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ITALIAN EYEWEAR MAKER LUXOTTICA SHARPENS OPERATIONAL VIEW WITH QLIKVIEW “QlikView is a huge efficiency driver for processes in which decisionmaking is based on analysis of KPIs. Moreover, QlikView is a factor in integrating processes that used to be separate. For example, it enables us to collect data from the sales force to define and publish the commercial forecast and allows for faster recognition and prediction of market developments.” – Massimo Rigobon, Responsabile BI, Luxottica Group If the subject centered on glasses not gowns, the perennial Academy Awards question, “Who are you wearing?” would very likely be “Luxottica”—and not just for those strutting the red carpet. The Italian company is the world’s largest designer, manufacturer and seller of eyeglass frames and sunglasses. Altogether, the Milan, Italy-based Luxottica Group has approximately 7,000 stores and is behind 32 licensed designer or house brands that range from chic Chanels to Ray-Ban Baloramas to Shaun White’s signature Oakley Holbrook shades with gold-tinted lenses. Its retail stores and optometry centers include LensCrafters, Pearle Vision, Sunglass Hut and the EyeMed Vision Care Group. On the manufacturing side, it has operations in Italy, China, Brazil and the United States. In 2012, net sales exceeded €7 billion. Founded in Agordo, Italy in 1961 with a simple business model—a small collection of fashionable eyeglass frames sold to wholesalers—the company quickly began refashioning its own operations through a strategy of vertical integration. In the 1970s, it shifted from wholesale distribution to direct distribution; in the 1980s, it began acquiring independent distributors and signing licensing agreements with celebrated designers like Giorgio Armani; and in the 1990s, it added sunwear and became the first eyewear manufacturer to enter the retail market when it acquired LensCrafters. In 1999, Luxottica definitively claimed global leadership status by acquiring Ray-Ban, the world’s best known sunglasses. It continued its growth trajectory throughout the 2000s, acquiring, among others, Sunglass Hut, the world’s biggest distributor of premium sunglasses, Bausch & Lomb and Oakley. But as Luxottica grew and changed, its business intelligence capabilities weren’t growing and changing with it. If it needed reports on key performance indicators (KPIs), for example, its IT department would have to assemble reports and charts from various spreadsheets and documents, an expensive, laborious process. To stay on top, the company knew it needed a faster, more flexible and more interactive business intelligence platform, one that could deliver customized, real time analysis delivered in easy-to-absorb presentations and dashboards. In 2008, the group began a longrange initiative to do just that. Although it had a comprehensive enterprise resource planning (ERP) system that it was happy with, the system had no built-in capabilities for online analytical processing, data mining, complex event processing, benchmarking, text mining and other predictive analytics. Without the ability to swiftly and easily assemble accurate historic, current or predictive views of its business operations, the eyewear maker could potentially fail to identify or develop new opportunities—not a situation it wanted to invite. SOLUTION OVERVIEW Luxottica Luxottica is a leader in the design, manufacture, distribution and sales of premium, luxury and sports eyewear. Founded: 1961 Headquarters: Milan, Italy Employees: Approximately 70,000 Net Sales: EUR 7.1billion Challenges: • Reduce effort required to track key performance indicators (KPIs) for the business • Create a faster, more flexible, and more interactive business intelligence platform • Deliver customized, real time analysis in easy-toabsorb presentations and dashboards Key Benefits: • Delivered more precise, in-depth, and dynamic reporting for better decision-making and logistics management • Enabled monitoring of KPIs by specific filters such as market and time segmentation • Led to better planning by making it possible for partners to be included in the process • Works in concert with existing software, eliminating the need for a major change in IT infrastructure • Enabled self-service reporting at all levels of the organization QlikView Partner: QlikView Italy RETURN ON INVESTMENT 1,500 staff and partners access QlikView to monitor business performance and accelerate decision-making TIME TO VALUE Reduced the time needed to produce reports from hours or days to Real Time “We’re a company with operations on every continent that offers hundreds of product lines and has to integrate dozens of commercial, logistical, financial, organizational and operational activities,” said Massimo Rigobon, Responsabile BI with the Luxottica Group. “We’re also a company that has to compete against producers and wholesalers.“ Global market forces have intensified the competitive pressure on the company. “In the last five years, the economic and competitive environment has become more and more demanding,” Rigobon said. “We need the best possible business intelligence to maintain our edge.” QlikView Solution from QlikTech ease of use and integration—was QlikView, the comprehensive business discovery platform from QlikTech. QlikView is a world leader in the techniques of in-memory analytics and can be used for all types of reporting, forecasting and general data analysis. It combines the features of dynamic presentations, instantaneous data manipulation and real-time data analytics, and supports a wide range of application areas, including reporting and analysis, monitoring, scorecards, consolidation, planning and forecasting. In addition, it can be deployed onpremise, on cloud servers, and on laptops and mobile devices such as iPhones or iPads. As much as Luxottica wanted the online analytical processing, data mining, complex event processing, benchmarking, text mining and other predictive analytics of a business intelligence solution, it did not want to scrap its existing ERP system to get those capabilities. Instead, it wanted an add-on solution that would not only work with its own internal ERP system but would be easy to integrate with the preferred systems of its many partners. Luxottica’s first foray into uncovering