Microsoft Office SystemCustomer Solution Case Study

Major Enzyme Producer and Bio-Tech Innovator Builds a Global Performance Culture

OverviewCountry or Region: DenmarkIndustry: Life Sciences, Biotechnology

Customer ProfileNovozymes is a leading bio-innovation company with annual revenues of $1.5 billion and 5,000 employees.

Business SituationNovozymes wanted to achieve a strong performance management culture worldwide to improve its decision-making.

SolutionThe company implemented a global BI solution based on Microsoft Office SharePoint Server 2007 and Microsoft SQL Server 2008 and is now rolling out Microsoft SharePoint 2010.

Benefits A strong performance culture with

self-service BI Expanded insight into global

performance Improved efficiency and

productivity Agile and cost-effective BI

“With Microsoft BI we have created a performance culture that will take root and flourish across the business, from top management to a large number of information workers.”Novozymes, a leading bio-innovation company, sought to enhance its existing business intelligence technology environment and capabilities in order to strengthen its performance management culture. To achieve this, the company chose an innovative, cost effective business intelligence solution from Microsoft. This new and evolving solution has already enabled Novozymes to integrate performance data across the organization and create context-driven scorecards for some key business areas. The combination of increased transparency, better aligned KPIs and automated procedures is also helping the company improve efficiency and productivity. What’s more, with fast access to accurate, timely information, Novozymes is now more equipped to ensure delivery of its strategic and operational goals and is actively cultivating a performance culture that will cascade from top management to a large number of

SituationNovozymes is a leading bio-technology innovator and world-leader in the production of enzymes for industrial and household use. To make sound business decisions, the company needs a complete and clear view of performance across its 5,000 employees, 700 products, 35 international locations, and its sophisticated, global supply chain.

According to Søren Egestad, Senior Department Manager for Business Intelligence at Novozymes: “We wanted to build a performance culture using clear, top-level KPIs and cascading business intelligence to users across the entire enzyme division. And at the same time, we wanted to simplify our processes and eliminate manual reporting workloads to give staff time to focus on more strategic, value-added tasks.”

Until recently, Novozymes staff reported on performance manually, pulling data from a range of systems into Microsoft Excel spreadsheets. This distributed, manual process made it difficult to achieve a “single view of the truth” across all departments and locations.

“With performance data held in Microsoft CRM systems, a SAP Business Warehouse, and other proprietary business systems, there was a manual element to reporting,” says Egestad. “There were also some doubts about the quality of performance data being used to create reports,” he adds.

Staying at ‘the top of its game’ is also critical to Novozymes. “We need an accurate view of our operations to optimize process efficiency, maximize production, and stay one step ahead of competitors on pricing,” says Egestad. One example is the need for on-time delivery to customers, as some customer facilities can be severely

impacted if provider deliveries fail. Egestad notes: “Our supply chain organization depends on an advanced performance management set up to manage its critical processes and deliver on our customer’s needs.”

To address these challenges, Novozymes decided to deploy a business intelligence (BI) solution for its enzyme division, which represents 90 percent of its business.

SolutionTo meet its objectives, Novozymes evaluated competing BI solutions from SAP and Microsoft. In the final analysis, the organization selected Microsoft. The key deciding factors were: effective development; agility; ease of use; and seamless integration with familiar Microsoft Office productivity tools.

“Rolling out SAP BI solutions often requires ABAP development, which can be extremely time consuming and expensive,” says Egestad. “By contrast, Microsoft BI technologies are far more economical in terms of development costs.”

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“We are no longer content to have the OnTarget system in just the hands of a few. With Microsoft SharePoint 2010, we plan to deliver scorecards and KPIs to hundreds more colleagues initially, and potentially more in the future.”

Søren Egestad, Senior Department Manager for BI, Novozymes

The Microsoft BI solution — known internally as “OnTarget”—spans data integration and management; analysis and reporting; front-end scorecards and dashboards; and portal-based access to BI. OnTarget is currently built on Microsoft SQL Server 2008, Microsoft Office SharePoint Server 2007 and Microsoft Office PerformancePoint Server 2007. In upcoming development phases, the system will be upgraded to Microsoft SharePoint 2010 and PerformancePoint Services for SharePoint.

Today, more than 9 terabytes of data from the existing Novozymes SAP Business Warehouse and other sources are consumed by OnTarget. For large bulk transfers, Novozymes uses SAP Business Warehouse (BW) Open Hub, while a .NET assembly for SAP interfaces from Theobald Software is used for smaller transfers. Non-SAP data is fed into the system via Microsoft SQL Server 2008 Integration Services. “We have invested heavily in our SAP BW over the years and we wanted to preserve all the business logic inside it,” says Egestad. “By loading SAP source data and workflows directly into OnTarget, we have done just that – while ensuring that performance reports are based on a single version of the truth.”

