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Time to Migrate
Enterprise Legacy Application Modernisation

                                     www.zsl.com
Key Speakers

Srinivasan Raghanathan                         Kamlesh Shah
Practice Lead, Zylog Systems Ltd               Program Manager, Zylog Systems Ltd


                                   Kamlesh is an experienced IT professional with 25 years of
                                   delivering business benefits through effective project &
                                   programme management. Prior to working with Zylog,
                                   Kamlesh held various management roles with the insurance
                                   and finance industries, to include Coverpoint, Santander,
                                   CitiGroup, and NRG.

                                   Kamlesh is highly experienced in managing stakeholders,
                                   internal/outsourced teams and third party
                                   suppliers/integrators. During his tenure with Zylog since 2008,
                                   Kamlesh has led major application migration projects which he
                                   drives through Zylog’s global development and delivery
                                   centres.




                                                                             www.zsl.com
Agenda
•   Introducing Zylog Systems Ltd

•   Industry Trends on Modernisation

     –   CIO Agenda – Modernisation

     –   How end of life Product support is affecting Enterprises

     –   Why Modernise

     –   Business Value

•   Zylog’s Approach to Legacy Modernisation

     –   Tools Set (demo the tools and reports)

     –   Methodology

•   Case Study

                                                                    www.zsl.com
Zylog – 15 years of Evolution

    2008 - 2011
5 companies acquired
                                                                                2009-10    2010-11
                                                                   2008-9
                                                                                 $219m      $400m
                                                               $151m Turnover
                                                                                Turnover   Turnover
                                                       2007-8
                                                   $153m Turnover
                                                                                           4,000+
                                                                                           people
                                               2006-7
                                            $93m Turnover
                                                2007
                              2004       Zylog IPO through   Zylog – Growing &
                          Zylog Europe       BSE/NSE
                                                             Profitable,
                          incorporated
          1996                                    Routes to market:
   Opened ODC – Chennai                           - Direct - Serving Enterprises
     Opened USA office
                                                  - Indirect partnering with other IT services
                                                  companies

                                                                                 www.zsl.com
Worldwide Office Locations
Zylog (Europe) Limited is based in Mansell Street, Aldgate




 4000+ Developers (Java, .NET + Legacy, OpenSource)

                                                             www.zsl.com
Partial List of Direct Customers




                                   www.zsl.com
Technology Partners

                 IBM

              Microsoft

                Oracle

400+ Software Developer Certifications
                                 www.zsl.com
Core Competencies




                    www.zsl.com
Industry Trends




                  www.zsl.com
CIO Agenda
•   Gartner predicts that by the end of 2010 more than 1/3 of application projects will arise as a

    result of tackling outdated technology and skills

•   The scale of obsolescence in the set of portfolios is a major problem in its own right

     –   compounded by the lack of integrated planning capability within many IT teams

•   IT modernisation cannot be addressed as a short-term panic-response project

     – As it is large and complex and requires the wholehearted commitment from IT

         management team and many of the business clients as well

•   Gartner said modernisation is needed as IT systems and services are too slow to respond in

    a fast enough manner, compounded by a market that is becoming increasingly more

    crowded and complex
                                                                                         www.zsl.com
CIO Agenda
•   Furthermore, IT departments historically tried to squeeze as much value as possible from
    older systems even if they fail to deliver modern standards of functionality

•   Other recent Gartner research highlighted the fact that CIOs are struggling to drive their
    businesses forward

     – Due to lack of control as a result of too many people being involved in the decision
        making process



      CIOs clearly have a role to play in redressing the balance. "The scale and
complexity of the issues means that IT modernisation is a CIO agenda item and will
                      remain a CIO agenda item for the near future



                                                                                   www.zsl.com
How End of Life(EoL) Product impacts you

    • Overdependence's increases maintenance cost
    • Continue investing into the product
*


    • Frequent investments into upgrades
    • Architectural inflexibility
*


    • Cannot adapt to business changes.
    • Too slow when compared to business competitors
*



