the it shared service center… a challenge and leadership journey! · a challenge and leadership...

Strength. Performance. Passion

© 2013 LASER ITSC

CIO Latin America Summit, PanamaThe IT Shared Service Center…A challenge and leadership journey!

LASER IT - Service Center, Edson Massami Tsuda, 2013-01-15 © 2013 LASER ITSC

© 2013 LASER ITSC

Agenda

LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14 2

1. Holcim Group Overview2. Holcim Group: IT Strategy3. LATAM IT Clustering Process4. Governance5. BPO & Key Users Organization6. Learnings and final message

© 2013 LASER ITSC

Holcim , 100 years!

Holcim is one of the world’s leading suppliers of cement andaggregates. Further business activities are ready-mix concrete,

concrete products, asphalt and a range of related services

LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14

© 2013 LASER ITSC

Building on a proven strategy…

4LASER IT - Service Center, Edson Massami Tsuda, 2013/06/12-14

© 2013 LASER ITSC

Holcim at a glance 2013

• Strong focus on value creation� A global Group with Swiss roots, founded in 1912. Operating in around 70

countries accross all continents and employs a workforce of approximately78.000

• Strategic Pillars� Cement and aggregate as core business � Globally active and firmly rooted: geographic diversification� Local responsibility with global leadership

• Success is based on good people� Motivate and demand� Training as a continuous process� Safety at work: “Passion for Safety”

• Committed to environment and society� Natural resources are a precious commodity� Alternative fuels and raw materials have a future� Living up to our social responsibility� Member of DJSI Dow Jones Sustainability Indexes. Included in DJSI World

Index and Dow Jones STOXX Sustainability Index for 10 years

5LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14

© 2013 LASER ITSC

Net Sales by Region 2012


© 2013 LASER ITSC

Holcim Key Figures 2012

For more information, please access www.holcim.com

2012 2011 +/-%

Annual cement production capacity million t 217,5 216,0 +0,7 Sales of cement million t 148,0 144,3 +2,5 Sales of mineral components million t 4,8 5,1 -7,0 Sales of aggregates million t 159,7 173,0 -7,7

Sales of ready-mix concrete million m3 46,9 48,4 -3,1 Sales of asphalt million t 9,1 10,3 -11,8 Net sales million CHF 21,544 20,744 +3,9

Operating EBITDA adjusted1 million CHF 4,223 3,975 +6,2

Operating EBITDA margin adjusted1 % 19,6 19,2

Operating profit adjusted1 million CHF 2,552 2,308 +10,6

Operating profit margin adjusted1 % 11,8 11,1EBITDA million CHF 4,415 4,264 +3,6 Net income million CHF 1,026 682 +50,4 Net income margin % 4,8 3,3Net income - shareholders of Holcim Ltd million CHF 622 275 +126,5 Cash flow from operating activities million CHF 2,682 2,753 -2,6 Net financial debt million CHF 10,362 11,549 -10,3 Total shareholders' equity million CHF 19,837 19,656 +0,9

Gearing3 % 52,2 58,8Personnel 78,103 80,967 -3,5

1 Excluding restructuring costs.


© 2013 LASER ITSC

Dynamic Latin America

8LASER IT - Service Center, Edson Massami Tsuda, 2013/06/12-14

© 2013 LASER ITSC

Agenda

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© 2013 LASER ITSC

Background

• < 2000� Single IT Department at country level

• Holcim IT Strategy definition: late 90’s� IT Clustering: moving from Local to Regional� Focus on standardization� SAP as a standard solution to support the business processes

• Change Management� Governance� Local ExCo� BPO’s – Business Process Owners and Key Users

• All Holcim Group Companies in Latin America (9) have been integrated into one single IT Service Center, LASER , located in São Paulo, Brazil


© 2013 LASER ITSC

Main IT Targets from 2003 onwards…

• Objective 2006 (defined in 2003)� IT Costs < 1,5% Net Sales

• Objective 2008 (defined in 2006)� ITSCs ISO 20000 & 27001/2 implemented

• Ongoing targets � Compliance� Security� Focus on standardization and efficiency� End Users Satisfaction > 90%


© 2013 LASER ITSC

Holcim: Group IT Clustering in progress

12

From 1999 … …. 2013

Holcim Group, IT consolidation...


