Elkjøp HANA Migration

Business Background

Elkjøp is the largest consumer electronics retailer in the Nordic countries, with over 400 stores across six countries and approx. 10,000 employees. The company is owned by British giant Dixons Carphone. The company conducts sales of consumer electronics and household appliances through 400 stores in Norway, Sweden, Denmark, Finland and Iceland, Greenland and the Faroe Islands.

One of Elkjøps main competitive advantages in a competitive market has been a strong focus on effective business processes and continuous improvement of these processes. Along with Elkjøp, Skye, L&T and Einr facilitate efficiency based on SAP Retail.

Elkjøp and L&T Infotech Ltd. Started their partnership in 2016. Elkjøp has some IT and business challenges they needed to address:
Simpler IT environment, transforming the datacenter capabilities of Elkjøp by migrating its current environment to an Infrastructure-as-a-Service (IaaS).

Upgrade the Elkjøp core business ERP System SAP to its latest revision and migrating it to HANA (in-memory computing platform that lets you accelerate business processes, deliver more business intelligence, and simplify your IT environment). With this migration, Elkjøp could enable the planned and ongoing projects for their SAP Roadmap.

Einr is the industry leader in SAP Retail in Norway, being an innovative and customer-centric advisory firm. Einr helps leading retailers develop competitive advantage throughout their Supply Chains.

Skye Consulting was established in 2010 and their head office in Kolbotn, in the outskirts of Oslo, Norway. Skye has about 100 employees as per January 2017, in three locations: Gothenburg, Stockholm and Kolbotn. One of their core competences are SAP processes and technology.

Larsen & Toubro InfoTech Ltd. (L&T InfoTech), one of the fastest growing global IT services company, is ranked by NASSCOM as the 6th largest software & services exporter from India.  

ECC/SCM/BW on Oracle Migration to SAP HANA

In 2016-17, Elkjøp with support from L&T Infotech Ltd, Einr and Skye performed migration of their SAP ECC, BW and SCM System to SAP HANA. The project was executed in 4 months and was successful in terms of the quality delivered, on time and below budgeted cost and giving the anticipated benefits. Skye Consulting managed the upgrade project, Einr performed the HANA code adoption / adjustment and L&T migrated and upgraded the core SAP landscape.

Technical Benefits – minimum business impact by enabling redundant solution of High Availability and Disaster Recovery setup for HANA and leveraging VM Fault Tolerance functionality by making message server as Single Point of Failure (SPOF) and performance increased and database size compressed.

Functional Benefits – Accelerated the processing of large report and financial data is available in-memory:

  • 98 000 article/sites without HANA would take 5.5 hours, and with HANA 5 minutes.
  • All customer order on one article for all Danish campaigns in 2016:
    • Without HANA: 50 seconds (with optimized search on indexes, fields etc.)
    • With HANA: Response immediate (ms)
  • Any given Finance report must be carefully limited with selection filters to avoid timeouts
    • Without HANA: Several reports must be scheduled as jobs (15 minutes++) to get all the needed data
    • With HANA: All reports can be executed directly (no filter or selection criteria, no waiting time in Drill down)

Strategic Benefits – with SAP HANA as the main platform, Elkjøp is now following the SAP Roadmap and can easily adopt new functionality and enhance the solution in a long-term perspective. The migration was the first step on the journey towards S/4HANA for retail that will give additional benefits: a simplified data model, predefined operational reports and predefined Fiori apps in a Fiori UX environment.

Get the complete whitepaper here.