Software AG Case Studies Oriflame’s IT Innovates Business Through Effective Alignment

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	Oriflame’s IT Innovates Business Through Effective Alignment Software AG

Oriflame’s IT Innovates Business Through Effective Alignment

Software AG

Technology Category	Application Infrastructure & Middleware - API Integration & Management Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Industries	Consumer Goods
Applicable Functions	Business Operation Sales & Marketing
Use Cases	Inventory Management Supply Chain Visibility
Services	System Integration
Challenge	Oriflame, a beauty company selling direct in more than 60 countries, faced several challenges. The company's average annual growth of 11 percent over the past 20 years and expansion into more than 40 countries brought many business challenges. This naturally created challenges for Oriflame’s Global Shared Services IT Group as well: to incorporate new markets, adapt requirements and manage disparate business needs. In Oriflame, the one business constant is clearly change. The primary business applications were consistent across Oriflame: the in-house sales application (Orisales), JDA® Platform for supply chain management and IFS Applications™ for ERP. However, the alignment issues were at a more fundamental level. Read More
About Customer	Oriflame is a beauty company that was founded in 1967. The company sells its products directly in more than 60 countries. Its wide portfolio of Swedish, nature-inspired, innovative beauty products is marketed through approximately 3 million independent Oriflame Consultants, generating annual sales of around €1.5 billion. Respect for people and nature underlies Oriflame’s operating principles and is reflected in its social and environmental policies. Oriflame is a Luxembourg company group with corporate offices in Luxembourg and Switzerland. The company offers a diverse product range of close to 1,000 cosmetics and toiletries at affordable prices. The leader in more than half its markets, Oriflame’s vision is to be the number one direct selling beauty company. Read More
Solution	To increase their flexibility and readiness to adapt for future business demands, Oriflame had to better align their Enterprise Architecture (EA) and platforms, and also standardize their solution integrations enterprise-wide. This would enable IT to exchange partners more easily, deploy solutions quicker, employ shared services to facilitate optimizations and support local customizations without compromising enterprise-level IT control. As the basis for the alignment, the Global IT Group opted to use a Service-Oriented Architecture (SOA) approach. Now, supported by Software AG’s webMethods platform, Oriflame can quickly add new logistic partners and banks. The on-boarding process no longer requires IFS customizations, which also saves a significant amount of money and effort. Read More Log in to view content
Contents

Technology Category

Application Infrastructure & Middleware - API Integration & Management

Application Infrastructure & Middleware - Data Exchange & Integration

Applicable Industries

Consumer Goods

Applicable Functions

Business Operation

Sales & Marketing

Use Cases

Inventory Management

Supply Chain Visibility

Services

System Integration

Challenge

Oriflame, a beauty company selling direct in more than 60 countries, faced several challenges. The company's average annual growth of 11 percent over the past 20 years and expansion into more than 40 countries brought many business challenges. This naturally created challenges for Oriflame’s Global Shared Services IT Group as well: to incorporate new markets, adapt requirements and manage disparate business needs. In Oriflame, the one business constant is clearly change. The primary business applications were consistent across Oriflame: the in-house sales application (Orisales), JDA® Platform for supply chain management and IFS Applications™ for ERP. However, the alignment issues were at a more fundamental level.

About Customer

Oriflame is a beauty company that was founded in 1967. The company sells its products directly in more than 60 countries. Its wide portfolio of Swedish, nature-inspired, innovative beauty products is marketed through approximately 3 million independent Oriflame Consultants, generating annual sales of around €1.5 billion. Respect for people and nature underlies Oriflame’s operating principles and is reflected in its social and environmental policies. Oriflame is a Luxembourg company group with corporate offices in Luxembourg and Switzerland. The company offers a diverse product range of close to 1,000 cosmetics and toiletries at affordable prices. The leader in more than half its markets, Oriflame’s vision is to be the number one direct selling beauty company.

Solution

To increase their flexibility and readiness to adapt for future business demands, Oriflame had to better align their Enterprise Architecture (EA) and platforms, and also standardize their solution integrations enterprise-wide. This would enable IT to exchange partners more easily, deploy solutions quicker, employ shared services to facilitate optimizations and support local customizations without compromising enterprise-level IT control. As the basis for the alignment, the Global IT Group opted to use a Service-Oriented Architecture (SOA) approach. Now, supported by Software AG’s webMethods platform, Oriflame can quickly add new logistic partners and banks. The on-boarding process no longer requires IFS customizations, which also saves a significant amount of money and effort.

Impact #1	Standardized alignment and unification of the platform, providing a complete overview and all integration solutions use the same technology.
Impact #2	Improved development productivity, as creating “transformers” does not require specific knowledge on a particular system and a lower level of programming competence can also do the task now, plus the workflow is more intuitive.
Impact #3	Automation of the supply chain data extraction and aggregation process, a volume of close to 400,000 inventory and goods-in-transit records per day. This has both enabled daily distribution planning and helped to build organizational trust in the data quality, reliability and relevance.

Impact #1

Standardized alignment and unification of the platform, providing a complete overview and all integration solutions use the same technology.

Impact #2

Improved development productivity, as creating “transformers” does not require specific knowledge on a particular system and a lower level of programming competence can also do the task now, plus the workflow is more intuitive.

Impact #3

Automation of the supply chain data extraction and aggregation process, a volume of close to 400,000 inventory and goods-in-transit records per day. This has both enabled daily distribution planning and helped to build organizational trust in the data quality, reliability and relevance.

Benefit #1	Reduced business risk with extensible solution that meets latest technical standards
Benefit #2	No customizations for on-boarding saves time, money, effort and increases flexibility

Benefit #1

Reduced business risk with extensible solution that meets latest technical standards

Benefit #2

No customizations for on-boarding saves time, money, effort and increases flexibility

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Overview

Oriflame’s IT Innovates Business Through Effective Alignment

Operational Impact

Quantitative Benefit