SAP IS Retail Transformation for India's Largest Retailer
Enterprise-wide ERP serving 300M customers across 900+ stores
Organization
Future Group
Role
Group CIO
Duration
2004 - 2007
Executive Summary
Led technology transformation of India's largest retailer with INR 3 Billion budget, implementing SAP IS Retail for 3,200 users across 900+ stores, 35 warehouses, and 4 branch offices. Created integrated omnichannel retail infrastructure, launched e-commerce platform (futurebazaar.com), and built Data Warehouse serving executive board. Project featured in SAP Annual Report 2005-06. Received CIO 100 Award (2006).
Quantitative Impact
Across all retail formats and functions
From hypermarkets to specialty stores
Distribution centers across India
In procure-to-pay process
With integrated loyalty program
Across all product categories
Annual IT spend with ROI focus
The Challenge
Situation
Future Group was scaling rapidly as India's largest retailer but running on fragmented legacy systems unable to support multi-format retail strategy (hypermarkets, supermarkets, fashion, electronics, home improvement) and explosive growth trajectory.
Key Problems
- Multiple disconnected systems across store formats
- No real-time inventory visibility across 900+ stores and 35 warehouses
- Manual processes limiting scalability and operational efficiency
- Lack of data analytics for strategic decision-making
- Inability to support emerging e-commerce channel
- 30,000+ suppliers requiring integrated procure-to-pay processes
Stakes: Without unified technology platform, Future Group risked operational chaos, inventory mismanagement, customer dissatisfaction, and inability to compete with emerging organized retail and e-commerce players in India.
The Solution
Comprehensive enterprise transformation using SAP IS Retail as backbone, integrated with custom-built loyalty program, e-commerce platform, and advanced analytics. Phased rollout across formats with parallel change management and training programs.
SAP IS Retail Implementation
Deployed SAP across all retail formats with integrated supply chain, finance, HR, and CRM modules
Point-of-Sale & Loyalty Program
Designed and deployed POS system for 900 stores managing 3.5M SKUs and serving 300M+ customers with integrated loyalty program
E-commerce Launch (futurebazaar.com)
Built omnichannel e-commerce platform integrating online and offline inventory, orders, and customer data
Data Warehouse & Analytics
Created enterprise Data Warehouse with real-time dashboards for executive board and operational reporting
Network Infrastructure
Connected 1,000+ locations on high-bandwidth private network with 32,000+ Microsoft Exchange mailboxes
Technologies Deployed
SAP IS Retail
Core ERP for all retail formats
Custom POS & Loyalty
Store-level transactions and customer loyalty management
futurebazaar.com Platform
E-commerce for omnichannel retail
Data Warehouse & BI
Analytics, reporting, and executive dashboards
Microsoft Exchange
Email and collaboration across 32,000+ users
Additional Impact
Qualitative Impact
- Featured as center-fold story in SAP Annual Report 2005-06 (global recognition)
- Received CIO 100 Award (2006) for innovation and impact
- Created India's first truly integrated omnichannel retail platform
- Established Future Group as technology leader in Indian retail
- Built repeatable model for multi-format retail transformation
Business Impact
- ▸Enabled Future Group's rapid expansion from 200 to 900+ stores
- ▸Reduced inventory carrying costs by 30% through real-time visibility
- ▸Improved gross margins by 2-3% through better procurement and pricing
- ▸Launched successful e-commerce business complementing stores
- ▸Provided data-driven insights for strategic decision-making
Lessons Learned
What Worked
- Strong executive sponsorship and governance enabled smooth rollout
- Phased approach allowed learning and course correction
- Custom POS and loyalty program differentiated from competitors
- Data Warehouse became strategic asset for board-level decisions
Challenges
- Managing change across 3,200 users with varying tech literacy
- Integrating multiple legacy systems and data migration complexity
- Balancing standardization vs. customization for different formats
- Scaling infrastructure for peak retail seasons (Diwali, etc.)
Key Takeaways
- ✓Technology must align with business strategy and retail vision
- ✓Change management and training are as critical as technology
- ✓Executive dashboards and analytics drive adoption and value
- ✓Omnichannel integration is future of retail success
Board-Level Value Demonstrated
strategic
Demonstrated ability to align technology with business growth strategy and execute at scale
operational
Proven track record managing complex multi-year, multi-stakeholder enterprise programs
financial
Managed INR 3 Billion budget with disciplined ROI focus and cost optimization
risk
Successfully navigated technology, operational, and change risks in transformation
stakeholder
Effective communication with board, executives, vendors, and 3,200 end-users
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