Amway E-Newsletter About BSI V3 Print Assets/BSI/PDFs/1607060258/… · to better respond to the needs of Amway Business Owners. ... change project for our region. ... the customer

What is Business Systems Implementation? • BSI is the program to manage the rollout of

ATLAS (Oracle EBS), hybris, MAGIC/BONUS,JDA (Shop Replenishment) and RedPrairie(Warehouse Management System) in theAsia Pacific. A regional team based in KualaLumpur (BSI) has been assembled to helpimplement the roll outs, supported byregional IT resources and Corporate (ATLAS,RedPrairie and JDA).

• Our aim is to ‘build a common platform’ withstandardized regional processes andmodernized systems to help ABOs succeed.

What are the systems we will be implementing?

What is RedPrairie?• RedPrairie is a new system that manages all

of the inventory, transactions, and processeswithin the four walls of our warehouse. Itcan improve our global efficiency, save timeand cost with a modern system.

Why are we doing this?1) New technology: by replacing the old back-end systems we can enable new front end solutions to

improve effectiveness and efficiencies through standardization, automation and integration in orderto better respond to the needs of Amway Business Owners. This can be regional wide solutions thathelp maintain our competitive edge;

2) 400+ systems: we have more than 400 individual systems across APAC, and by standardizing ourbusiness processes and solutions via a common platform for our region, we can better operates aglobal company;

3) Savings: we can save money with a common platform to reinvest for distributors; and4) AmwayNEXT: focus on ATLAS and other operational excellence initiatives to increase speed.

What is hybris?• hybris is Amway’s front end solution of

choice for omni-channel commerce and ordermanagement. It will deliver a modern,cutting-edge shopping/ordering experiencefor ABOs, Members, general consumersand employees.

What is ATLAS?• ATLAS is the implementation of an enterprise

platform that standardizes, automates andintegrates dozens of disparate back-endbusiness processes and related technologiesin order management and fulfillment,finished goods inventory and logistics,indirect procurement andfinance/accounting, powered by theindustry-leading software of theOracle Enterprise Business Suite.

What is JDA?• JDA is a global supply chain planning system

for shop replenishment. It is considered tobe one of the best tools to ensure shopshave the right products at the right time.

What is MAGIC?• MAGIC (primarily Managing Awards &

Rewards, Growth, Incentives andCompensation) provides the functionalitythat covers ABO profiles and preferences, aswell as assisting with lifecycle managementand marketing business intelligence.

July 2016: Issue 1#

About BSI

July 2016: Issue 1#

Let’s hear from Tom & Ash

As a region, we are strong from a strategic and financialperspective. Despite this outward success, we are probably the leastharmonized region in the Amway world. We have more than 400individual IT systems and many more individual businessprocesses. This all adds costs and complexity to our region. BSI isvery critical to our region’s future success.

BSI is driving a front to back-end transformation covering major areas of our business from Order, Distributor and Warehouse Management to Bonus Calculation and Payment, General Ledger, and Accounts Payable/Procurement. This transformation will result in a more harmonized region from a process and system perspective.

Our aim is 80-90% standardization for all our major systems and processes, particularly common back office areas in finance and supply chain. By increasing standardization we can provide a better service to ABOs at a lower cost. I use the word transformation with clear intention - this is a high impact, high change project for our region. We have built dedicated business and IT teams to help deliver the outcomes in partnership with clearly identified and critical market-based teams. This sweeping change will impact each of you to a greater or lesser degree - your continued engagement and support of the BSI program is critical to our collective success.

80-90% regional standardization sometimes scares some market peoplebut is it really something we need to be afraid of? Of course, we areexpecting some of the changes in the way market people think and workbut my answer is definitely 'NO'.

Amway basically operates the same business globally ... every market has ABOs, sells the same/similar products, receives and delivers ABO orders, pays bonuses, recognizes new Pin qualifiers and supports international ABOs who have businesses in multiple markets. However, we still see many 'slightly different processes/operations' to achieve the same/common business purposes market-to-market. This has created lots of inefficiencies.

While we have seen many markets who tried to implement some overseas successful programs over the decades, what they have typically ended up with so far is a big investment in building their own new local processes and system capabilities to operate exactly the same things other markets do ... mainly due to the lack of regionally common platforms. This has created lots of overlapping investments and local uniqueness across the Asia Pacific Region.

These are some of the internal 'Pain Points' BSI aims to remove/resolve through solid partnership with the markets to respond to the increased demand of sharing and implementing the common front-end strategies and programs all across the region in our long AmwayNEXT journey.

BSI has now become the second biggest co-located regional team fully equipped with experienced, knowledgeable and capable people enough to support the markets. Still, the market ownership specifically from 'Business' is always the key to success because the ones who will eventually use those future platforms are people in the markets.

