WIXLIB

KPSFA S T-T R AC K YO U R D I G I TA L T R A N S F O R M AT I O NSTOMSER‘Retail connectorReplication logic (master data), MOEVE interface, Web services for store POS systemsCESVO IOther FeaturesInternationalizationELSTER connectionDART / IDEA extractionOnline payment serviceproviderOURCUPOCOSAP S/4 FinanceAccountingControllingInvestmentsBank accountingINTEGRATIONSAP Add-OnsKPS Concepts Classifier for inv. ver.RepCon connectionZOPTION GLSU (Excel interface)“For us, it was important to find a partnerwith process and industry expertise, whichis exactly how KPS won us over. WithoutBACKGROUNDthem, it wouldn’t have been possible toSAP RETAIL licenseSAP S/4HANA Finance 1605Latest HANA technologyRetail connectorGovernance/authorizationsData migrationcomplete our project so quickly with sucha small team.”POCO Einrichtungsmärkte, Hardegsen & Bergkamen7th largest furniture retailer in DEMore than 115 stores7,000 employeesApprox. EUR 1.33 billion in revenuewww.poco.deKPS Rapid TransformationärkteryPSeransformpid Ta tiRaon t ro lCoofado rize d Sign at oHceRAuthdanKl i n g, P O C OicEi n rht ungsmlmphable FinanheolOMNICHANNELS c aldD r. Fr i eudnAn efficient accounting transformation for thelargest discount furniture chain in GermanyF U R N I T U R E R E TA I L S O L U T I O N BY K P S – 2 017 K P S A G

KPSFA S T-T R AC K YO U R D I G I TA L T R A N S F O R M AT I O NPOP‘TSREI2 millioncustomersNNIOONLINEPLATFORM3 distribution centersstores & outlet7 countries(Europe)OUREXhome24150.000 products1.000 suppliers„Digitalization opens up new possibilities,especially in the furniture retail. ThoseBACKGROUNDwho invest in innovative technologies andOmnichannel processes today will maintainand their position in the market.” Rapid Prototyp within 12 weeks project duration under 12 months Implemented SAP solutions: S/4 HANAMerchandise Management (incl. FI/CO), SAPEWM, SAP Track & Trace, SAP Hybris PIM, SAPC4C, incl. Call Center & SAP Contact Center,SAP C4S, SAP Hybris Billing, SAP BW & BI,SAP Vendor Invoice Management incl. OCR &Open TextHome24, Berlin, GermanyOnline sales/mail order for furniture & accessoriesPart of the Rocket-Internet-Group1,000 employeesTurnover of 300 Mio. Euroswww.home24.deer tnPagineks to Protot ypewe12vg- Lien JahrnaS/4HANAMERCHANDISINGonths to GoJochMaa usm12er KPSKPS Rapid TransformationImplementation of digital process chains andtechnology within the shortest possible timeframeF U R N I T U R E R E TA I L S O L U T I O N BY K P S – 2 017 K P S A G

KPSFA S T-T R AC K YO U R D I G I TA L T R A N S F O R M AT I O NVIDEOInterview with CFO Karsten Kamrath, DodenhofBRING YOURRETAIL SYSTEMINTO THEDIGITAL ER A.F U R N I T U R E R E TA I L S O L U T I O N BY K P S – 2 017 K P S A G

KPSFA S T-T R AC K YO U R D I G I TA L T R A N S F O R M AT I O NMETHODT R A N S F O R M I N G T H E F U R N I T U R E R E TA I L B U S I N ES S U P TO 5 0 P ER C EN T FA S T ERKPS Rapid Transformation:fast and reliableF U R N I T U R E R E TA I L S O L U T I O N BY K P S – 2 017 K P S A G

KPSFA S T-T R AC K YO U R D I G I TA L T R A N S F O R M AT I O NThe integration of strategy, business processes, and imple-KPS consultants – or KPS Transformation Architects – havementation poses a challenge in any project. KPS coversextensive knowledge of the industry and, on average, morethe entire consulting spectrum, from strategy development,than 12 years’ project experience. The seniority of our teamthrough process design, to system transactions. Success de-is a key factor in our success. For project-specific situations,pends on the interplay between two key factors: methodolo-we follow the “All-Star” principle, calling in generalists orgy and experienced consultants.specialists depending on the project requirements.The KPS Rapid Transformation methodology includes andintegrates all project levels based on KPS reference pro-cesses for furniture retail. Change management is anotherimportant factor in the success of the methodology. It ensuresthat strategy definition, process modeling, and implementation in the SAP Retail environment are integrated seamlessly.F U R N I T U R E R E TA I L S O L U T I O N BY K P S – 2 017 K P S A GTHE UNIQUECOMBINATION OFMETHODOLOGY ANDCONSULTING TEAMGUAR ANTEES THESUCCESS OFOUR CUSTOMERS’PROJECTS.

