Luxury and technology: a crossroads for innovation
At Louis Vuitton Moët Hennessy (LVMH), we are operating at the crossroads of history, art and technology. We have very traditional brands focused on great design, but we also need the latest technology to make the most of how we do business. This requires a delicate balance.
is absolutely vital to LVMH. Since 2010, we have concentrated strongly on the
trends of digital transformation and mobility,
making sure that we can provide our customers and staff with the best results
through IT, in order to support our traditional brands.
group has more than 65 different brands, and our Watches and Jewellery division,
with seven brands, is highly active in using the latest technology. The start
of our transformation came about as we reached the end of a key project
to implement our enterprise resource planning system, because this
enabled us to move onto other strategic initiatives.
Embedding a quality customer experience
helps us to show customers the products we can offer them. Some of the
jewellery we stock in our retail stores is very expensive to keep. This can
mean that we are unlikely to have exactly the right size, weight, colour and
cut of a diamond, fitted on the right ring, that a customer might be looking
Chaumet, we have developed a system, called Set On Demand, tied into our
off-the-shelf enterprise resource planning technology. It enables us to show
the customer what we have in stock, and what products might look like in their
budget and their preferred design and proportions. The system can also
automatically log the order, and send it to our workshops to provide the
finished product within two to three weeks.
The design movement
is also vital in transforming how we produce our luxury items. For our Zenith
and TAG Heuer watch ranges, we have a digital simulation system that enables us
to effectively test the watch before production.
the customised system, we can make sure the mechanical movement can cope
correctly with all events, including the expected environments it will operate
in, and special occurrences like February 29 in any leap year. Additionally, we
can simulate exactly what the design of the watch movement will sound like. The
design system is also linked directly into our enterprise resource planning,
enabling us to quickly produce the final outcome.
Mobilising change for staff
key part of our digital transformation has been around mobility, and enabling
staff to carry out their work wherever they are. Our
sales force can now use our customer relationship management system to directly
check stock, as well as the presentation of our items, among our retail
have customised our CRM system so that sales staff can easily log the quality
of our stock presentation, recording simple marks around key performance
indicators such as whether we are near the front of the store, if we are
located next to high-quality or lower quality brands, and how well we are
presented. We can also easily bring out information about what was supplied in
the past and track what has been sold.
CRM system also enables us to watch our after sales channel, which is very
important to us. We can see the level of quality of the products being
returned, as well as get a sense of scale of counterfeit or stolen products
appearing in these locations.
The crossroads of tradition and modernity
some people, there could be a clash between the very latest technology and ways
of doing things, and the very traditional and artistic elements of our
design and presentation. We understand that IT is there to support our design,
retail and overall operations, and that some of the younger customers and
designers might be more likely to use the latest technology. There is a big
shift taking place and we are keen to work with these opportunities where they
business will continue to transform as a whole, as the concept of apps,
originated in mobility, permeates the business. We have plenty of interesting
ideas around offering apps within the business, to allow departments to choose
particular systems. The role of the CIO in all industries is changing to become
an enabler, and if it continues to mean the role supports the very best design
and operations, then this is a fantastic trend.