We greatly appreciate your active engagement and positive changes. Yes, WE CAN DO IT!!

Atsushi ‘Ash’ Suzuki, BSI Director (APAC)

Tom Glashower, CFO (APAC)

July 2016: Issue 1#

• The saying is ‘Rome wasn’t built in a day’ and that was true for the RedPrairie go-live in Philippines. After over a year of planning, nearly four months of SIT, UAT and cutover, RedPrairie finally went live in the ‘Pearl of the Orient Seas’!

• Commenting on the go-live, Atsushi Suzuki, the BSI APAC Director, said “Within the given timeframe and with dedicated resources, we have transitioned to a modern and sophisticated warehouse management system provided by RedPrairie. The Amway Philippines team, the BSI team and the Corporate team have worked diligently in a systematic approach which ensured every Amway Philippines warehouse staff member was well equipped and understood the system hands-on. The final test was phenomenal and everything worked spectacularly well. Congratulations to everyone at Amway Philippines for all their hard work, dedication and professionalism,” said Ash.

• Country Manager, Leni Olmedo and her dedicated team wore their badge with pride for being the first affiliate market in Asia Pacific to embrace RedPrairie. Congratulations Amway Philippines!

• RedPrairie is in over 24 warehouses worldwide and Philippines is the first market to implement RedPrairie in Asia Pacific.

BSI Marks its First Milestone, RedPrairie Goes Live in Philippines

Latest Update• System Integration Testing (SIT) and User Acceptance Testing (UAT) for Indonesia is complete. • End User Training is in progress. Go live planned for 18 July.

July 2016: Issue 1#

What is hybris? • hybris is the Amway front end solution for

e-commerce and order management.

The new solution delivers a modern, cutting-edge website for ABOs and consumers by improving their browsing experience, checkout process and streamlining the new ABO sign-up.

Case Study: hybris in KoreaThere are two major achievements following the implementation of hybris in Korea:

Top of the market e-commerce

1) Consumer and ABO high satisfaction withrich content • Product Detail• LOS MAP UI & Display Change• Category and Product List Page• Social sharing• Quick search & adding an order to cart

2) Increase in completed registrations &reduction in sign-up time • By integrating the terms of use, hybris cut

the sign-up process in half from 6 steps to3 steps.

• hybris helped increase the number ofcompleted registrations during the sign-upprocess from 35% to 51%.

July 2016: Issue 1#

What is JDA? JDA is a global supply chain planning system for shop replenishment. It is considered to be one of the best tools for inventoryplanning.

Why JDA? • Helps ensure the right amount of

inventory, in the right place and at the righttime.

• Enables effective, efficient and timelyexecution of inventory replenishment fromthe distribution centers to the shops.

• Allows and supports service level targets,inventory optimization and reduction ofoperating costs, and ultimately improvesthe customer experience for our ABOs.

• Used by other top notch companies suchas IBM, Guess, Toshiba, Unilever andCoca-Cola.

Benefits of JDA • Reduction in inventory - help hit our Day

Sales on Hand (DSOH) goals throughimproved forecasting accuracy.

• Reduced lead-time for products andlessen errors which might happen throughmanual work.

Right productS in our shops AT The right time for our ABOs

Latest Update• We have completed System Integration Testing (SIT) for our first markets, Malaysia-Brunei.• The objective of SIT was to test the integration build during the design phase. For JDA, we

tested the integration from the legacy systems (IMS, OMS) to the JDA application.• We have also completed General User Training and Guided Self Learning for Malaysia.• User Acceptance Testing (UAT) is currently underway for Malaysia.• Stay tuned for go live news!

• Ability to anticipate the needs of yourmarket through visibility of future demand.

• With global and IT support, resources areaplenty to seek help and assistance.

What is JDA’s key mission? • As the business continues to grow, supply

chain needs a transition from manualspreadsheet based processes to a moreautomated exception based process, thatenables us to stay relevant in the market.

Why are we changing? • As of now, we have excel spreadsheets

and other disjointed systems varied bylocation; by expanding our corporateplanning tool, JDA—we would be able togain longer visibility to potential risks(TNA/Stock-Outs) based on statisticaldata from the system.

• JDA gives us this much needed visibility,besides reducing our overall inventorylevels, to provide the right product, in theright place, at the right time, for our ABOs.

July 2016: Issue 1#

ATLAS is a global business transformation initiative that is standardizing dozens of different back-end processes across the Amway world in:• finance and accounting;• indirect procurement and direct

procurement for localized sourced items;• order management and fulfillment; and• finished goods inventory and logistics.

The new standardized processes will be supported by a best practice system (Oracle Enterprise Business Suite).

