Mark Lenhard, Magento, an Adobe Company | Adobe Summit 2019

Mark Lenhard, Magento, an Adobe Company | Adobe Summit 2019

September 7, 2019 0 By Bernardo Ryan


>>Live from Las Vegas, it’s theCUBE, covering Adobe Summit 2019, brought to you by Adobe.>>Hello, everyone, welcome
back to the CUBE’s live coverage of Adobe Summit 2019, here for two days. I’m John Furrier with Jeff Frick. Our next guest is Mark
Lenhard, SVP of Growth. Part of the big news is
the Adobe Commerce Cloud, Mark formerly with Magento now Adobe. Great to see you, thanks for coming on.>>Thanks for having me. It’s a real pleasure to be here.>>So very impressive, Adobe with their… Their creative products,
sensor and user applications. Really great stuff, people know it. It’s a cloud service, the
transformation’s happened. But what’s really happening too is this platform continues to get built. You guys have been Magento, one of the big pieces of the puzzle. Magento’s got the big piece over there. You guys are a big part
of the Commerce Cloud. Big news here. What’s the Commerce Cloud about? You guys announced it here at the show. When is it going to be available? What’s the features, what’s it do? Give us the overview.>>No, great and again,
thanks for having me. It’s really been a wild year with the Magento acquisition coming in. Really folding in to a suite of products on the experience side
that really are designed to really help companies
transform themselves and really own the entire
customer experience. All the way from discovery through to buy to through review with me,
as we saw this morning. And commerce really fits in
there nicely in the buy section. And what was announced today
with Adobe Commerce Cloud is the opportunity which is available now for our larger mergents and enterprises to get the core Magento platform which our customers know and love. We get that in a way
that’s managed by Adobe. It’s more fully integrated
into the other products and services so you can deliver that full customer end to end journey. And with some hand features
which will happen over time particularly as we get
more data driven insights and over time sensor and AI powered tools.>>You know, I love looking at slides because you can tell a
lot by a slide, right? When they’re laying out these keynotes. Especially kind of architecture slides. When I think it’s usually done by the Adobe experience
cloud is it lays out nicely ’cause you have cloud modules
if you are building blogs. You got the ad cloud, the analytics cloud, the marketing cloud
and the Commerce Cloud. Then you got platform
underneath enabling that. So a lot of nice key couple
but cohesive elements to it. Which really is a testament
to how they’re laying out that experience cloud. What is the Commerce Cloud’s role in that because you guys have
to be highly cohesive to do the kind of levels of commerce that’s demanded in Beta B now. It’s changing to a director
consumer business model. So it’s a consumer like marketing function in a Beta B context.
>>Absolutely.>>How is that changing what Magento was and what’s it turning into as the Commerce Clouds specifically?>>Well, a lot of it is
rally leveraging a lot of the features of
functionality that Magento had. It really just fit in
really, really nicely into that user journey, right? And so where Magento is really slotting in nicely is in that buy section, right? If you’ve got discovery, buy to renew, buy all the way through to renew, Magento and the core platform there really helps deliver that
so that our customers, whether they’re Beta B or Beta C or they’re trying to
go direct to consumer, they’re able to develop that content, that rich content market
to those customers. Drive them to Magento and
enable them to transact and then actually renew and do everything from digital products to physical goods.>>It’s interesting, you
look at those slides too. It feels like an operating environment because you got Cloud,
you guys are on Cloud. There’s a lot of touch points with other pieces of the system. It’s an operating system
basically, almost, not technically but–
>>A platform.>>It’s a platform, yo
got to talk to things. So data, I can imagine, is critical. If you want to do that journey (laughs) and you’re a big part of the buy piece, you got to talk to other
pieces of the platform. How important is the data architects? Can you explain how you guys look at that ’cause now you come into the Adobe fold. They’re data centric,
data is super important. We heard that in the keynote. What’s the role of data in all
this and how do you see that?>>So it’s actually
critical, as you mentioned. And being able to harmonize
that across the platform and be able to have all those
pieces talk to each other so that you can get everything
from behavioral data upfront. I know what you’re doing on a website, I know what yore doing on
Instagram, other platforms, to I know what you’re transacting, I know what you’re buying to
I know what you’re renewing on and what you are coming back to do. Be able to pull all that together, and not just pull it all
together in a data cluster but to be able to actually
take those insights, oh sorry, take that data and
develop insights out of it and then most importantly
take action on it. And so one of the announcements we made really was on analytics
and as we pull that into Adobe Commerce Cloud,
enabling our Adobe analytics to have some dashboards that roll out. We know e-commerce really well, whether it’s Beta B or Beta C, we know what those customers, those merchants need to look at. Be able to spin up those
dashboards right away. So they can not only gather all the data but start seeing the insights immediately so they can take action.>>What I thought was kind
of interesting is that when you used to think that
they transaction was the goal. It’s all feeding, the funnels all feed, they try to get that transaction. And what we heard today,
what’s so important is that a transaction is just one piece of a much broader experience, right, is the word but really of an engagement, an ongoing relationship
with that individual, whether it be a company
or a single person. So I’m interested, from
your point of view, you guys are all about the transactions. It’s funny, it’s weird
it didn’t happen earlier. Adobe is all about the
creator, the marketing and getting it up to that
point of transaction. But it’s really, you
guys just want to get in a virtuous cycle where it continues that multiple transactions
and multiple experiences that support each other as opposed to being really stand alone.>>No, I agree with that. I mean, the transaction’s
obviously really important to our customers and to us.
