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LIDL SAP

PROJECT
Project Overview:

The Lidl SAP project, also known as eLWIS, was a


transformative initiative embarked upon by Lidl, a leading
German discount supermarket chain. The project was a
collaboration with SAP, the renowned software
corporation, and aimed to overhaul Lidl’s legacy
merchandise management system, Wawi, with SAP’s
cutting-edge solution, “SAP for Retail, This move was
intended to bring Lidl’s inventory control system into the
modern era, leveraging the speed and analytics
capabilities of SAP.
OBJECTIVES &
GOALS
“The primary goal of the eLWIS project was to implement a unified,
company-wide system that would streamline operations across Lidl’s vast
network of stores”

To enhance the efficiency of inventory management.

To reduce the redundancy of data storage.

To improve the integration of various business processes.

To provide real-time data analytics for better decision-making.

To facilitate the expansion of Lidl’s business without the


hindrance of system capacity issues
Project constraint

Despite the project’s ambitious goals, it faced significant constraints. The scope of the
project was a major limitation, as Lidl was resistant to altering its business processes to
align with SAP’s standard practices. This resistance led to extensive customization of the
SAP system, which ultimately contributed to the project’s failure. The project’s schedule
and resources were also stretched thin by the prolonged and complex customization efforts.
Project financing/ availability of funds limit
the scope of the project?
The eLWIS project was a major financial undertaking for Lidl, with an estimated

expenditure of EUR 500 million. While the availability of funds was substantial, it did not

limit the project’s scope. Instead, the project’s direction and management decisions,

particularly regarding the extent of system customization, were the limiting factors.
STAKEHOLDERS?

THE PROJECT
TEAM FACED
THE
SIGNIFICANT
STAKEHOLDER
CHALLENGES IN
GROUP FOR THE
MANAGING
ELWIS PROJECT
THESE
WAS DIVERSE
STAKEHOLDERS,
AND INCLUDED
PARTICULARLY
LIDL’S
IN THE WAKE OF
MANAGEMENT,
THE PROJECT’S
SAP, STAFF
FAILURE, WHICH
MEMBERS,
DAMAGED
CONSULTANTS,
LIDL’S
AND
REPUTATION
ULTIMATELY,
AND RESULTED
THE
IN A
CUSTOMERS.
SUBSTANTIAL
FINANCIAL LOSS.
Known risks at start of the project? What if anything did
the project team do to mitigate the risks?

From the outset, the project The project team attempted to


was fraught with risks, mitigate these risks through
primarily due to the complexity customization, but this
of customizing the SAP system approach only increased the
to fit Lidl’s unique business complexity and contributed to
processes. the project’s downfall.
Problems encountered during the project.
What went wrong?
Misalignment Inventory
Customizatio Resistance to
of Business Management
n Complexity Change
Processes Issues

Project Requirements Stakeholder Financial


Duration Gap Management Overrun

Reversion to
Reputational
Legacy
Damage
System
The project team have done differently to
improve the chances for a successful project?
Embrace Embrace Standardization

Engage in Engage in Business Process Reengineering

Prioritize Prioritize Change Management

Implement Implement Incremental Changes

Strengthen Strengthen Project Governance

Improve Improve Stakeholder Engagement

Conduct Conduct Thorough Risk Assessment:

Invest in Invest in Training and Support.

Set Set Realistic Timelines and Budgets

Learn Learn from Pilot Testing


THANK
YOU
BY,
Ruchitha Nandikonda
Vedavyas Muddati
Nagaraj
Sai Mahesh Battula

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