the cloud for “me”Mass Customization 2.0: meCommerce Cloud Platform

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Link to Demo

http://directstore.logicmix.com/telenet/index.html

But Please read on for the indroduction to the product

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Customization…growing global demand 10 Start-up trends that will be huge in 2012 Trend #3:

Customization • Entrepreneur Magazine - Dec 2011

70% of product strategists want to offer customized products.

• Source: Forrester Research October 2011.

Customers are willing to spend at least 25% more to get products built specifically to their needs.

• Source: The NPD Group Nov 2011

>35% of U.S. online consumers are interested in customizing product features or in purchasing build-to-order products that use their specs.

• Source: Mashable 2011

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MiTeam (Adidas) Launched June 2012

“We expect the market for personalized and customized footwear, apparel and hardware to grow strongly and evolve further in the coming years and will therefore continue to invest in the space”

Adidas Group – Strategic and Operational Opportunities Report 2012

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Movements in the Apparel Industry 2012 Industry

• Move to local production “Made in the USA, Made in France etc• Move to small batch production, maintaining uniqueness with smaller unit

batches• Move to faster turnarounds on product development and deployment• Move towards strong intellectual and copyright controls on apparel• Move towards reduction in sales costs and capital intensive stock holding • Move towards quality and value above volume in apparel production

Retail Customers• Move towards internet buying and global uniqueness• Move towards individual and unique customization, personalization

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Market Challenges Industry dominated by Mass Production

Factories in Far East set the rules:

• Min Order Qty 1000units+• Lead Times – 3-6 months +

Disconnect between Sales & Design in Europe & Nth America and Production in Far East. Flexibility and change are difficult to manage

Customization of technical workwear or performance wear is difficult to manage – changes can invalidate certification

Ability to Scale Customization historically has lead to expensive localised customization not globalised solutions

Net effect…

Pricing – factories charge significant premiums for small batch customized product or do not do it due to fabric and component MOQ’s

Inability to significantly scale small batch customization

Sales cycle are too long (6 months +)

Significant inventory issues

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Logicmix Software SolutionsLogicmix is a cloud computing company that develops mass customization e-commerce platforms for the apparel sector. The platforms link the user interface across the supply chain directly to the manufacturer a fully vertically integrated solution for mass customisation

Our software:

• Makes it easy for apparel brands to provide customized clothing to their customers (B2B and B2C), helping them to satisfy a growing market demand

• Helps our customers to significantly reduce their inventory holding, reduce their sales cycle and enhance their net margins

• Is built by people with a passion for innovation and delivered by people who have a deep understanding of apparel production and customization

Go To Market Strategy

• Build on traction in technical work wear sector but then also enter corporate wear, outerwear, sportswear markets and beyond…

• Targets are brands that currently have revenues from online sales of less than $180m per annum (larger companies will build their own (eg: Nike & Adidas))

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Vision

Transforming Products, Brands and Businesses with our meCommerce Cloud

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SolutionNext Gen. Software Platform built with the following key features:

Acts as a generic platform (i.e. Not a company’s proprietary system)

Supports Complex Customization Scenarios

In built patented certification engineAllows Designers to enhance/extend

design and product permutations using our builder module.

Supports a variety of product typesGreat Visualization Industrial Strength e-Commerce

featuresEnterprise System IntegrationManufacture Neutral – software

output (BOM, spec sheet) can be utilized by 3rd party manufacturer

Actual Screen Shots from S/ware

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Business Benefits Increase flexibility of sales model – enabling a high value customer experience

Faster cost effective product development and deployment times

Increase effective net margin

Reduce Lead times significantly

• Design• Quotation • Samples• Certification• Production

Reduce Inventory significantly

• For our customer• For their customers too

Improve Production Efficiency

• Consolidation/Planning on product, pre-production, component and production

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Primary Target Markets

Technical Workwear

Hi Vis/ Chemical/ Waterproof/ Anti Static

Market Size $5Bn

Non Technical Workwear /

Uniform Corporate Wear

Market Size $25Bn

SportswearOuterwearRainwear

MerchandiseFashion

Market Size $75Bn

2012 2013

Total Market Size $100 Bn

Customization Accounts for 9% of this market (20% of workwear / 5% of other)

