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Transforming for Success

Mizuno adopts Oracle’s JD Edwards EnterpriseOne solutions on Oracle Exadata to realize structural, business, and systems reforms.

August 2014

Since 1906, Mizuno has grown its business while supporting athletes and sports lovers for more than a century through its multi-faceted businesses, not only manufacturing and selling products such as sporting goods and sportswear, but also operating sports facilities.

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Shinobu Matsui, Senior Manager, Information Systems Department, Mizuno Corporation

 

Recently, the company’s business environment changed significantly. Domestic markets are maturing while overseas markets are on a growth trend. In domestic markets, the structure of sales channels is rapidly changing as evidenced by an increase in the number of high-volume retailers.

Because of this, Mizuno faced three major management challenges: expanding global businesses, enhancing product maker function, and re-strengthening management foundations. Mizuno launched the company-wide transformation project in March 2011 to concurrently promote structural, business, and system reforms.

“The mainframe backbone system was built with an emphasis on sales to medium- to small-sized sports shops. As we added functions to meet the changing environment, the system reached its limits,” says Shinobu Matsui, senior manager of the Information Systems Department at Mizuno. “After decades of extensions the system’s restrictions had become evident.”

In order to improve management options and enhance speed, it was necessary to remove the shackles of the legacy system. Furthermore, Mizuno also faced challenges with visibility into the business. “For example, there was the problem of hard-to-see profits and losses for product line items such as baseball shoes and tennis rackets. Even though gross profits could be seen, final profits with allocations taken into account were not immediately understood,” says Mr. Matsui. While determining which product to focus on, it is also important to quickly understand product category profits and losses.

In addition, Mizuno encountered challenges in technology succession. “When we went to correct the old system, we depended upon certain individuals for certain technology skills. This was a big challenge in handing down technologies to younger staff members,” said Mr. Matsui. To address these challenges, Mizuno’s executives decided to build a new backbone system as part of its transformation initiative.

Why Mizuno Selected Accenture and Oracle’s JD Edwards EnterpriseOne

The selection of a new enterprise resource planning (ERP) system occurred at the preliminary project stage. Several ERP products were considered, as well as the option to keep the mainframe, but Mizuno ultimately chose Oracle’s JD Edwards EnterpriseOne.

Accenture provided the guidance and knowledge to advise us of possible problems or risks from a managerial or operational point of view.”–Shinobu Matsui, Senior Manager, Information Systems Department, MIZUNO CORPORATION

“Of course we considered price, ease of maintenance, and operation,” said Mr. Matsui. “Furthermore, it was important that our US subsidiary had actually used JD Edwards EnterpriseOne for a decade or more and Oracle in the US and Japan had expressed their total support.”

The scope of the project reaches nearly all of Mizuno’s mission-critical requirements, including procurement, inventory, order reception, and accounting. Recognizing the need for an infrastructure that could handle their immense number of transactions, Mizuno selected Oracle Exadata Database Machine.

“What we had been particularly concerned about was the performance of the system. It was discussed whether or not a high volume of transactions could be precisely processed,” says Mr. Matsui. “Partly from the aspect of minimizing emerging risks, we selected Oracle Exadata, which has a reputation for high speed,” he says. The combination of JD Edwards EnterpriseOne on Oracle Exadata is the first of its kind in Japan.

Once the ERP and infrastructure selections were made, Mizuno needed to engage a systems integrator to help assess risks and determine best practices. Mizuno selected Accenture as the systems integrator for the project.

“Some systems integrators would tell us that they will implement the system exactly as we tell them to, but this does not comply with the policy of a fundamental business review,” says Mr. Matsui. “Accenture provided the guidance and knowledge to advise us of possible problems or risks from a managerial or operational point of view. This is what we expect in a partner.”

Planned Operation with Minimal Add-Ons

In March 2011, the Accenture and Mizuno teams began working together on the JD Edwards EnterpriseOne on Oracle Exadata implementation. Mizuno’s Business Reform Office—a dedicated organization of 11 department directors and division managers—played a core role in helping make the large-scale company-wide project a success. Key leaders were assigned to each team on site to help manage challenges along the way with full support from top executives.

In system development, the teams focused on reducing add-ons, but found they often increase while taking into account on-site demands. Meeting every demand would take a significant amount of time and cost. Before beginning the system build phase, Accenture proposed an examination period.

“At the stage where we define requirements, the number of add-ons had reached about 300,” says Yuko Kitta, Accenture project manager. “If we developed them all, it would impede our progress. After several days of discussions, we aggregated the add-ons to about 130 of the most essential ones.”

As a result of the implementation, the improved profit and loss management view has helped enable Mizuno leadership make strategic decisions regarding which product categories need more focus and investment at a global level. Additionally, the business processes that previously varied by business unit are now streamlined across the company and thus reinforced internal controls.

“Figures that were invisible until the settlement of accounts have now become visible whenever we want to view them,” says Mr. Matsui. “I also think we have more freedom in the implementation of structural reform,” he says. With a robust but flexible business infrastructure, the company intends to further accelerate and expand its global businesses.

Accenture and JD Edwards EnterpriseOne

As a technology and outsourcing firm with more than 20 years of experience, Accenture offers a spectrum of services for Oracle’s JD Edwards EnterpriseOne customers consisting of implementation services, application maintenance and support, enhancements, upgrades, and development. By working with Accenture to manage their JD Edwards EnterpriseOne system, customers may achieve better quality, higher levels of availability, and more reliable delivery. More efficient results and significant cost savings are some of the primary business drivers for these services.

About Accenture

Accenture is a global management consulting, technology services, and outsourcing company, with approximately 289,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments.

This advertorial was originally published in the JD Edwards 2014 Special edition of Profit.

Accenture and Oracle

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For more information, please visit www.accenture.com/oracle

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