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we know they know Fossil integrates retail and wholesale operations with IBM and SAP Fossil, based in Richardson, TX, is a Overview global company specializing in the design and manufacture of watches easily with existing SAP software and other fashion accessories, which it To provide global business insight environment, reducing the need for markets under the Fossil, Relic, and optimize inventory levels, Fossil expensive customization or manual Michele, Zodiac, and other brands. wanted to integrate information processing. Flexible The company employs over 10,000 systems for its growing retail implementation plan minimized people and generates annual operation with the SAP software business disruption. revenues of approximately US$1.25 The Challenge billion. environment that supports its wholesale business. Key Solution Components Industry: Retail Founded in 1984, Fossil originally Applications: SAP® for Retail concentrated on wholesale distribution Working with IBM Global Business including SAP ERP 5.0, SAP of its products in North America, Services, Fossil selected and Apparel and Footwear, SAP Europe and Asia. The company also implemented the SAP for Retail NetWeaver® began to develop and manufacture solution portfolio. The new software SAP NetWeaver Exchange products for prestigious brands such runs on a number of IBM System p5 Infrastructure, SAP POS Data as Burberry, Diesel, DKNY and 570 servers and is supported by an Management Emporio Armani. IBM DB2 database. Hardware: IBM System p5™ 570 The Solution The Benefits Single source of global business Business Intelligence, Software: IBM AIX® 5L™, IBM DB2® As the business grew, it became clear Services: IBM Global Business that the company needed a Services centralized enterprise resource data for both retail and wholesale planning solution. Fossil chose the operations supports shared SAP Apparel and Footwear inventory, and enables rapid application, to manage its wholesale reaction to market conditions – business, developing electronic data stock can be quickly shipped to interchange (EDI) interfaces to wherever demand is highest, and connect its systems directly to large manufacturing decisions can be chains like Walmart and Macy’s, and based on the latest sales data. Standard global template for business processes and SAP footprint facilitates expansion into new markets. Solution interfaces B2B systems to help sell to smaller them could meet its specific needs, as retailers. Ed Jurica explains: Meanwhile, Fossil had also started to “Most of the solutions on the market investigate other distribution channels, presumed that retailers own their own launching one of the earliest warehouses and inventory. But in our e-commerce sites on the Internet. It case, the warehouses are owned by had begun to experiment with retail the wholesale business, and the outlets as a means to build the brand, inventory is shared between the gain direct contact with consumers wholesale and retail operations. We and test new product ideas. The needed a solution that would be Ed Jurica company was soon operating more flexible enough to handle the shared CIO than 160 stores in the US, Canada and inventory, without requiring a lot of Fossil the UK. expensive customization work.” “At first, we decided to outsource the IT Leveraging investment in SAP software systems governing our retail operation, Fossil decided to investigate the and treat it as a customer of the possibility of integrating the SAP for wholesale business,” explains Ed Retail solution portfolio with its existing Jurica, CIO of Fossil. “But as our retail SAP Apparel and Footwear interests grew, this became a less environment – leveraging its tenable strategy. We wanted a solution investment in SAP technologies and that would interface easily with the SAP minimizing the amount of applications that managed our customization required. “All in all, this was a very successful implementation. IBM Global Business Services played a significant role in our success.” wholesale business.” “We decided that we needed advice Fossil considered a number of from an organization that doesn’t just solutions designed for the retail understand the technology, but has industry, but found that almost none of real insight into the retail industry as well,” says Ed Jurica. “SAP recommended consulting IBM Global Business Services, which turned out to be excellent advice.” IBM Global Business Services designed a global SAP for Retail template, based on Fossil’s Global Retail Business Blueprint, in accordance with standardized and best practice processes. IBM Global Business Services worked with the in-house IT team to deploy the solution, rolling it out to Fossil stores across the US, Canada and the UK. With the global template in place, it will be much easier for Fossil to extend its SAP environment to new markets as the retail business expands. “IBM Global Business Services an elegant solution for our SAP showed an amazing ability to adapt environment,” says Ed Jurica. “Our and meet the changing needs of our SAP software environment involves business,” explains Ed Jurica. “We many different applications and wanted to time the go-live of the SAP for components, so virtualization is a Retail solution to match our store really intelligent way to improve rollout, and in the end this led to a lot of hardware utilization – we can even run rescheduling. The IBM team took these our SAP NetWeaver