OrderDynamics operates a “product” business model, in which the company provides retail clients with customizable ecommerce platforms that allow a retailer to enter the online market place with minimal capital expenditure and skill levels. The platforms are scalable to suit the retailers’ business requirements. OrderDynamics offers a suite of products that include tools to convert “big data” into “actionable insights,” order management systems that connects retail inventory with orders across channels, and a cloud based commerce platform. In a work-for-hire business model that the company operates alongside its product business model, a global team of retail and technology advisors help customers to design, implement and run these software platforms.
Michael Ross and Andrew McGregor found eCommera in 2007. Prior to eCommera, Michael Ross was involved in setting up Shop Direct, Glasses Direct and Figleaves.com. In June 2013, eCommera acquired OrderDynamics to expand the suite of its products and subsequently went through a rebranding and renaming process to OrderDynamics as the company felt the name better reflects the nature of its product suites. eCommera went through several funding rounds, raising around $51m to expand in the US and Europe. The main investors of eCommera are Dawn Capital, West Coast Capital, Frog Capital, ePlanet Capital, WPP and WTI.
CUSTOMERS – WHO THEY ARE:
OrderDynamics serves retail clients who have online operations or would like to expand into the online arena. OrderDynamics supports House of Fraser, Asda Direct, Clarins and Neiman Marcus, amongst others, with their online operations & strategy. It has more than 80 clients across 33 countries. Known customers include: H2O+, Pret a Manger, Eclipse, Defacto, Laura and Quick Silver.
ENGAGEMENT – VALUE CREATION PROPOSITION:
OrderDynamics creates value for its retail customers by providing pre-integrated (with other key retailer software) ecommerce platforms that allow a retailer to enter the online market place with minimal capital expenditure and skill levels. OrderDynamics products enable retailers to set up an online trading operation or expand their existing platforms. OrderDynamics will handle all the technology burden of implementing and maintaining the platform.
Once the platform is set up, OrderDynamics is able to create analytical insights that identify online customer behaviour and profit maximising opportunities. It also has software that helps inventory management in an Omni channel environment. OrderDynamics works with its clients on a partnership basis to develop, implement and improve online solutions. For example, OrderDynamics team and Asda’s business team worked as a unit to roll out multichannel offerings such as “Click and Collect.”
DELIVERY – THE VALUE CHAIN:
OrderDynamics delivers its products via OrderDynamics’ website. The software remains on OrderDynamics’ servers, so customers do not need to invest in expensive servers or other IT hardware and software. The solutions are therefore “cloud-based” and delivered via internet and can be upgraded or new functionality added on demand.
MONETIZATION – VALUE CAPTURE:
OrderDynamics gains a share of the commercial success of the projects it implements for its clients. For example, OrderDynamics helped the House of Fraser’s online sales to grow to more than £100m by redesigning and supporting the online business. OrderDynamics takes a share of this revenue.
The Sunday Times: Tech Track 100
Eseller: How to use:ecommera
retailTouchPoints: ECommera Rebrands As OrderDynamics
The Telegaph : eCommera raises £25m to conquer the US
The Entrepreneur:Michael Ross, eCommera
Written by Parthipan Paramsothynathan and edited by James Knuckles under the direction of Prof Charles Baden-Fuller, Cass Business School. This case is designed to illustrate a business model category. It leverages public sources and is written to further management understanding, and it is not meant to suggest individuals made either correct or incorrect decisions. © 2016
Published 21 April 2016