BPM Initiative

Fossil Group Inc. is a global company that has not only created itself a reputation for creating
distinct wearable accessories but also for providing a distinct consumer experience. Fossil
Groups identified that the retail environment is drastically changing with rising consumer
expectations for a more engaging shopping experience. This led the company to initiate a new
online sales process, incorporating digitalization and data analytics (Fossil Group Inc. | IBM,
2018).

Fossil Group has implemented various pillars of digital strategy. One of the strategies was to
migrate its e-commerce to cloud based platforms increasing efficiency and the ability to innovate
faster. Secondly Fossil Groups Inc. collaborated with third party e-commerce market such as
Amazon and Flipkart which resulted in a dramatic surge of sales. Sales in China increased by
55%, due to online expansion in third-party market places. Thirdly Fossil Group Inc. is
committed to applying advanced digital marketing and analytics to provide exceptional customer
service. The company has created a robust e-commerce platform with features like buy online,
pick up in-store and ship from store features. The platform offers engaging and interactive
features like in- store shopping appointment through Chabot, Video shopping appointment, Shop
at home appointment and catalogue buying (Wadhwani, 2021).

BPM Model (online ordering process)

Fossil Group Inc. realized that their customers would not find any difference in the shopping
experience if they order a same product from Fossil Group e- commerce store or any other
website. This meant that the company was missing on significant potential sales opportunities. In
order to capture a loyal customer base Focus Group Inc. initiated a new online sales process.

As part of the new online ordering process the Fossil group e- commerce store offers various
options to the consumers for placing an order. When the consumers land on the website they are
given the option to catalogue buying where they can browse through the various product in any
of the fossil groups retail store and once they have selected a product they can directly make a
purchase through Whatsapp and pay online. The product will be delivered to their home address.
The consumer are also given an option of same day delivery where the consumer can shop online
with the assistance of a representative present on video and audio call and the product will be
delivered to them on the same day.

The website also allows the consumers to book an in-store or virtual shopping appointment via
Chatbot. The website also helps consumer to shop at home where they can select product from
the catalogue and the sales representative will arrive at the give address with the selected options
(Fossil , 2022).

Figure 1 Ordering process model

Value Chain, business process and process architecture relating to customer experience
Fossil Group Inc.’s value chain activities have improved the efficiency and customer experience
of the brand.

 Product Research and development

The product designs of Fossil Group Inc. are driven by consumer insights, fashion trends,
creativity and innovation. The company has developed a talented in- house designing team and a
well-qualified in-house research and development team collaborating together to create the
accessories of future.

 Marketing and Promotion

Fossil Groups is committed to be present at all channels where the consumers are present. In
order to create an Omni channel retail store, The Company has developed an in house digital
marketing and analytics center. This enables the company to communicate and engage
consumers across all online platforms seamlessly and manage customer relationships through its
customer understanding and predictive analytics capabilities. Fossil groups Inc. implements
artificial intelligence to target and personalize marketing content and strategies.

 Customer service

The e- commerce, IT and logistics teams of Fossil Group collaborate to provide and exceptional
customer experience to consumers. The implementation of augmented reality enables the
consumers to virtually try on watches using their mobile cameras or have a one on one audio or
video interaction with a sales associate with the help of the chat bot.

 Distribution

Fossil group owns an extensive distribution network that allows them to reach a global
audience. The company’s sales its products through multiple channels, all integrated
seamlessly.

Retail stores

Fossil Group sales it products in 150 countries across the globe through 23 company
owned subsidiaries and 70 independent distributor network. The company owned 450
retail outlets all over the world in 2018. In many markets, the products are also sold
through franchised Fossil retail stores and kiosks along with company owned retail
stores. The company also offers its products for consumers on airlines and cruise ships.
Value
Chain Product Research & Marketing & Customer
Distribution
Development Promotion Service
Activity

Activities Product designs In- digital Strong distribution Integration of

important inspired by marketing center to system with 23 augment reality
for consumer communicate and subsidiaries and 70 and artificial
competitive insights and engage consumers independent intelligence to
strategy fashion trends on all online distributor network provde exceptional
platforms customer
experience
Supporting Qualified team Technology Training and Training and
activities members development of development of
employees employees and
Technology

Brands of Fossil group

Fossil group has developed a diverse portfolio of owned and licensed brands. Some of the
biggest competitors of Fossil are its licensed brands. The portfolio holds many globally
renowned brands such as Michele, Skagen, Armani Exchange, Diesel, DKNY, Emporio Armani,
Kate Spade, Michael Kors, Puma, Relic, Tory Burch, Watch Station and Zodiac (Brands|Fossil
Group, 2022).