$9 Bn

Wholesale Value of Customization market

$5.5Bn

Software Spend = 1.75% of wholesale value (1% of retail value)

$95m

Logicmix Target = 25% $24m

Addressable Market

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Solution Branding

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High Level Components Template Engine

Visual Product Configurator

• Which is embedded in SelectManager and SelectStore SelectManager

• A Desktop Application for • Sales• Customer Service Reps• Manager / C-Level

SelectStore

• Web Store for end-customers (who place order directly) SelectBuilder

• A Tool to help product engineer/Textile Engineer to create product templates

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Design Goals

Generic Platform

Visualization

Support Complex Customization

Product Variety

e-Commerce Features

Enterprise Integration Features

SelectEX

Competition

Template Engine

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The heart of Naboo

Initially with Textile/Garment Focus

Configurable BOM with very complex structures

• E.g. Selectable and customizable Detachable Items, Linings, Accessories• Almost every sub-component can be customized

Pluggable Certification Engine:

• EN471, EN343, ANSI107

Template Engine

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Template Engine Pricing Calculator

• Fixed• Cost Based Calculation based on configuration and material selection

Component Sharing Among different templates:

• Helps stream line and digitize companies’ entire catalog• Help customer to manage their product catalog by linking shared components

to different product/templates, parts (stocking items or CTO/BTO items), raw material

• Reduces Time to market for template

SelectManager

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SelectManager Desktop Metaphor

Yet still accessed via Web Browser

Option to package it as installable application (AIR maybe)

Geared toward more complex tasks

• Clerical Tasks like order processing• Managerial Tasks like BI, Complex Order Searches, Or Chart• Administrative Tasks like company, catalog, user, role, and system management

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SelectManager Login

In this example, the user is browsing catalog by template, looking at configurations shared by others

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SelectManager Catalog Browsing

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The user is using advanced search to find orders that have been “approved”. The right pane is showing the search result details and its order history

SelectManager Search Order and Review

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The user is trying to push the order to the next “state”

SelectManager Order Processing

The Designer

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Visual Product Configurator/Designer For user to configure their end-product

Realistic Multi-View Visualization of product configurations

Skinnable

Real time Configuration Summary, Unit Price Calculation that are updated when a change is made to the configuration immediately

Save Designs

Email Design

Detail Design Summary

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User is configuring a panel color. On the right is a collapsible configuration summary and dynamic EN471 Class calculation. Its template engine to make sure all rules are enforced

Designer in SelectStore

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User is configuring a logo with Dynamic pricing based on logo types

Designer in SelectManager

SelectStore

SelectStore Purely target End User

One primary goal: Get the order

It is essentially a shopping cart but with configurable templates at its core rather than fixed products

• Design a piece of garment• Get a quotation• Confirming order• Check order status

Each store instance can have their own skin, URL, catalog, pricing, etc.

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Browse the store, pick a quick start design

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SelectStore

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Customize the details, step by step, change color, add logo, play around with options

SelectStore

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Add to shopping cart and check out with credit cards or paypal

SelectStore

SelectBuilder

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SelectBuilder

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This is a desktop application that targets Textile Engineers or Product Configuration Engineers to help them create advance templates more easily

Create Configurable BOM like structure for templates with ease

Manager Reusable Parts and Reusable Components

Rules definitions and management

Link to items from Part/Raw material database to use in templates

Import template design artifacts (pictures, drawings, vector graphics) to create the visualization of the product templates

Glue everything together and export deployable template to the platform

Assemblies also linked to visual resources

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SelectBuilder in Action

Add More Rules

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SelectBuilder in Action

When all the pieces are tied together, you get a highly visualized and highly configurable model

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SelectBuilder in Action

Customer Surveys

Demo/Concept Review• Top 10 Workwear Supplier in Europe• €180M Turnover• Product Champion – Gunter Messen (Alsico Managing Director)

Presented the demo to Gunter Messen on the 1st November 2012

Liked:• The template supply chain solution involved in our Mass Customisation platform• The Visualisation solution of our Platform• The end to end solution for Mass Customization

Concerns:• Cost of the platform• The effect the change to a template Mass Customized supply chain model may have

on his existing infrastructure.

