CIO Straight Talk - Issue 2 - 47

When Pick n Pay began its IT modernization
project, it set its sights on a new ERP system that
could manage everything from its financials to
HR to payroll to inventory to vendor information.
What were your expectations in terms of desired
results – both at organizational level & department level?
While the program was primarily driven as a strategic
transformation program to position Pick n Pay for the
future, we did have expectations about specific performance improvements in a number of areas:
• Inventory reductions through better visibility and
decision making.
• Administrative efficiencies through greater automation, particularly in our regional administration offices.
For example, we have automated invoice capture and
matching processes, which in a retailer of our size
represents a massive reduction in administrative activity.
• Distribution and supply chain efficiencies through a
significant shift from direct-to-store deliveries to a much
more centralized distribution model. We now operate our
own regional distribution centers, to which our major
suppliers deliver. Then we cross-dock and have
combined deliveries to our stores which significantly
reduces the amount of traffic at our back doors.
• The scalability of SAP has also allowed us to move to a
more centralized operating model which is more
efficient than our previous decentralized model.
• Significantly improved ability to offer flexible pricing
and promotions to our customers – like bonus buys.

In 2010, Pick n Pay decided to implement a
customer loyalty program, called Smart Shopper.
What led to this decision?
The customer loyalty program was initiated as part of a
holistic strategy built around customer-centric retailing
rather than a specific response to any perceived threat.
Pick n Pay’s brand line is “Inspired by You.” We do not
just pay lip service to this but genuinely desire to
understand what our customers want and respond to this
in all of our retailing activities.
Our strategy is holistic. It considers all dimensions of our
offer, namely:
• Marketing – We target customers with relevant and
timely offers above and below the line.
• CRM – We also generate long-term CRM effects that
reflect sustained increase in customer value because of
the loyalty proposition.
• Trading – The trading effect reflects customer knowledge gained through the loyalty program (pricing,

promotions and ranging decisions).
• Suppliers – Working collaboratively with suppliers
generates direct incremental revenue stream through
targeted marketing and provision of shopper insight and
reports.
• Location – Customer data provide a rich source of
information for informed decision making regarding site
acquisition, store re-fits, format planning, roll-outs of
new services and ranges.

How did you go about executing the program at
ground level? What were the challenges faced in
bringing multiple stakeholders together to
achieve a single objective? Also tell us how you
managed multiple stakeholders – with each
stream having several sub-programs and dependencies with other streams.
Program Structure
We set up a single program structure under my sponsorship with a single program director (Alison Lambert
from HCL AXON). The program structure included:
• Key Pick n Pay business representatives from marketing,
IT, buying, etc.
• A loyalty partner (5ONE)
• A program management and SAP delivery partner (HCL
AXON)
• Launch Suppliers (including Coca-Cola, KimberlyClark and Unilever)
Project Planning and Managing Complexity
Project management challenges arising out of the large
number of involved parties and high degree of
dependency were overcome by strong planning and
rapid, incisive decision making. We ensured that the
vision, objectives, scope and plans were communicated
to and shared by all parties. There was a single integrated
plan, covering three major streams of activity, namely,
business, implementation and information systems.
Decision Making, Accountability and Adherence to
Timelines
Each partner had very senior executive level involvement
to ensure proper attention and focus on successful and
timely delivery. There was a single program manager
and a clear hierarchy of project managers and team
leaders. The individual plans and dependencies between
them were developed and managed in an integrated way.
It was also important to make sure we had the right
individuals in place to drive execution and quality. The
regular cycle of project and program governance
meetings was followed very strictly and I ensured that
where there were issues to be resolved, there was
decisive action taken.
CIO Straight Talk //

