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Customer Snapshot

Every Revolution Needs a Soundtrack

200%

Revenue growth
year over year

 

Skullcandy, maker of audio headphones with attitude, is all about an extreme fusion of music, fashion and action sports lifestyles. The brand and its distinctive logo symbolize youth and rebellion, and embody the company’s tagline: “Every revolution needs a soundtrack.”

 

Skullcandy’s personality? Fun, very laid back, very athletic, everyone’s a huge music lover!

Company

Skullcandy

Headquarters

Park City, Utah, USA

Customer Website

www.skullcandy.com

Revenue

US$232.5 million (2011)

Number of Employees

290

Implementation Partners

---

Line of Business

Sales, Manufacturing

Industry

Consumer Products, High Tech

Featured Products

SAP Business ByDesign

History

Born on a chair lift

Skullcandy started with an idea that was born on a chair lift. At that time, no one who walked into a ski or skate shop would ever find a pair of headphones there.

 

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From lifestyle brand to headphones

    

  • 2003Rick Alden founds Skullcandy in his basement in Park City, Utah.
  • 2004 First product pairing. Skullcandy integrates its headphones into a snowboard helmet.
  • 2004 First exhibition. People said, “Oh yeah, I’ve heard of Skullcandy. I’ve got a helmet that has audio in it and a little mate powered by Skullcandy on the back.”
  • 2005 First financing. Skullcandy recruits angel investors who are excited about the company’s vision
  • 2006First bank financing. The company convinces a bank that it is worthy of a business loan.
  • 2006First national staging. Best Buy, the world’s largest electronics retailer, buys Skullcandy headphones.
  • 2008The company’s IT grows up when it implements SAP® Business ByDesign.™ The result: a highly scalable infrastructure, making the company more process-oriented with better supply chain visibility.
  • 2011Skullcandy’s IPO raises $150 million by offering 8.3 million shares to the public.

Business Model

Tunes with ’tude

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Skullcandy’s founder and employees come from skate parks, snowy slopes, and surfer lifestyles — and infuse that mindset into everything they do.

Skullcandy is skateboarding.
Skullcandy is snowboarding.
Skullcandy is hip hop.
Skullcandy is indie music.

 

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Loud. Colorful. Active. Skullcandy fuses bold color schemes and patterns, unique materials and creative packaging with the latest audio technologies and innovative functionality to create new and unique products.

Success Strategy

Catching a wave of growth

 

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“Think about a company that grows at 300, 400, 500% a year. It’s important to develop an infrastructure that works tomorrow.“

Meteoric growth increased the difficulty of managing the supply chain and supporting product demand, a business challenge, yes, but a good problem to have.

The Challenge

10,000 is good. A million is better.

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“How do we grow from 10,000 pieces to a million, and ship them around the world?“

Scaling for a billion-dollar future

 

With rapid growth came a need to move from manual processes to automation and improve on-time delivery, while gaining visibility into the business.

 

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“What is the best technology to serve as our IT backbone as we scale up for the next 10 years and beyond?“

IT decisions, while transparent to customers, were mission-critical to the success of the business.

Enter SAP

Getting their heads around SAP

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“You’re looking at our IT Department. It’s me.“

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“Our first thought was ’Wow, SAP is for big companies.’“

But Skullcandy soon discovered that
there are SAP solutions that specifically
benefit small, growing companies
.

The SAP Experience

Music to their ears

We partnered with SAP to transform our business. And we surprised both ourselves and SAP when we influenced the development of a new solution.

With the assurance of rapid implementation, small business scalability, and collaboration on the right solution, Skullcandy confidently teamed up with SAP.

Running Better

Running better with an on-demand solution

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“We can better manage our time, information, accounts, inventory, everything we have as we grow."

Running SAP Business ByDesign, Skullcandy finally has a system that both supports the daily business and minimizes IT time and effort.

Benefits

Riding the IT pipe

SAP Business ByDesign has become the central nervous system of the company. All the tools we need to operate efficiently are integrated within one piece of software.”

Lessons Learned

Less reacting, more predicting

In looking back on multiple years of rapid growth and change, being patient and thinking long term was the key to success.

 

“The biggest piece of advice I would give to someone starting from the beginning is to spend less time on fire drills and more time predicting the needs of the business.”

Today

Taking flight

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With the foundation of SAP Business ByDesign, Skullcandy is poised for even greater opportunities and international growth.

Journey Ahead

Endless summer

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“SAP is going to be a major part of our growth going forward.“

Skullcandy’s 2011 IPO accelerated their expansion, expanded their global footprint, and strengthened their brand. With SAP at their side, the future continues to look bright.

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