Jewellery giant Pandora is planning to save almost £25m from the largest IT overhaul in its history and will funnel the cash into supporting front-end activities such as marketing, store design and online sales instead.
The company took the first step in what it is a describing as a “major transformation” of its global IT setup by announcing a cloud solution agreement with Accenture this week.
The tie-up will see Pandora move its data, IT infrastructure and applications from its current data centres to the cloud. The new set-up is more easily scalable and significantly cheaper to run.
Over the coming 12 months, Pandora also intends to consolidate more than 60 IT vendors into just a handful of global partners. The new setup will cover all aspects of the company’s digital needs from store support to application development.
Bosses as the Danish-headquartered firm expect to complete the project during the second half and reduce its annual IT costs by at least DKK200m (£23.7m).
The savings will fund investments in strengthening Pandora’s brand through increased marketing spend, a new store design and a new online shopping experience among other things.
“Digitalisation is essential to increase our productivity and competitive advantages, and cloud computing is a technology that has developed tremendously over the last few years,” said Pandora’s CIO Peter Cabello Holmberg.
“Moving our data centres to the cloud will save money, while we maintain high quality service to the business. We can also avoid major hardware investments and improve our security.”
The overhaul is part of Programme NOW, Pandora’s brand relaunch and business transformation plan.
Programme NOW targets total annual cost reductions of DKK 1.2 billion (£142m) by the end of 2020.
Pandora jewellery is sold in more than 100 countries on six continents through more than 7,500 points of sale, including more than 2,700 concept stores.