Standardizing Technology to. Improved Customer Experience 3/26/15

Transcription

1 Standardizing Technology to Drive 2014 Optimized Operations O V E R V I E W and Improved Customer Experience 3/26/15

2 WHO WE ARE: LUXOTTICA GROUP

3 OVER 50 YEARS OF EXCELLENCE Key Figures 1 Group >45 Brands >75MN Manufactured Frames > People >8MN OneSight Patients 72MN Customers 4 Logistics Hubs >7.000 Stores 130 Countries

4 SUCCESS STORY CONTINUES Consumers are statistics. Customers are people. 3.1bn WHOLESALE SALES 4.4bn RETAIL SALES 7.6bn GROUP SALES

5 OVER 50 YEARS OF CAREFULLY PLANNED GROWTH Acquisition of the license Enters the Group / Inception Leonardo Del Vecchio founds Luxottica di Del Vecchio enters the group e C.S.A.S. which in 1964 was transformed into a joint-stock company named Luxottica S.p.A / The first Luxottica brand optical eyewear collection makes its debut at the MIDO international trade fair in Milan / OneSight launched. The foundation provides free vision care and eyewear around the world to those in need / Luxottica Group is listed on the NYSE / Acquisition of LensCrafters in North America

6 03 05 Acquisition of the license Enters the Group 07 Includes: Oliver Peoples and The Paul Smith License to Present 2000 / Luxottica Group is listed on the Milan Stock Exchange s Mercato Telematico Azionario managed by Borsa Italiana / Acquisition of Sunglass Hut, Brazil and Mexico / Acquisition of GMO, Latin America / Acquisition of Sunglass Hut / Acquisition of Tecnol, Brazil / Acquisition of OPSM, one of the leading optical retailers in Australia and New Zealand / Acquisition of Cole National in North America / Acquisition of Sun Planet / Acquisition of Glasses.com

7 THE BEST BRAND PORTFOLIO IN THE INDUSTRY ENTERS THE GROUP Proprietary Brands Licensed Brands

8 PEOPLE ENVIRONMENT A VERTICALLY INTEGRATED BUSINESS MODEL

9 WHO WE ARE: Manufacturing

10 MANUFACTURING Where We Are Foothill Ranch (CA) Agordo (BL) Dongguan Foothill Ranch (CA) Agordo (BL) Dongguan Sedico (BL) Cencenighe (BL) Columbus (OH) Lauriano (TO) Pederobba (TV) Dallas (TX) 50% of production is Made in Italy Rovereto (TN) Memphis (TN) Atlanta (GA) Campinas Bhiwadi

11 WHO WE ARE: Wholesale

12 WHOLESALE Coverage and Distribution Model A Global Coverage With a Selective Distribution 130 countries, 5 continents Leadership in key markets: more than 40 direct subsidiaries representing over 90% of sales Reaching approx. 200,000 doors Leveraging a very strong brand portfolio Potential for additional growth from existing and new brands A differentiated distribution strategy by brand Various new opportunities Emerging markets New channels: department stores, travel retail BRAND POSITIONING LUXURY PREMIUM FASHION FASHION LIFESTYLE No. DOORS / / / / Client-oriented service: a key differentiator

13 WHO WE ARE: Retail

14 OPTICAL SUN & LUXURY

15 Retail Network Global Leader In Optical And Sun Retail - 7,000+ stores NORTH AMERICA EUROPE OPTICAL SUN OPTICAL SUN CHINA & HONG KONG MEXICO MIDDLE EAST & INDIA OPTICAL SUN SUN SUN WESTERN LATAM BRAZIL SUN SOUTH AFRICA SUN AUSTRALIA & NZ OPTICAL OPTICAL SUN

16 Labs: Leading Industry Innovation

17 Excellence in Lens Finishing Labs Leading Industry Innovation Oakley Columbus Unique global footprint 3 central labs in North America 900+ in-store LensCrafters 1 Oakley lab 1 lab in China South American Labs EyeBiz Other Partnerships GMO Dallas Memphis EyeBiz China Operating 365 days, servicing ~3,000 stores ~20 million lenses per year Global Support for our brands LensCrafters Target Pearle Sears GMO OPSM China LC Europe

