SAP Customer Success Story Retail – Fashion Merchandising/Department Stores “The SAP NetWeaver Business Intelligence functions have launched a new business era at Riachuelo.” Jorge Vasconcelos, BI Manager, Lojas Riachuelo S.A.AT A GLANCECompany Implementation Highlight LOJAS RIACHUELO• Name: Lojas Riachuelo S.A. First campaign run with new• Location: São Paulo, Brazil software resulted in complete SAP® xApp™ Analytics Composite Application with• Industry: Retail sellout of advertised products SAP NetWeaver® Visual Composer Makes Business• Products and services: Fashion within 10 weeks. Intelligence Easy• Revenue: US$800 million• Employees: 13,000 Why SAP• Web site: www.riachuelo.com.br • Tight integration with existing SAP software Retail is one of the most fiercely competitive markets worldwide. (in Portuguese only)• Partner: SAP® Consulting • High quality of graphical user A retailer’s success largely depends on its ability to understand interfaceChallenges and Opportunities • Ease of use for corporate its customers and fine-tune product offerings and store profiles• Aggregate and analyze data from executives to customer preferences. This calls for state-of-the-art business multiple sources• Effectively handle very large data Benefits intelligence (BI) technology equipped to handle large data volumes • Convenient, flexible creation of• Categorize customers, stores, enterprise-wide, comprehensive volumes and merge disparate sources of information into a single, analytics applications and products for segmentation • Easy configuration of user enterprise-wide data warehouse while enabling user-defined• Improve campaign efficiency interfaces and reports based on analyses and reports.Objectives SAP NetWeaver BI• Consolidate information from • Effective customer segmentation several repositories into a single, • Ability to match customer with Taking Analytics to the Next Level integrated business intelligence product and store categories to platform focus on premium customers São Paulo–based Lojas Riachuelo S.A. is a leading Brazilian fashion• Have access to comprehensive, • Data integration across retailer operating approximately 100 stores, a sizable logistics reliable information for effective applications campaign planning and • Fast ROI department, as well as a credit and loan business. For years, the management company has been successfully running the SAP for Retail• Establish a new line of premium Existing Environment stores based on precise customer SAP for Retail solution portfolio, solution portfolio as well as SAP® data warehouse software to knowledge in-house campaign management• Improve strategic business software store information on 1.5 million products, 10 million customers, planning through powerful analytics Third-Party Integration and 80 million annual transactions. Several repositories deliveredSAP Solutions and Services • Database: Microsoft SQL Server analytical information on the data they stored, but correlating• SAP NetWeaver® Business • Hardware: IBM Intelligence (SAP NetWeaver BI) • Operating system: Microsoft and consolidating this information across systems was difficult. component Windows 2003• SAP xApp™ Analytics composite application with the SAP Riachuelo understood it needed to unlock the full potential of NetWeaver Visual Composer tool its data assets in order to segment its customers for improved• SAP NetWeaver Portal component• SAP Consulting services campaigning, recognize interrelationships between products and customer segments, and identify trends. Riachuelo’s 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.
The ultimate goal was to create a new line of premium stores for A New Business Erathe company’s most valuable customers. In search of appropriate “The SAP NetWeaver Business Intelligence functions havesoftware, Vasconcelos discovered that SAP offered the full range launched a new business era at Riachuelo,” says Vasconcelos.of functionality he was looking for, plus a leading-edge architec- “They allow us to easily build any data mart we want. Withinture to integrate all sources of information and enable fast, com- the SAP NetWeaver architecture we can easily integrate diverseprehensive reporting. data sources for analysis and handle very large data volumes – currently 200 million database records. Our executives now have“Through the robust enterprise service-oriented architecture much better data available for business decisions.”deployed by the SAP NetWeaver platform,” Vasconcelos explains,“we could establish an enterprise-wide business intelligence Riachuelo immediately put its SAP NetWeaver BI solution toinfrastructure across the transactional and analytical environ- work in a mailing campaign. “The campaign was to run forments, with the SAP NetWeaver Business Intelligence compo- three months,” reports Vasconcelos. “But after only 6 weeks,nent at the core. The SAP xApp Analytics composite application, the products advertised were sold out.” The overwhelming suc-the SAP NetWeaver Visual Composer tool, and the SAP NetWeaver cess clearly showed the power of the SAP solution. “Our SAPPortal component were precisely the user-friendly tools we need- tools have refined our campaign processes, helping us selected to develop custom analytics applications and user interfaces.” customers for specific campaigns along with the products to promote. We don’t have any exact figures yet, but we have defi-New Best Practices for Implementation nitely increased our campaign revenues since implementingRiachuelo implemented its new infrastructure based on the SAP NetWeaver BI.”SAP NetWeaver® Business Intelligence (SAP NetWeaver BI) com-ponent within a time span of only three months. “Our project The enterprise service-oriented architecture (enterprise SOA)was delivered within budget within 80 business days as planned enables Riachuelo to integrate its processes through all functionaland remained on schedule throughout,” says Vasconcelos. “The layers and across applications, including its in-house campaignCHC project management method was applied successfully and management software. “By supporting our complete processis now generally considered a best-practice approach.” cycle, the enterprise SOA offers a way to distribute the collabora- tive processes of the value chain within the IT infrastructure.The retailer formed an internal BI team to supply its internal Its performance takes us far beyond traditional architectures.”clients – the executive board and top managers – with analyticalreports. Jointly with SAP Consulting, the team defined processes “Our executives are excited about the array of possibilities to gen-and business rules within the SAP NetWeaver BI software to satisfy erate operational and analytical reports,” Vasconcelos continues.the information needs. The team also deployed the SAP xApp™ “We can group stores by revenue, explore opportunities amongAnalytics composite application to build analytics applications premium clients through targeted campaigns, and identify thefor specific reporting requirements. With the user-friendly SAP stores they frequent. These will become our new premiumNetWeaver Visual Composer tool, the BI team can easily design stores. We can also design product lines for specific customeror modify graphical user interfaces based on the SAP NetWeaver groups. We are anticipating a significantly higher campaign ROIPortal component to display information aggregated from differ- through all this.”ent sources in a variety of formats and dashboards.
On the Right TrackRiachuelo 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 “We can group stores by revenue, explore opportunities among premium clients through targeted campaigns, and identify the stores they frequent. These will become our new premium stores.” Jorge Vasconcelos, BI Manager, Lojas Riachuelo S.A.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 canpositively say that the best practices embedded in SAP softwarehave enabled Riachuelo to optimize its business processes andsuccessfully complete a very challenging IT project.”