Lessons learned and key success factors for integrating non-retail business unit into SAP IS Retail environment
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1 Lessons learned and key success factors for integrating non-retail business unit into SAP IS Retail environment Ted Jackson, CIO and VP of IT, Sport Chalet Prashant Kulkarni, Director SAP, PwC
2 About us Sport Chalet Sport Chalet, founded in 1959 by Norbert Olberz, is a leading operator of full service specialty sporting goods stores in California, Nevada, Arizona and Utah, and Team Sales division catering to the needs of teams across all sports. Offers over 50 services for the serious sports enthusiast, including backpacking, rock climbing, custom golf club fitting and repair, snowboard and ski rental and repair, SCUBA training and certification, SCUBA boat charters, team sales, racquet stringing, and bicycle tune up and repair throughout its 54 locations. Headquartered in La Canada, CA PwC PwC is a network of firms in 158 countries in 776 locations with over 180,000 people delivering quality in assurance, tax and advisory services PwC s business transformation approach focuses on an organization s strategy through execution With SAP professionals in 40 countries, PwC has the SAP presence, depth, and breadth to meet the needs of global clients
3 LEARNING POINTS Key business and IT drivers for single ERP for Retail and non-retail business units Challenges of migrating non-retail business into live Retail system Managing Retail and non-retail support in a single instance of SAP IS-Retail Key success factors and lessons learned
4 AGENDA Key Business and IT drivers for single ERP Consolidating Business Processes into a single instance Challenges of migration of non-retail Business into live Retail system Challenges of managing Retail and non-retail environments Key success factors Key Learning
5 AGENDA Key Business and IT drivers for single ERP Consolidating Business Processes into a single instance Challenges of migration of non-retail Business into live Retail system Challenges of managing Retail and non-retail environments Key success factors Key Learning
6 About Sport Chalet Retail Environment SC Retail implementation & background Sport Chalet implemented MySAP2005 for Retail in 2008 with SAP PI 7.0, SAP BI 7.0 Initial adopter & implementer of ERMA (ERMA-Extended Retail Method of Accounting) from SAP Integrated with SAP, the landscape has leading solutions in place for Warehouse Management (HighJump Software), Merchandise Planning/Allocation (MarketMax), Replenishment and H/R SAP was extended to Team Sales division in 2012 with the successful implementation of Order to Cash processes
7 About Sport Chalet non-retail Environment SC Team Sales Team business is a wholesale business catering to School/Booster club/community college Team needs Outfit Team with Uniforms, Footwear and Equipment Full service Team dealer offering in house Embellishment Embroidery, Silk Screen & Tackle Twill and Reconditioning services.
8 Key Business and IT drivers for a Single System Business Drivers Consolidated view of business across Retail and Team divisions Extending ERMA methodology to Team Sales division IT Drivers Aging Hardware Application Software support Other considerations Support future growth of Team division Align and better manage business functions across the company
9 AGENDA Key Business and IT drivers for single ERP Consolidating Business Processes into a single instance Challenges of migration of non-retail Business into live Retail system Challenges of managing Retail and non-retail environments Key success factors Key Learning
10 High Level Retail Business needs Key Processes Merchandise Planning and Replenishment Extended Retail Method of Accounting Key Business needs Large data volumes (transactional and master data) Stock Ledger Reporting Tight integration of functions and systems
11 High Level Team Sales Business needs Key Processes Order to Cash Down payment Accounts receivable Key Business needs Visibility of Order through out the Production life cycle and shipping process Down Payment and Credit functionality for Customers Ability to cross sell thru Retail stores and vice versa
12 Diverse Business Needs Key Process Differences Retail - Order intake and Fulfillment is outside of SAP Team Sales - Order intake, Fulfillment and Cash is part of the SAP OTC process Diverse Business needs End-to-end visibility and fast moving parts for Team sales Interface with POS, Large Data transfer for Retail
13 Key Considerations for Business Processes Consolidation Opportunities to increase efficiency by aligning processes and terminology across business units Eliminating the need for manual reconciliation of financial postings amongst business units Opportunity to enhance current process for Master Data Maintenance Opportunity to improve efficiencies related to common business functions Reduce overall cost of business systems ownership
14 AGENDA Key Business and IT drivers for single ERP Consolidating Business Processes into a single instance Challenges of migration of non-retail Business into live Retail system Challenges of managing Retail and non-retail environments Key success factors Key Learning
15 Key Implementation Considerations Overall Process Minimum disruption to Retail and Team Sales business during migration Rapid deployment New set of business processes such as Order to Cash and Down Payment Seek opportunities to improve common processes People Mix of new users and existing users with extended roles Seek opportunities to revamp security (SOD) Technology Leverage existing SAP Retail environment Leverage existing interfaces to WM, allocation and replenishment systems Leverage existing BI environment
