John Lewis IT – a customer focussed service

1. John Lewis IT – a customer focussed service Andy Melson

2. John Lewis – a customer focussed IT service

3. 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 JL Financial Services • Group Turnover £9 bn approx • Predominantly UK • No Shareholders

5. PETER JONES

6. Trafford

8. John Lewis Business Model ‘Britain’s Favourite Department Store’ Ist class customer service Value Never knowingly undersold Wide assortment Quality shop interiors Convenient locations

9. John Lewis’s Culture ‘Pbop’ – powered by our principles • As an Employee • Weekly dept/comm training meetings • Directorate and Department Forums in HQ • Ad hoc meetings when needed for particular issues Communication • As a Co-owner • Central Council, Branch Council • Weekly branch and company magazines • AGM • Annual results (bonus announcement) Customer service – external and internal customers

10. Annual Bonus

11. John Lewis’s Culture ‘Pbop’ – powered by our principles • As an Employee • Weekly dept/comm training meetings • Directorate and Department Forums in HQ • Ad hoc meetings when needed for particular issues Communication • As a Co-owner • Central Council, Branch Council • Weekly branch and company magazines • AGM • Annual results (bonus announcement) Customer service – external and internal customers

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

13. Measuring Customer Service in John Lewis

14. Staff survey – ‘happy staff make happy customers’ 40 questions: Company, branch, department, manager, processes, IT Influences manager’s pay

15. 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

16. Focus of IT Improving customer service

17. Measuring IT Customer Service

18. Computer systems support me well in my job? – year 1 Highest branch score Average branch score Lowest branch score

19. Narrowing the IT Service Gap

21. Measuring IT Customer Service

23. Operational Metrics Critical Path Length Incident Logs 8:00 VAT change 7:00 6:00 5:00 4:00 3:00 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2007 2008 Online Availability Operating Deadlines 100.00 100.00 99.50 99.50 99.00 99.00 98.50 98.50 98.00 98.00 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Operating Deadlines Average YTD Average YTD Online Availability

24. Computer systems support me well in my job?

26. ?

29. Beauty Facelift Before After