EMEA ROS POS Program

Presentation kit

January 2019
 TABLE OF CONTENTS

 EMEA ROS POS PROGRAM PRESENTATION

 OVERVIEW OF ROS SOLUTIONS & KEY BENEFITS

 GOVERNANCE AND PLANNING

EMEA ROS POS UPGRADE PROGRAM

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 ACCELERATING DIGITAL INNOVATION AND OMNICHANNEL CAPABILITIES TO OPTIMIZE OUR RETAIL
OPERATIONS AND DRIVE TOTAL BRAND SALES BY CONNECTING STORES TO ONLINE

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 THE EMEA ROS PROGRAM : ONE BRICK OF THE ELC TRANSFORMATION JOURNEY

 The ROS program is a portfolio of projects (Traffic Counting, POS upgrade, WFM…) supporting ELC to realize its Direct-to-
Consumer retail transformation

 The POS upgrade will enable to optimize retail operations while harmonizing our POS solutions across the region and
facilitate future integration with omnichannel initiatives to provide a better and seamless customer experience

A focus on day-to-day activities Reinforced customer-

to increase operational
efficiency for Store Managers
and Beauty Advisors
A project driven by the A new best in class POS
centricity: more time for
business leveraging system to reduce risks of
customer service and advice…
technology, to harmonize obsolescence and sustain retail
improving both customer and
processes and practices among digital transformation
employee experience
retail operations

All FSS & Company stores are in scope

All Brands running a POS solution owned by ELC are in scope

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 A WORLDWIDE INITIATIVE

The Retail Operations Solutions program (ROS) in EMEA is part of a broad transformation of the Group. It will enable Estee
Lauder Companies to realize its vision and objectives in the retail space, enhancing the customer’s buying experience.

1 2 3

NORTH AMERICA APAC EMEA

Canada
Germany
Pilot

USA Thailand Philippines

Malaysia

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 POS CRM
ROS POS UPGRADE PROGRAM SCOPE UPGRADE

FUNCTIONAL SCOPE GEOGRAPHIC SCOPE RETAIL SCOPE

3 NEW SYSTEMS 18 EMEA AFFILIATES ALL BRANDS RUNNING A POS

SOLUTION OWNED BY ELC ARE IN
Interfaces SCOPE*
With other systems: 1
HR, SAP BI, etc.

Xstore
(front office
/ in the store)

3 2
Xadmin Relate
(back-office:
data (CRM /
management, segmentation)
configuration)

In order of rollout: Germany (Pilot Affiliate), Italy,

*This includes:
Turkey, Iberia, Austria, Switzerland, CE North,
• All FSS, company stores are in scope
Nordics, South Africa, India, Benelux, France, Balkans,
Israel, and CE South. (To be confirmed)

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 ROS SCOPE OF FUNCTIONALITIES

The ROS program will consist of a collection of projects leading to grow ELC retail omnichannel capabilities and maintain operational
excellence & execution.

➢ The program will focus on the improvement and harmonization

of retail operations across brands and countries in EMEA while
standardizing the POS solution
AUTOMATIC
REPLENISHMENT ➢ An incremental approach will be followed to ensure timely roll-
out of functionalities matching stakeholders expectations

CRM

POS
Point Of Sales
WFM
Work Force Mgt

OMNI-
CHANNEL

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 ROS SCOPE OF FUNCTIONALITIES

Upgrading of all POS solutions with Oracle standard solution – examples:

– Standardized dashboards for in store reporting
Enhanced POS – Visibility on other stores stock levels
– Reason codes for shipments (return to vendor / inter-store transfer) and inventory adjustments
– Email receipts

– Purchase orders generated by central HQ based on forecasting, possibility to refine in store

(streamlining of end-to-end processes)
Enhanced – Proposed replenishment based on sell-through on a rolling past 6 weeks, counter inventory, safety
Replenishment stock, etc.
– For the initial roll-out, an excel sheet is used to perform this function

– Enhanced capabilities in promotion (mix & match, multi-buy...) & customer segmentation
Enhanced CRM – Automated deals
– Gift card management