                                                    www.zsl.com
General Application Options




(New build)               (Refurbish)          (Extend)
- Brand new custom app    - Partial SDLC       -Least Effort
- Full SDLC               - Less Effort        -No escape from
- Use of best available   - Faster             legacy code
Architecture &            - Restricted Scope   - new code + Old code
technology                --Brand new app      - Poor roadmap
                          -Nuts to Wing Nuts   -Add new features &
                                               functionalities

                                                         www.zsl.com
The problems with COTS Packages

   Highly Invasive to           Av ERP system costs
   business operation           £0.5m to licence


   Highly invasive to IT        Av ERP system costs £0.5
   procedures                   to implement


   Causes organizations to      Av ERP system costs £5m
   /bend’ to suit the package   to maintain over its lifetime


   Benefits lower than          Benefits lower than
   expected                     expected


   Costs higher than            Future flexibility is limited
   expected                     by the ERP vendor



                                                   www.zsl.com
Why Modernise
Protects the investment made in the legacy
application (Business Logic)


Delivers a brand new application (no legacy code)


Provides flexible, capable, new-technology platform


Low Risk (Re-implementing existing app)


Minimizes business disruption


Uncertain Product Roadmap


                                                      www.zsl.com
Why Modernise-Migrate
                        Innovation   Risk   Cost


No Change               Low          High   High


New COTS                Med/High     High   High


Modernise/Extend        High         Low    Low/Med


Modernise/Migrate       High         Med    Med




                                                   www.zsl.com
Business Value

     Language           Component
                                       Extensibility
    Productivity         Re-Use


R
O
I
        Cost             Development
                            Hours           Risk




                                          www.zsl.com
Zylog approach to Enterprise
 Application Modernisation




                         www.zsl.com
Business Objective
The expansion in app usage
in new countries will make a
big contribution to European
operations (€m)

Not ideal to roll out a 20+       PB
year old application              App



Easier and better to roll out a
new web application.
Modernization Process




                        www.zsl.com
Application Modernization Framework




                                                                                  Transfor
                                                     Set-Up
                         Legacy                                                                                                                                 Target System
                                                                                               Intermediate Object




                                                                                     m
                         System
                                                                                                     Model
                                                                                                                                                                     Java




                                                                                                                                          Stage 5 - Modernize
Stage 1 - Assessment




                       Visual Basic
                                                     Templates
                                                                                                As-is                      To-Be                                      C#


                                                                 Transformation
                                                                                    Platform




                                                                                                           Stage 4 – Re-
                       Oracle Forms
                                       Preparation




                                                                                                                           To-Be System
                       Oracle Pro*C
                                       Stage 2 -



                                                                 Stage 3 -




                                                                                               System
                                                                                               Legacy

                                                                                               Design




                                                                                                                              Design
                                                                                                                                                                    Target




                                                                                                           Factor
                       Power Builder                                                Database
                                                                                                                                                                 Architecture
                                                     Parser




                       Progress 4GL                                                                                                                                  JEE
                       Infomix 4GL                                                                                                                                   .NET
                                                                                                        Tooling
                          Foxpro                                                                                                                                     ADF
                                                     Workbench




                                                                                    Language




                                                                                                  Rational Design &
                          Delphi                                                                                                                                     SOA
                                                                                                  Development Tools
                       Access / VBA                                                                                                                                  RIA
                                                                                                 Eclipse          Visual Studio


                                                                                                                                                                www.zsl.com
Rewrite vs. Migration – SDLC Comparison
                                                   Migration Using
 Rewrite             Manual Migration
                                                     Smartprise
   Requirement                                   J2EE                 .NET
     Analysis           Application study   Application study    Application study

 High Level Design                             High Level/
                                             Low Level Design

 Low Level Design
                           GUI Design          GUI Design



   Construction
                           Migration
                                               Migration
                                                                    Migration

      Testing                Testing
                                                 Testing              Testing
 User Acceptance        User Acceptance     User Acceptance      User Acceptance

