Defining a Target Operating Model for Sephora Middle East’s Digital Carve-Out

Sephora Middle East, with operations across the UAE and France, was experiencing rapid digital growth. To stay closer to customers and local market needs, leadership initiated a carve-out of ecommerce, CRM, digital, and data analytics capabilities from Sephora’s central IT organisation in Paris.

The objective was to define an Operating Model that enabled regional autonomy while remaining aligned with global architecture and governance. Key challenges included.

• Need for local ownership of digital and data platforms to support a booming business Misalignment between Digital vs IT ways of working
• Unclear decision rights between Middle East teams and Paris HQ.
• Large consulting firms lacking depth across both enterprise IT and modern digital operating models.
• Sephora required a boutique advisory partner with hands-on expertise across both worlds.

Yallo was engaged to define a pragmatic, future-ready operating model by:

• Conducting in-depth interviews with Digital and IT teams, led by the Sephora CFO and Digital/IT Directors
• Assessing current operating models across Middle East and Paris HQ
• Identifying gaps between existing constraints and future ambitions
• Designing a 9-pillar Digital & IT Target Operating Model, tailored to Sephora Middle East’s unique context

• Clear alignment between Digital and IT teams on ways of working and delivery ownership
• Defined architecture blueprints and RACI models for central vs regional responsibilities
• Strong alignment between SAP, Digital, and Data landscapes.
• High appreciation from Sephora leadership for clarity, and speed