WFM Scheduling – Basic scheduling for better workforce management (based on local tool called MIS)

Omni-channel – Ability to check availability of products in store from online website

Inventory Visibility

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Presentation kit
January 2019
 TABLE OF CONTENTS

 EMEA ROS POS PROGRAM PRESENTATION

 OVERVIEW OF ROS SOLUTIONS & KEY BENEFITS

 GOVERNANCE AND PLANNING

EMEA ROS POS UPGRADE PROGRAM

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Presentation kit
January 2019
 OVERVIEW OF ROS 3 SOLUTIONS

POS solution

CRM solution
Interfaces
With other systems: HR,
Back office
Xstore reporting, etc.
(front office
/ in the store)

Xadmin Relate
(back-office: data (CRM /
management, segmentation)
configuration, etc.)

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 XSTORE INTERFACE IS MORE USER-FRIENDLY AND ADAPTED FOR TOUCH SCREEN

TRANSACTION INTERFACE

• Customer Basket
• Automatized
discounts

• Easy touch-screen
functions

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 XSTORE – CUSTOMER INTERFACE

• Customer
purchase
history

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 XSTORE KEY FEATURES AND BENEFITS

▪ Standardized dashboards for in store reporting

▪ User friendly tool – with training
mode
▪ Simplified attendance tracking
▪ Automation of replenishment :
-
Introduction of push-model
-
Automatic notification : order acknowledgment &
ASN
▪ Enhanced capabilities in promotion (automatic discounts,
mix & match, multi-buy...) & customer segmentation

Employee
▪ Visibility on other stores stock Satisfaction
levels Retail
▪ Smoother Gift cards / certificates The top benefits
Operations
management according to the stores
▪ Reduced waiting time
Consumer • Replenishment
Experience • User-friendly &
▪ Future integration with
omnichannel capabilities : intuitive
- Omnichannel Inventory • Clock-in & out
Visibility • Gift certificates
- Omnichannel loyalty program • Email receipts
- Buy online pick-up in store
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 RELATE HELPS CREATING CUSTOMER SEGMENTS AND DESIGNING DEALS/CAMPAIGNS FOR STORES

• Creating Customer
segments

• Creating Deals and

Campaigns 
automatized in Store

• Reportings

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 RELATE, THE CRM SOLUTION OVERVIEW & KEY BENEFITS

Relate is a web-based application that provides CRM handling capabilities, providing multiple benefits for Retail operations,
Headquarter teams & Customers

CUSTOMER MANAGEMENT
Collection of customers records and data

SEGMENTATION Key benefits

Organization of customers into groups based
• More targeted

5
on specific criteria
promotions
MAJOR DEALS
Definition of incentives (products, price) for
• Reusable Deals
FUNCTIONALITIES customers (in a deal library for re-use) • Better customer
knowledge
PROMOTIONS
Implementation of Deals in time, (and, if needed, • Easier implementation
for specific segment(s) and / or franchisee(s)) of promotions in store
REPORTS
Running of a comprehensive set of reports
(analytics related to promotions / customer /
products / transactions…)

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 TABLE OF CONTENTS

 EMEA ROS POS PROGRAM PRESENTATION

 OVERVIEW OF ROS SOLUTIONS & KEY BENEFITS

 GOVERNANCE AND PLANNING

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 Legend:

ROS IS AN INTERNATIONAL PROJECT, WHICH LEVERAGES TECHNOLOGY & LED BY Business ELC Team

THE BUSINESS Technical External Team

ROS Project Core Team

Process Owners Project Mgt OCM IT Sponsors

Amy Harsh Peter

BIEBERDORF SONY CAMACHO
Bob
GLOBAL HAYES
O2CS GPO M2L GPO P2S GPO

Martin Peter Wendy

DEMPSEY BROOKER TARFANO
Sue Barma
MOSOFF URUCHIMA
ROS Global Project Team

H2R GPO B2R GPO

Nicolas Charles Mehdi Sylvain Sébastien Matthew Stéphane Reza

QUILLERET LEVY OFFIN Rikin UDANI
GLANDON MOREL AISSAOUI GAULLIER ANSARI
EMEA ROS EMEA Skillnet
REGIONAL

GIS Program
02CS RPO M2L RPO P2S RPO Program OCM*** Project
MAnager EMEA ROS Business Sponsors
Manager Lead Manager

