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Case Studies - OPSM Australia
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THE CHALLENGE |
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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.
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SOLUTION |
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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.
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BENEFITS |
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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.
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PARTNERS |
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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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