Business changing requirements in stride.” Intelligence environment and its underlying IBM DB2 database on the The SAP for Retail solution interfaces same physical server.” “The Advanced Power Virtualization features of the IBM System p5 provide an elegant solution for our SAP environment.” Ed Jurica CIO with point of sale (POS) systems in Fossil’s 160 stores, using the SAP POS The company chose IBM DB2 as the Data Management application to database platform for its SAP software, aggregate sales data and make it and IBM Tivoli Storage Manager to available for analysis using the SAP handle backups, because of IBM’s NetWeaver Business Intelligence close relationship with SAP and the component. The solution interfaces joint roadmap for the future of their with the company’s wholesale systems alliance. via the SAP NetWeaver Exchange Infrastructure component, increasing “We have become an IBM shop, but it automation. wasn’t by design,” explains Ed Jurica. “We evaluated other options at every “Because the new solution shares point – but whether we looked at information automatically between the hardware, software or services, IBM retail and wholesale environments, we seemed to have an offering that would can manage our supply chain more best meet our needs. effectively and with fewer manual processes,” says Ed Jurica. “Having an “All in all, this was a very successful SAP platform for our global operations implementation. IBM Global Business simplifies our infrastructure, making it Services played a significant role in easier to roll out consistent best our success. Their highly motivated practices as we expand into new global team provided experienced markets.” leadership, with considerable expertise in both SAP software and the Fossil chose to implement the SAP for retail environment, and formed a Retail solution on IBM System p5 570 flexible partnership with our own IT servers – the same platform it was staff. “ using for its existing SAP ERP and SAP AFS applications. The company now Responding to consumer demand has a total of six p5-570s running SAP With the new solution from IBM and software, as well as a number of smaller SAP, Fossil has gained the ability to System p5 servers running IBM manage its retail and wholesale WebSphere Commerce for the operations from a centralized point of company’s consumer Web site. control. With improved visibility of business processes and changing “The Advanced Power Virtualization market conditions, and tighter control features of the IBM System p5 provide of shared inventory, Fossil is able to Fossil respond more quickly to consumer demand and drive higher efficiencies in inventory management. “To take one example: one of the advantages of the watch and accessory business is that our “IBM Global Business Services did a great job – ensuring that the solution went live on-time, on-budget and it worked.” products are small and light – very easy to transport,” says Ed Jurica. Ed Jurica “With the new solution, when we see a certain line selling well in our UK retail CIO Fossil stores, we can quickly move stock from one of our global distribution centers and make it available for local wholesale customers to sell in their department or specialty stores. The speed and quality of business intelligence provided by the IBM and D-70548 Stuttgart ibm.com/solutions/sap SAP solution simply wasn’t available to us before, and it makes a big IBM Deutschland GmbH IBM, the IBM logo, IBM System Storage, IBM System z, IBM System p, IBM System i, IBM System x, z/OS, z/VM, i5/OS, AIX, difference in a fast-moving fashion DB2, Domino, Lotus, Tivoli, Rational and WebSphere are trademarks or registered trademarks of International Business industry.” Machines Corporation in the United States, other countries, or both. IBM and Fossil’s working relationship trademarks or registered trademarks of Intel Corporation or its was so positive that the team was subsidiaries in the United States and other countries. UNIX is a awarded a Fossil Collaborative Culture registered trademark of The Open Group in the United States and other countries. Linux is a trademark of Linus Torvalds in Award, and executives sent personal the United States, other countries, or both. Microsoft, Windows, letters of commendation to key IBM Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both. team members. Ed Jurica concludes: “IBM Global Business Services did a great job – ensuring that the solution Intel, the Intel logo, Intel Xeon and the Intel Xeon logo are Other company, product or service names may be trademarks, or service marks of others. went live on-time, on-budget and it This case study illustrates how one IBM customer uses IBM and/or IBM Business Partner technologies/services. Many factors have contributed to the results and benefits described. worked.” IBM does not guarantee comparable results. All information contained herein was provided by the featured customer and/ or IBM Business Partner. IBM does not attest to its accuracy. All customer examples cited represent how some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions. This publication is for general guidance only. Photographs may show design models. © Copyright IBM Corp. 2007 All Rights Reserved. © Copyright 2007 SAP AG SAP AG Dietmar-Hopp-Allee 16 D-69190 Walldorf SAP, the SAP logo, SAP and all other SAP products and services mentioned herein are trademarks or registered trademarks of SAP AG in Germany and several other countries. GK12-4316-00 (11/07)