18 Rx Operations Undisputed Lens Leadership At the forefront in lens innovation, introduced more than 120 new products over the past three years Premium offerings Digital lenses Oakley optical sport lenses Exclusive Ray-Ban optical lenses

19 Rx Operations State of the Art Technology Processing New internally designed anti-reflective coating New exclusive hard coating Multi-axis technology enabling a perfect fit In-store technology Digital lens capability & anti-reflective coating in one-hour Ray-Ban RoX inking technology AccuFit software direct link to lab

20 WHO WE ARE: Vision Care

21 WE ARE EXPERTS IN VISION CARE Manufacturing Distribution Vision Care Philanthropy Providing vision care since 1988 Serving more than 36 million members through 10,000 clients Fastest growing managed vision care company in the industry

22 FASTEST GROWING IN THE COUNTRY 36 MM members 10,000 clients (MM) 40 12, ,000 8, , ,000 2,

23 Vision care is important to your entire family! Babies & Toddlers The American Optometric Association recommends babies should receive their 1 st professional eye exam at 6 months and again just prior to entering school at 4 years old. School-Age Children 1 80% of learning in the first 12 years comes through the eyes. And up to 12% of children may have vision problems that can affect learning. Adults 2 12% of adults require a form of vision correction but don t use any. Every yearly eye exams can help detect vision correction needs, as well as, non-vision related conditions. Seniors 3 Vision loss can be a contributor to loss of independence. Serious eye conditions like macular degeneration, glaucoma & cataracts are most prevalent in people over the age of Vision Council February 2012 Parent for Child Report 2 Prevent Blindness America. http// 3 - Vision Watch Vision Correction Standard 2012

24 Award-winning service day & night 362 days a year, we re here 99.5% 1 st call resolution rate 15 sec. avg. speed of answer Monday Saturday: 7:30 11 p.m. ET Sunday: 11 8 p.m. ET Skill-based routing so your calls are answered by the right vision benefits expert every time Certified Center of Excellence by Benchmark Portal 5 years in-a-row We are accessible, helpful, & great at what we do.

25 EYEMED S FOCUS ON TECHNOLOGY THE FUTURE OF EYEWEAR Positioned for success: EyeMed is adjusting its managed vision care strategy so members can utilize their benefits with wearable devices. In fact, connecting wearable technology with insurance will be one of the key drivers of its adoption and growth. THERE S AN APP FOR THAT! Members get fingertip access to: Provider locations and driving directions Benefits eligibility In-network benefit details ID card FAQs Help line Log into app, shake phone for ID Card! INDUSTRY FIRST! NEW SMART LOCATOR DIGITAL OPTICAL TECHNOLOGY Digital Eye Exams A more precise and accurate exam than traditional measures so employees get the most accurate care in the industry Captures retinal images to compare and track care over time often more accurately identifying health conditions before they become more serious ACCUFIT TM Digital Measuring Five times more precise than manual measurement Measures the exact location of your pupil, the spacing of your eyes, and the shape of your glasses for the most effective fit

26 THERE S AN APP FOR THAT First In The Industry Members get fingertip access to: Provider locations and driving directions Benefits eligibility In-network benefit details ID card FAQs Help line Log into app, shake phone for ID Card! Available today for iphone users, coming soon for Android users! Want to learn more? Click on the picture above to check out our video.

