AWS re:Invent 2019: Deckers Brands & Kmart Australia's approaches to retail transformation (RET204)

TL;DR

Kmart and Deckers innovate retail using AWS cloud technology.

Transcript

all right good morning how's everybody doing today great hey thanks so much for joining us today for this retail breakout session my name is Jeff Bramblett and I'm a principal consultant within the consumer vertical of AWS professional services focused on the broad consumer products and services industry today we are really privileg... Read More

Key Insights

• AWS's retail background helps them provide tailored solutions for retail challenges like technical debt and fragmented customer views.
• Kmart Australia adopted a cloud-first strategy to modernize its technology, focusing on cost optimization and innovation.
• Kmart aims to certify 100% of its tech staff in cloud technologies to bridge the skills gap and foster a culture of learning.
• Deckers Brands leverages AWS to decouple its systems, moving from monolithic to microservices for flexibility and speed.
• Both retailers emphasize the importance of a customer-first approach, utilizing cloud technology for enhanced customer experiences.
• AWS enables Kmart to create a real-time data platform, improving decision-making and customer service through live data analytics.
• Deckers focuses on microservices to improve operational efficiency, allowing faster adaptation to customer needs and market changes.
• Training and community building are crucial for successful cloud transformation, as demonstrated by Kmart's SPARC initiative.

Questions & Answers

Q: What is Kmart Australia's approach to overcoming traditional IT challenges?

Kmart Australia is adopting a cloud-first strategy to modernize its technology infrastructure. This involves certifying 100% of its technical staff in cloud technologies to bridge the skills gap from traditional IT systems. By focusing on cost optimization and innovation, Kmart aims to create a self-service culture of learning and improve operational efficiency.

Q: How does Deckers Brands leverage AWS for its retail operations?

Deckers Brands uses AWS to transition from monolithic systems to microservices, which provides greater flexibility and speed in its operations. This approach allows Deckers to decouple its systems, reduce dependencies, and improve customer experiences. By focusing on microservices, Deckers can adapt quickly to market changes and customer needs.

Q: What role does AWS's retail background play in its services?

AWS's origins in the retail sector provide a unique advantage in understanding and addressing the challenges faced by retailers. This background helps AWS offer tailored solutions for issues such as technical debt, fragmented customer views, and the need for rapid innovation. AWS's retail heritage builds trust with its partners and offers insights into effective retail transformation strategies.

Q: What is the SPARC initiative at Kmart, and what does it aim to achieve?

The SPARC initiative at Kmart stands for the Society for the Proliferation of AWS Resources in Kmart. It aims to build a community of learning and innovation within the organization. By encouraging staff to self-form teams and share knowledge, SPARC fosters a culture of experimentation and continuous improvement, aligning with Kmart's goal of becoming a world-class retail technology organization.

Q: How does Kmart's real-time data platform benefit its operations?

Kmart's real-time data platform, developed using AWS technologies, allows for improved decision-making and customer service. By streaming live point-of-sale data across its stores, Kmart can monitor and analyze customer behavior and inventory levels in real-time. This capability enhances the company's ability to respond swiftly to market demands and optimize its operations for better customer experiences.

Q: What challenges did Deckers Brands face with its previous system architecture?

Deckers Brands faced challenges with its previous monolithic system architecture, including deep dependencies between systems, limited agility, and regional latency issues. These challenges hindered the company's ability to release updates quickly and efficiently, especially during peak times such as Cyber Five. The move to microservices on AWS addresses these issues by decoupling systems and improving scalability.

Q: Why is training and community building important for cloud transformation?

Training and community building are crucial for successful cloud transformation because they equip staff with the necessary skills and knowledge to leverage new technologies effectively. Initiatives like Kmart's SPARC foster a culture of learning and collaboration, enabling employees to share insights and best practices. This approach accelerates innovation and ensures that the organization can fully realize the benefits of cloud technologies.

Q: What are the future goals for Kmart's technology transformation?

Kmart's future goals for its technology transformation include modernizing its merchandising system and fully adopting a microservices architecture. By virtualizing its mainframe and re-architecting its core applications, Kmart aims to enhance operational efficiency and deliver better customer experiences. The company plans to invest in modern technologies and methodologies to maintain its competitive edge in the retail industry.

Summary & Key Takeaways

• Kmart Australia and Deckers Brands are transforming their retail operations using AWS cloud technology. Kmart focuses on certifying all staff in cloud technologies to overcome traditional IT challenges, while Deckers moves to microservices for operational efficiency.

• AWS's retail origins provide a unique advantage in addressing industry challenges such as technical debt and fragmented customer views. Both Kmart and Deckers emphasize innovation and customer-first strategies to enhance their retail offerings.

• Kmart's cloud-first strategy includes a real-time data platform for better decision-making, while Deckers uses microservices to improve system flexibility and speed. Both companies highlight the importance of training and community in their transformation journeys.