CASE STUDY OF THE IS PORTFOLIO FOR

IT201 ENTERPRISE ARCHITECTURES PRESENTED BY TALAL & AHMEDSUPERVISED BY DR. PETER BIRBECK

Our Agenda

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Corporate Overview

Corporate Drivers

IS Portfolio

Challenges and LL

Further Links

Corporate Overview

IndustryShrink Management – Designing products to

migrate theft and providing solution to detect POS errors. E.g. RFID

Checkpoint Systems, Inc.Multinational supplier and manufacturer of security solutions to the retail industry.

Established in 1969

Checkpoint Systems is a US $834.2 million multinational manufacturer.

3,200 employees

Offices throughout North and South America, Europe, Asia, Australia, and New Zealand.

Just In Europe, has offices in 18 countries.

ServicesProvides services and products enabling

customers to track, brand and secure goods worldwide through a holistic system that combat shrinkage in all its forms.

Checkpoint and the 6 values

OPENNESS When you are accessible,

approachable, sharing, frank and willing to see things from other points of view, that’s Openness

1 OPENNESS

When you are accessible, approachable, sharing, frank and willing to see things from other points of view, that’s Openness

3 HONESTY

When everything you do corresponds to what you say, when your character and actions show even-handedness and straightforwardness, that’s Honesty

5 INEGRTITY

When your trustworthiness involves being transparent, coherent and honest, that’s Integrity

2 RESPECTWhen knowing what it means to esteem and

be esteemed, age, origin or status become irrelevant in Judging the real value of others and their ideas, that’s Respect

4 INNOVATION

When talent , creativity and effort are channelled towards the development or introduction of something new, that’s Innovation

6 EXCELLENCE

When good is never enough and you strive improve everything for which you are involved with, that’s Passion for Excellence

Our Agenda

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Corporate Drivers

IS Portfolio

Challenges and LL

Further Links

Corporate Overview

Corporate Drivers

Business Drivers

Be the world largest provider of radio frequency (RF) based loss prevention systems.

Help retail industries control their assets, boost efficiency, and increase sales through a wide range of smart and innovative solutions.

Meet the customer demands of shrink management solutions, increase employees performance and time-to-market.

Corporate Drivers

Social Drivers

Increase the level of the safety in the market by deploying high quality security systems.

Provide annual researches on the climate of shrinkage and consumers attitudes to the public and to the retailers in specific.

Our Agenda

IS Portfolio

Corporate Drivers

Further Links

Corporate Overview

Challenges and LL

IS Portfolio

The acquisition of Netherlands -based ID Systems International BV (1993), U.K.-based Actron Group Limited (1995), and Germany-based Meto AG (1999).

The old systems were not Y2K compliant and did not support the new euro currency.

Financial consolidation across European operations was time consuming and prone to error.

Management reporting was time consuming and costly.

Knowledge sharing across national borders was difficult because the local administrative departments had different skill sets.

Duplication of efforts between countries.

In 2002 U.S. congress passed the Sarbanes-Oxley Act. This legislation required all Checkpoint subsidiaries to significantly review accounting practices and systems.

Why the decide to implement a new ERP ( Call for the Change)

IS PortfolioSAP R/3 platform was the proposed solution

Single instance of SAP - hosted in Heppenheim, Germany.

The SAP solution covered all the enterprise functions: Sales ,Finance and , Material, Inventory management, Production, Logistics, , HR , Payroll, BI, CRM.

Integrated into MPC ecommerce platform, Lotus Notes( collaborative application), logistics providers (DHL and TNT)and customers via EDI.

Customer

Electronic Data Interchange (EDI)

SAP ERP

Workflow

Event

DHL / TNT

Order #

Track #

Ecommerce / Lotus

NotesPrice/ Document LinkOrder/

Document

IS PortfolioAdministrative Consolidation at Checkpoint Systems afterwards

SAP ERP

Note: Countries with local Checkpoint office are colored in dark gray. Light gray countries are served via distributors. A pin signifies an administrative center.

Our Agenda

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Corporate Drivers

IS Portfolio

Further Links

Corporate Overview

Challenges & LL

SAP terms VS Checkpoint business terms.

Some local gaps during implementation phase at Checkpoint ( language gap, skills gap).

Clean up existing master data sources ( customer master data source, material master data source).

The effort required to harmonize and cleanse data in order to populate the new SAP ERP systems is often underestimated.

According to Van der Mark “Establishing a coherent data set for the new SAP system based on our legacy patchwork really took time and effort”.

Its important not to underestimate the change management process when implementing an ERP application. Many employees fear and resist change and end-user resistance can slow down and potentially derail entire projects.

Challenges Lessons Learned

Our Agenda

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Further Links

Corporate Drivers

IS Portfolio

Lessons Learned

Corporate Overview

Further Links

Checkpoint Systems, Inc http://www.checkpointsystems.com/

Checkpoint Systems Leverages SAP ERP for Compliance, Insight and Automation case study paper http://www.sap.com/industries/machinery/large/customersuccess/index.epx

Shrink Management by Subhashis Nath http://www.infosys.com/industries/retail/white-papers/shrink-management.pdf

Thank you…

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