27 EYEMED TEAMING UP WITH ONESIGHT Nonprofit organization providing sustainable access to quality vision care and eyewear in underserved communities worldwide. The Need Lack of access to vision care is a leading global health issue mm adults and children suffer from vision loss across globe OneSight Impact Since 1988, OneSight helped more than 8.5 mm people in 40 countries. OneSight vision clinics in 13 countries and 18 states. Sustainable vision centers in West Africa and North America. More than 1.1mm students in North America served. 563mm people could have vision restored with glasses. 2 1 Centers for Disease Control 2 American Optometric Association

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29 Luxottica s Journey to Global Standardization

30 Luxottica s Journey To Global Standardization The vision for global standardization was to deliver best in class, business driven, integrated systems that provides accountability, drives faster/smarter processes, and supports future growth. Visibility: A single, global view of the business. Productivity: Improved operating efficiencies via a common platform. Sustainability: Stronger accountability to support our growth through acquisition business strategy. Envision Optical SAP Retail Oracle RPAS Luxottica Retail Analytics CRM MBPO* *MBPO (Merchandise Business Price Optimization)

31 Luxottica s Journey To Global Standardization

32 Luxottica s Journey To Standardization Basic Pillars of the Ciao! Operating Platform GROW SIMPLIFY Reduce Time to Market for new stores Enable faster expansion into new markets Maximize Customer Experience Minimize maintenance & enhancement complexity & cost Optimize integration with SAP Enhance Associate & Customer Experience with a simpler, more fluid process CONNECT Enable the store as the Point of Convergence for the Digital Journey Gateway to CRM strategy

33 POS & In Store Systems

34 Operational Efficiency Why we started this journey Currently, Luxottica has a global retail presence of over 8000 stores, with varying disparate POS systems throughout. The current architectures are extremely complex and involve many different technologies / components and multiple point to point flows. Global POS is a multi-layered, multi-phased project, utilizing a Micros Xstore application/solution. We began with a Proof of Concept and Pilot. We gradually implemented additional functionality, external integrations, and back office solutions. This new, single POS system will provide global alignment by replacing multiple systems and by streamlining access to new territories. The end result is a robust, flexible, and expandable framework, enabling brands and markets to select the functionality that they need/want.

35 Operational Efficiency Current Ciao installation what we gained with Micros Centralized transaction database Centralized customer database Integration with IDM Global Vault Integrated Credit/Debit Authorization w/ PCI Compliance Dynamic Currency Conversion Automated Deals & Discounts Gift Receipts Receipts Complete Integration w/plcc Training Mode Time & Attendance

36 Operational Efficiency Future Ciao installation what our roadmap looks like Omnichannel Integration w/ Locate Mobile POS w/ Integrated Tendering Advanced Deals & Discounts Automated Warranty Procedure Product Images Complete integration with CRM system / Relate Intraday Trickle Polling

37 Our Journey

38 Vendor Selection Interview Key Themes 2 Business Requirements & POS 3 Business Diagram POS Architectural Models & Assessment December Initial Evaluation: RFP Functional Requirements 5 Initial Evaluation: RFP Scoring & Process January 2012 January Final Evaluation: Scenario Demos, Technical Deep Dive & References 7 Final Vendor Recommendation January 2012 Qualitative Score March 2012 Presentation Score February 2012 April 2012

39 Development Plan January February March April May June July August Sept. October November December January February Proof of Concept Sun Platform Prove Out Test Lab Environment SGH NA Configuration SAP Integration SGH UK 6 Pilot Stores 6 Pilot Stores Live New In-Store Infrastructure proven (ISS / Igel) Production Central Environment End-to-End Data Flow Testing Store Operations Workstreams Back Office Integrations (phased in ahead of POS where possible) Must Have functions in order to roll out to all NA Stores Most solutions external to POS SGH North America - Pilot SGH NA Beta Shaded/ low risk stores Early Read SGH NA Pilot 50 Stores Optical Blueprinting Checkpoint Start blueprinting in Q2 Assess scenario based approach Blueprinting Continues Deliver Business Requirements Deliver High Level Technical Designs

40 Configuration 2013/2014 The Layer Cake Store Type (Dept Store, Airport) Sub-Brand (Apex, Sun Boutique) Banner Region Banner Country Banner Base (SGH, LensCrafters, Clulow) Business Line Base (Sun, Optical) Luxottica Region Base (California, Quebec) Luxottica Country Base (US, ES, PT, GB, etc) Luxottica Global Base Base Xstore 5.5 Code