                                                                www.zsl.com
Migration Toolset
      Tools                        Benefits                       Key
                                                              Deliverables
                       Tool-based analysis provides

                       accurate estimates for planning.
                                                            Business Process
 PB-Code AnalyzerTM   Tool-base migration increases
                                                            Document
                       accuracy, reduces human errors,
 PB-EstimatorTM                                            Application Inventory
                       speeds up migration and
 PowerMigratorTM                                           checklist
                       consistency.
                                                            System Design Document
                       Application bottlenecks
                                                            Architecture Design
                       identified, upfront – unused
                                                            Document
                       codes / Level of inheritance fine
                                                            Project Plan
                       tuned. This helps reduce future
                       maintenance cost
PowerMigrator - Automated Estimation
                              Effort Estimation and Proposal Generator
                                                                       1                               3
                                     Zylog App Assessment Workshop                   Report
                                                                               Application
                                      Run Object or Code Analyzer              Windows
Client




                                                                               DataWindows
                                                              2                Global Variables
                                           Code Analyzer                       Functions
                                          PowerMigratorTM                      Events
             PowerBuilder                                                      Menus
                                             Object &
              Application                                                      Structures
                                           Code Analyzer          Generate
                                                                               User Objects
                                                                   Report
                                                                               .txt file, .psr files


                                 5                                             4
            Estimation Report                               Effort Estimator                Mail to
Zylog




                                                                                            Zylog
              Summary Report                                PowerMigratorTM
                                       Generate
                                                            Automatic Effort
                                         Effort
              Detail Report                                 Estimator Tool
                                       Estimation

                                                                        6

                                            Produce estimation
Automated Source Analyzes Report
Analyzer & Estimation Report
Collecting Source Application & Configuring
1.   Collect source application code dependent resource files

2.   Simulate environment similar to client environment

3.   Organize dependent resources

4.   Configure source application in Dev/Test environment

5.   Analyze application for issues

6.   Document the application stock

7.   Confirm the results with client
PowerMigrator Overview
         Receive Source
                                      Code              Development                Deployment
             Code

                                             Presentation                                  .NET/J2EE Servers
                                                Logic




                                                                 ASP.Net/Winform
                                                                       JSP
                                                                    JSF/JSP




                                              # %Business
                                                  Logic
                                              X+
2-Tier PB
Application           PowerMigrator
 Migration

                                                                      VB.Net/C#.Net
                                             Database                     Java
                                              Logic




                                                                                                Database
Modernization Input - Output




                         www.zsl.com
Team Formation & Balance

      Customer Site


      London (Zylog)

      Global Delivery Centre
      (Zylog)

                               www.zsl.com
Engagement Models
(Enterprise Customer – engagement)



                                         POC




                                          No
                                          POC




                                     www.zsl.com
In Summary:

              Reliable


              Predictable


              Repeatable


               Futuristic




                 www.zsl.com
Why Zylog’s Modernisation Services?

        Saves 30-50% of time and effort involved in rewrite


    Re-usability of 50-60% of your legacy application codes and
reducing up to 30% of your capital investments on new technologies


 Automated migration processes with minimal human intervention-
                      minimal or no errors


BPM enablement for automated business processes-more business
    flexibility and agility and optimized resource capitalization


 SOA technologies bringing in line the business and IT with greater
            interoperability and seamless interaction


                   Cloud enablement expertise



  TCO is slashed by 40% and ROI is doubled within a short span


                                                                      www.zsl.com
Point of Sales(PoS) Modernisation
   (PowerBuilder to JEE Environment)
About Client


• Rent-to-own retailers of electricals,
   white goods and furniture

• 180 stores – 21 new last year

• 146,000 customers

• Revenue of £170m (up 16.9%)

• 13.9% like-for-like revenue growth



• Strategy for growth – 450 possible
   new sites have been identified
Business Problem

• Current store systems would constrain the
  Client growth to 200 stores as the overnight
  process would fail

• Store system runs on isolated local store
  servers which are expensive and prone to               Store system constraint
                                                              at 200 stores
  failure



      Store 1                        Store 3




                   Overnight                            (Projected max store growth figures)
        Store 2    replication
                                 Store 4 etc...
                    to Head
                     Office                             There was no replacement
                                                   “off the shelf” system available that
• Other issues with the old system:
                                                  could support the unique Customer’s
  – Drive inefficient store processes
                                                              business model
  – Costly to open new stores due to
     infrastructure requirements
Project Opportunity

