dōTERRA underwent a digital transformation to support its growing global business. It implemented SAP solutions including Hybris, Cloud for Customer, and S/4HANA over 5 years to improve core functions, support scale, reduce dependencies, and enable better analytics. Key successes included transitioning 600k customers to the new ecommerce platform and improving operations with finance and HR processes on a single database. Careful phasing, business focus, customization avoidance, and emphasis on learning from partners were keys to the transformation's success.
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Building the Platform for Successful Growth
• Company Overview
• Digital Transformation
§ Business Objectives
§ Solution Scope and Approach
§ Benefits / Value
§ Keys to Success: Customer Focus
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Who is dōTERRA?
• Startedin 2008
• Privatelyheld
• 2,500+ employees
• ~5 million customers worldwide
• US $1.5B+ in annual revenue
• World’s largest essential oils company
$2.0B
Revenue
run-rate (USD)
20%+
Annual growth
rate
100+
Countries
(shipped to)
18
Countries
(on the ground)
400K
Bottles filled
per day (average)
1M+
Line items
per day (peak)
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Essential Oils
• Individual Oils
• Oil Blends
• Oil Infused Products
Wellness
• Supplements
• Targeted Benefits
Spa
• Skin Care Products
• Hair Care
Living
• Home Cleaning
• Personal Care
• Laundry
Revolutionizing the way families manage their
health and lifestyle through product innovation
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Our digital transformation objectives
1. Improve functionalityfor core businessfunctions
Ø Finance, operations, HR, order management, shopping, enrollment, CRM
2. Supportincreased scale / global footprint ($5-10B revenuein 5 yr horizon)
3. Reduce dependency on 3rd parties for day-to-dayoperations
4. Enable better analyticsfor strategic decision-making
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Our transformation scope and approach
• 5 year multi-phase program began in July, 2015 (just finishing 3rd wave)
• Hybrid of waterfall (for S/4) and Agile (for web) methodologies
• SAP hybris commerce, content management,marketing
• SAP Cloud 4 Customer (C4C) for CRM
• HANA Enterprise (BI, custom calculation) and Tableau
• SAP S/4HANA 1511 (upgradedfrom original 1503 S/4 Finance implementation)
• Fiori where it makes sense (frequent casual use functions)
• SAP SuccessFactors for eRecruiting, but on-premise HR for other HR functions
• Deloitte as our implementation partner, Virtustream hosting / managed services
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Value delivered to date
§ 600K+ live customers on the new SAP Hybris based ecommerce solution
§ 900+ customer service agents on the SAP C4C based call-center solution
§ Improved management and syndication of site content
§ Improved visibility to inventory / ability to manage supply chain
§ Implementation of robust finance and HR processes
§ First glimpse at the power of analytics
• In process + future:
§ End-to-end business on a single, in-memory database (excluding global distribution centers)
§ More advanced analytics (user-specific dashboards, predictive analytics, etc.)
§ Real-time processing of data (example: commissions processing)
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Keys to Success
• Vanilla
§ Minimize customizations. Leverage SAP Hybris accelerators
• Business-focused
§ Business stakeholders as key participants in selection and implementation
§ Constant emphasis that this is a business project, not a technology project
• Phased and ramped
§ Resistance to the urge to combine phases in order to better manage risk
§ Consideration of organizational readiness for change; ramped migration of customers to e-commerce
• Emphasis on learning
§ Important part of implementation partner selection and staffing (1:1)
§ Knowledge transfer targets and checkpoints to confirm learning
§ Decision to SLOW the implementation process to better accommodate learning