Checkpoint Systems is a multinational manufacturer and supplier of security solutions to the retail industry. It implemented a new SAP ERP system to consolidate operations across European subsidiaries after several acquisitions. The old systems were not Y2K compliant, did not support the euro currency, and made financial consolidation and reporting time-consuming. The new single-instance SAP system integrated various functions and subsidiaries. Challenges included aligning SAP terms with business terms, language and skills gaps during implementation, and cleaning up legacy master data for the new system. Lessons included not underestimating change management and the effort required for data cleansing.

1. Case study of the ISportfoliofor IT201 Enterprise Architectures Presented ByTalal & Ahmed Supervised By Dr. Peter Birbeck

2. Our Agenda SmartArt turns your bullet points into graphics in a single click. You can even change your graphic layout to find just the right way to express your idea. Corporate Overview Corporate Drivers IS Portfolio Challenges and LL Further Links

3. Corporate Overview Industry Shrink Management – Designing products to migrate theft and providing solution to detect POS errors. E.g. RFID Checkpoint Systems, Inc. Multinational supplier and manufacturer of security solutions to the retail industry. Established in 1969 Checkpoint Systems is a US $834.2 million multinational manufacturer. 3,200 employees Offices throughout North and South America, Europe, Asia, Australia, and New Zealand. Just In Europe, has offices in 18 countries. Services Provides services and products enabling customers to track, brand and secure goods worldwide through a holistic system that combat shrinkage in all its forms.

4. Checkpoint and the 6 values OPENNESS When you are accessible, approachable, sharing, frank and willing to see things from other points of view, that’s Openness 1 OPENNESS When you are accessible, approachable, sharing, frank and willing to see things from other points of view, that’s Openness 2 RESPECT When knowing what it means to esteem and be esteemed, age, origin or status become irrelevant in Judging the real value of others and their ideas, that’s Respect 3 HONESTY When everything you do corresponds to what you say, when your character and actions show even-handedness and straightforwardness, that’s Honesty 4 INNOVATION When talent , creativity and effort are channelled towards the development or introduction of something new, that’s Innovation 5 INEGRTITY When your trustworthiness involves being transparent, coherent and honest, that’s Integrity 6EXCELLENCE When good is never enough and you strive improve everything for which you are involved with, that’s Passion for Excellence

5. Our Agenda SmartArt turns your bullet points into graphics in a single click. You can even change your graphic layout to find just the right way to express your idea. Corporate Overview Corporate Drivers IS Portfolio Challenges and LL Further Links

6. Corporate Drivers Business Drivers Be the world largest provider of radio frequency (RF) based loss prevention systems. Help retail industries control their assets, boost efficiency, and increase sales through a wide range of smart and innovative solutions. Meet the customer demands of shrink management solutions, increase employees performance and time-to-market.

7. Corporate Drivers Social Drivers Increase the level of the safety in the market by deploying high quality security systems. Provide annual researches on the climate of shrinkage and consumers attitudes to the public and to the retailers in specific.

8. Our Agenda Corporate Overview Corporate Drivers IS Portfolio Challenges and LL Further Links

9. IS Portfolio Why the decide to implement a new ERP ( Call for the Change) The acquisition of Netherlands -based ID Systems International BV (1993), U.K.-based Actron Group Limited (1995), and Germany-based Meto AG (1999). The old systems were not Y2K compliant and did not support the new euro currency. Financial consolidation across European operations was time consuming and prone to error. Management reporting was time consuming and costly. Knowledge sharing across national borders was difficult because the local administrative departments had different skill sets. Duplication of efforts between countries. In 2002 U.S. congress passed the Sarbanes-Oxley Act. This legislation required all Checkpoint subsidiaries to significantly review accounting practices and systems.

10. IS Portfolio SAP R/3 platform was the proposed solution Single instance of SAP - hosted in Heppenheim, Germany. The SAP solution covered all the enterprise functions: Sales ,Finance and , Material, Inventory management, Production, Logistics, , HR , Payroll, BI, CRM. Integrated into MPC ecommerce platform, Lotus Notes( collaborative application), logistics providers (DHL and TNT)and customers via EDI. DHL / TNT Ecommerce / Lotus Notes Price/ Document Link Order # Order/ Document Track # Customer Workflow Electronic Data Interchange (EDI) SAP ERP Event

11. IS Portfolio Administrative Consolidation at Checkpoint Systems afterwards SAP ERP Note: Countries with local Checkpoint office are colored in dark gray. Light gray countries are served via distributors. A pin signifies an administrative center.

12. Our Agenda SmartArt turns your bullet points into graphics in a single click. You can even change your graphic layout to find just the right way to express your idea. Corporate Overview Corporate Drivers IS Portfolio Challenges and LL Further Links

13. Challenges & LL Challenges Lessons Learned SAP terms VS Checkpoint business terms. Some local gaps during implementation phase at Checkpoint ( language gap, skills gap). Clean up existing master data sources ( customer master data source, material master data source). The effort required to harmonize and cleanse data in order to populate the new SAP ERP systems is often underestimated. According to Van der Mark “Establishing a coherent data set for the new SAP system based on our legacy patchwork really took time and effort”. Its important not to underestimate the change management process when implementing an ERP application. Many employees fear and resist change and end-user resistance can slow down and potentially derail entire projects.

14. Our Agenda SmartArt turns your bullet points into graphics in a single click. You can even change your graphic layout to find just the right way to express your idea. Corporate Overview Corporate Drivers IS Portfolio Lessons Learned Further Links

15. Further Links Checkpoint Systems, Inc http://www.checkpointsystems.com/ Checkpoint Systems Leverages SAP ERP for Compliance, Insight and Automation case study paper http://www.sap.com/industries/machinery/large/customersuccess/index.epx Shrink Management by SubhashisNathhttp://www.infosys.com/industries/retail/white-papers/shrink-management.pdf

16. SmartArt turns your bullet points into graphics in a single click. You can even change your graphic layout to find just the right way to express your idea. Any Questions!! Thank you…