Future Enterprise Summit

Transcription

1 Future Enterprise Summit Transformational IT Technology Enabling Global Business Strategy Jason Millett Group Executive Technology, ecommerce & Transformation Billabong International Limited 12 November

2 Transformation drivers 1 Continuing pressure on cost and agility 2 The demand for change through digitization 3 IT is everywhere: infrastructure, business process, products, collaboration, information 4 Previous efforts have led to the creation of silos, not re-usable platforms 5 The need for transformational change to drive better business performance higher margin and growth 1 Source: MIT SeeIT/CISR survey of 625 firms; 329 firms with publicly available firm performance data. Analysis: Peter Weill and Stephanie L. Woerner. NSF grant number IIS These performance results are from firms with above average IT savvy and above industry average IT spending. 3 For firms with above industry average IT savvy and IT infrastructure spending and capability. 2

3 IT-enabled business transformation Achieving a step change in the impact of IT to create business value at the enterprise through Reducing business cost and this may include IT Increasing business agility and performance Involves creating and reusing platforms Digitized business process Key data Highly reliable, cost effective and scalable infrastructure 1 List drawn from The Discipline of Market Leaders, M.Treacy and F. Wiersema, Harvard Business School Press,

4 Three areas to exploit digital capabilities Business Process Optimization Automating tasks that machines do better than people Facilitating collaboration among knowledge workers Making products and services available electronically Exploit Digital Capabilities Business Intelligence Data warehousing and analytics Empowering front-line workers with information Facilitating meaningful access to unstructured data Digital Innovation Design of digital products and services Value-added information based services Enabling sense and respond experiments 2013 MIT Sloan CISR Ross 4

5 The transformational CIO collaborates on more than order-taking; helping inform & develop a strategic vision Traditional IT order-taking requests from Businesses based on expected needs What future trends have you seen that might impact your business partners? Business Divisions IT Division How can technology better enable commercial success for your organization? What processes are not going as well as they could? Transformational CIO also proactively reaches out to identify opportunities based on emerging technologies What risks might your peers be less aware of? How can you help prepare to mitigate potential risks? 5

6 Case Study A Global multi Brand Surf and Sportswear Apparel Company 12 November

7 Technology Technology Remains a key enabler for BBG s Turnarond The Technology function is responsible for supporting the transformation initiatives technology needs, in addition to being responsible for key organizational enabler initiatives Actively supporting initiatives in flight across the organization (eg, Retail strategy, digital catalogue, supply chain, etc.) Simultaneously pursuing initiatives internally to improve overall systems capabilities (eg, ERP, PLM, BI, CRM) IT Review was completed in late 2012 identifying overall technology improvements and roadmap to deliver significant enhancements to current capabilities Limited implementation against recommendations due to funding constraints in place Clear roadmap developed with adequate capital commitment available Technology has adopted global model and approach to initiatives, designing solutions to benefit all regions wherever possible Seeking to deliver enhanced capabilities as efficiently and effectively as possible, reducing duplication and maximizing cross-regional knowledge 7 7

8 Six priorities identified within IT Review 1. Establish a Global Operating model for IT with appropriate resourcing, accountability and funding to operate. 2. Establish a Technology Refresh Programme as part of Transformation to create enablers for success 3. Source non core activities and functions to best supplier in market on a global basis 4. Combine the roll-out of ERP for Australia and North America 5. Create a Retail Innovation Centre to support the evolution and development of leading edge retail technology 6. ecommerce Asset Consolidation and IT organization set up. 8 8

9 The Strategy has Evolved through Leadership Change August 2012 November

10 Transformation Framework for operating model Infrastructure Horizontal Multi Source Vertical Integrated Scope IT Infrastructure Impact IT savings only Integration risk between supplier and client Scope Applications IT Infrastructure Impact IT and process savings only Integration risk between supplier and Client Scope Business Processes Applications or Systems Integration IT Infrastructure Multiple suppliers within & between domains. Impact Savings within individual domains Integration risk multiplies with every supplier Scope Business Strategy Business Process Applications IT infrastructure For vertical domain Impact Transformation for defined domains possible Business outcome commercials for defined domains possible Scope Business Strategy Business Processes Applications IT Infrastructure For all domains Impact Enterprise transformation Business outcome commercial structure possible Integration risks minimized & transferred to supplier 10