Result: • Interested in a trial once we have finalised our software solution development.

Demo/Concept Review• Top 5 Workwear Supplier in France• €80M Turnover• Product Champion – Bruno Blanchard (Mulliez- Flory

Purchasing Director)

Presented the demo to Bruno Blanchard on the 3st November 2012

Liked:• The Visualisation solution of our Platform• The end to end solution for Mass Customization• Ability to consolidate small orders from templates

Concerns:• Cost of the platform• Could his own manufacturers get access to the system

Result: • Interested in a trial once we have finalised our software solution development, but

not necessarily pay for it.

Demo/Concept Review• Top 5 Workwear Laundry Supplier in Europe• €1.1Billion Turnover• Product Champion – Peter Taylor (CWS-Boco - COO)

Presented the demo to Peter Taylor

Liked:• The supply chain elements of our Mass Customization platform• Template model based design• The end to end solution for Mass Customization• Ability to consolidate small orders from templates

Concerns:• Internal resistance to changing existing design and product model• How to manage the transition from 9000 unique products to 50 Mass Customization

templates?

Result: • Interested in a trial once we have finalised our software solution development, added

us to possible tender list for upcoming project in this area.

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Summary Clear Strategic Direction;

Balanced risk/reward opportunity

Large and clear market opportunity

Logicmix enables:

• Focus on value added high margin returns• Expansion of customer profiles and sectors• Increased scalability

Logicmix well placed to execute due to:

• Low cost infrastructure• Management team in place• Support from existing customers

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AppendixAppendix 1 - Analyzing Failure in Mass Customization

Appendix 2 - Logicmix reduces risk of Mass Customization failures

Appendix 3 - Mass Customization Portals

Appendix 4 – More Product Info

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Analyzing Failure in Mass CustomizationBut on the other, there are two more specific reasons for failures of MC companies, according to our research:

First, difficulties encountered by the studied MC companies may be ascertained to possible inadequacies of their toolkits. Many of the toolkits that we studied do not follow the design principles suggested as success factors by previous research: Only 55% instantly visualize consumer input, less than 20% of vendors make use of peer input in the design process, 61% do not provide information on progress of purchasing process. Only 22% allow customers to share their creations with others, just to mention a few shortcomings. The reality of toolkits clearly falls behind the academic research on design parameters of successful toolkits, suggesting a large shortcoming in transferring research into practice. Secondly, problems in making mass customization work may also lay elsewhere. In an exploratory survey of 68 entrepreneurs and consultants active in the MC business (conducted in Oct. 2009), for instance, we discovered that detecting customer idiosyncratic needs and creating flexible fulfillment processes are considered as more serious concerns (average score=4.0/5 and 3.9/5) than creating toolkits that support the sales process (average score=3.5/5). This research, the preliminary results of the Customization500 study, and many interactions with managers during case-study based research show that profiting from mass customization is not an easy task!

The MC Graveyard: Ideas that did not make it: YouTailor & Shirts Ontheflyhttp://mass-customization.de/customization_trends/

For the full stories about YouTailor and SHIRTS ONTHEFLY , head over to egoo.com by blogging colleague Heiko Vogelgesang !

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Logicmix reduces risk of Mass Customization failures

“First, difficulties encountered by the studied MC companies may be ascertained to possible inadequacies of their toolkits.”

Logicmix Designer Module, Manager Module, Mobile Module and provide a comprehensive toolkit for nearly all mass customization scenarios'

“detecting customer idiosyncratic needs and creating flexible fulfillment processes are considered as more serious”

Logicmix Builder Module and manage module, manage the information and supply chain complexities of customization.

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Mass Customization Portalshttp://mass-customization.de

http://www.egoo-journal.com/

http://mass-customization.info/