Oriflame enters partnership with IBM to support digital transformation within IT and financial services
Zurich, Switzerland. – 16 August 2016: Oriflame Holding AG (ORI:ST), a global cosmetics company with a highly online-driven business, has entered a long term partnership with IBM (NYSE: IBM) to outsource its IT and financial operational services. In order to support the continued digital business transformation of Oriflame in the IT and finance areas, IBM will bring new levels of customer focus, productivity and automation to its technology and internal processes. The seven-year contract, valued at €46 million, is expected to provide Oriflame with annual savings of approximately €3 million to be reinvested in Oriflame’s continued IT development. No extraordinary costs are expected.
Oriflame believes that IBM’s expertise in analytics, cognitive systems and cloud-based services is a good fit with Oriflame’s growth strategy. Over the life of the contract IBM will introduce cognitive tools, based on its proprietary technology Watson, for spend analytics, payment terms optimisation and cash forecasting to provide insights to allow reduced costs. Cloud-based enabling tools aim to improve consistency, accuracy and efficiency.
“For Oriflame, already being advanced in the online area, this partnership will be another leap forward in our digital business transformation. IBM’s innovation in cognitive analysis for IT and financial transactional services will provide us with valuable business insights. Oriflame will continue to manage the IT portfolio and develop its core systems,” said Gabriel Bennet, Chief Financial Officer, Oriflame.
“IBM looks forward to supporting the digital transformation of Oriflame’s business services with state-of-the-art services and tools, including how it delivers technology, finance and accounting services. We have implemented IBM Design Thinking techniques to help build solutions which deliver a better user experience. We’re very confident that this will bring a customer-oriented focus to the delivery of IT and financial services for Oriflame,” said Anita Karlsson-Dion, VP Client Services, IBM Global Business Process Services.
IBM was selected after a rigorous process evaluating cultural fit, global presence and size, scope and value of offering, as well as the ability to drive improvements to Oriflame’s business. The new partnership will cover the entire Oriflame group, beginning in September 2016 and fully implemented by the end of 2017.
For additional information, please contact:
|Nathalie Redmo, Investor Relations Manager, Oriflame||+41 799 220 173|
|Suzanne A. Cross, IBM External Relations||+1 617 693 1811|
Founded in 1967, Oriflame is a beauty company selling direct in more than 60 countries. Its wide portfolio of Swedish, nature-inspired, innovative beauty products is marketed through approximately 3 million independent Oriflame Consultants, generating annual sales of around €1.2 billion. Respect for people and nature underlies Oriflame’s operating principles and is reflected in its social and environmental policies. Oriflame supports numerous charities worldwide and is a Co-founder of the World Childhood Foundation. Oriflame is a Swiss company group listed on the Nasdaq Stockholm Exchange. For more information about Oriflame, please visit www.oriflame.com.