NTECESOLUTIPESolution for thefurniture retail businessMOCONNITMENTINNOVThank you.MAMOTICOFURNITURERETAILKPS AGBeta-Strasse 10H85774 Unterfoehring/MunichT 49 89 35631-0info@kps.comwww.kps.com

KPSFA S T-T R AC K YO U R D I G I TA L T R A N S F O R M AT I O NI N T E RV I E WD O D EN H O F I M P L E M EN T S C EN T R A L I Z ED I T S YS T E MFurniture Retailer Leadingthe Way with SAPText:F U R N I T U R E R E TA I L S O L U T I O N BY K P S – 2 017 K P S A GSascha Tapken, Doris Schmidt

KPSFA S T-T R AC K YO U R D I G I TA L T R A N S F O R M AT I O NWith the help of KPS, a consulting firm that supportsbusiness transformations all across Europe, Dodenhofhas taken a significant step forward in consolidatingits business processes. In fact, this member of theBEGROS group was the first furniture retailer inGermany to implement SAP Retail based on KPS‘s bestpractices. The project was not without its challenges,however, as the two companies ultimately needed tomap complex sales processes in real time and replacean IT landscape that had begun to show its age. Tofind out how this project progressed, the resources itrequired, and the areas in which the system is runningsmoothly (along with those still needing improvement),möbel kultur spoke with Dodenhof CEO KarstenKamrath and Michael Tsifidaris, chairman andmanaging partner of KPS.möbel kultur: Mr. Kamrath, your company waswith KPS because I definitely wanted tomöbel kultur: In analyzing Dodenhof‘s requi-the first furniture retailer in Germany to imple-avoid a situation where our organiza-rements, you employed what’s known as ament SAP Retail based on the best practicestion would have spent months writing“rapid prototyping” procedure. What exactlyfollowed by KPS. Why did you choose to makeup business blueprints that presumablydoes that involve?this transition?would have described the systems wealready had rather than the uniform,Michael Tsifidaris: In digital transforma-Karsten Kamrath: At Dodenhof, wecompany-wide processes we wantedtion projects in particular, speed is awere looking for a way to move fromto achieve. The agile methodology KPSkey competitive advantage. That‘s whyour fragmented IT landscape to a so-employs seemed like the right fit, andwe aligned our processes accordinglylution that would corresponding to ourthat turned out to be true over the courseto significantly reduce lead times. Bycurrent strategy. In doing so, we alsoof the project.combining veteran industry consultantswanted to address the shortcomings ofour established systems, support digita-möbel kultur: What sort of relationship do KPSlogy we‘ve developed, we‘re capablelization, and focus more on processesand SAP have?of accelerating projects by as much asin order to glean more knowledge from50 percent – all while setting standardsthe information at our disposal. One ofMichael Tsifidaris: KPS leads the Euro-in efficiency and transparency. One ofour main goals was to lay a foundationpean market when it comes to transfor-the tools we use to do so is our rapidfor digitalization by enabling both ourmation projects in retail. In carrying outprototyping procedure, which enablesin-store and digital elements to work to-projects like these, standard softwareus to map and visualize the future busi-gether in a single retail system, which instacks are essential. SAP is the world‘sness processes in a given system in justturn would make real omnichannel salesbiggest provider of business software,weeks.possible. In SAP, we‘ve found a solutionso we use its products whenever pos-that covers these requirements.sible. We‘ve been successfully imple-möbel kultur: How much of a challenge wasmenting SAP solutions for more than 15it to adapt SAP Retail to the complex require-möbel kultur: How many employees were in-years; with SAP ERP, industry solutionsments of the furniture retail sector?volved in this project, and why did you bringlike SAP Retail and SAP Fashion, andKPS on board as your service provider?SAP Hybris for customer management,Michael Tsifidaris: The biggest obstaclethere’s no retail requirement we can’t ful-involved integrating purely retail-relatedKarsten Kamrath: In the furniture retailfill. Plus, SAP itself has certified the qua-processes – also called B2C functions –sector, our sales employees enter orderslity of our services a number of times:with B2B order processing in real timedirectly into our retail system, whichBesides having been a Gold Partner, aand consolidating it all within a com-means more than half of them are wor-Gold Channel Partner, and a Servicemon process model. Dodenhof‘s salesking with the system at present (editor‘sPartner for many years, we‘re also in-team also needed fast, efficient accessnote: Dodenhof has over 2,500 emplo-volved in a number of Special Expertiseto their specific order entry workflowyees). More than 100 employees werepartnerships.right from the initial screen. Luckily, theinvolved in the project itself. We wentF U R N I T U R E R E TA I L S O L U T I O N BY K P S – 2 017 K P S A Gwith the Rapid Transformation methodo-order cockpit KPS developed for tablets

