Building a Foundation for Growth and Innovation

Transcription

1 Building a Foundation for Growth and Innovation Charming Charlie 2015 John Hnanicek, CIO, charming Charlie March 24, 2015

2 Introduction John Hnanicek Introduction John Hnanicek, CIO Charming Charlie Fantastic, fun and energetic culture Willing & eager to accept change Realistic approach Business and technical insight Strong Business relationship and engagement Open and frank dialogue Regular communication on / off site Ongoing AMS application support partner OLR is proud to be a partner the Charming Charlie organization! 2

3 Overview Scope, Footprint and Timeline Catalyst for Change Implementation Detail and OLR Partnership Process / Change Management Best Practice What s Next? 3

4 Company Overview One of the fastest growing, award winning, specialty retailers in the United States as 2013 ACE Awards Specialty Retailer 330 stores across 42 states ranging from 3,500 to 15,000 square feet The Experience: Feels like an upscale boutique, with upbeat music and friendly sales associates The Merchandising: Assortment of approximately 9,000 choices per store The Value: Guilt-free shopping experiences with prices from $5 to $50 Charming Charlie

5 Manifesto 5

6 The Catalyst for Change Growth Accuracy Profitability Support global expansion beyond US and Canada Visibility into 9,000 SKUs per store Increased headcount to support manual process and growth Charming Charlie 2015 Inability to allocate based on sales demand Inaccurate store inventory Unable to predict sales inventory and gross margin Diminishing gross margin through markdowns AddiFonal operafng costs for handling processes (store to store transfers) Missed sales and markdown liability with case pack items 6

7 What s included in scope? SCOPE Retail Merchandising System (RMS) Retail Trade Management (RTM) Retail Price Management (RPM) Retail Invoice Match (ReIM) Store Inventory Management (SIM) 7

8 Oracle s Solution Footprint for Retail CUSTOMER INTERACTION Store ATG Commerce Call Center Catalog Field Sales Field Service Loyalty MarkeFng BUSINESS OPERATIONS Merchandise Planning and OpFmizaFon Assortment Planning Merchandise Financial Planning Space Profiling Sourcing & PLM Manufacturing PLM Sourcing Space Compliance Regular Price OpFmizaFon Demand ForecasFng Inventory Planning Replenishment Warehouse Management Item Planning Size Profile OpFmizaFon Supply Chain Planning Supply Chain ExecuFon Home Delivery Category Mgmt Markdown Price OpFmizaFon AllocaFon Value Chain CollaboraFon Replenishment Opt TransportaFon Management Merchandise OperaFons Cost & Deal Mgmt Pricing Mgmt Purchasing Sales AudiFng Import & Trade Management Invoice Matching Inventory Management and ValuaFon Store & MulF- channel OperaFons Store Inventory Point- of- service Management Returns Mgmt Order Management Workforce Scheduling CORPORATE OPERATIONS Financials Human Resources CompensaFon Real Estate Projects Indirect Procurement Learning Management Help Desk Compliance Master Data Management (Item, Vendor, Customer, LocaFon) Proposed Oracle ImplementaFon Oracle modules Implemented already/in progress 8

9 Getting Started Define Build Setup Develop MiFgate Project Phase Deliverables Project Roles Communications Cadence Project Governance Strategies: Technical Architecture Change Management Training Testing Rollout Post Go Live Support Risk Assessment Dialogue with Sponsors 9

10 Project Governance Steering CommiZee ExecuFve Sponsors, Business Sponsors Remove Road Blocks, Overall Business Strategy, Minimize CompeFng PrioriFes Program Management Project Sponsors, Project Managers Oversee all project deliverables, Program communicafons, Proper resource allocafon Project Team Process Owners, Subject MaZer Experts Own complefon of deliverables, Experts on process changes, Training, Evangelists for process and solufons 10

11 Preliminary Schedule Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 A S O N D J F M A M J J A S O N D J F M A M J J A S O Proposal Select Vendor Scoping Ini-ate Design Development Tes-ng Deployment Closing CC Board Approval CC Target Go Live Date CC ConFngency Go Live Date (20% or 3 mo. confngency)

12 IT APPLICATION LANDSCAPE

13 Critical Success Factors This is NOT an IT project; It is a business project sponsored by Business and supported by IT. Maintain clearly defined change management and project governance processes, and communicate them to the organization. Commit to key resources being available, set expectations, and hold each resource accountable throughout the organization. Communication is key. From frequent status updates, to key milestones ensure that everyone is aware, regardless of their role. Measure success and celebrate achievements along the way. Stay true to the adoption of industry best practices with zero modifications. Don t be afraid to let go of the status quo. 13

14 Guiding Principles NO Customizations Keep it Simple Solutions don t need to be complex to be effective Monitor Budget and Timeline Control Scope Deliver Value The implementation of Oracle will support the business goals that CHARMING CHARLIE S current systems cannot Design for tomorrow System design should accommodate future state business requirements The right partner with OLR 14

15 The Nine Levers Implementation Approach- Proven Methodology from OLR+ governance strategy Process- Utilize industry best practices and the Oracle Retail Reference Model Organization- Project team, key business and IT resources plus industry experts from OLR Software- Oracle Retail Merchandising Suite + Store Inventory Management Reports- TBD during blueprinting and planning Interfaces- TBD during blueprinting and planning Conversion- TBD during blueprinting and planning Enhancements- Vanilla implementation using best practices and NO MODIFICATIONS Technical Modifications- Third party hosted and managed solution 15

16 Merchandising Impact Support domestic store growth (Current system will reach its limit around 350 stores.) Ability to support international expansion Reduces errors during store execution of transfers, adjustments, etc. due to system issues Realize efficiencies by employing industry best practices on merchandise hierarchy setup and price management Improved DI support by maintaining HTS code, freight factors at style level Automates and streamlines pricing strategy execution, ability to set regional pricing and meet competitive pricing targets Scalable operational processes like Reclass, Markdown 16

17 Why Allocation? Better manage new stores by building sister store capabilities in the system Be able to forecast by understanding future needs vs. allocating only using selling history Ability to use blend of color family and hierarchy (can only do by color at present), attribute Improve Replenishment capabilities 17

18 Accounting Impact Ability to improve vendor setup and management Highly configurable matching tolerance thresholds Supports different legal entities/multiple countries Improved credibility for the audit process Reliability in inventory management process 18

19 6 Steps for Managing Change 1. Clearly describe the change vision and goals. 2. Actively involve leaders in owning the change. 3. Assess change impact and plan how change will be managed. 4. Engage and prepare employees to adopt the new way of working. 5. Align the organization to enable and reinforce desired behaviors. 6. Monitor adoption of the change to ensure desired outcomes Stakeholders ü Help design communica-on methodology ü Manage risks ü Determine success factors Process Owner ü Iden-fy champion ü Create communica-on plan SME ü Create training and rollout strategy ü Train the trainer ü Help understand the change ü Reduce discomfort and confusion Charming Charlie

20 What s Next? What s next? 20

21 Charming Charlie 2015 Questions?