• The core objective of project was to transform                                    Web
                                                               Web
  the point of sale (POS) system into a                                                      Store 3
                                                    Store 1
  centralised and easy to use system that will
  support future store growth
                                                              Web                    Web

• The project also allows the opportunity to...                       Real time
                                                                         web
                                                    Store 2                                Store 4 etc...
                                                                     interface to
  – Improve the efficiency of existing in-store                      Head Office

    processes
  – Support future flexibility of the business                         Store servers to be
    (future enhancements)                                              removed and recycled

  – Improve usability and reduce training
    requirements
  – Improve reliability and reduce the support
                                                        Project provided the unique
    and maintenance costs
                                                   opportunity to overhaul the core store
                                                    system which supports 80% of store
                                                                 processes
Approach
                                                                  11 months
                     Dec ‘08         Jan‘09                                                                       Nov ‘09




                          • Detailed analysis of the legacy system           • Rigorous integration   • Required upgrade
• Analysis and
                          • Significant enhancements built on legacy           and performance          to company wide
  prioritisation of all
                            functions to simplify user training                testing                  web training portal
  business and IT
                            requirements but maximise in-store benefits      • Application and        • Staff from 180
  initiatives
                          • The system was defined and built module-           infrastructure           stores fully trained
• IT strategy
                            by-module to allow live testing throughout the     suitable for rapid       on new system
  supported by the
  whole business            project                                            store growth
                          • Underpinned by infrastructure upgrade
Results
                 Old System                                                   New System




                                                                         Web                  Web
   Store 1                                   Store 3                                                   Store 3
                                                              Store 1



                                                                        Web                    Web

                     Overnight                                                  Real time
     Store 2         replication                                                   web
                                         Store 4 etc...      Store 2                                 Store 4 etc...
                      to Head                                                  interface to
                       Office                                                  Head Office


• Decentralised system limits store growth                • Centralised web system enables store growth
• Inflexible functionality inhibits future development    • User friendly screen design
• Complex to use and train new users                      • Flexible to business needs and cheaper to support
Business Benefits
Growth Benefits                                                          Business Case
• Project was required for Client to grow beyond 200
  stores as current system constraints were a “show




                                                                      Benefit
  stopper”
• The success of Project means that Client can continue
  to grow stores without minimal investment in POS
  systems
• Additional revenue from new stores would increase                                            Payback in




                                                                                £7m+ NPV
                                                                                 Benefits
  turnover by £200m per year by 2013                                                          under 1 year
• This benefit is not directly measurable and was not




                                                                                                                                          Year 5
  included in the business case




                                                                                                                                Year 4
                                                                                                                       Year 3
                                                                                                              Year 2
Efficiency and Cost Benefits




                                                                                                     Year 1
• Improved system infrastructure and centralisation of the
  system will save £5m in license and support costs over
  the next 5 years                                                                                                                       Time
• Store efficiency benefits * will allow store staff to spend                               Costs
  more time serving customers, improving debt
  management and driving increased sales – this will                                        £1.4m
  increase profit by £7m over 5 years

                   * estimated by study of time and motion in-store
Store Feedback
Store feedback has been hugely positive and proven benefits in-store:


  “New system has made the end to end sign up process so
     much quicker – 50 mins down to as little as 30!”

  “Navigation of the system is very user friendly - this will
            makes much easier for new users “

    “Great for searching stock, by region and nationwide”

 “Customer transfers are a lot easier – this will save a lot of
                           time”
  “The system automatically moves through the process in
                       steps, great!”

