Human Capital Intelligence on a changing environment Human Capital Intelligence on a changing environment

as integration point in HR application architectureas integration point in HR application architecture

Giuseppe De Giuseppe De IacoIaco

CIO Upim CIO Upim –– Gruppo RinascenteGruppo Rinascente

SAS Forum International

Copenhagen, 15th June 2004

2

RINASCENTE GROUP

2003

TURNOVER > € 6.000 mio

INVESTMENTS > € 300 mio

HEADCOUNT > 30.000

N° POINT of SALES > 1.800

SALES SURFACE > 1.000.000 m2

3

UPIM: a division of Rinascente Group

75 yearsold

October 1928 June 2004

PoS 2004: Flagship shops + CornersFranchisee

Employee

> 140> 220

> 3300

TURNOVER 2003 > € 575 mio

4

UPIM business lines

6,4%

11,8%

18,2%

5

UPIM Network: our shops in 2003

• 53%TOWN CENTER• 32% QUARTER• 15% SHOPPING CENTER

• 53%TOWN CENTER• 32% QUARTER• 15% SHOPPING CENTER

Flagship stores upim :

Flagship Store:• 133 upim• 14 BK Toys

• 45% NORTH • 34% CENTER• 21% SOUTH

• 45% NORTH • 34% CENTER• 21% SOUTH

• 11% < 1.000 sqm• 35% 1.000-1.500 sqm• 26% 1.500-2.000 sqm• 20% 2.000-2.500 sqm• 8% > 2.500 sqm

• 11% < 1.000 sqm• 35% 1.000-1.500 sqm• 26% 1.500-2.000 sqm• 20% 2.000-2.500 sqm• 8% > 2.500 sqm

+ 228 Franchisee PoS

6

Signs of a changing environment

7

Context: Variety Store evolutionVARIETY STORE : extinction of race

Years Number of retail companies

In the world

‘70‘70 8787

‘80‘80 4848

‘90‘90 2020

Fonte: Journal of Retail

‘00‘00 1111

UPIM = Multi-Category SpecializationUPIM = Multi-Category Specialization

M&A30%

Closed20%

Promotional Variety Store

30%

Specialty Store20%

8

Our iter

•CUSTOMERS are more and more demanding, look for a goodshopping experience, have less time for shopping

•COMPETITION is wider, more complex and aggressive

We maintain the content of a general store, but we manage itin a specialistic way: a shop in the shop.

UPIM has changed in order to adapt to the new competitive environment, by becoming a

MULTISPECIALTY STORE

UPIM has changed in order to adapt to the new competitive environment, by becoming a

MULTISPECIALTY STORE

9

Actions to change

UPIM is speeding up its shifting from Variety store to Multispecialty store

thanks to investments in:

store restructuring and new stores

process reengineering

focus on basic products

strong cooperation with suppliers

infrastructures (I&CT, supply chain)

people and management

advertising

10

MISSION: Focus on Category

CATEGORYCATEGORY

“…“… GOOD QUALITY AND GOOD QUALITY AND COMPETITIVE PRICING COMPETITIVE PRICING …”…”

“…“… COMFORTABLE AND COMFORTABLE AND FRIENDLY SHOPSFRIENDLY SHOPS…”…”

“…“… PEOPLE HAVING PASSIONPEOPLE HAVING PASSIONIN GIVING SERVICE IN GIVING SERVICE …”…”

CUSTOMER

11

CATEGORY AREA

PARKING

WINDOWS ENTRANCE

TRYING ONPAYMENT

WAY OUT

… and Upim Service

SEARCH AND TEST

VISUAL

“PEOPLE HAVING PASSIONIN GIVING SERVICE ”

““PEOPLE HAVING PASSIONPEOPLE HAVING PASSIONIN GIVING SERVICE IN GIVING SERVICE ””

12

Our Personnel: some point of attention

The average age is higher than the retailsector benchmarks

This is higher in shop assistants rather in the HQ’s people

Shop Assistant profiles are changing, fromgeneral sales competences to specialisticprofiles

We are aligning our personnel cost withthe market average

Need to single out young talents

13

Problem

All these changes must be supported by a punctual, accurate and up-to-date knowledge of our people.

In 2004/05 Top Management’s objective is to reach best service levels towards our customers as strategic priority.

