LuxRetailCo*, a legendary luxury retailer, sought P&C’s guidance to evolve its IT capabilities and limited adaptability of existing technologies to meet evolving omnichannel and digital business needs.
LuxRetailCo, a venerable brand with over 150 brick-and-mortar stores throughout North America, was looking for growth opportunities. The company’s historic growth model–opening new stores–had become ineffective in acquiring and retaining newer generations of customers. The company’s existing web and mobile channels were not integrated to the stores and delivered suboptimal customer experience and operational economics. Since consumers now expected a seamless omnichannel experience, the company needed to evolve its go-to-market approach to the digital age–doing so required developing its technology capabilities and a fundamental transformation of its IT operating model.
To transform its IT function to become a strategic asset and business partner, LuxRetailCo needed to address:
P&C worked closely with LuxRetailCo’s key project stakeholders–C-level leaders and stakeholders from across the company including IT–to gather, consolidate, and prioritize the expected outcomes of the transformation sought.
P&C led the key stakeholder team through a process to create a shared vision for the future state–a high-level capabilities roadmap, grounded in industry best practices and differentiating but attainable capabilities, which would represent the best transformation outcomes.
In addition, we established a targeted set of outcomes to define success. The targets included: revenue increase of 2-3% in year 1 and reduced IT infrastructure costs by $50-70M/year.
To ensure project success we:
P&C recommended five major transformation initiatives to fully enable the digital capabilities of LuxRetailCo:
LuxRetailCo has one of the best omnichannel capability suites in luxury retail–seamlessly integrating in-store, online, and mobile customer experience. The company’s IT function effectively restructured and embarked on an aggressive, 14-month process which delivered 4.5% in year-1 increased omnichannel sales and over $170M in annual IT infrastructure, maintenance, and rollout cost savings.
IT Organizational Effectiveness
*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.