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Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
Agile ERP implementation for expansion to China
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Agile ERP implementation for expansion to China

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Media Markt, Europe’s largest consumer electronics retailer, entered China in 2010 by opening its second-largest store worldwide. Understand how Media Markt China created a novel ERP suite within 12 …

Media Markt, Europe’s largest consumer electronics retailer, entered China in 2010 by opening its second-largest store worldwide. Understand how Media Markt China created a novel ERP suite within 12 months by a collaborative, distributed team leveraging an agile scrum methodology. This ERP implementation facilitated the opening of stores in Asia and prepared for an aggressive growth of the Chinese market.

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  • 1. Agile Expansion to ChinaArmin M. Hoffmann @ Oracle Retail CrossTalk, Washington DC, 2011-06-22
  • 2. © Media Markt (Shanghai) Consulting Service Company, Ltd.2CONTENTSMedia-Saturn worldwideChallengeApproachSolutionSuccess factors, challenges & lessons learntSummary
  • 3. © Media Markt (Shanghai) Consulting Service Company, Ltd.European Market Leader in Consumer ElectronicsMore than60,000employeesNet sales€ 19.7 bill.2.6 mil. sqm ofsales spaceOver 800 storesin 16 countriesAs of: December 31, 2009 (before the Expansion to China)3
  • 4. © Media Markt (Shanghai) Consulting Service Company, Ltd. 4International Success– Media Markt and Saturn: fromGermany’s No.1 to Europe’s No.1– Both retail brands will continue toenhance their position in Europe– Existing stores are continuallyadapted to reflect changingdemands and requirements– Media Markt and Saturngenerate over half oftheir revenue outsideof Germany– In 2009, the retail brands werelocated in 16 countriesPage
  • 5. © Media Markt (Shanghai) Consulting Service Company, Ltd.5
  • 6. © Media Markt (Shanghai) Consulting Service Company, Ltd.6CONTENTSMedia Markt worldwideChallengeApproachSolutionSuccess factors, challenges & lessons learntSummary
  • 7. © Media Markt (Shanghai) Consulting Service Company, Ltd.7Business Expectation7Business valueRiskt tt tVisibilityAdaptability
  • 8. © Media Markt (Shanghai) Consulting Service Company, Ltd.8Traditional Project8Business valueRiskt tt tVisibilityAdaptability
  • 9. © Media Markt (Shanghai) Consulting Service Company, Ltd.9CONTENTSMedia Markt worldwideChallengeApproachSolutionSuccess factors, challenges & lessons learntSummary
  • 10. © Media Markt (Shanghai) Consulting Service Company, Ltd.10Supply Chain ApplicationFunctional advantage of packaged standard application– Support retail business– Support new business models– Provide proven, seamless business processes– Established in China– Integrates with third party applicationsTechnical advantage of packaged standard application– Ready to use– Mature– ScalableKnow-how advantage of packaged standard application– Available worldwideDoes the packaged standard application support– Media Markt unique decentralized business model?
  • 11. © Media Markt (Shanghai) Consulting Service Company, Ltd.11Agile ProjectDoes the agile project support– large-scale projects– packaged software implementations11Business valueRiskt tt tVisibilityAdaptability
  • 12. © Media Markt (Shanghai) Consulting Service Company, Ltd.12CONTENTSMedia Markt worldwideChallengeApproachAgile Oracle Retail project for Media Markt China Timeline Business Processes Application Architecture Methodology Team Workbreakdown StructureSuccess factors, challenges & lessons learntSummary
  • 13. © Media Markt (Shanghai) Consulting Service Company, Ltd.Success in China132009-10-12Project start2010-04-26Master dataproductive 2010-11-171st storeopenedWithin 2 years10 to 12 storesin Shanghai.Then expandto other cities inmainland China.By 2015, increase to100 stores.2011-02-262nd storeopenedFurthergrowth
  • 14. © Media Markt (Shanghai) Consulting Service Company, Ltd.14Project key facts14First Media-Saturn country worldwide withentire new application and infrastructure architecture– Packaged standard software for backoffice functions– Custom software for consumer facing functionsLarge output with small project– One year until 1st store opening 10-11-17– 23 person years (4500 pd) [total 40 pa, 8150 pd]Project methodology to manage complexity– 2 teams [total 5]Intercultural approach to move into Shanghai– Multinational team (China, Hong Kong, Germany, Russia, Poland,Netherlands, Belgium, UK, RSA, Switzerland, Portugal, Philippines,India, Canada)– Moving from Europe to China
  • 15. © Media Markt (Shanghai) Consulting Service Company, Ltd.Retail Processes15SupportPurchase to Pay Move Order to CashReturnsPaymentsPurchasingCost Price &DealsMaster DataReceivingTransfersOutgoing GoodsWarehouseMng & CtrlInventoryPricingMarketingSalesCustomerServiceCash MgmtCheckoutBusinessIntelligencePlanning IntegrationFlow of Goods销售台
  • 16. © Media Markt (Shanghai) Consulting Service Company, Ltd.Application Architecture16MarketingServiceSalesCheckoutBiz IntelligenceSupply ChainFinance
  • 17. © Media Markt (Shanghai) Consulting Service Company, Ltd.Solution Ownership17PlanBuildRun
  • 18. © Media Markt (Shanghai) Consulting Service Company, Ltd.Scrum18BusinessRequirements SelectedRequirements(prioritized)ImplementationPhaseDailyMeetingdaily2 weeklyWorkingFunctionalityPlanningSessionImplementationReview
