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From front to back: tech vice-president Dan Lake on Notonthehighstreet.coms tech strategy
The big news from online marketplace Notonthehighstreet.com (NOTHS) in the build-up to peak trading is its new partnership with delivery platform Deliveroo, announced in September.NOTHS is one of the early wave of non-food-specific retail businesses partnering with Deliveroo to add speedy fulfilment options to their offering. Screwfix led the charge in 2023, and others such as B&Q, Ann Summers, Wilko, and The Perfume Shop have followed suit in 2024, opening up rapid delivery via the Deliveroo app to London consumers who need their items pronto.Launching with 15 brands under the umbrella of NOTHS, the partnership enables Deliveroo customers to order personalised gifts on-demand for the first time via the presence of luxury jewellery and accessories retailer and NOTHS partner Hurley Burley on the app as well as access to goods from a variety of small non-food businesses.Paul Wilkinson, Deliveroo product director, paid compliment to his companys integrations team on a LinkedIn post in October, saying their work means consumers have up-to-date product and availability information at their fingertips from launch.These use a new dedicated API [application programming interface] that we have designed from the ground up for grocery and retail partners, and it has taken a whole village of amazing people to build and ship this, he wrote. Contrastingly, the direct tech integration with NOTHS is non-existent at present, according to Dan Lake, vice-president for technology at the online marketplace. The hardware and software integrations are through the NOTHS brand partners, with a NOTHS logo accompanying brand pages on the Deliveroo app to signify the connection.Its an obvious brand partnership that is beneficial to the business, Lake says of the Deliveroo tie-up, which he says generates unprompted NOTHS brand awareness.Weve not invested anything from a tech point of view, but if it goes very well and we want to scale across the UK, there will be some tech investment needed. This approach buys us time to make our platform easier for integrating into third parties.And therein lies the crux of the technology challenge NOTHS faces right now. So much of the focus for the business in its 18 years of operating, since being founded by Holly Tucker in 2006, has been on the consumer experience and its front-end capabilities.But in the past two years, since Lakes arrival from high-flying fitness brand and retailer Gymshark, simplifying behind the scenes and exploring where a buy, not build approach to technology might be more appropriate has been the name of the game.Weve underinvested in the back end, Lake says.In the two years Ive been here, weve gone through a lot of change and been purposeful. Its about going back to what the company was about in the first place shouting about and supporting small businesses in the UK.From a tech perspective, he says, it has been important to articulate NOTHSs definition of customer is a dual definition encompassing the end consumer, but also the small brands selling through the platform.It sounds obvious and it is obvious internally but it can get missed on how we decide what were going to focus on and invest into, he says.Lakes senior leadership position reports directly to CEO Leanne Osbourne, and he has the responsibility of looking after tech products across the organisation. He acknowledges he joined NOTHS primarily for the tech challenge, identifying it as a reverse job to what he faced at Gymshark, where he was engineering director.When Gymshark went through its exponential growth period, which resulted in its 2020 unicorn status as a 1bn-valued privately-owned business, it needed to internally build out tech to support its core Shopify foundations. At NOTHS, theres a need to more comprehensively work with tech partners and stop relying on building everything in house.At NOTHS, were trying to end up in the same space but from the opposite end, Lake says, adding that the business is looking to buy more tech rather than build it in house.My view is we should only invest in or own things that are strategically important to us or we would have operational challenges without we have too much stuff that falls into the commoditised bracket.In what might be welcome news for the retail technology ecosystem, NOTHS is now looking for products on the market where there is commoditisation. Albeit, there is not a bottomless pit for investment.Lake talks of the need for products within a retail organisations tech stack to contribute to strategic and operational performance. With so much built in house, NOTHS finds itself with components that are no longer contributing to either and are holding us back its a typical retail legacy system tale of entanglement.Everything is owned and maintained, so my focus is on identifying whats now been commoditised and what have other people done a better job of building and we can then think about what we can chop away at.After all, were not a tier one tech company.NOTHS has