Foschinidata

Foschinidata is responsible for the group’s information and communication technology (ICT) function with an objective of adding value to the group by providing strategic and cost-effective ICT solutions, whilst improving operational efficiencies and supporting future growth strategies through providing relevant, timeous user-defined information.

Using a combination of fully-integrated third-party solutions and in-house developed software, Foschinidata (in conjunction with its outsource partners) is well structured to deliver ICT solutions to the group. Achievements during the period under review bear testimony to the capacity of the group to deliver large, technically challenging projects, utilising leading-edge technologies and architecture on time and within budget.

2007 was again a rewarding year for the ICT division, with the following key advances being made:

• replacement of our legacy financial system with SAP financials;
  
• completion of our infrastructure upgrade, with the adoption of the latest Microsoft applications and operating systems, as well as the Microsoft Operations framework, in order to standardise on technology platforms and enhance our IT security controls;
  
• implementation of a New Accounts Application system in our FG financial services division;
  
• implementation of the JDA merchandise planning system, called Arthur AIM, in our Foschini stores division. All trading divisions have now been converted on to one standard version per division, of Arthur AIM, thus simplifying application support;
  
• implementation of a new callcentre “knowledge base” system called ITSM, for the IT division;
  
• continued progress on the delivery of an electronic time and attendance system for the group stores and distribution centres;
  
• development and implementation of various credit-related systems and changes, in order to be compliant with the requirements of the National Credit Act (NCA);
  
• implementation of a JDA Product Size Scaling system, in our Markham division, in order to improve on the product size allocation to our stores. This system will be rolled out to our remaining trading divisions during the 2008 financial year; and
  
• development and implementation of an Electronic Style Card system for our Exact! division which will also be rolled out to our remaining trading divisions during the 2008 financial year.
  

Taking cognisance of the strategic importance of effective information and communication technology in retail, the group’s investment for the period under review was again substantial, with capital expenditure of R67 million and operating expenses of R163 million, representing a constant 2,3% of sales. Despite the numerous planned initiatives for 2008, both capital and operational expenditure will broadly be in line with the previous year.

The group’s reliance on IT for its day-to-day operations means that IT security, risk management and governance are key focus areas for Foschinidata. Foschinidata meets this business requirement by adopting best-practice methodologies for system delivery and support via the ITIL service delivery framework and the Cobit model for IT governance. Our disaster recovery plans are updated and tested on a regular basis and we also ensure the implementation and upgrading of intrusion prevention and IT security tools on our networks and devices.

With a clearly-defined ICT strategy in place, aligned with the group’s vision and business requirements, our key initiatives for 2008 centre on:

• successful replacement of our legacy Sales Audit system with the windows Biztalk system;
  
• continued progress and piloting of the electronic Time and Attendance system in our stores;
• possible further changes to various credit systems to meet NCA compliance;
  
• development of systems for new credit products;
  
• commencement with the development of an integrated electronic funds transfer (EFT) system with our Point-of-sale (POS) system at store level;
  
• the rollout of the JDA Size Scaling system to the retail divisions; and
  
• the rollout of the Electronic Style Card system to the retail divisions.
  

There will also be a continuing focus on keeping up to date with and aligning new projects to support supply chain initiatives.