The table summarizes the profiles of the some of the bigger brands of Fossil:

Michele The company was found in 1995 as a brand

designing and selling watches for children. The
popularity of the designs and products led the
company to expand their offering. The
company has buil itself a reputable global
brand selling highly customizable luxurious
watches
Skagen Skagen Denmark initiated as watch brand but
now has expanded in to contemporary
accessories. The product line of Skagen
includes watches, handbags, jewelries etc.
Similar to its parent company , Fossil, Skagen
targets the mid and upper income range
consumers.
Armani Exchange Armani Exchange was launched in 1991 and
retails fashion and lifestyle products. It is one
of most affordable and accessible brand of
Armani. The products and designs are inspired
by fast- fashion, street style and chic culture
targeting the younger consumers.
Diesel Diesel is an Italian brand retailing lifestyle
products including apparel and accessories.
The brand is pioneer in introducing denim in to
casual wear The brand produces about 3000
new products everyday fueled by creativity and
innovation.

Fossil Group is likely to share information about consumer insights, fashion trends, Product
designs, and technology with the brands the company serves. With the initiation of
manufacturing products for other brands, the information Fossil manages and stores expanded
and became unmanageable, that is when the company invested in a company wide information
system SAP specifically designed for wholesale companies.
Challenges faced by Fossil Group in developing IS
In the ever increasing competitive market, companies are relying more and more on their
information systems to achieve efficiency and effectiveness. However in a world where
organizations are competing on developing technology and rapid digitalization, companies face
many challenges in developing and managing information system. Some of the challenges that
many companies including fossil group is facing is designing systems that are competitive and
efficient enough to adapt to the rapidly changing environment, creating an information system
that aligns with the goals and strategies of the company, implementing operational and
managerial changes in the organization with the development of IS and designing systems that
can determine the business value of information systems. Another key challenge that the fossil
groups faces is despite strong security measures, the information system of Fossil and their third-
party services are vulnerable to theft, security breaches, hacking attempts that can damage the
reputation of the company. Information system development also has a high risk of resulting in a
failure. Additionally Information system raises new ethical and social issues. These issues are
mainly raised around information rights, privacy, property rights, accountability and control. It is
a challenge for organizations to develop information systems that people can easily learn, control
and use in an ethical, legal, social, and responsible manner.

Managing and developing IS

Developing a management system is often required when the old information system cannot
cater to the emerging problems or is not competitive enough. Developing an information system
involves five components hardware, software, data, procedures and people. Therefore the
development of the information system will not only include onboarding technological experts
and specialists but management and human resource specialists as well. The development team
will include system analysts and designers, Information technology technicians, Hardware
technicians, project coordinator and administrator.

The first step will include the system survey which involves

1. system identification- Identifying the system the company is operating on and the
problems being faced by the company
 2. Selection- ensuring that the solution is created to align with strategy and meet the
company’s expected goals
3. System planning – selecting the information system development concept and mapping
out a plan for working

The next step will include need analysis where the information system in the development is
analyzed for targeting the needs of business users, business processes, business policies, business
tools and future plans.

The next step involves designing a complete blueprint for the IT team that serves as a guideline
for developing applications and programs supporting the information system.

Once the information system is designed, it is essential to implement the designed system and
tested at expected on benchmarks of performance, efficiency output etc. at this stage
development of supporting accessories like hardware and related facilities would be required.

In order to ensure the continuity of the IS, it is important to manage and monitor the system for
bugs, improvements and risks. Overtime the users can find errors and new issues which make the
maintenance for reciprocal fixes necessary. Managing the alignment of the system with the
strategy of the organization is an ongoing process for the company. As the company grows
through new acquisitions and mergers, the new information system should evolve as well to
align with changes in the organization.

Bibliography
Brands|Fossil Group. (2022). Brands. Retrieved January 27, 2022, from Fossil Group:
https://www.fossil.com/en-in/

Fossil . (2022). Virtual Personal Shopping Is Here. Retrieved January 27, 2022, from Fossil:
https://www.fossil.com/en-in/virtual-shopping-experience/

Fossil Group Inc. | IBM. (2018). Fossil Group Inc. | IBM. Retrieved January 27, 2022, from IBM:
https://www.ibm.com/case-studies/fossil-oms-omni-channel

Wadhwani, D. (2021, July 22). Fossil Focuses on Digital Transformation Spending for Business Growth.
Retrieved January 27, 2022, from PROS: https://www.internetsearchinc.com/fossil-focuses-on-
digital-transformation-spending-for-business-growth/#:~:text=Digital%20Growth%20Strategy,-
Fossil%20has%20formulated&text=The%20first%20is%20the%20almost,value%20has%20also
%20increased%20significantly.