Accelerated Retail Solution Delivery Via
Prototyping
Discount Tire – Steve Fournier, Jr.
Discount Tire – Donna Graham
SAP – Alan Newton
ASUG SESSION INFO
 Session Code*: 3209
 Title*: Accelerated Retail Solution Delivery Via
Prototyping
 Day and Time: Wednesday, May 15, 2013: 4:15 PM 5:15 PM
 Content Area: Retail
2
LEARNING POINTS




Discount Tire Company Overview
Project Velocity Overview
Starter Pack for Retail Accelerator Overview
Business value of using Early Prototyping & Project
Accelerators
 Lessons learned using Early Prototyping & Project
Accelerators
3
DISCOUNT TIRE COMPANY (DTC)
OVERVIEW
DTC - STEVE FOURNIER JR
4
Discount Tire Company

Founded by Bruce T. Halle in Ann Arbor, MI in 1960. (Privately
Held)

Headquartered in Scottsdale, AZ, Operating in 23 states + 23
regions.
15,729 employees

America’s largest independent tire retailer specializing solely in
tires & wheels (850 stores, including Direct)
We are the 144rd largest private corporation in U.S. (2012)
We were the 161st largest in 2010

We Are:
5
Discount Tire Today
42
58
26
37
48
25
30
132
35
13
69
Cross-dock Distribution Centers
Discount Tire Direct Distribution Centers
11
35
25
204
26
New States in 2013
6
0
300
100 Stores
DTD
500 Stores
2015*
2013*
2011
Wyoming
Tennessee
Oklahoma
900
2009
2007
2005
2003
700
Georgia & Minnesota
Ohio
Idaho
Carolinas
800
2001
1999
1997
1995
1993
Discount Tire Direct
Illinois
Northern California
Orange County
1991
1989
Washington & Oregon
Los Angeles
Florida
1987
1985
400
1983
500
New Mexico, Nevada & Houston
Dallas & San Diego
San Antonio & Utah
600
1981
Indiana
Colorado
200
1979
1977
1975
1972
1970 Arizona
1968
1966
Michigan
100
1960
Responsible Store Growth
1960 – 2015
1200
1100
1000
*Estimate
7
U.S. Market Share Growth
1995
3.9%
20057.3%
20078.1%
20099.6%
2012
11.0%
2015
12.5%
8
What Makes Us Different
Our culture sets us apart
from the competition. We are
a people company committed
to building lasting
relationships.
As a result, we have the
ability to turn the typical tire
buying experience into a
positive one.
9
Changing World
Reality check.
The retail world is undergoing a
fundamental and profound transformation.
10
PROJECT VELOCITY OVERVIEW
DTC – DONNA GRAHAM
11
The Right Speed
in the
Right Direction
12
There are two major functions that SAP will address for Project Velocity - Core Merchandising and Finance.
This initial effort will not include a new POS system, but will help to make receiving easier, inventory more
accurate, and provide better insight into what inventory is really needed in our stores, while also providing a
more timely and accurate view of our finances.
Merchandising
• Master Data Consolidation
(across Stores, DTD, and
Tires.com)
• Store Inventory Management
• Purchasing
• Pricing
• Assortment Management
• Processing
• Automated Store Receiving and
Special Order Enhancements
Finance
•
•
•
•
•
•
•
General Ledger Accounting
Profit & Cost Center Accounting
Logistic Invoice Verification
Accounts Payable / Receivable
Credit Management
Credit Card Settlement
Electronic Bank Statement
Process
• Asset Accounting
• POS Sales Audit
13
The Journey Towards One Discount Tire
Project Velocity is the first
step to move us in the right
direction and at the right
speed towards the One
Discount Tire experience.
Step 3 – Consolidation of Supply Chain and
enhanced product forecasting
