient operational system • Understood and delivered upon our ambitious and complex business goals

14. Project • Proof of concept • Gradual replacement of services and existing EDI software • Supplier recruitment • Drive to IP based supplier communication

15. Issues • Moving suppliers seamlessly • Exceptions and “bending” of the standards • Different VAN providers and formats • Range of supplier abilities

16. Web Integration INTERNET Supplier BizTalk for B2B UNIX Supplier AS2 Supplier Value Added Network Electronic Data Interchange Supplier B2b architecture HoF Enterprise HoF Supplier Community HoF Systems HoF Extranet Finance 3rd Party COPOS WMS Mercatus

17. BizTalk 2004 based solution Suppliers Purchase Order Cycle Systems Catalogue 3rd parties 3rd parties NonEDI EDI Recruit Recruit Paper Extranet COVAST CPFR BizTalk Server 2004 Catalogue Management HOF Systems MerchandisingFinancialsCustomer ordering MerchandisingRange planningCustomer ordering

18. Extranet solution • Smaller suppliers • ASP.Net • Classic n-tier deployment • Component-based Scalable Logical Architecture (CSLA) • Write direct to Merchandising system

20. Concessions information • Double recording of sales • Partner “catalogue provider” charged both suppliers and HOF • Encouragement of heterogeneous formats • Replaced with BizTalk • Suppliers now charged directly by HOF

21. Results of project • All suppliers now send ASNs • Previous supplier subscriptions now paid to House of Fraser • New recruitment for all processes over internet protocols • XML standard messages • Lower costs and revenue generation

22. BizTalk for internal projects • Customer Ordering • Long running orchestrations

23. CRM - Recognition Card • Loyalty card based scheme • Joint venture between House of Fraser and 3rd party • Transactions and points owned by HOF • Customer support, statements, fulfilment provided by 3rd party

24. House of Fraser CRM Engine Data Warehouse HTML reports Call Centre CRM Engine Recognition Card

25. House of Fraser CRM Engine Data Warehouse Web Services Call Centre CRM – Recognition Card

26. CRM Web Services • Moving from Oracle stored procedure / Java approach to .Net • Business logic moved towards middle tier • Built around HOF specific CLSA • Security

27. Information Platform COPOS WMS Financials Supplier Customer Partner Future

28. Conclusions • BizTalk and Web Services enable easier heterogeneous environment • Focus is increasingly on SOA • Web services which are object oriented enable greater reuse • Integration still requires management and documentation – BizTalk • Integration projects can bring tangible benefits