Enterprise Resource Planning at Hudsons Bay Company

1
Enterprise Resource Planning at Hudsons Bay
Company

• Presented by
• Gary Davenport
• Vice President
• Information Services

2
Todays Agenda

• HBC Corporate Overview
• Enterprise Resource Planning
• ERP at Hudsons Bay Company

3
Agenda

• HBC Corporate Overview
• Profile
• HBC in the Canadian Marketplace
• Enterprise Resource Planning
• ERP at Hudsons Bay Company

4
Corporate Overview
Profile

• Hudsons Bay Company (HBC) is Canadas 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

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Corporate Overview
Profile

• Over the years, HBC expanded through strategic
  acquisitions
• Zellers in 1978
• Simpsons in 1979, merged into Bay in 1986-1991
• Towers in 1990 , merged into Zellers
• Kmart 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.

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Corporate Overview Broadest Reach in
Canadian Market
Many
HBC
Canadian Tire
Stores
Walmart
Sears / eatons
Few
Narrow
Broad
Breadth of product
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Corporate Overview HBC Treasure Chest
8
Corporate Overview
Positioned for Future Growth
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Agenda

• HBC Corporate Overview
• Enterprise Resource Planning
• ERP Definition
• Retailer Requirements
• Theory vs. Actual
• ERP at Hudsons Bay Company

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ERP Definition

• 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.

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ERP Retailer Requirements

• Store Operations
• Merchandising
• Supply Chain
• Logistics
• Finance
• Human Resources
• Credit

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• 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

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ERP 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.

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ERP Implementing multiple solutions

• Pros
• Best functionality for each solution

• Cons
• Data duplication
• System overlap
• More integration

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Agenda

• HBC Corporate Overview
• Enterprise Resource Planning
• ERP at Hudsons Bay Company
• HBCs Approach
• Key Success factors

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ERP HBCs Approach
Process
People
Competitive I.S.
Technology
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ERP HBCs Approach
Business Intelligence
Information Access and Decision Support
Reporting
Executive Information Systems
Data Warehouse
Finance
E-Business
Store Operations
Merchandising
Supply Chain
Personal Productivity/Communications
Email
Voice Mail
PCs
Handheld Devices
Workflow
Information Technology Infrastrucure
Computing Platforms (Hardware/Software)
Communications Networks (Voice/Data/Wireless)
Strategic Technology Alliance Microsoft IBM Orac
le
I.S. Transformation Improvement
Process Personal Mastery
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ERP HBCs Approach

• Leverage information technology suppliers to
  expedite progress and reduce costs.
• Strategic Technology Alliance with
• IBM
• Oracle
• Microsoft
• Renovate HBCs IT House and build Retail
  Showcase.

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ERP HBCs Approach

• Multiple ERP suppliers, chosen for their specific
  area of expertise, integrated with existing
  systems.
• Retek Merchandising System
• Oracle Financials / iProcurement System

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ERP The HBC Platform
Common Integrated Support Systems
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ERP Keys to Success

• Ensure top management is united behind the
  business goals. Dont 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.

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ERP Keys to Success

• Be rigorous about Project Management and the
  implications of your partnerships with
  consultants.
• Do process re-engineering before and during the
  projectthe system will require processes of the
  future, not the past.
• Focus and align your organization, team and
  scopeensure you have a clear, common
  understanding of the objectives.

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ERP Conclusion

• Not a panacea, but a building block.
• Large and complex undertaking.
• Significant costs and benefits.
• Focus on the business first.