Step 2 – Point of Service (integration of store POS &
Websites)
Step 1 – Foundational – Common Data & Systems
14
Project Velocity and the implementation of SAP will help us deliver the positive experience our
customers want and deserve. It’s the first step in moving us towards One Discount Tire:
One Employee & Customer Experience…
Providing our customers an unexpected experience that is integrated and consistent no matter how or where the
customer wants to shop with us; providing our employees with the tools necessary to focus on the customer and provide
an unexpected experience.
One View of Common Data…
Providing us with one of view of
our data that is shared by every
store, on-line, and at corporate.
One view of common data will
allow us to anticipate customer
needs and provide a more
personalized experience.
One Customer &
Employee Experience
One Consolidated Supply Chain
Providing us with better visibility
across all of our inventory and the
inventory of our suppliers.
15
Project Velocity – 5 key objectives:
1
IMPROVE OUR TECHNOLOGY:
Our finance and core merchandising systems are old
and highly customized. Our customers expect new and improved technology – it’s time for an
upgrade!
2
TRUST OUR DATA:
3
USE THE INTEGRATED PLATFORM:
4
IMPLEMENT SAP BEST PRACTICES:
5
ENABLE OUR PEOPLE:
Trust that our inventory and financial data is real time and accurate.
A standardized and integrated platform will
allow us to become more effective and efficient and reduce support costs.
A lot of retailers have implemented SAP we have seen what works and what does not. We need to commit to SAP processes and not
customize our code in order to grow responsibly and continue to Be the Best.
Our employees deserve the best. The improved tools and
systems will allow our employees to be more efficient and effective.
16
Program Workstreams
Program Management Office (PMO)
Manages the overall program team, budget, schedule, risks and constraints
Data Management
Manages the data, governance, and migration activities
Organizational Change Management (OCM)
Manages stakeholder communications and drives change activities within the organization
Business Process Management
Business process design (3 teams: Finance, Merchandising/Supply Chain, Store Operations)
Technical Solution Management
Architecture, environments, solution design and build
B-2-B
Implement EDI with all Trading Partners
Scanners
Install and implement handheld scanning devices at all sites for inventory movements
Test Management
Integrated solution test deliverables, processes, and procedures
17
STARTER PACK FOR RETAIL
ACCELERATOR OVERVIEW
SAP- ALAN NEWTON
18
HOW TO REDUCE
IMPLMENTATION COST & TIME
• Start with a fully configured system
– Start with proven, quality content based on SAP Retail Best Practices.
– Limit hands-on configuration or a custom solution.
– Demonstrate preconfigured scenarios; identify only delta
requirements, not total requirements.
– Avoid reinventing the wheel.
• Leverage Starter Pack for Retail content
– Data Migration Accelerators (47+).
– Standard Reports and Forms.
– Delivered out-of-the-box BW Reports (300+).
– Preconfigured authorization roles.
– Configuration documentation.
19
STARTER PACK FOR RETAIL
WHAT’S INCLUDED
Fast ROI
SAP ERP
SAP’s next generation enterprise resource planning
solution
 Designed for all industries
 Fully integrated within SAP Business Suite

