The Otto Group has been in the retail industry for many years, and has grown with the times. As online retailers continue to expand, the company has had to restructure itself to keep up with the changes. In this article, you will learn about some of the challenges the company has faced and how it is addressing these issues. You will also learn about its latest innovations, such as the introduction of a new ERP platform.
Reorganisation
Otto Group is a German retail and service provider with a presence in 30 countries in North America, Europe and Asia. It is one of the world's largest online business-to-consumer retail groups. As one of the most digitised companies in the retail industry, Otto has rolled out its digital innovations in various fields.
The e-commerce sector remains one of the most important growth drivers for the Otto Group. In the current 2021/22 financial year, the e-commerce revenues of the group are expected to reach almost 11 billion euros. This is nearly a third more than in the previous year.
Otto Group is implementing several initiatives to support its commitment to environmental and corporate responsibility. It will also invest heavily in technology. At the same time, the company will focus on establishing new sales channels.
Digital transformation involves various levels of the organisation, including processes, technological infrastructure and employee engagement. Tobias Kruger, a Division Manager at the Otto Group, recently explained how the company is undergoing an innovative cultural change. He said the most effective way to initiate such a change is to listen to employees' needs.
Growth in online retail
Otto Group is one of the largest online retail companies in the world, with over 20,000 online employees and a sales volume of over EUR 11bn. A key focus for the company has been e-commerce, which is a key driver of growth for the company.
The company recently announced a series of impressive e-commerce figures. These included a record global e-commerce revenue of nearly eight billion euros. In addition, the group expects to close out the year with online sales of almost ten billion euros.
However, the company hasn't yet predicted the exact same growth in the future. As a result, the company plans to invest three-digit million euros in a number of e-commerce related activities in the coming financial year.
On top of that, the Otto Group will also establish new sales channels. This includes the development of social commerce and live shopping formats. It also expects to see a growth in the technology range.
SAP migration
Otto Group is one of the largest online retailers in the world. The company's portfolio includes 123 companies in 30 countries. It has a total of nearly 10 billion euros in ecommerce revenues.
Otto Group's activities are broken down into three segments. These are Retail, Multichannel Retail, and Financial Services. Using Google Cloud, the group has migrated nine mission-critical SAP systems.
Otto Group uses its SAP for business intelligence, inventory management, and payroll. In order to migrate to a modernized database, the company needed to find a cloud provider that could offer certified SAP HANA VMs. Fortunately, Google Cloud offered a data center in the Netherlands, which was ideal for the company.
Otto Group is currently on track to migrate its SAP systems to Google Cloud in 18 months. Thanks to the Google Cloud team's proactive support, the project has gone smoothly. During the migration process, the company had to request support for changes to operational processes.
Business intelligence
Otto Group is one of the world's largest online retailers, with sales of nearly 10 billion euros. It has operations in more than 30 countries, and is focused on creating a scalable, high-speed organization. One of its core elements is business intelligence, which uses data to help optimize the company's decision-making processes.
Otto's Business Intelligence unit has a staff of about 250 people. Data scientists are responsible for collecting, analyzing, and interpreting data. They need to be familiar with a wide variety of sources, including external data sources and Otto's own. These data scientists need to be agile and able to work closely with other departments.
Otto's BI department is driven by a group of visionary data scientists. Their aim is to help the company make better business decisions, and automate processes.
The OTTO Business Intelligence team develops statistc algorithms that are used to automate business decisions. It also develops and deploys artificial intelligence, which can make decisions faster than humans.