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Lego Case Study

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Lego Case Study
Lego: Embracing Change
Team Delta
James - Rachel - Dien - Rosy

375,000 bricks
3,591 meters tall!!!

Lego is awesome
- On average, every person on earth owns
94 Lego bricks
- Sold in 130 countries (195 total)
- 55,000,000,000 parts produced in 2013
- 90 retail stores

History
- 1934 Ole Kirk Christiansen; Billund,
Denmark ”Only the best is good enough”
- 1949 first building sets
- 1958 blocks as we know today
- 1974 first mini-figure
- 1998 robotic sets

Rough Times - early 2000’s
• Tough competition from imitators & electronic toys
• Production outsourcing globally P business suite
- Supply chain monitoring and analysis
- Forecasting, planning and inventory optimization

SCM
PLM
ERP-HCM

- Enable managers to optimize product development processes and system

Include Human Capital Management application for personnel administration and development
“SAP software offered the best combination of standardized processes, yet with the ability to respond flexibly to the changing demands of the toy industry”
Esben Viskum, Senior Director , LEGO Service Center

SAP’s Three Tier System

Business Intelligence in SAP

Flexible Distributed
Architectures
- Direct access to the database system
- Easily obtainable reports

Advantages
1. Direct Access
2. Simple
3. Centralized
4. Single Consistent Source
5. Easy Sharing
6. Minimizes Redundant & Inconsistent Files
7. Performance Measurement

Disadvantages
1. Inaccurate Data = Serious Repercussions
2. Requires Many Resources
3. Single Point of Failure

Lego is back on top
- Revenues up 400% over past 10 years - 9 years of consecutive sales & profit growth
- 2014 profit up 10% over 2013
- 2014 became the worlds top toymaker (just surpassed
Mattel / Barbie

For Lego, Everything is Awesome!
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