Aligning IT With World-Class Fashion

Aligning IT With World-Class Fashion

Nicola Castellaneta

Agile Management

Kering

PMO Manager

AMX33S

@CAPPM

#CAWorld

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Abstract

In this session, hear how Kering uses CA Project & Portfolio Management (CA PPM) to align the business strategy of these world-class brands with their IT strategy. Learn how Kering is using CA PPM for portfolio management, demand management and capacity planning in their IT organization and gain insights for how you can do the same in your organization.

Nicola Castellaneta

Kering

PMO Manager


Agenda

WHO WE ARE

TO BRIDGE BUSINESS AND IT

PPM FOR KERING

DEVELOPING OUR WORKFLOW

1

2

3

4

PROJECT SCOPE AND LEARNINGS5


Kering Group—Who We Are

Luxury: Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Sergio Rossi, Boucheron, Dodo, Girard-Perregaux, JEANRICHARD, Pomellato, Qeelin, Ulysse Nardin

Sport and Lifestyle: Puma, Volcom, Cobra and Electric.

Our mission is vast, but it’s simple. We exist to help our customers look and feel good while making a positive contribution to people and the planet.

Kering is a growing group of high-profile, profitable brands that create apparel and accessories for the luxury and sport and lifestyle markets.


Kering Journey

Luxury acquisitions and development

1999: acquisition of Gucci Group and then of Yves

Saint Laurent, YSL Beauté and Sergio Rossi

2000-01: acquisition of Boucheron,

Bottega Veneta and Balenciaga,

partnership agreements with

Stella McCartney and Alexander McQueen

1999

20041963

François Pinault establishes

Pinault Group (timber trading)

1988

Flotation on Paris stock market

1990s 2005

François-Henri Pinault

appointed chairman and CEO of

Kering

From

2006

Disposal of retail assets

2006: sale of Printemps orcanta

2009: flotation of CFAO

2010: disposal of Conforama

2007

Acquisition of PUMA

2012

2013

Kering is now a world

leader in apparel and

accessories, in two

segments:

Luxury and

Sport & LifestyleAcquisition of Volcom,

Sowind Group, Brioni

2011 Today

Acquisition of Qeelin,

Christopher Kane,

Pomellato and Dodo

Disposal of parts of

Redcats,

flotation of Fnac


Breakdown of 2014 Revenue by Division Breakdown of 2014 Recurring Operating Income by Division

Breakdown of 2012 Revenue by r

RegionNumber of Luxury DOS in 2014

2014 key figures

€10.1

billion

in revenue

€1.7

billion

in recurring operating

income

€1.1

million

in free cash flow from

operations

33,000

employees

A Strong and Balanced Group


Why? Lack of IT and Business Alignment

Even though IT plays a vital role in creating business value, we faced some degree of challenges around the governance operational processes and tool that limit the efficiency of the delivery.

Totally blind on the status of a business opportunity, even if rejected

Lack of a promptly response on a business need

Lack of full transparence on cost and planning

Lack of integrated forward pipeline

No metrics regarding the ability to manage a new business opportunity

No visibility on the owner of a business need

Not clear ownership on the information provided in response to a business need

Difficult to control the Demand process

Difficulties to collect information from different actors and to build a robust response

No consolidated reports and executive views

Difficulties to build a trust with business

No control on the business pipeline

Business Kering


….To Bridge Business and IT and Deliver Value

PPM - Planning

PPM - Delivery

CEO Agenda

Crafting an IT investment portfolio

that is aligned with the CEOs agenda

and that brings value

CIO Agenda

Ensure that IT capabilities can

sustain and even stretch the

strategic agenda

Doing the

Right Things

Doing Things

the Right Way

Delivering the

Benefits

Delivering to

Commitments

Helping prioritize and selecting

the right investments aligned with

the strategic and operational

imperatives.

Manage supply proactively and committing

to solutions that maximize business value

Maximizing the resource

utilization and then overseeing

delivery consistent with solution,

timeframe and budget

commitments

Enabling the benefits upon

which portfolio investments

were made are actually

delivered to the business 9


Expected Benefits and Realized Ones

Improve the IT-Business alignment

Improve Delivery Performance

Increase Throughput

Lower Staff / Process Costs

Improve the transparence by providing visibility on the request status and its cost and planning.