already started its journey of modernisation under Lakes stewardship. The marketplace has migrated promotional capabilities to a third-party engine platform Talon One.Although pretty simplistic in approach compared to most businesses, it represents the first time weve gone out and bought a capability and integrated it in a composable MACH tech way, Lake says.Its a fundamental shift in thinking internally for the engineering and product teams. We deprecated and removed the old promo engine which surprise, surprise we had built. It did one thing and we had the age-old problem that you never come back to it you go on to the next priority and it becomes a problem for people.This change will support in the running of campaigns, but is also set to be a capability utilised as NOTHS explores its options around building a loyalty proposition.This takes a number of things the tech team shouldnt need to be involved in off their plate, so we can focus in the investments we want to make, Lake adds.With e-commerce stack technology, the most commoditised area of retail tech, according to Lake, theres lots of focus on what to bring in to the NOTHS business in this area:Were headless already, but some better decisions probably could have been made you should own the user experience as it can contribute to strategic differentiation.What we hadnt done in the move to headless was consider the service or integration layers just under that, so we built a load of microservices, some with thin veneers into the monolithic platform. We hadnt thought about how to take off parts we shouldnt really own which can be a distraction and they take time with maintenance on bugs.NOTHS is using Contentstack from a headless content management system point of view, but a stream of work currently well under way with Kin + Carta and Valtech is focused on better optimising the digital experience.Lake says the NOTHS search and discovery process starts with its brand partners putting product data in and this is an area where improvements are sought.For trade reasons, we focused on very outer edge of search and discovery and how results had ranked and reranked and were using Google Vertex AI, he adds.Search went live last year and there have been marked improvements there. Were doing tests on browse currently.We have circa 450,000 products on the platform, and surfacing the most relevant of those is a big challenge and we have built a load of tech that doesnt really lean into surfacing the most relevant thing.That is being addressed using Google Vertex, and the work with Kin + Carta involves improving data quality and product information management processes so NOTHS can augment the effects of the AI.In terms of AI strategy, a lot will depend on finding the most suitable partners.A lot of the third-party companies we might buy into will be bringing AI to us because they are integrating it into their products and thats great, Lake says.Thats the benefit you find yourself in as a D2C or online business. You can see the pressure on fellow CTOs working for SaaS businesses because there is a race to market and there will be a number of misses, but we can benefit from that.Lake admits NOTHS was looking at how to use AI for search and discovery, but then Google Vertex came along. He predicts this type of situation will continue to happen for a while as the AI hype and focus continues.Once we have solved some problems and operational issues and removed friction for partners and internally we can think about how to utilise AI for something that is really interesting, he says.Lake describes his team as a lean 40-45 people covering tech and product, and says his leadership style follows a teach-a-man-to-fish mentality.Its no good me steaming in and saying, Cut that out, remove this, and go and buy this, as it wont build the sustainability in the approach we need, he says, adding that the team is realising this new working method is aimed at making their lives easier as much as it is part of a method for driving the business forward.The team covers IT infrastructure, cyber security, and support, with delivery managers, and an engineering team overseeing online, back and front-end, and mobile work across iOS and Android. There are members of the team focused on data analytics and data science, and those looking after platform infrastructure and product management.Good people get bought into the culture, Lake adds.It is their job to ensure the tech serves the five to six million customers NOTHS has in the UK, but under Lakes leadership, they are also increasingly focused on making the lives of circa 5,000 marketplace sellers some of which have started their journeys with Deliveroo this autumn easier and more fruitful.Read more about retail technologyRetail tech leaders from Sweaty Betty and Selfridges discuss levers to pull and tactics to adopt when influencing the boardroom on transformation projectsNew tech from supply chain companies, M&A activity among logistics firms, and H&Ms new fees show product returns is the retail industry debate that keeps coming back
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