41 Sun North America Rollout January February March April May June July August Sept. October November December January February SGH NA Beta Sun Beta Complete POS functionality Integrated Authorization IDM integration Sun Pilot Depot/Build Process On Site Install pilot SAP Integration SGH NA Rollout Rollout Cadence 1,200 stores in US Stores / week April-October 120 stores 40 stores / week October - November End-to-End Data Flow Testing Sun Development Enhancements Private Label Credit Card tender Private Label Credit Card application and balance inquiry Dynamic Currency Conversion Organizational Change Management and Training Program Optical Formalized Program Kickoff Resources Agile Methodology Development Iterative Agile Cycles Change Management

42 Global Installations Sun Roadmap UK/Ireland 70 Stores US and Canada 1,350 Stores Europe 65 Stores Turkey 50 Stores Mexico 250 Stores (2015) Iberia 175 Stores Dubai (2015) China (2016) South America (2016) South Africa 180 Stores (2015) Australia (2016)

43 Complete In Store Operating Suite MICROS Xstore Core Application Airport Customizations Time & Attendance Xstore Reporting SAP Integration HR / Associate Mgmt Xstore Application (Sales & Services) Xstore Locate Reporting & Retail Analytics Integrated Tax Package Solution: TBD Security & Authentication Mobile POS Inventory Management Daily / Associate Goals CRM Trickle Polling Central Purchasing Department Store Model Integrated Card Authorization Commissions Omni-Channel Integration Advanced Labor Scheduling

44 POS Hardware

45 POS Screenshots Main Screen CIAO! Main Menu

46 POS Screenshots Sales Transaction CIAO! Sale

47 POS Screenshots Customer Profile

48 Open House

49 Store Testimonials Our teams are in love with Ciao s simplicity, speed and efficiency. Associates quickly became familiar with the interface and really liked the new, up-to-date hardware and clean look. Ciao offers several types of useful reports. The daily dashboard is great as it provides a clear breakdown of what we are achieving in a given day. I like the easy sales process. The screen prompts are very helpful, especially as new staff members work to increase their confidence with this new system.

50 Optical Solution

51 The Ciao! Luxottica Optical Operating Platform Harmonize the processes and the tools used in optical stores of 10 different brands globally, using the following principles: gather an holistic view of all optical stores processes and architectures, ensuring capabilities can be deployed globally re-use existing the CIAO! solution and integration; Minimize customizations to software packages enabling periodic upgrades Ensure capabilities are able to be leveraged in all sales channels for consistent customer experience Leverage Agile project methodology to achieve the foundational optical store experience. March 2014 September 2014 March 2015 Business Capabilities Identification Optical Suite Foundation First delivery Foundation Project Deployment The foundation project will be divided into two deliveries, developing the core x-store integration to the back office first and enabling optical centric store processes subsequently. Additional projects within the program will be initiated to ensure we continually improve upon our foundational capabilities to meet the localized needs of the subsequent deployments

52 The Ciao! Luxottica Optical Operating Platform Core Optical Capabilities Distinctive Optical Store Advanced Optical Best Practice POS POS Order Tracker Capabilities Ciao! POS Solution Vision Care & Medicare Pricing Simulation Insurance Providers Prescription Management Makeabilty & Traceabilty LMS Integrated Order Management LOM Optical Packages Lab Mgm. & Returns Optical Deals & Discounts Precision Measurement Accufit Optical Customer Record Reporting Practice Management SAP IS Retail ecommerce

53 The Ciao! Luxottica Optical Operating Platform INSURANCE Insurance Gateway INVENTORY MANAGEMENT EyeMed MANUFACTURING MIM OneNetwork Innovations AFS2 Manufacturing Work Order SAP Retail SAP BI/BW LRA REPORTING Operational Dashboard ASSOCIATE MANAGEMENT Associate Management Enterprise System GOALS COMMISSIONS Ceridian IDM Associate Facing App Commission Engine TIME AND External Goals ATTENDANCE N.E.W. (Warranty) Consult (Medicare) FraudWatch ReconNet (Reconciliation) AAA/CAA (Billing) ACCPAC (Billing) Safety (Billing) Kronos

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55 Questions

56 Thank You!