How will ATLAS benefit you?1. Learn new skills: Learn new skills inOracle, a software system used by otherleading companies such as General Electric,McDonald’s, Pepsi and Dell. These new skillscould lead to professional growthopportunities.

2. Value-added work: ATLAS will allow youto focus on more value-added work to bettersupport ABOs. This is because we will shiftfrom time-consuming manual work to moreautomated processing.

3. Share best practices: ATLAS increasesour ability to speak a “common language”from market-to-market as we come to usethe same standardized processes andsystem. This will help you to share bestpractices and collaborate with colleagues inother markets.

global business transformation initiative

4. Faster, more focused: By standardizingand automating our back-end processes, wecan become faster and more focused onhelping ABOs. This will be especially true forABOs whom have businesses in multiplemarkets.

How will ATLAS benefit Amway?1. $29 – $60 million in annual benefits:ATLAS has the potential to deliver $29 – $60million in annual benefits to Amway oncefully implemented. These benefits can bere-invested to help us double the number ofPlatinums by 2025.

2. Standardized processes: Amway isshifting to a process-based organizationadopting standardized processes in everymarket. These processes were designed onbest practice and will enable us to betteroperate as a global company.

3. Stay competitive: ATLAS will help us tostay competitive by automating transactionprocessing, providing greater controls andmore reliable data. Common processes anda common solution will help our leaders tomore easily compare performance and driveefficiency.

4. Modern technology: Oracle is a modernsystem that will provide a modernexperience for employees. It will eventuallyreplace AS400 which was first launched wayback in 1988.

What is the status of ATLAS implementation in APAC?• We are on track. Solution Confirmation for all markets is in progress and scheduled to end

mid July 2016. Thanks to the hard work and dedication of the affiliates all across APACand the Corporate support.

• Our first market to go live is Philippines in April 2017.Visit ATLAS Now or speak to your Head of Finance

July 2016: Issue 1#

What is Change Management? Change Management helps an organization successfully accept and adopt new technologies and processes. It include communications, change initiatives and training.

Why is Change Management important?• 45% of technology projects fail because

people were not ready for the newtechnology;

• The pace of change is increasing in ourbusiness;

• Enables the successful implementation ofstrategy and projects to supportABOs; and

• Centralizes the importance of ouremployees to help create an agilecompany achieving profitable andsustainable growth.

Change Management

Benefits of Change Management• Employees achieve goals on time and on

budget with minimal resistance;• Employee productivity can remain

unchanged during the change;• Risks associated with the change are

reduced; and• Organization learns how to change and is

better able to change effectively in thefuture.

What is Amway’s approach?• Amway has developed a Change

Management program to successfullymanage how individuals, as part of theAmway enterprise, accept, implement andwork through change.

• Visit Amway University here or contactthe BSI Change Management [email protected] for further details.

Change Management

July 2016: Issue 1#

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FRAMEWORK: A CUSTOMIZED, GLOBAL, CONSISTENT PROCESS THAT IS EASY TO USEAmway’s Change Management Framework provides an overview of the activities that may be integrated at different stages of the

The Global Change Management program has been developed to be used on all business strategies to support people as they go through the change.This is the Framework developed for Amway’s Global Change Management program. Our goal is to keep the program simple, yet develop the process and tools necessary to ensure success.

Amway’s Change Management Framework

DISCOVER

Understand the change, its impact, and the effort needed for people to embrace it

impacts people

Incorporate Change Management framework, processes and activities

and create checklist

members to support

Champions

Team conducts assessments:

- Sponsor alignment

- Scope and Impact of change

- Change acceptance and readiness

- Resistance and Risk

- Positive aspects and enablers for change

- Training needs

- Communication needs related to managing the change

PLAN

Develop strategies and plans, and align resources to support the change

Finalize Change Management goals and success measures

finalize Change Management Plan as a part of the overall

the checklist

Determine team member roles and responsibilities and training required to work as Change Champions

Create strategies and plans for:

- Sponsor engagement

- Overcoming resistance

- Mitigate risks

- Two way communication with different stakeholders

- Change management training of stakeholders and people impacted

- Drive sustainability of

DELIVER

Implement plans to ensure individuals are ready to embrace the change

Activate strategies and plans to:

- Engage sponsors

- Mitigate risks and leverage enablers

- Overcome resistance

- Communicate

- Educate and Train

- Drive sustainability

Measure progress towards stated goals and evaluate success

SUSTAIN/ SUPPORT

Sustain the change by providing ongoing support for individuals to embrace it

Evaluate goals and success measures

Monitor progress

Analyze feedback and deliver:

- Post Communications support

- Post Training Support

- Coaching, Keep an Open Door Philosophy

- Any other intervention required

- Success stories and lessons learned

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RECOGNIZE AND CELEBRATE CHANGE