HR Dept. has already worked on HR operative mechanisms in the last 2 years

HR Dept. has hardly spent time on building a management system focused on monitoring KPIs, regarding:

Personnel and professional profile

Performance levels

Compensations

training

Personnel cost

All personnel/payroll data are managed by an outsourcer inside the Group

All that means improving careful personnel management (more than 3.000).

We absolutely need to know our personnel and evaluate them.

14

IT UPIM drivers in this changing context

Increasing Shareholder Value through Technology

Identifying how new and existing

technology enables the business strategy

Reducing technology costs

Managing enterprise risks

Delivering technology business solutions to

maximize ROI

• Evaluate all IT investment projects underway throughout the company

• Analyze current infrastructure and planned capital purchases for consolidation and reduction opportunities

• Assess sourcing alternatives and identify opportunities to increase service and drive down cost

• Develop an initial list of high value IT investment opportunities for further analysis

• Identify opportunities to standardize development and consolidate applications

• Implement a technology lifecycle management process

• Understand your company’s business continuity and security requirements

• Assess current risks and identify quick hits and initiatives to mitigate business impacts

• Consider your company’s position with respect to IT strategy alternatives

• Assess current performance against IT fundamentals

• Determine overall IT spending levels and establish allocations between discretionary and non-discretionary spending

• Assess emerging technologies to unleash business value

Integrated SolutionsDelivery

• Custom• ERP• Supply Chain• CRM • Business Intelligence

15

IT Dept. Support vs HR Dept. In Upim

Inside Upim Division we didn’t have an integrated vision of all the personnel events and attributes, such as compensations, training, timecard, shop organisation.

That’s because

At the beginning Corporate services included HR management

In 2000 HR management was decentralized, butnot HR Payroll system

from 2002/2003 small HR business solutions wereimplemented by IT Upim

At last we realized to need to have one point of information

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HRARinascente

Personnel database andpayrollHRACCESS client

R/W and query on personnel dossiers

Explò

Centralized Print

Manual delivery

DataMartMonthly historicalpicture

Impromptu

Aggregated data

Division Reporting

IWR

WEB

Web delivery

HR System Architecture in 2002

upim

SAP

Personnel cost per level

Controllo organicicorporate

OFA divisionaleHeadcount per

level and cost unit

Corporate/Arthis

17

HRA

Explò

DataMart

Impromptu

IWR

WEB

Today

HR upim

Rilevazione Presenze

CV WEB MBO e Skill management

Controllo Organici

Upim

SAP

Controllo organicicorporate

OFA divisionale

Total personnel cost per level

Timecard, shift planning

Curriculum candidates

Skills and Mbo

Corporate/Arthis

R/W and query on personnel dossiers

Personnel database andpayrollHRACCESS client

Centralized Print

Manual delivery

Monthly historicalpicture

Aggregated data

Division Reporting

Web delivery

Personnel cost per level

Headcount per level and cost unit

Headcount per level and cost unit

18

Summer 2004 and next steps Corporate/Arthis Upim

HRA

HR upim

Rilevazione Presenze

CV WEB MBO e Skill management

Controllo Organici

SAP

Controllo organicicorporate

OFA divisionale

Headcount budget

Total personnel costSales budgetCurrent Sales

Peronnel cost per level

TimecardCurriculum candidates Skills, mbo

Human Resources

Management

DWH per la Human Capital Intelligence

(SAS HCM)

Curriculum employee

Dati dirigenti

CONTA CLIENTI

Visits per hour

DB SCONTRINI

Personnel database andpayroll

R/W and query on personnel dossiers

HRACCESS client

Sales per hour

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Sources

In few words We’ll feed HR dwh by:

Personal Record System

Payroll System

Timecard system

Personnel Cost Budget System

Mbo and Skill management System

Top executive database system

CV system

Receipt database system

PeopleCounter System

20

Why SAS

SAS HCM was the unique HR Business Intelligence vertical solution, ready on the shelves. It was the unique solution that includes a wide range of analysisand report for:

Mapping skills and people, by pointing out criticalareas;

Monitoring main KPIs in a Tableau de Bord style

Monitoring the changes in the company

Simulating process and organization chart with KPIsand Personnel record

Identifying “talents”

Other vantages:

Deep knowledge and competence in HR Analysis

Outstanding Technology

Security functionalities

Certain project timing and costing (… quite a lot!)

