M&S overhauls technology capabilities

Marks & Spencer has announced a new technology transformation programme as the struggling retailer looks “to become a digital-first business and deliver an improvement in customer experience”. It claims that the initiative, part of its five-year transformation plan, will deliver annual efficiencies of c.£30 million by 2021/22 and drive clearer accountabilities and a more customer centric approach to technology services. There is a one-off cost to implement of c. £25 million. 

Following a review of M&S’s technology capabilities, a new technology operating model is being created, including the adoption of industry agile methods, effective from 1st March. Tata Consultancy Services (TCS) has been appointed as M&S’s principal technology partner and will oversee a simplification and consolidation of its technology supplier base. Core supplier services will transfer directly to TCS and the day-to-day relationship and project management of specialist suppliers will move under the control of the company.

Around 250 M&S technology roles will transfer under TUPE to become TCS roles. And conversations will take place with around 30 individuals whose functions will be carried out differently in the future. Steve Rowe, M&S CEO, says: “We are committed to transforming M&S for our colleagues, customers and shareholders by delivering digital-first retailing across our stores and offices. Technology plays a huge role in this transformation – and having the right partners and model will enable us to be more agile, flexible and responsive. Through our technology transformation programme our business will be faster, simpler and more focused on achieving a seamless customer experience.”