KPSFA S T-T R AC K YO U R D I G I TA L T R A N S F O R M AT I O Nnot only assists sales employees in theirsibilities are virtually endless with an inte-more than 10 years; if we hadn’t mo-direct interactions with customers, butgrated retail solution.ved to a new retail system, Dodenhofhandles the integrated business pro-wouldn’t have been prepared to take oncesses running in the background, asmöbel kultur: How long did it take to imple-the future. Implementing an entirely newwell. That makes it possible to factor inment this, from the initial idea to full integrati-system is a major investment for anyeven complex warehouse workflows,on? And how many phases does a project likeretail company, of course. At the samefor example. Items stored in multiplethis entail?time, however, digitalizing various stepslocations are displayed along with theirof your processes in sales, purchasing,correct quantities and can be picked inMichael Tsifidaris: The entire projectand all of the supporting elements ofthe same amounts. The customer-basedtook 20 months: We got started in lateretail also presents a huge opportunitypicking typical of the furniture retail in-February 2014, and the last go-live wasto gain a competitive edge. Taking fulldustry is also now part of Dodenhof‘sin November 2015. A project of thisadvantage in the most efficient waysintegrated process chain.kind progresses through several phases,possible will now be the focus of Do-from process alignment and prototypingdenhof‘s management team in the yearsmöbel kultur: To what extent does this new sys-to going live with a pilot. The pilot in-ahead.tem simplify omnichannel, cross-selling, andvolves the first area that will be workingmobile strategies?with the new system. Subsequent areasKarsten Kamrath,are then gradually rolled in until the pre-CEO of Dodenhofmöbel kultur: How much training do employees need to get a hang of the new system?Karsten Kamrath: Thanks to our integra-vious system landscape can be takented retail landscape, we‘ve now assemb-offline. Dodenhof opted to go live in itsKarsten Kamrath: As always, it dependsled a core around which we can continueindividual business areas for fashion,on the skill level of the employee in ques-to digitalize the way we do business. Inelectronics, food products, and furnituretion. That said, we‘ve found that muchdoing so, we‘ve laid a foundation forone after the other, all of which tookefficiently integrating Dodenhof‘s retailplace within those 20 months. Followingactivities in furniture, fashion, electronics,each roll-in, there was a hypercare pha-and food products. Whether it‘s e-com-se in which any remaining issues weremerce based on conventional shipping,addressed in each area parallel to theclick-and-collect, or click-and-reserve; aongoing project.website that introduces both current andnew customers to our various shoppingmöbel kultur: What does a system conversionexperiences; an app that regularly noti-like this cost, and what long-term savings arefies frequent customers of the sales andyou expecting?events currently on offer; or the abilityAt the same time, however, digitalizingvarious steps of your processes in sales,purchasing, and all of the supportingelements of retail also presents a hugeopportunity to gain a competitive edge.less training is required than in our previous system, even for new part-time employees. The rate of error has dropped,as well. One key part of our training concept involved turning our own employeesinto coaches in order to minimize the attrition that occurs when you have too large a gap between theory and practice.During our soft go-live, we also madesure that our sales personnel would beable to enter purchase orders into theto add cross-selling vouchers to receiptsKarsten Kamrath: Some of our IT sys-new system the very first day after com-based on the customer‘s profile, the pos-tems had already been amortized forpleting their training. Meanwhile, you’reF U R N I T U R E R E TA I L S O L U T I O N BY K P S – 2 017 K P S A G

