Client: Pioneer Europe Challenge: Transform the business structure from 11 sales subsidiaries, each with its own market approach, business processes, internal reporting and IT system, into a single consistent, centralized approach. Solution: SAP R/3 enterprise application software suite, plus APO module for advanced planning and BW module for advanced reporting. Results: A new European reference model (ERM), which allows all sales subsidiaries to use the same information systems, while decreasing inventory. Related Information Learn more about CSC's Enterprise Solutions. Contact us and let our experience help you produce results.

Pioneer Europe needed a business structure that could evolve as rapidly as the audio and video technology it creates. The company turned to CSC to help streamline its European subsidiaries and implement a flexible central organization.

The leading manufacturer of consumer electronics sought to create a streamlined business structure, based on information technology (IT) standards that could successfully cope with rapidly changing market situations. The business transformation will result in significantly increased efficiency, more satisfied customers and lower costs.

The project was estimated to be completed within three years, but thanks in large part to the "one team" mentality shared by CSC and Pioneer Europe, the elapsed time was reduced to two-and-a-half years.

Need for one approach to improve efficiency
Pioneer Europe is a successful company in large measure because it is continuously pushing forward as the markets evolve from analog technology, such as film, to new digital technology. The company specializes in DVD and plasma display technology and never ceases to invest in innovative, high-quality product development.

A couple of years ago, Pioneer Europe decided that dealing with the changing market situation would be best accomplished by a single, consistent, centralized approach for the whole of Europe. "This centralized organization also has to be flexible. That is the only way that we can service our broad range of customers in the best, most adaptable way," says Patrick Meirlaen, executive director of Pioneer Europe.

Pioneer Europe is a large organization, with dealers and consumers connected to the Pioneer network through 11 sales subsidiaries in most Western European countries. Before Pioneer started the centralization project, each subsidiary was highly autonomous, with its own market approach, business processes, internal reporting and IT system.

One vision, one mission, one team
Pioneer Europe's objectives included a decrease in operating costs by 10 percent and a reduction in decision-making lead times by at least 50 percent. Forecasting had to be improved to an average of 95 percent accuracy within two years of implementation. Most of all, Pioneer Europe needed to achieve more transparency between the subsidiaries and its European headquarters in Melsele, Belgium.

Pioneer Europe chose SAP, the enterprise application software suite. The goal was to introduce the full suite of SAP R/3 modules plus the APO module for advanced planning and the BW module for advanced reporting. Meirlaen recalls, "We finally chose CSC because they were open and frank about what we could realistically expect from this partnership; secondly because they showed us that they understood our exact requirements and were willing to keep us in the driver’s seat; and thirdly because of the common sense approach displayed by all CSC personnel."

CSC was contracted for the total project, which included business consulting, application consulting (including the full SAP suite), change management, project management and program management.

Pioneer Europe's project leader, Karsten Søderberg, is another CSC enthusiast. "They helped us put together a strong project management team, with precise follow-up of timing and budget and the quality and scope of each deliverable," he says. "If an obstacle was encountered, we had an open discussion to fine-tune our approach."

The right profile at the right place
The project team first designed a completely new European reference model (ERM) for the Pioneer Europe organization. The model was modified only slightly to meet certain local requirements, then rolled out at all scheduled subsidiaries in a very short time frame.

The ERM rollout was supported by the simultaneous implementation of SAP R/3, completed by CSC. The SAP deployment meant that all sales subsidiaries now use the same information systems, allowing for better reporting and planning. CSC handled all change management aspects of the project as well as the integration of the new system with Pioneer's main manufacturing facilities in Asia and Europe and its central warehouse management system in Europe.

Communication across teams and locations was another aspect to which CSC paid a great deal of attention. Søderberg recalls that CSC showed great flexibility and foresight by bringing in people with exactly the right profile at each of the various phases. "The people in our subsidiaries were even helped in their own language. Last but not least, CSC always provided the necessary training of our key users and training material so that these key users could train the others."

CSC started working with Pioneer Europe in April 2002 and the "go live" was initially planned for April 1, 2005. CSC delivered faster than expected: the go-live date was November 1, 2004, five months ahead of schedule.