Gap Inc. Retail Platform Upgrade v14

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Agenda

Company Overview Connie Santilli

Upgrade

Business Perspective Paul Lamoureux

Technical Perspective Rick Whicker

Q & A

2

Company History 1969 Don and Doris Fisher open the 1st Gap store on Ocean Ave, SF

The Gap was a reference to the generation gap - Average cost of a pair of jeans $7

3

Company History

1973 “Fall Into the Gap” Iconic Jingle Commercial

1976 Public offering of 1.2 M shares of stock

4

Company History

Gap 2015

5

Company History 1983 Banana Republic is acquired - Safari Clothing Store and Catalog business

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Company History 1994 Old Navy is born, 1st store opens in Colma, CA - named after a bar in Paris

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Company History 1997 Gap goes digital with Online shopping

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Company History 2008 Athleta is acquired - Niche Women’s Sport Apparel Online & Catalog

9

Company History 2012 Intermix is acquired - 32 Trendy Boutiques in North America

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Geographic Footprint

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North America Instance US - BR, Gap, ON, Outlet, Direct, Athleta Canada - BR, Gap, ON, Outlet, Direct Mexico – Old Navy Japan - BR, Gap

Europe Instance UK - BR, Gap, Outlet, Direct FR - BR, Gap, Direct IT- BR, Gap IE - Gap Franchises - BR, Gap

Asia Instance China - Gap, Outlet, Old Navy, Direct (3rd Party) Hong Kong – Gap Taiwan - Gap Japan - Old Navy Franchise - BR, Gap, ON

Do Business > 90 countries worldwide

3,300 company-operated stores

400 + franchise stores

Retail Challenge

12

Currency and Oracle Support is at or near end-of-life:

• 2 - 4 versions behind, completely non-supported by 2017 • North America, v10 in 2005 go live • Europe, v12 in 2008 go-live • Asia, v12 in 2010 go-live

• No upgrade path - All Oracle updates/patch fixes require retrofitting

• Business processes available in newer versions required developing custom code • Performance and reliability is problematic as volume increase & capabilities added

Appl 2002 2003 2004 200

5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

RMS / ReSA

10.1 10.2/6

11.0 12.0

12.1/ 13.0

13.1 13.2 14.0 14.1 14.2

SIM 10.3 10.4/ 11.0

11.1 12.0 13.0 13.1 13.2 14.0 14.1 14.2

RPM 10.1 11.0 12.0 13.0 13.1 13.2 14.0 14.1 14.2

NA Version

EU, Asia Version

Agenda

Company Overview Connie Santilli

Upgrade

Business Perspective Paul Lamoureux

Technical Perspective Rick Whicker

Q & A

13

Project Overview

Key Objectives

• Platform simplification, reduction of support and project costs - improves ROI

• Risk mitigation: Getting applications back on vendor support

• Support of strategic company initiatives: Growth, Omni-channel, Supply Chain

• Support of a modernized global platform

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2014 2015 2016 2017 2018

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Pro

ject

Ph

ase

s

Asia- Complete

Europe- In Progress

Japan

North America

Project Timeline

Project Scope

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Financial Planning

• Integration

Assortment

• Integration

Purchase Order

• Item & order create/update

• Integration

Pricing

• Price capability

• Re-define Zone Level Pricing

• Performance (batch, UI)

• Security

• In/Outbound Integration change

Allocations

• Stock-on-Hand

• Integration

Logistics

• PO publish

• Integration

Warehouses

• Integration

Franchisee

• Integration

• Franchise Locations

eComm (3PL)

• Sales regression

• Receive/Shipment regression

• Integration

Stores

• SIM capability

• Selective item Ranging

• New SIM client + java version

Reporting

• Data Model changes impact to reports (especially SIM)

• EDW integration

Financials

• Base Currency to USD

• Integration

Stock Ledger / Inventory Control

• Stock Counts

• Receipts / Adjustments

• Integration

Revenue

• Look & Feel

• Total definitions (alignment)

• Integration

• Credit Card Masking

Plan &

Buy

Move

Sell

Account

LOW NONE

MEDIUM HIGH

IMPACT

Project Benefits

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• Supported software versions

• Oracle software upgrade path

intact

• High Availability revamped

• Modernize Security/LDAP

• Platform has single integration to

externals

• Single code version worldwide

• Consolidated operational reporting

• Improved performance (1,000+

stores)

• Migrate to new data center

• Single code version worldwide

• Software maintenance

• Utilize base capabilities

• Brand entry into Markets or

Acquisitions

• 24*7 Availability to inventory

visibility

• Multi-Channel capability

• Increase language support Business Expansion

& Capability

Simplify & Scale

Currency (hardware/software)

Cost Reduction

Project Highlights

Challenges

• Business Sponsorship

• Technical / Currency upgrade in nature

• Project momentum due to multiple implementations

• Cut-over duration

• Minimize downtime to Stores, Website and Warehouse

• Ensure end-of-month processing/reporting completed

Successes

• Go-live date selection

• Early business awareness and agreement

• Early change management and monthly engagement

• Cut-over rehearsal

• Mock conversions for RMS, ReSA & RPM

• SIM pilot to practice in-store rollout to all devices

• Data cleansing effort done prior to final mock conversion

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Agenda

Company Overview Connie Santilli

Upgrade

Business Perspective Paul Lamoureux

Technical Perspective Rick Whicker

Q & A

18

Tech Highlights Challenges

• Migration Path

• Re-implementation vs. Upgrade

• Required writing a full conversion

• Security

• Connecting Oracle Identity with internal LDAP

• Encryption, Credit card masking, PCI, PII

• Performance Challenges

• Price Execution, Store Add, Item Creation, Stock Count,

SIM receiving

• Platform Architecture

• Java – Multiple applications require different Java versions

• Introduction of RAC - Lack of expertise and Delivery environments

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Architecture

20

DA

TA

BA

SE

TIE

R

AP

PL

ICA

TIO

N T

IER

NODE A NODE B

RMS RMS

RPM RPM

NODE A NODE BNODE A

CGI

NODE C

SIM SIM SIM

NODE A NODE B

RMS RMS

RPM RPM

NODE A NODE BNODE A

EGI

NODE C

SIM SIM SIM

NODE A

SIM 14.0.2

Oracle 11G

RDBMS

RIBSIM 14.0.2

Oracle 11G

RDBMS

RMS SIM 14.0.2

Oracle 11G

RDBMS

SIM

NODE B

INTERCONNECT

SIM 14.0.2

Oracle 11G

RDBMS

RIBSIM 14.0.2

Oracle 11G

RDBMS

RMS SIM 14.0.2

Oracle 11G

RDBMS

SIM

INTERCONNECT

Oracle Net Services Client Access

NEW

HARDWARE

NODE A NODE B

WBI WBI

WBI WBI

NODE A NODE B

Datastage Datastage

SIM 14.0.2

Oracle 11G

RDBMS

RIBSIM 14.0.2

Oracle 11G

RDBMS

RMS SIM 14.0.2

Oracle 11G

RDBMS

SIM

SIM 14.0.2

Oracle 11G

RDBMS

RIBSIM 14.0.2

Oracle 11G

RDBMS

RMS SIM 14.0.2

Oracle 11G

RDBMS

SIM

EXISTING

HARDWARE

RIB

RIB

Tech Highlights Successes

• Starts with the team

• Oracle delivered a base code that was very stable

• Post implementation stabilized faster than projections

• Eliminated 58% of customizations

• Significant gains in performance

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Questions ?