When a Simple Re-platforming Becomes a Business Transformation Odyssey

Management Summary

In the fast-paced world of eCommerce, the journey from startup to a multi-million dollar enterprise can be both exhilarating and fraught with challenges. This article delves into a real-life case study where a simple re-platforming consultation evolved into a comprehensive business transformation. From the initial struggles with outdated technology to the complexities introduced by rapid growth and the COVID-19 pandemic, the story underscores the critical importance of solid business fundamentals. Whether you're a C-level executive, owner, or decision-maker in a mid-sized retailer, wholesaler, brand, or a software and service provider in the midmarket eCommerce industry, this article offers valuable insights into navigating the intricate landscape of digital transformation.

The Backstory: A Decade-Long Relationship

I received a call in March of this year that took me down memory lane. The person on the other end was a CEO I had crossed paths with several times over the last decade. The company he represented was a classic success story in the eCommerce world. Founded in late 2013, they started with a humble team of four, less than 20 customers, and a makeshift warehouse, essentially an oversized garage.

The Meteoric Rise

In just three years, they had skyrocketed. Their team grew to over 20 people, their customer base expanded to 500, and their product offerings increased to around 1,000 items. Their annual sales? A whopping 4 million dollars. Around this time, in 2016, I first collaborated with their CTO.

The Technical Quagmire

My team and I were brought in to solve a pressing issue: their Magento 1 platform was un-updatable. A deep dive into their system revealed a tangled web of third-party extensions and custom code. Over 70 third-party extensions were heavily modified, making the codebase a labyrinth that was 40% third-party extensions, 40% custom code, and only 20% Magento 1.

The Cleanup Operation

My team and I worked closely with the CTO and his team for several months to clean up the codebase. We made their Magento 1 platform updateable again and shared best practices to help them maintain it. We also optimized some of their business processes, introducing premium third-party extensions.

The Second Act: A Call for Urgency

Fast forward to 2019, and I received another call. This time, it was from the CEO, a person I had never directly interacted with before. The company had undergone significant changes:

• A substantial investment had been secured.
• The team had grown to over 70 people.
• Business had expanded to four other EU countries.
• Three new warehouses were operational.
• The customer base had ballooned to 50,000.
• Product offerings had increased tenfold.
• Annual sales had skyrocketed to over $30 million.

However, this rapid growth came at a cost: profitability had plummeted.

The Underlying Issues

The CEO was candid about the challenges they faced. The focus on rapid growth had led to neglect in maintaining their eCommerce infrastructure. The marketing department, for instance, had installed third-party extensions without proper oversight, causing the system to crash during peak times.

The Leadership Gap

The CTO, who had been instrumental in the company's early years, was struggling to keep up with the pace of change. The company had outgrown him, and it was evident in the quality of the documentation for existing business processes. It was clear: a change in leadership was needed.

A Comprehensive Audit

Once again, my team and I were brought in for an audit. The results were unsurprising but disheartening. The new development team, unfamiliar with Magento 1 and uninterested in learning it, had let the system deteriorate.

Restructuring the Team

The CTO was transitioned to a CIO role, better suited to his skills. We hired a new development team, led by an experienced lead developer. The existing developers, who were not up to the mark, were transitioned to internal product owner roles, serving as a bridge between the business and the new development team.

The Pandemic Years: A Test of Resilience

As we entered 2020, the COVID-19 pandemic hit, adding another layer of complexity to an already challenging situation. The company experienced even more rapid growth, pushing annual sales to over $50 million and expanding the team to over 150 employees. However, this growth further exposed the limitations of their existing eCommerce infrastructure.

Going Undercover: A Unique Approach

To truly understand the impact of these changes, I decided to go undercover within the company, much like the TV show Undercover Boss. I worked in various roles across different departments, from customer support to warehouse operations and marketing. This hands-on experience provided invaluable insights into the company's operations, which I later shared with the leadership team.

The Road Ahead: Transformation Before Re-platforming

The company is now in the process of a full-blown business transformation, a necessary step before any re-platforming can occur. We're developing a publicly accessible roadmap to guide this transformation, ensuring every employee is aligned with the company's strategic objectives.

Lessons Learned: Business Fundamentals First

The key takeaway from this journey is the importance of having rock-solid business fundamentals before embarking on any digital strategy. Without a strong foundation, achieving technical, operational, and customer experience excellence is nearly impossible.

About Me

I'm Wouter Dieters, a seasoned professional in midmarket eCommerce with over 15 years of experience. From running online shops to consulting for various merchants and software providers, I've been involved in over 100 re-platforming projects. I focus on helping businesses solidify their fundamentals to achieve multi-dimensional growth, ensuring long-term success in an ever-evolving digital landscape.

If you find my insights valuable and would like to discuss how we can collaborate or how I can help your business in its digital journey, feel free to send me a Direct Message here on LinkedIn or reach out via my e-mail: [email protected] .