Motorola

How Motorola Scaled its Global D2C Operations Accelerating the transformation of a leading brand into the new digital era.

How Motorola Scaled its Global D2C Operations 2 01. Global Means Local 02. Unlocking the IT Potential 03. Channel Unification 04 06 09 Table of Contents

As the consumer electronics market gets increasingly competitive, established companies need to do their best to outpace the new players coming in. The pressure to survive can lead to a company’s decision to change its strategy or undergo cost reduction measures. While user penetration rates for consumer electronics are expected to increase by over 20% in the next few years, revenue growth is forecasted to slow down and the average revenues per user will decline according to the 2020’s Electronics & Media eCommerce Report from Statista. This should act as a wake-up call for companies to review their business models, optimize their sales channels, and build a closer relationship with their consumers. Brand loyalty is now more valuable than ever. Anticipating these changes, mobile communications pioneer Motorola started exploring new ways to evolve their presence in the digital space. After an extensive search, they chose VTEX to be their partner for business innovation. Offering more than just an e-commerce platform, VTEX helped bring to fruition the digital vision Motorola set out to create. François Laflamme CSO / CMO at Motorola Global “After an extensive search, Motorola decided to partner with VTEX, a software company that fulfills our digital vision.”

How Motorola Scaled its Global D2C Operations 4 How Motorola Scaled its Global D2C Operations 01 Global Means Local

How Motorola Scaled its Global D2C Operations 5 Global Means Local There are three core teams spread across three continents serving all countries: the Development (or DevOps) team in Bangalore oversees the production of the websites, apps and integrations, the Publishing & Branding team in Chicago manages all the content for the non-commerce websites, while the Marketing team in Europe is responsible for all marketing initiatives. Motorola’s operations are structured to allow digital-first countries to run independently and become full-stack business entities. Their global team is distributed across the world to both guide and support the evolution of their local endeavors. Upon choosing VTEX as its global platform, a migration plan was drawn and within ten months, they were able to launch fully-functional websites for 37 countries. From this list, 14 have e-commerce integrated from day one and another 12 are slated to be transactional in their second phase. The rest will remain as pure content websites.

How Motorola Scaled its Global D2C Operations 6 A successful global business requires understanding the specificities of local laws and regulations and to demonstrate a certain level of adaptability. Differences in international regulations can vary greatly: as a manufacturer, Motorola is unable to sell directly to consumers in the European Union whereas this is not an issue in the United States, hence why they only had an online catalog without e-commerce in the region. Driven by the desire to open new channels, promote efficiency and reduce their operational costs, the European operation underwent a huge digital transformation with VTEX playing a consultative role. To overcome the limitations of European regulations, VTEX recommended that Motorola employ a full commerce partner to sell and fulfill orders on their behalf. They changed their main European warehouse from Amsterdam to Poland. Despite Motorola’s initial plan to merge their operations with Lenovo’s distribution center in Ukraine, they realized that outsourcing to a third party can bring better results, as demonstrated by the 30% decrease in delivery times for their European markets.

How Motorola Scaled its Global D2C Operations 7 How Motorola Scaled its Global D2C Operations 02 Unlocking the IT Potential

How Motorola Scaled its Global D2C Operations 8 In almost every digital venture, the ability to integrate new capabilities faster without disrupting the existing business becomes a huge competitive advantage, especially in e-commerce. Leveraging the existing DevOps team and VTEX’s low-code development platform VTEX IO gave Motorola the power to deploy new projects in a matter of weeks, not months - speeding up time to revenue. Documentation and training were crucial in shortening the learning curve of Motorola’s developers. Using VTEX IO’s framework, the DevOps team were able to code from small UI elements to build complex components and go live fast and efficiently. The platform’s native multi-language and multi-region architecture and modular design system were built for global enterprise companies like Motorola, making the most out of their internal resources by utilizing technology that can easily scale their operations worldwide. Unlocking the IT Potential

How Motorola Scaled its Global D2C Operations 9 The collaboration between their business and IT teams became more successful by shortening the feature-request life cycle and streamlining their workflows. Now they have ownership of their evolution roadmap as they can develop, test, and implement their own features, at their own pace, with their own team. They can build their own experiences without relying on VTEX, even for external integrations. The scalability of the solution was crucial for fulfilling Motorola’s global ambitions. Every feature, component or capability added serves all the countries, with minimal effort. This is particularly handy when it comes to launching or promoting a new country. By adopting a template from components previously created, the time to live is drastically shortened. Their most impressive streak? Eleven websites launched in two weeks, averaging close to one per day.

How Motorola Scaled its Global D2C Operations 10 How Motorola Scaled its Global D2C Operations 03 Channel Unification

How Motorola Scaled its Global D2C Operations 11 Unified commerce has evolved from an emerging trend to a necessary strategy to thrive in today’s connected world. However, businesses still struggle to master the distributed management of their product offering and customer experience. As a manufacturer, selling direct-to- consumers became an effective strategy for Motorola to get to know their audience and offer a consistent brand experience. From content to post-purchase, VTEX Commerce Cloud enables Motorola to manage the relationship with its customers by combining headless front-end architecture and distributed order management. In order to unify B2B and D2C orders in a single channel, Motorola designed its e-commerce operations to address both scenarios. They created a transparent UI where a B2B user can log in and be presented prices different from a D2C user, as the system loads specific price tables set for that customer based on its unique commercial conditions. Channel Unification To make B2B management more efficient, Motorola developed an integration with its proprietary tax calculation system. The app, developed on top of VTEX IO calculates the rules from their ERP and looks this up through their tax system in China. Automated tax calculations and multi-level price tables made B2B operations scalable for Motorola. Unifying sales channels through VTEX Commerce Cloud also meant new merchandising scenarios, enabling them to cluster users and deliver segmented content and promotions. They could also customize the order flow which opened upsell opportunities by offering customers the chance to add the product’s warranty to the final purchase. It all started with the need to optimize costs. Soon, Motorola discovered other reasons why the switch to VTEX was the right decision: merchandising capabilities, IT empowerment, better customer service, and unification of sales channels added up to a staggering 25% increase in conversion rates, setting Motorola’s bar very high in the digital game.

How Motorola Scaled its Global D2C Operations 12 See more at: vtex.com Thanks for reading. How Motorola Scaled its Global D2C Operations