>>You definitely want it and it’s necessary, I can’t remember the word they used in the keynote and it’s definitely important but it’s not the pinimal kind of cool.>>It’s part of the
entire experience, right? So when customers are buying today, they’re buying experiences
and those experiences include the actual
purchase they’re making. The product, the digital or
physical that they’re making. But it includes all the
way up to that experience, all the content they see before then. How they experience the brand before then. And then likewise, after the transaction, how does the brand follow up and interact with the customer afterwards? Most of our merchants,
all of our merchants, all of our brands are
looking to have lifelong relationships with
customers and so that entire end to end experience is important.>>Mark, talk about the community aspect. We covered your share of Magenta before the acquisition last
year, the key was there. We were, I was very impressed. I had no idea the depth of community that you had in that company. When you guys came over,
what was the feedback? What’s the result, what’s the plan? Can you share some update
on impact in the community and the role of the community
for the Commerce Cloud?>>Absolutely, the community,
for us, in near and dear. It is the core of who Magento is and was and it’s transferred over now to Adobe. You probably heard this
morning, Chante Newt talking about how important,
as soon as you got out on stage how important community was. The Magento community but the
broader now Adobe community. We’ve got about 375,000 community members. These include developers, partners that are really core to the functionality. About 50% of our code is
developed by the community and developers in the community that submit that code back to us. And they are the life blood of how we grow and support the business going forward.>>So what’s the fit
between Adobe and Magento because you mentioned something that might be a nuance point. You have (mumbles) a very open source, kind of co-creation on the product side. Adobe is a creative entity.
>>Absolutely.>>Talk about the fit between your culture at Magento and the Adobe culture and where they are today
and where they’re going.>>There’s absolutely some
overlap in our community and a lot of our partners
are out helping our merchants create content, create
that brand experience and they leverage the creative side in the products and the suite of services that the creative side
of the house provides and then that feeds in
directly into driving awareness and marketing and sales. So a lot of overlap there.>>Growth question for you or kind of as more of an operational question. Any major shifts, certainly Cloud, we’ve see that it’s here
for, been for a long time. But as you start to see new apps and new kinds of business models emerge that are continuing to transform. Operationalizing new
things is very difficult for an enterprise or a business. Sometimes culture,
sometimes it’s tech, IT, sometimes just people
want to know what a new environment is like, tools and technology. So getting something operationalize, that’s a game changer is hard. How do you look at that? How do you guys approach that
market on a go-to market, on how you guys deal
with the marketing mix? What are some of the things that you do? Take something that’s
new and new capability and operationalize it for a customer.>>Yeah, there’s a couple of things. One is the culture which you develop. So the people and really working to train and develop a culture
and hire the right talent that is, quite frankly,
just open to change. You’ve got to be agile
’cause I could come in here and tell you five things
you’ve got to do today, tomorrow it’ll be totally different. And so you’ve got to be agile and build that culture of agility. The other thing I’d say is find partners who will help you simplify the problem. It’s very easy to create
a lot of complexity when you’ve got change. But Shante did a great job this morning kind of showing the dashboards
that we use internally. And that was through a lot of work and a lot of process to get that but we had to simplify it down into what are the key metrics
that you really need to watch. And I’d say that’s the third thing, is you’ve got to follow data,
you got to be data driven and develop insights out of that data ’cause things are too
fast, moving too quickly, to have years to develop
a gut reaction to it. You’ve got it, you’ve got to see the data and you’ve got to see it
when it happens in real time.>>And moving fast, that’s good but you got to apply that to data as well.>>That’s right.