(all from everyday store users)
Thank you




            www.zsl.com
Contact Us
     ZSL Inc
 85 Lincoln Hwy
Edison, NJ 08820
   7325499770
info@zslinc.com



                   www.zsl.com

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Time to-migrate-ent-legacy-app-modernisation

  • 1. Time to Migrate Enterprise Legacy Application Modernisation www.zsl.com
  • 2. Key Speakers Srinivasan Raghanathan Kamlesh Shah Practice Lead, Zylog Systems Ltd Program Manager, Zylog Systems Ltd Kamlesh is an experienced IT professional with 25 years of delivering business benefits through effective project & programme management. Prior to working with Zylog, Kamlesh held various management roles with the insurance and finance industries, to include Coverpoint, Santander, CitiGroup, and NRG. Kamlesh is highly experienced in managing stakeholders, internal/outsourced teams and third party suppliers/integrators. During his tenure with Zylog since 2008, Kamlesh has led major application migration projects which he drives through Zylog’s global development and delivery centres. www.zsl.com
  • 3. Agenda • Introducing Zylog Systems Ltd • Industry Trends on Modernisation – CIO Agenda – Modernisation – How end of life Product support is affecting Enterprises – Why Modernise – Business Value • Zylog’s Approach to Legacy Modernisation – Tools Set (demo the tools and reports) – Methodology • Case Study www.zsl.com
  • 4. Zylog – 15 years of Evolution 2008 - 2011 5 companies acquired 2009-10 2010-11 2008-9 $219m $400m $151m Turnover Turnover Turnover 2007-8 $153m Turnover 4,000+ people 2006-7 $93m Turnover 2007 2004 Zylog IPO through Zylog – Growing & Zylog Europe BSE/NSE Profitable, incorporated 1996 Routes to market: Opened ODC – Chennai - Direct - Serving Enterprises Opened USA office - Indirect partnering with other IT services companies www.zsl.com
  • 5. Worldwide Office Locations Zylog (Europe) Limited is based in Mansell Street, Aldgate 4000+ Developers (Java, .NET + Legacy, OpenSource) www.zsl.com
  • 6. Partial List of Direct Customers www.zsl.com
  • 7. Technology Partners IBM Microsoft Oracle 400+ Software Developer Certifications www.zsl.com
  • 8. Core Competencies www.zsl.com
  • 9. Industry Trends www.zsl.com
  • 10. CIO Agenda • Gartner predicts that by the end of 2010 more than 1/3 of application projects will arise as a result of tackling outdated technology and skills • The scale of obsolescence in the set of portfolios is a major problem in its own right – compounded by the lack of integrated planning capability within many IT teams • IT modernisation cannot be addressed as a short-term panic-response project – As it is large and complex and requires the wholehearted commitment from IT management team and many of the business clients as well • Gartner said modernisation is needed as IT systems and services are too slow to respond in a fast enough manner, compounded by a market that is becoming increasingly more crowded and complex www.zsl.com
  • 11. CIO Agenda • Furthermore, IT departments historically tried to squeeze as much value as possible from older systems even if they fail to deliver modern standards of functionality • Other recent Gartner research highlighted the fact that CIOs are struggling to drive their businesses forward – Due to lack of control as a result of too many people being involved in the decision making process CIOs clearly have a role to play in redressing the balance. "The scale and complexity of the issues means that IT modernisation is a CIO agenda item and will remain a CIO agenda item for the near future www.zsl.com
  • 12. How End of Life(EoL) Product impacts you • Overdependence's increases maintenance cost • Continue investing into the product * • Frequent investments into upgrades • Architectural inflexibility * • Cannot adapt to business changes. • Too slow when compared to business competitors * www.zsl.com
  • 13. General Application Options (New build) (Refurbish) (Extend) - Brand new custom app - Partial SDLC -Least Effort - Full SDLC - Less Effort -No escape from - Use of best available - Faster legacy code Architecture & - Restricted Scope - new code + Old code technology --Brand new app - Poor roadmap -Nuts to Wing Nuts -Add new features & functionalities www.zsl.com
  • 14. The problems with COTS Packages Highly Invasive to Av ERP system costs business operation £0.5m to licence Highly invasive to IT Av ERP system costs £0.5 procedures to implement Causes organizations to Av ERP system costs £5m /bend’ to suit the package to maintain over its lifetime Benefits lower than Benefits lower than expected expected Costs higher than Future flexibility is limited expected by the ERP vendor www.zsl.com