21

Process Flow Overview for Implementation

Dat

a In

tegr

ity, E

xtra

ct, T

rans

form

atio

n, M

appi

ng,

Gen

erat

e So

urce

Ent

ries

for B

uild

System/Administrator Role

SAS Data sets

Excel Ready files

Web Output

HR Transactional

data

HR Transactional

data

HR Transactional

data

Human Resources Generalists/Specialists Analysis & Reporting

Ad Hoc Analysis & Reporting

Key Decision MakersAccess Published Queries,

Reports, and MDDBs Via Web

•HR Decision Makers•HR Generalists•Line Mangers

End User Role

System Generated

Private Reports & Analyses

Private Output

HRVMDDBs

Post

Loa

d C

heck

ing-

dups

, effe

ctiv

e da

te,

mis

sing Joins

HRVDetail Tables

HRVMaster Tables

Load Process

HRVSummary

TablesSAS Data sets

Excel Ready files

Web Output

Public Output

Security:• Item/Row/Column level contents

determined by HRV security as set by HRV system administrator.• File access determined by site.•HRV data-encryption and

SAS applied passwords.

Public System Generated

Reports & Analyses

22

HCM Decision Support Solution

High LevelKey Performance

IndicatorsHR Vision Access

HR UsersExternal Access

HR Vision End User• Completely Web Enabled

QueryTool

ReportTool

AnalyticalTool

TableViewer

OLAP• HR Measures• HR MetricsUsing HR Vision Data

Ac c

ess F

ram

ewor

k

Spreadsheet,Text,

ODBC CompliantProduct HR Metrics

Data MartMDDB Cubes

Master and Summary TablesDetail Tables

Mapped to Detail Tables

Flexible AutomatedBuild Process

Using Business Rules

Dat

a M

odel

TransactionalData

TransactionalData

TransactionalData

23

What we expect from SAS HCM

Human Capital IntelligenceAlign people, processes and technology around common goalsProvide benchmarks for measuring best practicesAnalyze, forecast and model information toquantify human capital assetsAnalyze information about relationships that arestatistically validProvide independence from HRIT for statistical analysis and reportingBeing independent from outsourcerTotal support in HR reporting activities

Copyright © 2000 , SAS Institute Inc. All rights reserved.

24

Methodology

Project Management

Business Blueprint Definition

Implementation Roll-ut New analysis

Phase 1Definition

Phase 2Basic Component

Phase 3Evolution Component

Project & Change Management Contract

Definition

BusinessRequirementsUser definitionSecurity RequirementsIntegration with IS architecture upimArchitecture definition

Parameter settingAd hoc implementationFile transferMultidimensional cubeReporting implementationtest

Roll-ut planningTrainingRoll-out

DB parameter settingAd hoc implementationMultidimensional cubeReporting implementationTestRoll-ut planningTrainingRoll-out

Deadline management, budget management, third parties managementCoordination inside upimUser involvement

25

Timing and Project plan

Phases

Idea Building

Phase 1

Vendor and Contract

Phase 2

Phase 3

Idea Project start – Phase 1Vendor and ContractPhase 2Phase 3

Aug03

Sep03

Oct03

Nov03

Dec03

Jan04

Feb04

Mar04

Apr04

May04

Jun04

Jul04

Aug04

Sep04

Oct04

Nov04

Dec04

Jan05

26

Process Flow Overview for Implementation

Dat

a In

tegr

ity, E

xtra

ct, T

rans

form

atio

n, M

appi

ng,

Gen

erat

e So

urce

Ent

ries

for B

uild

System/Administrator Role

SAS Data sets

Excel Ready files

Web Output

HR Transactional

data

HR Transactional

data

HR Transactional

data

Human Resources Generalists/Specialists Analysis & Reporting

Ad Hoc Analysis & Reporting

Key Decision MakersAccess Published Queries,

Reports, and MDDBs Via Web

•HR Decision Makers•HR Generalists•Line Mangers

End User Role

System Generated

Private Reports & Analyses

Private Output

HRVMDDBs

Post

Loa

d C

heck

ing-

dups

, effe

ctiv

e da

te,

mis

sing Joins

HRVDetail Tables

HRVMaster Tables

Load Process

HRVSummary

TablesSAS Data sets

Excel Ready files

Web Output

Public Output

Security:• Item/Row/Column level contents

determined by HRV security as set by HRV system administrator.• File access determined by site.•HRV data-encryption and

SAS applied passwords.

Public System Generated

Reports & Analyses

27

Home page SAS HCM 3

28

Analisi multidimensionale assenze

29

What we expect from SAS HCM

• Being independent from outsourcer• Total support in HR reporting

activities• Reliability