11 Current Customer touch points Store Web Store Call Center Catalog Field Sales Field svc Loyalty Marketing Business operations Merchandise management Customer lifecycle and loyalty Analytics customer demand Enterprise performance management (Business Intelligence) Category management Merchandise financial planning Sourcing & PLM Manufacturing PLM - NGC Sourcing Corporate/HQ systems Supply chain planning Logistics Assortment planning Space planning Purchasing Demand forecasting Inventory planning Replenishment Warehouse management Home delivery Inventory management Pricing and markdown management Allocation Value chain collaboration Replenishment optimization Transportation management Shopper analytics Loyalty programs Store and multichannel operations Point of sale Return management Employee training Task management Marketing planning Campaign management and execution Store Inventory Management Workforce Scheduling Goods/receipts/ stocking Inventory mgmt. and valuation Finance/tax HR/payroll Legal/compliance Real Estate - LeaseEagle Indirect procurement Master data management (Item, vendor, customer, location) Integration and collaboration MS Outlook, Lotus Notes, Google Enterprise infrastructure Global application In transition to Global Application Separate Regional Solutions MS Excel No application Legend 11 11

12 IT Transformation Road Map (Directional View) Key Dependencies Europe Americas Australasia Other Global Capabilities In-Flight Infrastructure FY13 FY Funding of IT Programmes to deliver capability in alignment with Transformation Sufficient IT resources to support programme implementation and maintain BAU support Appropriate Executive sponsorship and Global governance support execution Resulting Lawson Phase I BI Phase I Planning SW Selections & Roll-Out SurfStitch Application Review IT Sourcing Roadmap ecomm Phase I ecomm Phase I CRM Solution Requirements, Selection, Configuration VPN/Infra Design and Planning Lawson Phase 2 WMS/Fixed Assets BI Phase 2 Data Consolidation Standards BI Phase 1 BI Phase 1 ecomm Phase I BI Phase 3 Global Roll-out of BI ecomm Phase 2 ecomm Phase 3 ecomm Phase I ecomm Phase 3 BI Phase 2 Global Roll-out of BI Lawson BI Phase 2 Global Roll-out of BI ecomm Phase 2 ecomm Phase 3 CRM Roll-out 1 PLM Global Roll-out Maple Lake CRM Roll-out 1 FY15 Epicor Roll-Out Epicor Roll-Out CRM Roll-out 1 Deployment and Upgrade Integrated Desktop, , Intranet, Active Directory, Office 365, Private Cloud FY16 Sourcing Option Capabilities Global ERP Global BI Global Retail Platform Global HR / Payroll Global ecomm Solution with Fulfilment Global CRM Global Product Management Global SCM Solution Global Infrastructure 12

13 Future Customer touch points Store Web Store Cal Center Catalog Field Sales Field svc Loyalty Marketing Business operations Merchandise management Customer lifecycle and loyalty Analytics customer demand Enterprise performance management (Business Intelligence) Category management Merchandise financial planning Sourcing & PLM Manufacturing PLM - NGC Sourcing Corporate/HQ systems Supply chain planning Logistics Assortment planning Space planning Purchasing Demand forecasting Inventory planning Replenishment Warehouse management Home delivery Inventory management Pricing and markdown management Allocation Value chain collaboration Replenishment optimization Transportation management Shopper analytics Loyalty programs Store and multichannel operations Point of sale Return management Employee training Task management Marketing planning Campaign management and execution Store Inventory Management Workforce Scheduling Goods/receipts/ stocking Inventory mgmt. and valuation Finance/tax HR/payroll Legal/compliance Real Estate - LeaseEagle Indirect procurement Master data management (Item, vendor, customer, location) Integration and collaboration tbd Enterprise infrastructure NGC PLM SAP BI & Hyperion Infor M3 Epicor POS CRM Solution tbd SCP Solution tbd Maple Lake Legend 13 13