  • 15. Why Modernise Protects the investment made in the legacy application (Business Logic) Delivers a brand new application (no legacy code) Provides flexible, capable, new-technology platform Low Risk (Re-implementing existing app) Minimizes business disruption Uncertain Product Roadmap www.zsl.com
  • 16. Why Modernise-Migrate Innovation Risk Cost No Change Low High High New COTS Med/High High High Modernise/Extend High Low Low/Med Modernise/Migrate High Med Med www.zsl.com
  • 17. Business Value Language Component Extensibility Productivity Re-Use R O I Cost Development Hours Risk www.zsl.com
  • 18. Zylog approach to Enterprise Application Modernisation www.zsl.com
  • 19. Business Objective The expansion in app usage in new countries will make a big contribution to European operations (€m) Not ideal to roll out a 20+ PB year old application App Easier and better to roll out a new web application.
  • 20. Modernization Process www.zsl.com
  • 21. Application Modernization Framework Transfor Set-Up Legacy Target System Intermediate Object m System Model Java Stage 5 - Modernize Stage 1 - Assessment Visual Basic Templates As-is To-Be C# Transformation Platform Stage 4 – Re- Oracle Forms Preparation To-Be System Oracle Pro*C Stage 2 - Stage 3 - System Legacy Design Design Target Factor Power Builder Database Architecture Parser Progress 4GL JEE Infomix 4GL .NET Tooling Foxpro ADF Workbench Language Rational Design & Delphi SOA Development Tools Access / VBA RIA Eclipse Visual Studio www.zsl.com
  • 22. Rewrite vs. Migration – SDLC Comparison Migration Using Rewrite Manual Migration Smartprise Requirement J2EE .NET Analysis Application study Application study Application study High Level Design High Level/ Low Level Design Low Level Design GUI Design GUI Design Construction Migration Migration Migration Testing Testing Testing Testing User Acceptance User Acceptance User Acceptance User Acceptance www.zsl.com
  • 23. Migration Toolset Tools Benefits Key Deliverables Tool-based analysis provides accurate estimates for planning.  Business Process  PB-Code AnalyzerTM Tool-base migration increases Document accuracy, reduces human errors,  PB-EstimatorTM  Application Inventory speeds up migration and  PowerMigratorTM checklist consistency.  System Design Document Application bottlenecks  Architecture Design identified, upfront – unused Document codes / Level of inheritance fine  Project Plan tuned. This helps reduce future maintenance cost
  • 24. PowerMigrator - Automated Estimation Effort Estimation and Proposal Generator 1 3 Zylog App Assessment Workshop Report Application Run Object or Code Analyzer Windows Client DataWindows 2 Global Variables Code Analyzer Functions PowerMigratorTM Events PowerBuilder Menus Object & Application Structures Code Analyzer Generate User Objects Report .txt file, .psr files 5 4 Estimation Report Effort Estimator Mail to Zylog Zylog Summary Report PowerMigratorTM Generate Automatic Effort Effort Detail Report Estimator Tool Estimation 6 Produce estimation
  • 27. Collecting Source Application & Configuring 1. Collect source application code dependent resource files 2. Simulate environment similar to client environment 3. Organize dependent resources 4. Configure source application in Dev/Test environment 5. Analyze application for issues 6. Document the application stock 7. Confirm the results with client
  • 28. PowerMigrator Overview Receive Source Code Development Deployment Code Presentation .NET/J2EE Servers Logic ASP.Net/Winform JSP JSF/JSP # %Business Logic X+ 2-Tier PB Application PowerMigrator Migration VB.Net/C#.Net Database Java Logic Database
  • 29. Modernization Input - Output www.zsl.com
  • 30. Team Formation & Balance Customer Site London (Zylog) Global Delivery Centre (Zylog) www.zsl.com
  • 31. Engagement Models (Enterprise Customer – engagement) POC No POC www.zsl.com
  • 32. In Summary: Reliable Predictable Repeatable Futuristic www.zsl.com
  • 33. Why Zylog’s Modernisation Services? Saves 30-50% of time and effort involved in rewrite Re-usability of 50-60% of your legacy application codes and reducing up to 30% of your capital investments on new technologies Automated migration processes with minimal human intervention- minimal or no errors BPM enablement for automated business processes-more business flexibility and agility and optimized resource capitalization SOA technologies bringing in line the business and IT with greater interoperability and seamless interaction Cloud enablement expertise TCO is slashed by 40% and ROI is doubled within a short span www.zsl.com
