November 10, 2024

Case Study: Launching a Custom E-commerce Platform with Centralized Production Database

Project Overview: The project was an ambitious 18-month initiative to create and launch a custom-built e-commerce platform. The platform featured a unique design tool on the frontend, allowing users to create personalized products, and integrated a centralized production database on the backend. This database was designed to automatically route orders to the nearest production center based on the customer’s location, optimizing fulfillment times and reducing shipping costs.

However, the project faced numerous challenges, including resource and project owner changes, scope shifts, software compatibility issues, and vendor changes. Despite these hurdles, the project was completed on time by adjusting the scope to remain within the budget.

Scope and Objectives:

  • Frontend Design Tool: Develop a fully customizable product design tool to provide users with a seamless, personalized experience.
  • Centralized Production Database: Create a system that routes orders to the nearest production center based on customer location.
  • Optimize Production and Shipping: By linking production centers to customer proximity, the goal was to reduce delivery times and shipping costs.
  • On-Time, On-Budget Delivery: Ensure the project was delivered on time, even with resource and scope challenges.

Stakeholders:

  • Internal Stakeholders: 20 stakeholders from IT, marketing, sales, and business development teams, responsible for aligning the e-commerce platform with business goals and user experience.
  • External Stakeholders: 10 third-party vendor stakeholders involved in software development, server hosting, and integration of third-party tools for production routing.

Challenges:

  • Project Resource and Owner Changes: Midway through the project, there was a shift in key team members, including the project owner, which required the team to adjust to new leadership, priorities, and working styles. Additionally, resource changes also occurred on the IT team that led to delays in critical development milestones.
  • Scope Change: Originally, the project was designed to include several advanced features, such as dynamic pricing and real-time inventory updates across production centers. However, the complexity of integrating these features, along with unforeseen technical issues, necessitated a scope adjustment to meet budget and time constraints.
  • Software Compatibility Issues: During the execution phase, compatibility issues arose between the custom frontend design tool and the backend production database. These technical challenges required additional development time and revisions to the initial design architecture.
  • Vendor Changes: Partway through the project, one of the third-party vendors responsible for the production routing software had to be replaced due to contractual issues and inconsistent deliverables. This change further complicated the project timeline and required onboarding a new vendor mid-project.

Execution:

  • Discovery and Planning Phase: The project began with an extensive discovery phase to define technical requirements for both the frontend design tool and the centralized production database. The team worked closely with marketing and business development to ensure the platform would support the desired user experience and business goals. This project was more agile due to the unknown nature of many technical integrations required. Additional discovery and planning was included at each integration point. 
  • Resource and Project Owner Transition: When the project owner and key IT resources changed midway through the project, the new leadership conducted a thorough review of the current project state. This transition period was critical for re-establishing priorities and re-aligning the project team to ensure continuity despite personnel shifts.
  • Managing Scope and Budget: To stay within budget, the project team decided to adjust the scope, deferring advanced features like real-time inventory updates and dynamic pricing to a future phase. The focus shifted to ensuring the core functionalities—custom product design and efficient order routing—were fully operational.
  • Vendor Change Management: The vendor responsible for routing software had to be replaced due to contractual and performance issues. The project team quickly identified a new vendor, and a detailed transition plan was developed to mitigate any further delays. This included a focused onboarding process to bring the new vendor up to speed.
  • Software Compatibility Solutions: The technical team worked intensively to resolve the software compatibility issues between the frontend and backend systems. A phased approach was used, isolating core functionalities to be completed first, while further development on the custom tool’s more advanced features continued.

Results:

  • On-Time Delivery with Adjusted Scope: Despite numerous setbacks, the project was completed within the original 18-month timeline. However, the scope was adjusted to exclude certain advanced features, allowing the project to stay within budget.
  • Seamless Frontend Design Tool: The custom design tool was successfully implemented, allowing users to create personalized products with ease. This feature became a key differentiator for the e-commerce platform, offering a unique user experience.
  • Efficient Production Routing: The centralized production database was launched, and it effectively routed orders to the nearest production center based on customer location. This reduced delivery times by 20% and significantly lowered shipping costs.
  • Vendor Transition Success: The transition to a new routing software vendor was managed smoothly, and the new vendor performed as expected, meeting project deadlines.
  • Stakeholder Satisfaction: Internal and external stakeholders acknowledged the difficulties faced during the project but expressed satisfaction with the final outcome, especially given the efficiency gains in production and delivery processes.

Key Takeaways:

  • Adaptability in Leadership and Resources is Crucial: With changes in project ownership and key personnel, it was critical to reassess project priorities and team alignment. Clear communication and a well-structured handover process minimized disruption.
  • Scope Adjustments Can Save Projects: Rather than pushing through with the full original scope at the expense of time or budget, the team made strategic decisions to prioritize core features and defer advanced functionalities. This kept the project on track without compromising essential deliverables.
  • Proactive Vendor Management: Quickly identifying and replacing underperforming vendors minimized potential project delays. A structured onboarding plan for the new vendor ensured a smooth transition.
  • Technical Risk Management: Addressing unforeseen technical issues, such as software compatibility, required flexibility in both development processes and timelines. A phased implementation approach helped mitigate risks and ensured timely delivery of key functionalities.

Image: Designed by Freepik

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