• 21 Oct 2024

Business Efficiency Driven by Oracle HCM Cloud: A Case Study on American Eagle Outfitters

American Eagle Outfitters (AEO), a leading global apparel and accessories retailer, has maintained consistent growth by leveraging innovative technology solutions. In the second quarter of 2018, AEO's gross profit surged by 20%, reaching $353 million—an increase from $294 million the previous year. This growth is partly attributed to AEO’s investment in cloud-based human capital management (HCM) solutions through Oracle HCM, which has enhanced operational efficiency, global management, and employee productivity.

Here’s a closer look at how Oracle HCM has driven AEO’s success:

1. Improved Functionality and Flexibility through Oracle HCM Cloud

Oracle HCM’s cloud-based infrastructure has revolutionized AEO’s workforce management. The flexibility of cloud technology allows both employees and managers to access the system remotely, breaking free from the constraints of on-site servers and devices. This has significantly reduced the time and resources spent on maintaining physical infrastructure. For example, AEO no longer needs to allocate IT resources to monitor or repair on-site hardware, allowing the company to focus on customer-facing projects.

Beyond flexibility, Oracle HCM has streamlined time management and interdepartmental communication. Oracle HCM’s mobile capabilities enable real-time communication and provide a centralized platform for employees to manage their work schedules and benefits, resulting in improved employee engagement and productivity.

2. Advanced Analytics to Measure Business Success

Oracle HCM equips AEO with advanced analytics tools that enable data-driven decision-making. Using Oracle Fusion HCM’s integrated reporting capabilities, AEO can generate detailed, interactive reports that draw data from multiple sources. This helps the company assess its workforce performance, identify skill gaps, and allocate resources effectively. The ability to measure key performance indicators in real-time has allowed AEO to continuously optimize operations and meet its strategic business goals.

For example, by analyzing employee data, AEO identified areas where additional training was needed, helping to fill skill gaps and boost workforce productivity.

3. Global Capabilities for a Global Enterprise

Managing operations across multiple regions presents significant challenges for global retailers like AEO. Oracle HCM offers multi-language and multi-currency support, enabling AEO to manage over 200 locations in more than 25 languages. This global capability has allowed AEO to expand its omni-channel presence, leading to an increase in international online traffic.

Oracle HCM’s centralized platform also helps AEO maintain consistent HR policies and procedures across various regions, ensuring compliance with local regulations while facilitating seamless operations.

4. Continuous Updates and Compliance with Oracle HCM

Oracle HCM’s continuous updates ensure that AEO remains compliant with the latest local, federal, and international laws. For instance, Oracle’s BI Tool Migration simplifies the process of integrating new features and making internal adjustments, allowing AEO to focus on business growth rather than regulatory challenges.

One of Oracle HCM’s standout features is its configurable architecture, which allows AEO to easily implement internal changes and scale its operations without disruption. This flexibility has been crucial in adapting to the changing retail landscape.

Conclusion

Businesses looking to replicate AEO's success should consider investing in cloud-based HCM solutions tailored to their operational needs. DataTerrain enabled the customer to improve decision-making and manage its business effectively by facilitating the timely generation of required reports. After resolving performance issues and bottlenecks, the customer can now fully leverage its investments in HCM reporting. For more insights on how Oracle HCM can help your business navigate global expansion and drive success, contact DataTerrain’s team of BI experts.