Electronic Arts, SA`s largest distributor of computer games, has become one of the most successful implementers of e-business in the country, driving 5% of its national sales through e-channels in the first four months since going live with its Web-enabled Sage CS/3 system.
Electronic Arts has been running on Sage`s CS/3, supplied by Comparex Tetra, since 1998, and has enjoyed the benefit of smoothly functioning systems.
In the last two years the business has undergone a number of dramatic changes, including outsourcing non-core functions and downsizing in the number of people, stemming from a concomitant requirement to change the business model as dramatically.
Part of the solution was to reduce the dependence on costly customer-facing representatives, and to permit its 70-plus independent dealers nationwide to interact directly with the company through its e-commerce site.
"The impact on our business has been significant," says Electronic Arts IT manager Ralph Spinks. "It`s allowed us to reach outlying resellers, grant them access to our core systems, running on CS/3, and to boost our sales while reducing our costs."
Electronic Arts distributes some 100 products, ranging across the PC, PlayStation 1 and 2 and Nintendo GameCube and GameBoy platforms. It is the local office of Nasdaq-listed Electronic Arts, the world`s leading developer and publisher of interactive entertainment software for these platforms and, soon, Microsoft`s Xbox, which is expected to be the biggest stimulus to the gaming market of all time. California-based Electronic Arts employs 3 600 people and reported 2001 revenues of $1.3 billion.
While Electronic Arts Europe committed to the Oracle Applications platform, the South African operation chose to deploy the more cost-effective CS/3, following the example of the Asia-Pacific office. It had formerly run on AccPac, but needed more functionality and financial reporting in line with group requirements. It opted for CS/3, supplied, installed and maintained by Comparex Tetra.
After running for the first two years on Sage`s embedded flatfile database, Electronic Arts chose to replace it with the Oracle relational database. The Web-enabled front-end connects dealers directly with the core CS/3 system and its supporting database. They can view marketing and new product information, gain access to stock quantities, check price lists, place orders and settle online through Standard Bank`s Virtual Vendor gateway. The system is also being integrated directly with the back-office systems of the larger dealers, such as CNA, Makro and Incredible Connection for seamless ordering and settlement. Here Electronic Arts is making use of the system`s ability to support electronic data interchange (EDI); it will make the change to industry-standard XML as and when required.
"We had the precedent of our New Zealand and Australian operations from which to learn," says Spinks. "We saw a six-month window of opportunity to gain real competitive advantage, and it has worked according to plan." The e-commerce site was developed using Microsoft technologies, and Sage WebSales was used to integrate this to the Sage back-end.
"In effect, Electronic Arts has great back-office systems connected to great front-office systems," comments Comparex Tetra divisional manager Stephen Howe, "two key requirements for e-commerce success."
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