in collaboration with LVMH

LVMH Harmonizes Process and IT for Cognac and Champagne Houses

Capgemini helps LVMH foster collaboration between several competitive business units within the same group by designing and implementing processes to allow them to work in unison

The Situation replenishment for subsidiaries and The Wine & Spirits unit of LVMH, a wholesalers), Production and Quality world leader in luxury, includes five Management, Maintenance, Houses of Champagne and Cognac, Purchasing, Finance and Reporting, responsible for some of the world's Traceability and Product Lifecycle most famous brands: Dom Pérignon, Management. MH called on Moët & Chandon, Veuve Clicquot Capgemini’s proven expertise to help: Ponsardin, Hennessy, Ruinart and Krug. Historically, the houses had • define and develop the business been fiercely competitive. Now that core model using SAP and Cognos they were all under the LVMH Group software umbrella, the parent company needed • define the business process to find a way to make them work in a • implement the SAP and Cognos harmonized way with their clients. solutions • facilitate change management. The Solution In 2004 the Moët Hennessy (MH) The Result division launched a large project Aided by the timely launch of the named Chorus, whose objectives— Chorus project, core model processes underpinned by harmonization, now cover 90% of the company’s simplification and innovation—were functionalities. Due to the high to improve the processes and IT level of knowledge transfer solutions of the five houses. Chorus’ involved, scope was immense and included: Supply Chain (planning linked to forecast and distribution

Chorus project“ has succeeded in passing through each House’s “resistance areas”. It has been difficult but we have definitively installed a cross- fertilization attitude between key players. For me, it’s the best illustration of a successful transformation project.” Florent Courau, Programme Director, LVMH Consumer Products, Retail and Distribution the way we do it

Capgemini instituted a graduated phase Change management also occurred on up the project. All the participants out of their involvement in less than a almost every level: Top management on- agreed that there was only one question month after the go live date, MH’s boarding, strong mobilization within the left unanswered: “How could the houses Business Process Owners and IS houses, organizational change, training, keep the dynamism created by the Department were running the processes and communication. Each house Chorus project going?” To make sure nearly on their own. The project has organized Chorus Days (les Rencontres that the collaboration fostered by the become an example within MH of how Chorus) involving 300 people from project would not be lost, BPOs have all the houses can work together and be different professions and departments, developed and maintained regular aligned internally without any of them sharing their views on the process and contacts with key users in the other losing their specific culture and identity. progress of the project. The initiative houses and continue to meet months was considered to be a huge success by after the official go live date to resolve How LVMH and Capgemini top management, key users and trade both Chorus and non-Chorus issues. Worked Together unions. MH recognized the need to harmonize Due to its large scope, the Chorus business processes among their five The project was initiated in April 2004. project has impacted almost every Champagne and Cognac Houses. The The pilot rollout took place in January division of each of the houses and has five had been competitors for centuries 2006 and the final rollout in July 2006. changed the way business leaders work and even after becoming part of the A final ASE seminar was held to wrap together. LVMH Group, cooperation on process alignment had been difficult and slow. Starting right away in the proposal About Capgemini and the phase, Capgemini worked with MH to identify key players and decide on the Collaborative Business Experience best mix of capabilities to ensure the long term success of the project. Some Capgemini, one of world-leading technology partners and teams had to be reinforced, others the world’s foremost collaboration-focused methods and tools. decreased, and occasional coaching was providers of Consulting, Technology Through commitment to mutual success necessary. A transparent review process and Outsourcing services, has a unique and the achievement of tangible value, was held every three months to share way of working with its clients, called we help businesses implement growth benefits and concerns about each team, the Collaborative Business Experience. strategies, leverage technology, and thrive and adjust the common MH and Backed by over three decades of industry through the power of collaboration. Capgemini resource plan. and service experience, the Collaborative Capgemini employs approximately 68,000 Business Experience is designed to people worldwide and reported 2006 help our clients achieve better, faster, global revenues of 7,7 billion euros. The key people involved were invited to more sustainable results through More information about our services, an initial Accelerated Solutions seamless access to our network of offices and research is available at Environment (ASE) seminar. The www.capgemini.com seminar succeeded in identifying critical business issues and the decisions that Approved by: would have to be taken to solve them, Capgemini France Manufacturing, Retail and Distribution defining and solidifying the role of the Florent Courau, Programme Director, LVMH Consulting Services Business Process Owners (BPOs) in the Denis Bonnecarrere, CIO, Moët Hennessy Transformation Consulting project and aligning the project with the Olivier Siegler, Vice-President, Capgemini vision and governance of top Consulting management.

In collaboration with Hennessy, Ruinart and Krug. LVMH is a Setting up a project governance world leader in luxury. The group’s arrangement created and fostered total 2005 revenues were 14 billion harmonization among the five houses. A LVMH euros. LVMH has 59,000 employees BPO was named for each process of the worldwide and an international retail scope and given the responsibility for network of more than 1,700 stores, the design of the core business model. The Wine & Spirits unit of LVMH with a unique portfolio of some 50 The BPOs were also required to validate includes five Houses of Champagne prestigious brands. the solution not only for their individual and Cognac, all of them world famous processes but for all the houses as well. brands: Dom Pérignon, Moët & For more information about LVMH, Working with a network of key users Chandon, Veuve Clicquot Ponsardin, please visit http://www.lvmh.com/ from all the houses, the BPOs created the Chorus business community. Copyright ©2007 Capgemini. No part of this document may be modified, deleted or

expanded by any process or means without prior written permission from Capgemini. MRD 20070301 087