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Oriflame’s IT Innovates Business Through Effective Alignment
Technology Category
- Application Infrastructure & Middleware - API Integration & Management
- Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Industries
- Consumer Goods
Applicable Functions
- Sales & Marketing
- Business Operation
Use Cases
- Supply Chain Visibility
- Inventory Management
Services
- System Integration
The 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 The 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.
The 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.
Operational Impact
Quantitative Benefit
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