>>This is key.>>If you’ve got the right platform. We’re trying to develop very real time, relevant rich platform that
you can get that data out in a way that’s digestible
so you can take action. How does a company take advantage of the data that they have? What are some approaches that you guys see as low hanging fruit, used cases? Some people could be overwhelmed with data either if the other day we
heard from your customer at the Dollar Shave Club talking about there’s so many data points
coming in from multiple directions and going out
in multiple directions too, omni channel, whatever
you want to call it. How do you get your hands on that data? It’s overwhelming. What’s some approach that people can take?>>So a couple of things here. One is decide before you
even start looking at data. What do you think is important? So really simplify and clarify it down to what you need to be tracking. And then, it’s very easy to
have 20 different systems that you bring in all separately and try to stitch them together. It’s more important and one of the things we try to do with Adobe Commerce Cloud is bring together something
that’s already pre-integrated together to make it easier
to get up and running and get going because it is very difficult to pull all that together
unless you’ve got a framework of things working together. And then having the dashboards pre-built so you can get up and running. And then over time you can
tweak it and customize it but getting those core insides out there.>>We was talking on cam before we started about operational AI
vs or operational data vs tryina boil the ocean over. And that’s the best practice
or approach you see.>>Yeah, I call it a little
bit of more operational AI which there’s so many different used cases for making data during decisions and things that are really top
of mind for merchants today. We hear a lot about
one-on-one personalization. Which is super important. Particularly as you move from
being to our computer-based e-commerce to mobile to voice. Getting that personalization
right is critical. But there’s a lot of things on the back end too that can happen. How do you tag pictures,
how do you tag merchandise, how do you really streamline
the fulfillment process? So you’re getting the
product from the right place to the right person as quickly
and cheaply as possible.>>One of the questions
or one of the comments on the keynote I thought was great from the engineering talk, part talk track was open data, open APIs. Very critical, we’re
big believers of that. But as customers are challenged
with first party data, they’re relying on these platforms like Facebook, Instagram, and other things that are not necessarily being more open. The stricter access to the data. I mean, Twitter’s all got datas out there, you can get that data. Harder to get LinkedIn data,
it’s hard to get Facebook data. How do you look at those silos? How should customers be thinking
about their data strategy knowing that some of it might only be able to get through scraping
or other techniques. It can’t mainly be reliable. How do you guys look at that? What’s the approach that they have, more or first priority on their side or is there a methodology or mechanism that they could deploy?>>So no silver bullet but I think, first and foremost, always have
to keep the customer first. And so trust and transparency
is of the utmost important. And so it’s important and we
do this in everything we build today is to be able to build
that trust and transparency both with our own direct customers, the merchants we may have but
also it’s equally important the trust that we’re
building for that merchant with those end customers. That has to be paramount
to everything else. When in doubt, air on the side
of creating real deep trust and transparency with customers.>>That’s awesome. Talk about the culture at Adobe. You’re now part of the
company from Magento. You had a good culture there,
good fit as you mentioned. For the folks that are watching here and seeing the keynote,
the company’s transformed and continues to transform with Cloud, with data and on the right
way, from our estimation. For the folks that
might not be comfortable or not, or might not
know Adobe, I should say, what is it about, what’s
going on at Adobe? What’s the magic here? What’s the top story?>>There’s a lot going on and
the integration with Magento the last, I guess, nine
months now, it went by fast, has been, it’s been
phenomenal, as you said. Not only has there been a strategic fit between the product set and what Adobe is trying to do overall but a cultural fit as well. They’re really dedicated
to creating an environment where people can thrive and
being respectful of individuals and really driving and
helping transform the world. And so when you’ve got a mission of really how do you
help digitally transform whether it’s Beta C or Beta B customers? It’s amazing, there’s just a lot going on.>>Final question, what’s
your plans for this year, what’s your goals? Grow the commerce piece, get a chip, can you get it available,
what’s the, any objectives?>>Continue to scale up a
platform which is just phenomenal. The only one in the industry
that really delivers great Beta C and Beta B experience is and really scale that up and help deliver, particularly for our larger mid-market and enterprise customers. Help them deliver on the
promise that is the digital age.>>And for customers, what should
they be thinking about now?>>It goes back to how
do you really develop that customer journey that builds a brand. The most important thing is your brand and what you’re doing there. The customers have higher,
the end user customers have higher and higher
expectations these days and how do you really follow them through the entire customer journey.>>It’s been the holy grill
that we’ve been chasing for a long time now. It’s a visibility issue.
>>It’s really com-feh-sh-io-n. Yeah, absolutely, it’s
really com-feh-sh-io-n.>>Mark Lenhard here on theCUBE. Thanks for coming on and
sharing your insights, appreciate it.
>>Thank you very much.>>Live feed coverage here. I’m chilling with Jeff, with Mark. Stay with us for more
after the short break. (upbeat music)