KPSFA S T-T R AC K YO U R D I G I TA L T R A N S F O R M AT I O Nalways going to have functions thatpossible, if you ask me. Overall, though,smoothly, and where do you still need to makearen’t used as often. To enable our em-the approach we followed – KPS‘s Ra-adjustments?ployees to supplement their training aspid Transformation methodology, esta-required, we offered one- and two-hourblishing a dedicated change team atKarsten Kamrath: Now that our teamcourses on specific subject areas in theDodenhof, taking responsibility for thehas announced the project’s completion,months following our implementation.transfer of knowledge – ensured thatmost of our organization (which didn’tthings progressed as smoothly as theyhear much about this undertaking asmöbel kultur: Users sometimes gripe aboutcould. On the other hand, there are spe-it was under way) is realizing that forhow complex SAP systems can be. How wouldcific areas that have required a greatthem, the transition is only just beginning.you describe working with the system on adeal more effort since the implementa-Some of the things people had come today-to-day basis?tion. Master data maintenance is muchlike about our old systems no longermore resource-intensive than in our pre-exist; they’ll now have to deal with avious system, for example. That said,new environment. Meanwhile, variouspowerful system. No one could everMichael Tsifidaris,doing it right the first time makes a lot ofunintended consequences have croppedmaster all of the process steps it covers,Chairman of KPSKarsten Kamrath: SAP is an incrediblythings easier later on in the process. Ifup for a wide range of reasons: technicalwhich is why KPS employs people whoyou don’t heed that principle enough –system errors, insufficient user training, aare experts in specific modules. The jobas we definitely learned the hard way atlack of user-friendliness in the system,of the project team – which consistedthe start of our implementation – addres-differences in the way certain processesof Dodenhof’s IT department, the usersing problems down the road becomesare now mapped compared to our olddepartment in question, and KPS – wasa costly endeavor.system, shortcomings in our ability to ad-to keep things as simple as possible forour end users. There were definitelyinstances where we didn’t identify theneed to simplify a certain step until afterwe went live, but the hypercare phasemade it possible to take the necessaryaction in short order.möbel kultur: What did you learn in seeingthis transition through? Is there anything you‘dhandle differently next time?Karsten Kamrath: Of course! Carryingout a project of this scale without anyfriction or follow-up work is almost im-F U R N I T U R E R E TA I L S O L U T I O N BY K P S – 2 017 K P S A Gapt – and probably all kinds of combina-Plus, SAP itself has certified the qualitymöbel kultur: What business formats is SAPtions of these issues, as well. We‘ve seenRetail equipped to handle?it all at Dodenhof, and I don’t think that‘sanything out of the ordinary; all thingsof our services a number of times:Michael Tsifidaris: The program hasconsidered, however – and this is the im-Besides having been a Gold Partner,something to offer any retail company.portant thing – our business hasn’t beenWherever goods are ordered, adverti-impacted in any significant way thatsed, delivered, monitored, paid for, andwe couldn’t offset. In summary, we canposted, SAP Retail sets the standard.report that after just over a year and aSAP supports all of the processes invol-half, we’ve replaced three retail systemsved, from the manufacturer or vendorand a financial accounting solution withall the way to the end consumer.SAP. We‘ve also done so in the furniturea Gold Channel Partner, and a ServicePartner for many years, we‘re alsoinvolved in a number of SpecialExpertise partnerships.industry, which is uncharted territory formöbel kultur: What have your initial resultsSAP, while laying a foundation for digita-been like? In what areas is the system runninglization at Dodenhof. l

KPSFA S T-T R AC K YO U R D I G I TA L T R A N S F O R M AT I O NARTICLEK P S/S A P: A DAY O F FR ES H I D E A S F O R F U R N I T U R E R E TA I L ER STime for aClean SlateText: Sascha TapkenWith Dodenhof having become the first furniture retailer in Germany to implement SAP Retail based on KPS‘s best practices, anothermember of the BEGROS group is now following suit in Porta. In light of this trend, inviting other furniture stores to an event that wouldshowcase the strengths of their IT infrastructure was the next logical step for SAP and KPS. No fewer than 50 prominent names attended, providing further evidence that finding the right system is one of the key issues the industry currently faces.F U R N I T U R E R E TA I L S O L U T I O N BY K P S – 2 017 K P S A G

KPSFA S T-T R AC K YO U R D I G I TA L T R A N S F O R M AT I O N1Following the successful implementation ofAt the industry event, Dodenhof CEOto tell the attendees more about EMV’s mul-SAP Retail at German retailer Dodenhof,Karsten Kamrath explained what reconstruc-tichannel concept. Doerr believes that the termMichael Tsifidaris – chairman and managingting its IT infrastructure from the ground up“trade association” has become obsolete: The-partner of KPS AG, which hosted the event –meant for his company. “It‘s a real paradigmse days, a headquarters functions as a sharedhas become one of the furniture industry‘s big-shift that makes IT part of your value chain,”service center that seeks to advance

KPS process model and with the SAP Solution Manager ensuring that processes and system architecture are integra-ted. The functionalities are then mapped and tested in the SAP Retail solution. This approach minimizes risk, makes it possible to calculate project costs, and greatly reduces the project duration. A prototype is rapidly built showing the