  • 19. © Media Markt (Shanghai) Consulting Service Company, Ltd.Traditional Program Plan1910 11 12 1 2 3 4 65 87 9 10 11 129Master DataPurchasingDealsReplenishmentPaymentsReturnsInitial Store OrdersGoods ReceivingTransferPricingReportingOpeningReceivingInventoryMaster Data EntryInterfaceInterfaceMaster DataCheckoutInventorySales DeskInterfaceSupplyChainPOSChineseLocalisationShanghaiInterfaceEntertainment
  • 20. © Media Markt (Shanghai) Consulting Service Company, Ltd.020040060080010001200Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dezpersondays/monthRetail Applications EffortMarketingServicePOSSupply ChainArchitectureThe team makes the difference20Organic GrowthStable TeamSubject Matter ExpertsGoods ReceivingGrand OpeningStart RelocationMaster Data Go-Live
  • 21. © Media Markt (Shanghai) Consulting Service Company, Ltd.21Major Tasks– Interface definition and testing– Deals– Globalization– Descriptions in local (Chinese) and global (English) language– Chinese forms– Batch scheduling– Simple warehouse management– Reporting– Export function for search results– Not: Media Markt unique decentralized business model21
  • 22. © Media Markt (Shanghai) Consulting Service Company, Ltd.22CONTENTSMedia Markt worldwideChallengeApproachSolutionSuccess factors, challenges & lessons learntSummary
  • 23. © Media Markt (Shanghai) Consulting Service Company, Ltd.23Success factors, challenges & lessons learntStick to the STANDARDWalk everybody through the standard first,to get an integrated solution, andto get everybody acquainted to the overwhelming existingfunctionsShow the standard system while gathering requirementsdon’t wait until the sprint reviewConcentrate on Media Markt business model and core processes,to avoid modificationsRun all requirements through a strong architect first
  • 24. © Media Markt (Shanghai) Consulting Service Company, Ltd.24Success factors, challenges & lessons learntScrum makes large-scale projects hyperproductiveGuide all work towards a clear, compelling business goalPrioritize by Business Value and RiskManage against top-level project planDon’t blend Scrum with WaterfallAssign 1 user-story only to one team memberCo-locate the team in one room (at least in the beginning)Use The Wall,Public project room promotes open communicationTools are more complex, less transparent, and less fun
  • 25. © Media Markt (Shanghai) Consulting Service Company, Ltd.25Success factors, challenges & lessons learntScrum makes packaged software implementationsShort sprints (2 weeks)deliver a lot of functionality with standard applicationsWork with assumptionagile projects enable later reworkAllow multiple user stories in parallel into one sprintfor standard applications working time is much less thanelapsed timeAllow documentation and training to be finished in next sprintstandard systems are configured extremely fasthyperproductive
  • 26. © Media Markt (Shanghai) Consulting Service Company, Ltd.26ChinaGo to China earlyIntegrate Chinese experts into the team earlyAllocate time and money tobridge the distance, time difference and cultureDeliver to Chinese users– Training by Chinese– Support by Chinese– Operate during Chinese business hoursUnderstand Tax– Different kinds of fapiao– Red invoice process– Business tax is no VAT– All prices include VAT26
  • 27. © Media Markt (Shanghai) Consulting Service Company, Ltd.27CONTENTSMedia Markt worldwideChallengeApproachSolutionSuccess factors, challenges & lessons learntSummary
  • 28. © Media Markt (Shanghai) Consulting Service Company, Ltd.Move into Shanghai129793541684hd_clear Move into SH.flvhttp://www.56.com/u32/v_NTg0MDQ5MTc.html28
  • 29. © Media Markt (Shanghai) Consulting Service Company, Ltd.Grand Opening29
  • 30. © Media Markt (Shanghai) Consulting Service Company, Ltd.30Agile30Business valueRiskt tt tVisibilityAdaptability
  • 31. Armin M. Hoffmann 贺安慜Director of IT/IM ApplicationsMedia Markt (Shanghai) Consulting Service Co. Ltd.9 Floor Golden Bell Plaza98 Huaihai Middle RoadShanghai 200021, P.R. Chinamailto: Armin.Hoffmann@MediaMarkt.cnPhone: +86 (0)21 605715-29Phone: +49 (0)841 634-2271
  • 32. © Media Markt (Shanghai) Consulting Service Company, Ltd.Retail Process Flow32Purchasing ReceivingOrderPurchasingNational FlyerOrderper storeStore StoreHeadquarterSupplier…Delivery CentrePaymentsReceivingHome DeliveryDC…InvoiceItem…
  • 33. © Media Markt (Shanghai) Consulting Service Company, Ltd.A simple framework to manage complex projectsProduct OwnerTeamScrum Master
  • 34. © Media Markt (Shanghai) Consulting Service Company, Ltd.The Wall34Impedi-mentsIceBoxNotes Story To DoInProgressToVerifyDoneBurnDown
  • 35. © Media Markt (Shanghai) Consulting Service Company, Ltd.Scrum of Scrum35…Twiceper week
  • 36. © Media Markt (Shanghai) Consulting Service Company, Ltd.36Success factors, challenges & lessons learntPlan enough (up to 30%) contingency in the beginningIntegrate early,additional features can also be added to interfaces laterImplement core process end-to-end firstStart with release sprints (operational readiness test) early,as soon as all standard processes are readyGather requirements from the outcome of the processImplement functions from the start of the processas soon as major prerequisits are in placeStart with Development environment only,others can follow laterStart with test automation from the beginning36

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