  • 34. Point of Sales(PoS) Modernisation (PowerBuilder to JEE Environment)
  • 35. About Client • Rent-to-own retailers of electricals, white goods and furniture • 180 stores – 21 new last year • 146,000 customers • Revenue of £170m (up 16.9%) • 13.9% like-for-like revenue growth • Strategy for growth – 450 possible new sites have been identified
  • 36. Business Problem • Current store systems would constrain the Client growth to 200 stores as the overnight process would fail • Store system runs on isolated local store servers which are expensive and prone to Store system constraint at 200 stores failure Store 1 Store 3 Overnight (Projected max store growth figures) Store 2 replication Store 4 etc... to Head Office There was no replacement “off the shelf” system available that • Other issues with the old system: could support the unique Customer’s – Drive inefficient store processes business model – Costly to open new stores due to infrastructure requirements
  • 37. Project Opportunity • The core objective of project was to transform Web Web the point of sale (POS) system into a Store 3 Store 1 centralised and easy to use system that will support future store growth Web Web • The project also allows the opportunity to... Real time web Store 2 Store 4 etc... interface to – Improve the efficiency of existing in-store Head Office processes – Support future flexibility of the business Store servers to be (future enhancements) removed and recycled – Improve usability and reduce training requirements – Improve reliability and reduce the support Project provided the unique and maintenance costs opportunity to overhaul the core store system which supports 80% of store processes
  • 38. Approach 11 months Dec ‘08 Jan‘09 Nov ‘09 • Detailed analysis of the legacy system • Rigorous integration • Required upgrade • Analysis and • Significant enhancements built on legacy and performance to company wide prioritisation of all functions to simplify user training testing web training portal business and IT requirements but maximise in-store benefits • Application and • Staff from 180 initiatives • The system was defined and built module- infrastructure stores fully trained • IT strategy by-module to allow live testing throughout the suitable for rapid on new system supported by the whole business project store growth • Underpinned by infrastructure upgrade
  • 39. Results Old System New System Web Web Store 1 Store 3 Store 3 Store 1 Web Web Overnight Real time Store 2 replication web Store 4 etc... Store 2 Store 4 etc... to Head interface to Office Head Office • Decentralised system limits store growth • Centralised web system enables store growth • Inflexible functionality inhibits future development • User friendly screen design • Complex to use and train new users • Flexible to business needs and cheaper to support
  • 40. Business Benefits Growth Benefits Business Case • Project was required for Client to grow beyond 200 stores as current system constraints were a “show Benefit stopper” • The success of Project means that Client can continue to grow stores without minimal investment in POS systems • Additional revenue from new stores would increase Payback in £7m+ NPV Benefits turnover by £200m per year by 2013 under 1 year • This benefit is not directly measurable and was not Year 5 included in the business case Year 4 Year 3 Year 2 Efficiency and Cost Benefits Year 1 • Improved system infrastructure and centralisation of the system will save £5m in license and support costs over the next 5 years Time • Store efficiency benefits * will allow store staff to spend Costs more time serving customers, improving debt management and driving increased sales – this will £1.4m increase profit by £7m over 5 years * estimated by study of time and motion in-store
  • 41. Store Feedback Store feedback has been hugely positive and proven benefits in-store: “New system has made the end to end sign up process so much quicker – 50 mins down to as little as 30!” “Navigation of the system is very user friendly - this will makes much easier for new users “ “Great for searching stock, by region and nationwide” “Customer transfers are a lot easier – this will save a lot of time” “The system automatically moves through the process in steps, great!” (all from everyday store users)
  • 42. Thank you www.zsl.com
  • 43. Contact Us ZSL Inc 85 Lincoln Hwy Edison, NJ 08820 7325499770 info@zslinc.com www.zsl.com