Daniella Sviat Team** GIS TEAM Skillnet Team EMEA ROS IT Sponsors
PIRRO PEREVERZEV
EMEA
GIS Technical Technical Gerrie Gareth
OCM***
H2R RPO B2R RPO resources resources THOMSON HUGUES
Team

xxx

xxx xxx xxx xxx

SBP

Local Business
02CS LPO M2L LPO P2S LPO
LOCAL

Prog. Man. xxx xxx

Local ROS Sponsors

xxx xxx xxx xxx

Retail
H2R LPO B2R LPO Functional Lead Specialist GIS

EMEA ROS POS UPGRADE PROGRAM

Power User *Joe Beeston, Vera Edgar, Dean Spencer, Will Stubbens, Sean Swart, Ian Wells, Bret Hopping 17
Presentation kit ** Kenza Chekkouri, Emmeline Huet, Solène Jannot
January 2019 ***OCM = Organizational Change Management
 ROLE DESCRIPTION

Sponsors LPOs Brand Managers

• Contribute to and support the
• Provide business context, expertise, • Provide inputs for the revision of
Communication and Change
and guidance to the local business ROS processes at local level,
Strategy Plan
project manager and the team working closely with RPOs

• Promote the project, including
“selling” and marketing it
throughout the organization
• Act as an escalation point for
decisions and issues that are beyond
the authority of the project manager
• Act as an additional line of
communication and observation
with team members and other
stakeholders
• Locally give the sign-off for UATs
POWER USER
• Brings internal support and
expertise to the local OCM
external partner to ensure :
- stakeholders alignment,
- business benefits & impacts
analysis realization,
- Training,
- communication around the
program
• Facilitate local brand ressources
availability
• Promote the project throughout
their brand organization
• Act as an additional line of
communication and observation
with team members and other
stakeholders
Retail Specialist GIS
• IT Local support
• Contribute to process design from
an IT standpoint

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 EACH DEPLOYMENT IS STRUCTURED AROUND 8 PHASES

1. DESIGN 2. BUILD 3. TEST & TRAIN 4. DEPLOY & SUPPORT

PRE-DESIGN BIA DESIGN BUILD TEST UAT & TRAINING PILOT ROLL-OUT
1 month ½ 1 month 1 month ½ 3 months 1 month 2 months 1 month 1/2 1 month 1/2

1. PRE-DESIGN
- Jump-Start and Kick-off the project
- Identify the local project team
- Design of priority As-Is Business 4. BUILD 8. ROLL-OUT
processes* - Application development - Support closely the Pilot
- Plan BIA (Business Impacts Analysis) - Interface development launch through a Hypercare
workshops - Configuration and Security settings of system period
- Unit testing and test case definition - Measure the benefits of the
- Build test environments project
2. BUSINESS IMPACT ASSESSMENT - Prepare UATs and Training sessions - Deploy the solution in all
(BIA)** 5. Test (SIT) stores
- Conduct BIA workshops (based on -System and integration testing
EMEA business target processes and - Application Testing
demonstration of the POS) - Interface Testing
- Identify Fits and Gaps (application - Regression Testing
and integration)
- Clarify open questions through
Breakout sessions (post-workshops)

3. DESIGN 6. USER ACCEPTANCE TESTING (UAT) & TRAINING

- Finalize the scope to be delivered - Perform Users Acceptance Testing
and all the related documentation - Adjust Training material if necessary
to launch Build (Business - Preparation of the Pilot (Go/NoGo meeting, Cut-
requirements, Authorization Over Plan, Go-Liva plan monitoring)
matrix, functional specs) - Train the impacted population
- Review of the Project Planing
- Define Stakeholder mapping

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