Using PerformancePoint Server, Novozymes created its first top-level scorecard in three months, including building the entire SQL and SQL

Server Analysis Services-based data platform. Eight scorecards went live in less than a year. “Some management groups previously worked with an extensive amount of KPI’s, making it difficult to understand high-level performance trends,” says Egestad. “In the process of the OnTarget project we have tried to reduce this amount and aim for what is commonly seen as optimal for a functional area. As a result, most of our top-level scorecards now have around 15 KPIs to keep track of.”

One hundred senior managers are using the SharePoint-based OnTarget system on a regular basis to access KPIs that range from sales, costs, and price realization to on-time delivery and employee sick leave. “If a KPI turns red, managers can drill down into supporting KPIs to see what is causing the problem and take steps to address inefficiencies quickly,” notes Egestad.

“With tools to create scorecards and KPIs quickly and effectively in SharePoint Server, we are already cascading BI throughout the top and mid-management layers,” says Egestad.

During the next phase of the BI deployment, the IT team will create 22 additional scorecards and more than 70 additional KPIs using SharePoint 2010, which includes PerformancePoint Services for SharePoint. These will be made available to 250 direct-level managers.

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“It is our experience that compared to SAP solutions, Microsoft BI offers faster time to market and lower-cost development.”

Søren Egestad, Senior Department Manager for BI, Novozymes

BenefitsBased on the Microsoft BI solution, Novozymes has built a global performance culture focused on optimizing efficiency, and increasing transparency. The solution has also enabled the company to reduce the workloads and costs of manual reporting.

Cultivating a performance cultureSharePoint delivers accurate performance information in a single view and from a single location, which is building interest and confidence in BI in addition to promoting active participation and collaboration among employees at Novozymes. According to Egestad, the scorecards now play a central role in each and every management meeting.

“Based on our Microsoft business intelligence solution, we have created an even stronger performance culture that will take root and flourish across the business,” states Egestad.

Democratized business intelligenceNovozymes IT is currently developing new performance scorecards to help 250 direct-level managers achieve objectives in their specific business areas and geographies. “We are no longer content to have the OnTarget system in just the hands of a few,” says Egestad. “With Microsoft SharePoint 2010, we plan to deliver scorecards and KPIs to hundreds more colleagues initially, and potentially more in the future.”

Increased transparency Novozymes is leveraging its newly gained data visibility — and single view of the truth —to make decisions that directly increase its performance. One example of this is a price realization KPI. “We are putting a lot of emphasis on effective pricing,” says Egestad. “Using the Microsoft solution, the marketing department can view global pricing information in real time, which has greatly improved the transparency of pricing information.”

Fast, cost-effective developmentIn just three months Novozymes IT staff developed cubes to support its first Microsoft BI management scorecard. “It is our experience that compared to SAP solutions, Microsoft BI offers faster time to market and lower-cost development,” remarks Egestad.

Automation delivers multiple benefitsThe automated solution has eliminated problems and delivered important benefits, including bringing speed and accuracy to operational processes and helping to raise the level of employee and team

productivity. “By using Microsoft BI we’ve eliminated the pain and waste of our previous manual monthly reporting effort,” says Egestad.

Supporting future innovation

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In support of its progressive approach to performance management, Novozymes is actively building on its Microsoft-based OnTarget system and seeking new ways to innovate with BI.

“PowerPivot is a great example of how Microsoft is moving in the right direction with business intelligence technology,” says Egestad, “Bringing the power of BI into an everyday business tool such as Excel is the kind of problem-solving innovation that we want to deliver to our people.”

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For More InformationFor more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers in the United States and Canada who are deaf or hard-of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: www.microsoft.com

For more information about Novozymes products and services, visit the Web site at: http:// www.novozymes.com/en

Microsoft Business IntelligenceMicrosoft provides a comprehensive set of business intelligence technologies that enable organizations to improve performance through better decision making. Microsoft Business Intelligence helps small and large businesses maximize the value of their data through timely analysis and knowledge sharing. Powered by Microsoft SQL Server, SharePoint and Office, Microsoft Business Intelligence solutions provide increased value to users throughout the organization.

This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.Document published September 2010

Software and Services Microsoft Office

− Microsoft Office 2010 Suites− Microsoft Excel 2010− Microsoft Office

PerformancePoint Server 2007− Microsoft Office SharePoint

Server 2007 Microsoft Server Product Portfolio

− Microsoft SQL Server 2008

− Microsoft SharePoint Server 2010 Technologies

− Microsoft SQL Server 2008 Analysis Services

− Microsoft SQL Server 2008 Integration Services

− Microsoft SQL Server 2008 Reporting Services