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Case Studies - OPSM Australia

Founded in 1933, the OPSM Group is an Australian retail chain that specialises in all aspects of eyecare, including prescription glasses, contact lenses and sunglasses.
 
Its retail arm comprises well-known Australian trading brands, including: Optical Prescription Spectacle Makers (OPSM); Budget Eyewear; Laubman & Pank; Kay's Optical and Precision Eyewear as well as The Optical Shop & The Optical Centre in Hong Kong. The company has an annual turnover in excess of $450 million and has approximately 600 retail stores throughout Australia, New Zealand, Hong Kong, Malaysia and Singapore. It also trades via its website, OPSM Direct, which sells contact lenses online, and owns EyeBiz, a lens grinding laboratory.

THE CHALLENGE

In 2001, The OPSM Group management decided to focus on optical retailing and grow by acquisition; the target being to expand to 1000 retail stores by 2006. This involved purchasing a large number of retail outlets, each with legacy technology and computing systems.
 
Alex Chisholm, Group IT Manager, OPSM Group, comments; "From a technology perspective the first priority was to standardise on a common point-of-sale, manufacturing and retail database system. The OPSM Group already had a proprietary system in place at head office, called Focus, which suited our exact requirements and so we decided to implement that across all our new acquisitions.
 
"However, at the time, stores were connecting to this centralised system two or three times a day using dial-up access and we realised that in order to move forward, all our stores needed dynamic, real-time access to the Focus database to order stock, pass on prescription requests and view sales information.
 
"From a management perspective, having such an infrastructure in place would also enable us to obtain up-to-the-minute sales information to assist us in planning timely marketing, advertising and sale initiatives.
 
"For the stores, it would provide easy inventory management and improved customer service."
 
OPSM also wanted to implement a Customer Resource Management (CRM) database so that staff in the retail stores could obtain and input up-to-the-minute information about customers.
 
Alex Chisholm comments: "For us, the entire focus of our technology improvements was to improve the customer experience. With a centralised CRM database, our customers would have the flexibility to visit any retail store in our chain. Staff could easily view customer prescription requirements and contact details online, making it convenient and easy to order from us. With online access to our Focus system, staff could also inform customers of exactly when they could expect their order."
 
Another important consideration was scalability. "With a projected 400 retail outlets coming on board in the next three years, we needed a cost-effective, flexible architecture that could cater for growth.


SOLUTION

After discussions with Cisco, it was decided that a Virtual Private Network (VPN) offered the most cost-effective and scalable networking solution. In order to achieve the required levels of security, a Cisco PIX firewall 515 was installed at the OPSM head office in Auburn and an 800 series Cisco Router running the firewall and VPN software within Cisco IOS was installed in each branch. As well as providing VPN functions, the Cisco IOS software encrypts customer data and sensitive company information, travelling over the public Internet.
 
David Newton, Technology Development Manager, OPSM, comments. "With customer details, security was paramount. We were confident in the 3DES security that the Cisco IOS software offered, providing encrypted, secure data."
 
Each store also features a server with a local copy of the Focus database online that sends order and inventory requests to with head office in real-time. As each store came online with the new system, David was able to manage its technology installation from his desktop in Auburn using the Cisco IOS software.
 
He comments: "It is very straightforward to manage and being Internet browser-based, I can manage it from anywhere, even at home, should I need to."With an eye on the future a Cisco Catalyst 6500 switch was also installed at the head office in Auburn in anticipation of leveraging a converged (voice and data) network down the track.


BENEFITS

The key benefits from the new technology infrastructure are in improved customer service levels. "In our Penrith store, which is a showcase and test-bed for how we intend to do business, we have already seen improved sales since we revamped the store and installed our new technology.
 
"Customers can now receive real-time information about availability of frames, so that their expectations are managed from the minute they place an order. We've also seen faster turnaround times for orders and stock replenishment and our staff report that they feel proud to be offering improved levels of customer service and to be associated with our brand."
 
Sales results are already indicating that improved customer service of this level will translate into increased customer loyalty and improved revenue.
 
Aside from the benefits to customers, being connected has also benefited staff.
 
They now have email and intranet access over the network enabling them to view company policies, procedures and announcements as well as contacting head office regarding leave and any Human Resource issues directly.
 
Finally, OPSM have an infinitely scalable platform for growth. All Alex Chisholm has to do to add a new branch is install a Cisco 800 router with the IOS VPN and included security software, connect the store to the Internet and they are on board.


PARTNERS

When it came to selecting a partner for this large-scale project, Alex Chisholm was clear on one issue.
 
"Standardisation is the key to success," he said. "And so we insisted on Cisco technology in order to obtain a fully supported, proven architecture.
 
"OPSM is looking to emerge as a world-class company and so we need a world-class partner to provide our technology solution. We were also extremely aware of the need to select technology that would be compatible and infinitely scalable. Cisco has already installed other successful retail networks and so we were very confident in the solution they proposed."
 
David Newton adds, "Cisco solutions are easy to manage and fully supported, which is an extremely important consideration in a rollout of this size and scope."
 
Steve Brisco, Cisco Retail Account Manager, says: "OPSM clearly intends to provide customers with the ultimate retail experience. They have a strong vision and commitment to succeed and they intend to leverage technology in order to obtain successful business outcomes."









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