14 Functional Target Solutions Business Function Current Technology Proposed Strategic Area Context Point of Sale ecommerce Multiple PoS across regions with specific interfaces into each ERP HI in the US and front end for AU and EU. AU and EU run VRP backends Epicor - currently used in AU HI across all regions with standard development and priority for global Omni Channel ecomm. Once revenues hit $150m migrate to ATG Oracle Commerce Suite Omni Channel/Financial Management Epicor is the most modern PoS running in the Group and the latest version provides a superior UI, retail CRM collection capability and open APIs to interface ecomm ecomm is sub scale in the target operating model and so investment should be focussed on standard platform until sufficient revenue achieved. Minimuses overheads in IT. Product Management PLM across most brands PLM Product/Supply Chain Supply Chain None PLM SCM module Supply Chain Business Intelligence SAP BI SAP BI Financial Management Data Analytics None Contexti SaaS Brand/Marketing/Product/Omni Sales and Service and Social None SalesForce Sales, Service and Marketing Brand/Marketing/Omni Cloud Markeing Mail Chimp and Exact Target Exact Target Brand/Marketing/Omni PLM by NGC is a fit for purpose system that is 80% rolled out across the Group. This is the quickest capability injection in this function. System currently being rolled out. Fit for purpose requiring continued development. Utlises Hardoop best in class AWS hosted capability which lowers unit cost and minmises impact on the business. Leading platform for retail - Includes Radian 6 Best in class cloud based EDM solution allowing automated customisation and NBO, with complimentary analytics ERP Multiple ERPs across regions with specific interfaces into local system Infor M3 Financial Management Leading platform, software is owned and ready to rollout Desk Top and Collaboration Digital Asset Management Digital Video Content Management Multiple systems across regions, including Gmail, Exchange and Lotus notes, no collaboration solution, although Sharepoint in use HI Digital Asset manager currently deployed in the US. Disparate systems and applications in use across all regions Either Google Apps in the Cloud or Office 365 in the Cloud HI Digital Asset Manager Piksel Platform Organisation Enabler Brand/Marketing/Organisation enabler/omni Channel Brand/Marketing/Omni Currently running an assessment with Google and Microsoft on D&C with the intention being to standardise to reduce Opex/Capex and improve end user experience. This capability needs to be deployed across the Group Platform has been used previously to support IP TV. Pilot being run to ensure scalable and appropriate for Global 14 platform.

15 Technology, ecommerce, & Transformation Objective is to not only manage an initiative pipeline, but also inform the strategic rationale Initiative s Primary Benefit Improves Customer Experience Improved information / analytics Enabling Technology 15

16 Technology Possible Allocation of initiatives Management Information & CRM Global Information Systems Sales experience enablers Simplification Technology Workstreams supported Scope (Enabling) Omni Supply Org Financial Brand Product Marketing Channel Chain Enablers Discipline Regional Global Continue Business Intelligence Roll-out - Support TPMO for tech. needs - Improve web analytics capability (Core metrics, Bazaar Voice) - Enhanced CRM (Big data and operational CRM) - Upgrade & roll-out B2B/B2BC order system (ANZ/EU) - Complete ERP process mapping - Roll-out ERP Upgrade Epicor from XP to W7 - Continue PLM roll-out including SCM and PO Module (N. Am.) - Upgrade merchandise planning (Maple Lake) - Improve forecasting capabilities (SAP, BO) - Global roll-out of Endless aisle mobile device - Launch Spreedle traffic app - Introduce Kiosk strategy - Pursue Retail 3.0 in flagships - Assess Mobile POS options - Enhance digital signage - Customer counters in-store - Mobile/Smart TV app development - E-Commerce site upgrades - Stabilize technology across EU retail (2 Seasons) - Develop digital catalogue (Wmns.) - Enable Loyalty program - Launch Asset manager for marketing collateral - Upgrade perimeter Security across Group (Pilot complete) - Design and deploy global AD - Security video - Source: Transformation, ecommerce & Technology 16 16

17 Global view is critical to ensure efforts are maximized across full business, eliminating sub-scale duplicative projects Illustrative: Roll-Out of a Global IT Transformation Initiative Testing in low-risk country drives dramatic improvements before transforming priority market(s) Phases able to become increasingly shorter & less expensive A comprehensive global roll-out delivered far superior results than having each region try to independently transform 17 17

18 Big Data Analytics Technology Data Technology Data Science Operations Big Data Analytics Managed Services Primary External Structured Unstructured Batch Real-time Architecture Integration Monitoring Support Hadoop NoSQL Models & Algorithms Custom Predictive Machine- Learning Ingest Process Publish Actions Real-time Periodic sftp 18

19 Key Take outs IT needs to engage the business as a peer IT needs to understand the strategic context of the business transformation agenda IT needs to present flexible roadmaps that realise capability that enables transformation IT must focus on the right partnerships to provide credibility and confidence with the business Alignment is about engagement with understanding 19

20 Questions? Thank you 21 August