Consolidating IT for a Global Business
"I look forward to the future in the knowledge that whatever NAAFI may face we have a key strategic partner that has proven to deliver."
NAAFI is the official trading organisation of HM Forces, providing retail and leisure services to the services. NAFFI operates over 200 outlets around the world providing convenience and a 'taste of home' to British Forces overseas. As well as traditional retail, catering and leisure offer, NAAFI also provides outlets in areas that are not commercially advantagous so home essentials and services that would otherwise not be available can be delivered.
The Business NeedIn 2012 NAAFI had a strategic review of its operations which revealed that with the changing requirements of the British armed forces NAAFI´s turnover would be reduced by one third, the number of facilities would be reduced from 390 to 190 and the number of employees would be more than halved. The review also found that its Information technology infrastructure was outdated and inefficient. Three key problems were revealed:
- Duplication: Drove inefficiencies and increased cost, distracted from the core business objectives
- Customized and out-dated versions of ERP systems that had a high maintenance cost and probability of a database failure.
- In-house support which was increasingly difficult to provide and was high cost
- Application consolidation based on standard software solutions
- Hosted applications and infrastructure
- Low cost open data communications
- Support from a technology partner
- 6 phases
- 1 year
- £1.1m budget
- Remove threats, including an outdated ERP database
- Simplify the IT estate and make scalable
- Simplify operating procedures
- Reduce annual IT costs and make variable
- Deliver the project on time and on budget
- Minimise disruption to operating service
- Build a strong partnership with the technology partner
- All deliverables must support scalability, standardisation and simplification
The SolutionAfter considering a host of options on how to take information technology forward NAAFI turned to the Nordic IT company Advania which had been one of many IT suppliers in the past. Advania provides NAAFI with an end-to-end solution.
- Hosting: NAAFI hosts all of its IT systems in Advania´s dedicated state of the art data centre
- Consolidation: Advania consolidated and simplified the current IT systems used by NAAFI in a variety of locations around the globe.
- Optimization: Advania assisted NAAFI in optimizing business processes.
User and Technical Support
- Annual IT operating costs were reduced from £3.5m to £1.5m
- Internal IT team was reduced from 15 to 2
- Payback in less than a year
- All cost elements scalable
- 60% cost reduction in Finance team
- Global thinking & a simple business model