47



CIO Straight Talk - Issue 2

Table of Contents for the Digital Edition of CIO Straight Talk - Issue 2

CIO Straight Talk - Issue 2
Contents
So What Do CIOs Want
Innovation at the Periphery
The CIO as Thought Leader
Career Move: From Managing Technology to Managing Change
Every CIO is in the Information Business
Analytics and Decision Making
Putting IT at the Center of the Customer Experience
Pick n Pay Focuses on Delivering Value to Customers
Bringing "Lean" to IT
Whither the Cloud in a Stormy IT Enviroment?
Management by Driving a Stake in the Ground
From Data Processing to Orchestrating Knowledge
Extreme Collaboration
Enterprise Mobility: Delivering the Connected Customer Experience
CIO Straight Talk - Issue 2 - CIO Straight Talk - Issue 2
CIO Straight Talk - Issue 2 - Cover2
CIO Straight Talk - Issue 2 - 3
CIO Straight Talk - Issue 2 - Contents
CIO Straight Talk - Issue 2 - 5
CIO Straight Talk - Issue 2 - So What Do CIOs Want
CIO Straight Talk - Issue 2 - 7
CIO Straight Talk - Issue 2 - 8
CIO Straight Talk - Issue 2 - 9
CIO Straight Talk - Issue 2 - 10
CIO Straight Talk - Issue 2 - 11
CIO Straight Talk - Issue 2 - 12
CIO Straight Talk - Issue 2 - 13
CIO Straight Talk - Issue 2 - 14
CIO Straight Talk - Issue 2 - 15
CIO Straight Talk - Issue 2 - 16
CIO Straight Talk - Issue 2 - 17
CIO Straight Talk - Issue 2 - Innovation at the Periphery
CIO Straight Talk - Issue 2 - 19
CIO Straight Talk - Issue 2 - 20
CIO Straight Talk - Issue 2 - 21
CIO Straight Talk - Issue 2 - The CIO as Thought Leader
CIO Straight Talk - Issue 2 - 23
CIO Straight Talk - Issue 2 - 24
CIO Straight Talk - Issue 2 - 25
CIO Straight Talk - Issue 2 - Career Move: From Managing Technology to Managing Change
CIO Straight Talk - Issue 2 - 27
CIO Straight Talk - Issue 2 - 28
CIO Straight Talk - Issue 2 - 29
CIO Straight Talk - Issue 2 - Every CIO is in the Information Business
CIO Straight Talk - Issue 2 - 31
CIO Straight Talk - Issue 2 - 32
CIO Straight Talk - Issue 2 - 33
CIO Straight Talk - Issue 2 - Analytics and Decision Making
CIO Straight Talk - Issue 2 - 35
CIO Straight Talk - Issue 2 - 36
CIO Straight Talk - Issue 2 - 37
CIO Straight Talk - Issue 2 - 38
CIO Straight Talk - Issue 2 - 39
CIO Straight Talk - Issue 2 - Putting IT at the Center of the Customer Experience
CIO Straight Talk - Issue 2 - 41
CIO Straight Talk - Issue 2 - 42
CIO Straight Talk - Issue 2 - Pick n Pay Focuses on Delivering Value to Customers
CIO Straight Talk - Issue 2 - 44
CIO Straight Talk - Issue 2 - 45
CIO Straight Talk - Issue 2 - 46
CIO Straight Talk - Issue 2 - Bringing "Lean" to IT
CIO Straight Talk - Issue 2 - 48
CIO Straight Talk - Issue 2 - 49
CIO Straight Talk - Issue 2 - 50
CIO Straight Talk - Issue 2 - Whither the Cloud in a Stormy IT Enviroment?
CIO Straight Talk - Issue 2 - 52
CIO Straight Talk - Issue 2 - 53
CIO Straight Talk - Issue 2 - 54
CIO Straight Talk - Issue 2 - 55
CIO Straight Talk - Issue 2 - Management by Driving a Stake in the Ground
CIO Straight Talk - Issue 2 - 57
CIO Straight Talk - Issue 2 - 58
CIO Straight Talk - Issue 2 - From Data Processing to Orchestrating Knowledge
CIO Straight Talk - Issue 2 - 60
CIO Straight Talk - Issue 2 - 61
CIO Straight Talk - Issue 2 - Extreme Collaboration
CIO Straight Talk - Issue 2 - 63
CIO Straight Talk - Issue 2 - 64
CIO Straight Talk - Issue 2 - 65
CIO Straight Talk - Issue 2 - Enterprise Mobility: Delivering the Connected Customer Experience
CIO Straight Talk - Issue 2 - 67
CIO Straight Talk - Issue 2 - 68
CIO Straight Talk - Issue 2 - 69
CIO Straight Talk - Issue 2 - 70
CIO Straight Talk - Issue 2 - 71
CIO Straight Talk - Issue 2 - 72
CIO Straight Talk - Issue 2 - 73
CIO Straight Talk - Issue 2 - 74
CIO Straight Talk - Issue 2 - Cover3
CIO Straight Talk - Issue 2 - Cover4
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