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The SAP NetWeaver Business Intelligence
functions have launched a new business era
at Riachuelo.
Jorge Vasconcelos, BI Manager, Lojas Riachuelo S.A.
LOJAS RIACHUELOSAP xApp Analytics Composite Application withSAP
NetWeaver Visual Composer Makes BusinessIntelligence Easy
Retail is one of the most f iercely competitive markets
worldwide.A retailers success largely depends on its ability to
understand its customers and fine-tune product offerings and store
profilesto customer preferences. This calls for state-of-the-art
businessintelligence (BI) technology equipped to handle large
datavolumes and merge disparate sources of information into a
single,enterprise-wide data warehouse while enabling user-defined
analyses and reports.
Taking Analytics to the Next Level
So Paulobased Lojas Riachuelo S.A. is a leading Brazilian
fashionretailer operating approximately 100 stores, a sizable
logisticsdepartment, as well as a credit and loan business. For
years, thecompany has been successfully running the SAP for
Retailsolution portfolio as well as SAP data warehouse software
tostore information on 1.5 million products, 10 million
customers,and 80 million annual transactions. Several repositories
delivered
analytical information on the data they stored, but
correlatingand consolidating this information across systems was
difficult.
Riachuelo understood it needed to unlock the full potential of
its data assets in order to segment its customers for improved
campaigning, recognize interrelationships between products and
customer segments, and identify trends. Riachuelos BI manager,
Jorge Vasconcelos, developed a three-tiered methodology called
concentric harmonic cycles (CHC) as a blueprint for implement-ing a
new business intelligence strategy at Riachuelo.
Company Name: Lojas Riachuelo S.A. Location: So Paulo, Brazil
Industry: Retail Products and services: Fashion Revenue: US$800
million Employees: 13,000 Web site: www.riachuelo.com.br
(in Portuguese only) Partner: SAP Consulting
Challenges and Opportunities Aggregate and analyze data from
multiple sources Effectively handle very large data
volumes Categorize customers, stores,
and products for segmentation Improve campaign
efficiencyObjectives Consolidate information from
several repositories into a single,integrated business
intelligenceplatform
Have access to comprehensive,reliable information for
effectivecampaign planning andmanagement
Establish a new line of premiumstores based on precise
customerknowledge
Improve strategic businessplanning through powerful
analytics
SAP Solutions and Services SAP NetWeaver BusinessIntelligence
(SAP NetWeaver BI)component
SAP xApp Analytics compositeapplication with the SAPNetWeaver
Visual Composer tool
SAP NetWeaver Portal component SAP Consulting services
Implementation Highlight First campaign run with new
software resulted in completesellout of advertised products
within 10 weeks.
Why SAP Tight integration with existing
SAP software High quality of graphical user
interface Ease of use for corporate
executives
Benefits Convenient, flexible creation of
enterprise-wide, comprehensiveanalytics applications
Easy configuration of userinterfaces and reports based onSAP
NetWeaver BI
Effective customer segmentation Ability to match customer
with
product and store categories tofocus on premium customers
Data integration acrossapplications
Fast ROI
Existing EnvironmentSAP for Retail solution portfolio,in-house
campaign managementsoftware
Third-Party Integration Database: Microsoft SQL Server Hardware:
IBM Operating system: Microsoft
Windows 2003
AT A GLANCE
SAP Customer Success Story Retail Fashion
Merchandising/Department Stores
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The ultimate goal was to create a new line of premium stores
forthe companys most valuable customers. In search of
appropriatesoftware, Vasconcelos discovered that SAP offered the
full rangeof functionality he was looking for, plus a leading-edge
architec-ture to integrate all sources of information and enable
fast, com-prehensive reporting.
Through the robust enterprise service-oriented
architecturedeployed by the SAP NetWeaver platform, Vasconcelos
explains,we could establish an enterprise-wide business
intelligenceinfrastructure across the transactional and analytical
environ-ments, with the SAP NetWeaver Business Intelligence
compo-nent at the core. The SAP xApp Analytics composite
application,the SAP NetWeaver Visual Composer tool, and the SAP
NetWeaverPortal component were precisely the user-friendly tools we
need-ed to develop custom analytics applications and user
interfaces.
New Best Practices for Implementation
Riachuelo implemented its new infrastructure based on theSAP
NetWeaver Business Intelligence (SAP NetWeaver BI) com-
ponent within a time span of only three months. Our projectwas
delivered within budget within 80 business days as planned and
remained on schedule throughout, says Vasconcelos. TheCHC project
management method was applied successfully and is now generally
considered a best-practice approach.
The retailer formed an internal BI team to supply its
internalclients the executive board and top managers with
analyticalreports. Jointly with SAP Consulting, the team defined
processesand business rules within the SAP NetWeaver BI software to
satisfythe information needs. The team also deployed the SAP
xAppAnalytics composite application to build analytics
applicationsfor specific reporting requirements. With the
user-friendly SAPNetWeaver Visual Composer tool, the BI team can
easily designor modify graphical user interfaces based on the SAP
NetWeaverPortal component to display information aggregated from
differ-ent sources in a variety of formats and dashboards.
A New Business Era
The SAP NetWeaver Business Intelligence functions havelaunched a
new business era at Riachuelo, says Vasconcelos.They allow us to
easily build any data mart we want. Withinthe SAP NetWeaver
architecture we can easily integrate diversedata sources for
analysis and handle very large data volumes currently 200 million
database records. Our executives now havemuch better data available
for business decisions.
Riachuelo immediately put its SAP NetWeaver BI solution towork
in a mailing campaign. The campaign was to run forthree months,
reports Vasconcelos. But after only 6 weeks,the products advertised
were sold out. The overwhelming suc-cess clearly showed the power
of the SAP solution. Our SAPtools have refined our campaign
processes, helping us selectcustomers for specific campaigns along
with the products topromote. We dont have any exact figures yet,
but we have defi-nitely increased our campaign revenues since
implementingSAP NetWeaver BI.
The enterprise service-oriented architecture (enterprise
SOA)enables Riachuelo to integrate its processes through all
functionallayers and across applications, including its in-house
campaignmanagement software. By supporting our complete
processcycle, the enterprise SOA offers a way to distribute the
collabora-tive processes of the value chain within the IT
infrastructure.Its performance takes us far beyond traditional
architectures.
Our executives are excited about the array of possibilities to
gen-erate operational and analytical reports, Vasconcelos
continues.We can group stores by revenue, explore opportunities
amongpremium clients through targeted campaigns, and identify
thestores they frequent. These will become our new premiumstores.
We can also design product lines for specific customergroups. We
are anticipating a significantly higher campaign ROIthrough all
this.
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On the Right Track
Riachuelo now plans to gradually expand the new SAP NetWeaver
based environment across all other business applications. A
tech-nical upgrade is being discussed, as are additional SAP
productssuch as the SAP Supply Chain Management and SAP
Merchandise
and Assortment Planning applications. Vasconcelos knows he ison
the right track: To me, the SAP NetWeaver platform repre-sents the
best enterprise SOA platform on the market. And I can
positively say that the best practices embedded in SAP
softwarehave enabled Riachuelo to optimize its business processes
and successfully complete a very challenging IT project.
We can group stores by revenue,
explore opportunities among premiumclients through targeted
campaigns, and
identify the stores they frequent. These
will become our new premium stores.
Jorge Vasconcelos, BI Manager, Lojas Riachuelo S.A.
