[ ] gd_ryerson_v2.ppt
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Enterprise Resource Planning at Enterprise Resource Planning at Hudson’s Bay CompanyHudson’s Bay Company
Presented by:Presented by:
Gary DavenportGary Davenport
Vice President Vice President
Information ServicesInformation Services
• HBC Corporate Overview
• Enterprise Resource Planning
• ERP at Hudson’s Bay Company
Today’s AgendaToday’s Agenda
• HBC Corporate Overview Profile HBC in the Canadian Marketplace
• Enterprise Resource PlanningEnterprise Resource Planning • ERP at Hudson’s Bay CompanyERP at Hudson’s Bay Company
AgendaAgenda
Corporate OverviewCorporate Overview ProfileProfile
• Hudson’s Bay Company (HBC) is Canada’s oldest Corporation and largest department store retailer.
• Company incorporated in 1670 when King Charles II granted charter to 18 investors
• During 330 years of operations, HBC was involved in various enterprises from oil and gas to real estate to distilled beverages - eventually focused exclusively on retail operations
Corporate OverviewCorporate Overview ProfileProfile
• Over the years, HBC expanded through strategic acquisitions:Zellers in 1978Simpsons in 1979, merged into Bay in 1986-1991Towers in 1990 , merged into ZellersKmart in 1998
• HBC is the parent company of the Bay, Home Outfitters, Zellers, Zellers Select, Fields department stores and hbc.com
2000 Revenue of $7.52 billion
• Employs 70,000 associates and has operations across Canada.
Many
Few
Narrow Broad
HBC
Stores
Breadth of product
Walmart
Sears / eatons
Canadian Tire
Corporate Overview Corporate Overview Broadest Reach in Broadest Reach in Canadian MarketCanadian Market
Corporate Overview Corporate Overview HBC Treasure ChestHBC Treasure Chest
New Product
Lines
Increased Geog. / Segment
Scope
GreaterLongevity
Number of Relationships
AverageRelationshipProfitability
Per Year
AverageRelationship
Duration
Corporate OverviewCorporate Overview Positioned for Positioned for Future GrowthFuture Growth
• HBC Corporate OverviewHBC Corporate Overview
• Enterprise Resource PlanningERP DefinitionRetailer RequirementsTheory vs. Actual
•ERP at Hudson’s Bay CompanyERP at Hudson’s Bay Company
AgendaAgenda
ERPERP DefinitionDefinition
• Enterprise Resource Planning designed to improve shareholder and customer value by integrating manufacturing, financial and distribution functions to dynamically balance and optimize an enterprise's resources.
• Major vendors in this area include SAP AG, Baan Co., PeopleSoft Inc., Oracle Corp., Lawson Software and J. D. Edwards & Co.
ERPERP Retailer RequirementsRetailer Requirements
• Store Operations
• Merchandising
• Supply Chain
• Logistics
• Finance
• Human Resources
• Credit
“Retail is a little bit specialized in ERP terms because it characteristically has to handle very high transaction volumes relative to other ERP types of projects and so industries like retail, utilities, banking and insurance all have very high transaction volumes which have to be handled.”
Gartner Group
ERPERP The Theory vs. Reality The Theory vs. Reality
The Theory• One single integrated
solution with enterprise wide capabilities.
vs. Reality• Each technology provider has
their own respective area of strength.
• Companies still need to customize and integrate multiple ERP solutions with existing systems to maximize functionality.
ERPERP Implementing multiple solutionsImplementing multiple solutions
Pros• Best functionality for
each solution
Cons• Data duplication• System overlap• More integration
• HBC Corporate OverviewHBC Corporate Overview
• Enterprise Resource PlanningEnterprise Resource Planning • ERP at Hudson’s Bay CompanyERP at Hudson’s Bay Company
HBC’s ApproachHBC’s Approach Key Success factorsKey Success factors
AgendaAgenda
ERP ERP HBC’s ApproachHBC’s Approach
ERPERP HBC’s ApproachHBC’s Approach
I.S. TransformationImprovement Process Personal Mastery
Information Technology InfrastrucureComputing Platforms(Hardware/Software)
Communications Networks (Voice/Data/Wireless)
Personal Productivity/Communications
Email Voice Mail Handheld DevicesPCsWorkflow
Sup
ply
Cha
in
Mer
chan
disi
ng
Sto
re O
pe
ratio
ns
Fin
ance
E-B
usin
ess
Information Access and Decision SupportBusiness Intelligence
Executive Information SystemsReportingData Warehouse
Strategic Technology AllianceMicrosoft IBM Oracle
ERP ERP HBC’s ApproachHBC’s Approach
• Leverage information technology suppliers to expedite progress and reduce costs.
• Strategic Technology Alliance with:– IBM– Oracle– Microsoft
• Renovate HBC’s IT House and build “Retail Showcase”.
ERP ERP HBC’s ApproachHBC’s Approach
• Multiple ERP suppliers, chosen for their specific area of expertise, integrated with existing systems.
– Retek Merchandising System
– Oracle Financials / iProcurement System
Common &
IntegratedSupportSystems
ERP ERP The HBC PlatformThe HBC Platform
ERP ERP Keys to SuccessKeys to Success
• Ensure top management is united behind the business goals. Don’t start until you have top management commitment.
• Make business operations own the system.
• Do not underestimate the resources required.
• Be prepared for the Change Management effort required to support the implementation.
ERP ERP Keys to SuccessKeys to Success
• Be rigorous about Project Management and the implications of your partnerships with consultants.
• Do process re-engineering before and during the project…the system will require processes of the future, not the past.
• Focus and align your organization, team and scope…ensure you have a clear, common understanding of the objectives.
ERP ERP ConclusionConclusion
• Not a panacea, but a building block.
• Large and complex undertaking.
• Significant costs and benefits.
• Focus on the business first.