Provide a promptly response enabling a rolling approach.

Improve risk control of the demand pipeline by balancing the portfolio’s exposure.

A set of dashboard will help the key user to monitor the demand pipeline.

Improve communication and shares the delivery plans across business and technical functions.

Stronger control on project and availability of measured KPI.

Enable high-level view of project status & health.

Control on time tracking.

Increase in resource utilization.

Improve the feasibility of the capacity plan and portfolio plan and enable the multi brand arbitration.

Improve and speed up budget process.

Integrate working across functions (not silos based).

Reduce time to process each demand item (increases decision-making frequency).

Drive clear the accountabilities.

PPM meant as enabler of already designed governance processes, contributing to enhance the business value and to be more than just automation tool:

mailto:[email protected]


What’s a PPM for Kering?Capabilities of IT Governance Tool

Reporting on Jaspersoft

Include Financial, Demand and Project Reporting, providing real-time visibility to support effective decision making.

Program/Project Management:

Project planning at milestone level and task

level with an integrated Gantt charts

Real time performance information and

drill-down capabilities

Enable time tracking for project and

non-project related activities

Demand Management:

Demand collection

Demand consolidating, qualification and

prioritization

Demand planning

It can leverage on the workflow and digital form

to capture and manage approval of new request.

Budget and Portfolio Management:

Budget consolidation from different functions

and evaluation (planned vs target, balance

among different functions)

Automatic TCO calculation

Service Catalogue management (digital and

easy to keep it maintained)

Recharge calculation and communication

Capacity Management:

Align resources with project demand through

automated capacity planning

Ensure a feasible portfolio by committing to

the right projects at the right time

Real time information about the capacity

status (planned vs actual)

10 FTE

20 FTE

30 FTE

10 FTE

20 FTE

30 FTE


End-to-End Workflow to Manage the Demand Request

Requestor Demand Mgr Area Manager

Business SolutionArea Lead Finance

Return to previous step

Budget Line RecordingBudget Line Qualification

Request Evaluation

Portfolio Scenarios Evaluation

Capacity EvaluationPortfolios ApprovalPortfolios Review and

Communication

• Qualify better the request in terms of internal priority and impacted area

• Business solution description• Business Request estimation (Effort

– MD - and Cost - Capex, Opex) and Planning

• Recording main information about new request

• What If analysis, based on several scenarios

• Portfolio evaluation• Pull-in/pull-out by a

financial point of view

• Capacity evaluation and adjustment (if required)

• Pull-in/pull-out by a resource point of view

• Portfolios evaluation• Portfolios adjustment request to

Area Manager (if required)• Portfolios approval• Portfolios communication to

Finance

• Portfolios evaluation and adjustment requested to Area Lead (if required)

• Portfolios approval and communication


Portfolio Content

Project Request

Business Request

Internal Request

Running

Standard Maintenance

Evolution Maintenance

Recurrent Fee

Management

The Portfolio, a Way to Manage All Together All Budget Costs


Focus on Jaspersoft


Project Scope: Current Status and Accomplishment

AMER

– Demand, Portfolio, Capacity,

Project Management,

Timesheet capabilities

COMPLETED

EMEAI

– Demand, Portfolio, Capacity,

Project Management, Timesheet

capabilities COMPLETED

– Service Catalog structure

implemented based on the current

structure; initial load on-going

APAC

– Gap analysis just

started with the

objective to target

FC1 2016

Achieved Goals after one year of usage:

Transparence and visibility of the requests from Brand side

Full visibility and clear accountabilities of the Demand pipeline

Integrated working across all functions and improved cooperation

Single source of truth and full access on data

Enabling other central processes (e.g. purchasing, cost control & change requests, capacity, service catalogue)

Full availability of project status reporting

Full control of the capacity, planning and time consumption


Q & A


Recommended Sessions

SESSION # TITLE DATE/TIME

AMT09SUsing CA Project & Portfolio Management (CA PPM)

to Align Projects with Strategy11/19/2015 at 12:15 pm

AMT10SGuiding Standardization Across the Enterprise at Disney

Parks and Resorts11/19/2015 at 3:00 pm

AMT19SPanel Discussion: Migrating to 14.2; New Advanced

Reporting

11/19/2015 at 4:30 pm


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Technology

Aligning IT With World-Class Fashion