16 The Approach Partner with Business, System Integrator and support teams Rapid deployment and virtual teams to keep pace (and to keep costs down) Involve stakeholders in design / Leverage existing approvals assets and acquired knowledge; engage resources worked on earlier Retail implementation Identify Risks at early stages of project and put a mitigation plan in place
17 SAP Application Footprint before and after ECC IS Retail PoS DM FI AP MM Purchasing SD AR LE BW Team Sales Addition External Systems WM (HighJump) MP / Alloc (MarketMax) Replenishment (E3)
18 Migration and Cutover Challenges Overall Parallel Operation during transition (Legacy and SAP) Process Significantly divergent processes Retail and non-retail New and enhanced functionalities People Change Management due to dissimilar processes Managing remote teams with different time zones Technology Interfaces and BI Testing Data non electronic data
19 Risks and Risk mitigation strategies Key Risks Identified Possible dual systems operations during transition Consolidation of dissimilar processes - technically challenging Change Management (CM) and Training Timing of go-live - High business season Risks Mitigation Leveraged resources, acquired knowledge and assets from earlier implementation Well thought conversion and cutover plan Dedicated training and change management resources
20 Outcome and Lessons learned Key outcomes Eliminated some of the non-retail processes Single system operation right from get go Higher visibility of business units operations Overall reduction in cost of ownership Lessons Learned Understand clearly the trade-offs Consider possibility of non-retail scenarios even with just Retail implementation Establish KPIs early in process Establish extended Test scenarios and test setup early in implementation Understand criticality of 3 rd party systems interfaces Consider on site, dedicated Trainers during cutover and after go-live
21 AGENDA Key Business and IT drivers for single ERP Consolidating Business Processes into a single instance Challenges of migration of non-retail Business into live Retail system Challenges of managing Retail and non-retail environments Key success factors Key Learning
22 Diverse Support Needs Retail Support Merchandizing, Purchasing and AP Processes Large number of users Epicor POS, SAP SRS, SAP ECC, SAP BI, SAP PI, HighJump for WM, MarketMax and E3 for Replenishment Team Sales Support OTC Processes Relatively less number of users SAP ECC, SAP BI and HighJump for some WM functionality
23 Support Approach In-house staff, Off shore and Outsourced support No disruption to existing business processes with any new process implementation On-going refinement of original implementation in addition to new requirements from both BUs High emphasis on Regression Testing, to ensure Retail and non-retail processes integrity (especially for AP)
24 AGENDA Key Business and IT drivers for single ERP Consolidating Business Processes into a single instance Challenges of migration of non-retail Business into live Retail system Challenges of managing Retail and non-retail environments Key success factors Key Learning
25 Early identification of Risks and Risk mitigation plan Well managed Scope People related Training and Change Management played a big role in the successful cutover from Legacy system Involvement of stakeholders in design decisions Leveraged Assets and acquired knowledge, and use of experienced resources Minimum customization and use of standard available functionalities Key Success Factors
26 AGENDA Key Business and IT drivers for single ERP Consolidating Business Processes into a single instance Challenges of migration of non-retail Business into live Retail system Challenges of managing Retail and non-retail environments Key success factors Key Learning
27 KEY LEARNINGS Retail and non-retail processes have diverse requirements Consolidating Retail and non-retail processes in one instance of SAP can be challenging Early identification of Risks helps in overall implementation Leveraging existing assets and engaging resources with earlier Retail implementation helps in smooth migration Need to consider diverse nature of business requirements for effective post go live IT support Carefully evaluate Change Management needs for your Organization
28 Dos and Don t Dos Prototyping during Blueprint sessions Involve end users & training teams in all phases of the project Involve Business Super-users as champions (for the initiative) Use adequate tools, and repetitive and reliable ETL process for data migration Don ts Underestimate complexity, time and efforts needed for interface testing Treat Retail as separate environment Assume leveraged reports suffice all new business requirements
29 Leading Practices Standardize Business processes Eliminate parallel / redundant systems Limit overall cost of ownership Leverage existing system environment and support mechanism Leverage standard SAP functionality Eliminate redundant processes
30 Questions?
31
32 THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 3212 For ongoing education on this area of focus, visit PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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