the capabilities of QlikView began in its commercial department, where it developed a forecasting solution to support the sales force. The platform was so successful that Luxottica rolled it out to corporate top management and numerous other departments including finance, logistics, marketing, human resources and research and development. By the end of 2012, Luxottica had 1,500 users on QlikView, 1,200 of them international sales staff. “The ERP system we were using was not intended to provide dashboards and business intelligence,” Rigobon said. “It was our belief that the biggest gains were to be found in solutions using in-memory analysis and reporting. Such solutions bring simplicity, flexibility and scalability, even in the most ambitious BI projects.” “QlikView plays an important role within the management processes of the company,” Rigobon acknowledged. “After being introduced to monitor day-to-day performance of the sales force, QlikView has been subsequently adopted in almost every department to support information delivery and decision-making.” After looking at several solutions, the one that met all of Luxottica’s criteria—for capabilities, price and QlikView Italy, a QlikView Master Reseller, was instrumental in designing, testing, and deploying an innovative analytics platform across Luxottica’s operations. “Luxottica offered the opportunity for building a solution that would generate real business value and optimize sales across multiple global markets,” said Massimo San Giuseppe, CEO of QlikView Italy. Speed, Ease and Customization Fast response was a top goal for the company’s BI software. In the past, it took anywhere from hours to days for the eyewear maker’s IT staff to cull through all the spread- sheets and data points needed to create a viable report. With QlikView, reports can be assembled in real time. Furthermore, with QlikView, end users are given presentations on an interactive software program that allows them to enter new data on the dashboard or simply move saved data around so they can see the same set of data from different viewpoints on the same presentation. In essence, QlikView creates real-time, customized presentations by allowing end users to move and change data within it instantly. High Marks from Staff “In the last five years, the economic and competitive environment has become more and more demanding. We need the best possible business intelligence to maintain our edge.” – Massimo Rigobon, Responsabile BI, Luxottica Group Luxottica’s users universally report high levels of satisfaction with the solution. “On the front end, users like the easy usability and speed,” Rigobon continued. “On the back end, they like the presence of a statistical AQL engine like the ones at the heart of major search engines. This gives us the ability to build flexible, made-to-order solutions and prepare filters and make them available to end-users.” Some 1,500 people now use the platform, 1,200 of them sales staff. “That’s quite a high number of users,” Rigobon said. “We attribute that to the high ease of use.” Democratizing Intelligence Within a few months after it was installed, QlikView is supporting almost all of the applications that power Luxottica’s business functions: management, human resources, logistics, finance, retail, quality control, after-sales, marketing, IT, purchasing and research and development. Furthermore, access is open to any employee or partner who needs country- or store-specific information. “Users come from all over the world and belong to all organizational levels, from top management to sales staff,” Rigobon confirmed. “Units in the United States, Canada, France and Italy now have specific, custom-made solutions.” Higher Productivity, Greater Efficiency Before moving to QlikView, requests for ad hoc queries and analysis were routed through Luxottica’s IT department. Now that individual users can run their own self-designed and selfservice queries, Luxottica’s IT staff and developers can attend to other high-priority work. “For the IT department, QlikView has provided a self-service BI solution that frees the developers to manage important administrative tasks like data integration and user access rights management rather than address the constant requests from individual users.” Although the eyewear maker has yet to put a monetary value on the productivity gains derived from this, it considers the capabilities to be beneficial in their own right. “It’s not just the time savings that help the company, it’s also the new functionalities that can be performed,” Rigobon confirmed. “QlikView is a huge efficiency driver for processes in which decision-making is based on analysis of KPIs,” he continued. “Moreover, QlikView is a factor in integrating processes that used to be separate. For example, it enables us to collect data from the sales force to define and publish the commercial forecast and allows for faster recognition and prediction of market developments.” The Way of the Future As Luxottica looks ahead to the possibility of expanding to new markets in India, the Middle East and Thailand—and to keeping the world looking good while seeing well—it plans to make QlikView a cornerstone of its operations. “QlikView is deemed to be the best solution to read and understand quantitative performances as well to control the various KPIs in our data warehouse,” Rigobon said. “We see QlikView’s dashboards as the quantitative and informational underpinning for decision support companywide.” © 2013 QlikTech International AB. All rights reserved. QlikTech, QlikView, Qlik, Q, Simplifying Analysis for Everyone, Power of Simplicity, New Rules, The Uncontrollable Smile and other QlikTech products and services as well as their respective logos are trademarks or registered trademarks of QlikTech International AB. All other company names, products and services used herein are trademarks or registered trademarks of their respective owners. The information published herein is subject to change without notice. This publication is for informational purposes only, without representation or warranty of any kind, and QlikTech shall not be liable for errors or omissions with respect to this publication. The only warranties for QlikTech products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting any additional warranty.