+
SAP Best Practices for Retail




Best-in-class industry expertise in SAP ERP
Predefined end-to-end processes
Industry-specific documentation
Preconfigured system
Preconfiguration settings
Master data
 Configuration documentation
 End User Documentation
 Test catalogs


Services




Starter
Pack
For Retail
Implementation
Reduced
Lower
Timeline
Risk
+
Deep industry knowledge
Focus on value creation and risk reduction
Delivery excellence
SAP Consulting provided tools
Fast,
proven,
and reliable
20
STARTER PACK FOR RETAIL
LANDSCAPE
ECS
Sandbox
ECD
Development
ECQ
Quality
ECP
Production
100 – Sandbox Client
100 – Golden Client
Best Practices Config
100 – Golden Client w/
Transports Only
100 – Production Client
105 – Development w/
Best Practices Config
200 – Integration
Test Client A
150 – Unit Test w/ Best
Practices Config
And Customer Data
220 – Integration
Test Client B
300 – Sandbox
700 – Training Client
500 – Backup
Restricted Access
21
STATER PACK FOR RETAIL
DATA MIGRATION ARCHITECTURE
CLIENT
SAP
1
2
4
3
ANALYSIS
EXTRACT
VALIDATE
CLEAN
4
5
VALIDATE
LOAD
Transform
LEGACY
DATA
Extra
ct
Raw
Data
Load
Ready
LANDING
STAGING
Load
SAP
ECC
6
RECONCILE
22
STARTER PACK FOR RETAIL
DTC RESULTS TO DATE
Data Migration Objects with 0 modifications
• Profit Center / Profit Center Hierarchy
• Cost Center / Cost Center Hierarchy
• Merchandise Categories / Merchandise Category
Hierarchy
• Site Master
Data Migration Objects with minimal modifications/only
minor data mapping
• Purchase Info Record
• Purchase Price
• Retail Price
23
ARTICLE MASTER
DEVELOPMENT/DATA LOADING RESULTS
• Article Master Loaded
• Including 70 Custom Fields
3 Weeks of
Versus typical
~3+ Months!
24
DTC’S ACCELERATOR BASED DELIVERY
A HYBRID APPROACH
Activities
before the
project
Fit–gap analysis
and
business blueprint
Project
Delta blueprint
or solution
validation
Prep
Execution
Design and
function
test
Validation
Replaces/Supports
Blueprint
Integration
test
Concluding
preparation
Data loading
and training
Go-live and
support
No full
blueprint
phase
Production
system
ASAP focus
leveraging
SAP Agile
Plug-in
Agile
Focused
25
BUSINESS VALUE OF USING EARLY
PROTOTYPING & PROJECT
ACCELERATORS
DTC – DONNA GRAHAM
26
By the Numbers
Event
#
Description
RICEFs
311
RICEF Objects
Blueprint Sessions
80
Blueprint Sessions Conducted (Session A  50, Session B  30)
45
Business Process Documents Created
14
Sponsor Committee Meetings
95
People Dedicated to the Blueprint Phase
BPDs
Sponsor Committee
Meetings
People Dedicated to
Blueprint
Business Scenarios
6
Business Scenarios
Hours Dedicated
29,173
17
Hours dedicated to the Blueprint Phase
Weeks to complete Blueprint Phase!
27
Value of starter pack
 Real experience
Team members began experiencing the system early –
Day 1 of Blueprint
 Faster blueprint completion
Quickly progressed through business process design
with hands-on prototyping
 Faster master data conversion
For Article Master, the time between design complete
and a data load for Tires (including custom fields): 3
weeks
28
METHODOLOGY APPROACHES
Agile Methods
Waterfall Methods
•
•
•
•
Waterfall methods represent the most
structured implementation method, stepping
through requirements-capture, analysis,
design, coding/configuration, and testing in a
strict, pre-planned sequence
Each phase has phase quality gates
Triple constraints (Time, scope, cost) and
dependencies are managed across phases
Progress is generally measured in terms of
clearly defined phase deliverables
•
•
•
•
•
•
•
•
Requirement
Design
Code
Test
Deploy
Traditional areas of Agile approaches are
SCRUM and eXtreme Programming
Break tasks into small increments
Iterations are short time frames ('timeboxed‘)
Multiple iterations may be required to
release a product or new features
Changing requirements are welcome
Teams are generally co-located, and
empowered to make decisions (selforganizing teams)
Documentation is kept to a minimum
Progress is measured in terms of working
functions or products
Maintain
29
OVERVIEW OF AGILE
ADD-ON TO ASAP
Project Preparation
Determined project
scope
Blueprint
Sprint backlog /
Revised / prioritized
delta list
Realization
Prioritized project
backlog
Work product
increment
UI
Development
Process
Composition
2-to-4 wks
cycle
Service
Implementation
and Test
Service
Modeling
Work product
release
Process-based composite
application, business
process, service or other
functionality
Final
Preparation
Go Live
Support
Run
30
LESSONS LEARNED USING EARLY
PROTOTYPING & PROJECT
ACCELERATORS
DTC – DONNA GRAHAM
31
LESSONS LEARNED
 Strong & consistent executive involvement - both SAP
and Discount Tire
 SAP Consulting with expertise in SAP Retail
 Focused Pre-Project Prep Phase
 Joint Co-location of team members, across all functions
 Legacy Master Data – Early mapping & cleansing
 Leverage accelerators & mix to suit project (Ex: starter
pack, agile, etc.)
 Keep the work and progress visible
 Use Scrum’s to raise issues, blockers, constraints quickly
- Need more education and coaching on agile early
- Define what done means – early and hold to it!
32
Learning’s – Keep it visible
33
Learning’s – define done!
Functional Specifications:
Status settings in Solution manager
• 0% - Not Started
• Template posted in SOLMAN
• 25% - Work In Process
• Assigned and work has begun
• 50-% - Ready for Review
• Reviews with Leads and SAP Architects
• 75% - Ready for Approval
• FS has been approved and is ready to be reviewed with the technical
team
• 100% - Complete(also known as DONE-DONE!!)
• Tech team accepts the spec; ready to start development
34
THANK YOU FOR PARTICIPATING
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SESSION CODE: 3209
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