© 2013 LASER ITSC

IT Strategy: Global alignment of IT resources with focus on coordination and standardization

• Functional Organization� Regional IT Service Centers� Corporate IT� IT Coordination Group

• Management Processes� IT Business Planning and Budgeting� IT Project Approval Process� IT Reporting and Controlling

• Lowering of Complexity through� Standardization� Infrastructure and Architecture� IT Processes (e.g. IT-Security)� Business Processes

13

as of Jan 2013

Business has to lead


© 2013 LASER ITSC

Agenda

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© 2013 LASER ITSC

LATAM : IT Clustering process

From 1999 … …. 2013

LATAM Journey, 14 years later!


as of Jan 2013

© 2013 LASER ITSC

LATAM Region: Evolution

Go Live:• August 2001

Argentina, Brazil and Chile

• January 2003Colombia and Venezuela

• January 2004Ecuador, Costa Rica,

Panama and Nicaragua

• July 2005: Holcim Miami (Procurement

Office)

• January 2006El Salvador

• January 2012 Mexico

16

Brasil

Argentina

Chile

Ecuador

ColombiaEl Salvador

Nicaragua

Costa Rica

Mexico

Holcim left it s operations in Venezuela (2008) andPanama (2009)


© 2013 LASER ITSC

LATAM Key Figures: Mar. 2013

Key Figures: Mar. 2013• Nr. of Countries 9• Nr. of employees 11.512• IT Users 7.547• SAP Users 5.549• FTE (LASER) 174• Locations 292

• “on line” 284• Time zone 1-4 hs (*)• 2 languages Portuguese

Spanish

(*) In comparison to Sao Paulo, Brazil

17

Brasil

Argentina

Chile

Ecuador

ColombiaEl Salvador

Nicaragua

Costa Rica

Mexico

Holcim left it s operations in Venezuela (2008) andPanama (2009)


© 2013 LASER ITSC

LASER ITSC Service Catalogue

IT Services for Business Processes

Financial and Controlling

Sales and Logistics

Procurement

Others IT Services

IT Training

IT Security

IT Projects

IT Services for User Workplace

IT Services for Information Sharing

PortalMessaging Collaboration

IT Services for Infrastructure Mgmt

Network Services

User Support Desktop Mgmt File Sharing Print Services

Remote Access

HCM (Human Capital Mgmt)

IT HelpDesk

IT Services for DataCenter Mgmt

Data Center

User Mgmt

CRM (Customer Relationship Mgmt)

SRM (Supplier Relationship Mgmt) Business Information

Manufacturing

LASER IT Service Catalogue


© 2013 LASER ITSC

SAP Customer Center of ExpertisePrimary Certification

19

Valid until Jan. 2014


© 2013 LASER ITSC

Agenda

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© 2013 LASER ITSC

Regional IT Service Centers tied to Central Coordination with Functional Authority

HSSAHSSA

IT StCIT StC

Functional management reporting lineIT Steering Committee (StC) / IT Steering Working Group (SWG). In addition it is possible to have a Board, e.g. to cover legal requirements

France

Russia

IKMIKM

EXCO AreaManagementEXCO Area

Management

EXCOEXCO

HSEAHSEA

Thailand

Vietnam

Sri Lanka

Indonesia

Singapore

Philippines

IT SWGIT SWG

Line management reporting line

HSEEHSEE

IT StCIT StC

US

Canada

LASERLASER

Brazil

Argentina

Chile

Colombia

CR, NI, PA

El Salvador

IT StCIT StC

Ecuador

NASCNASC

Spain Germany

Hungary

Switzerland

Morocco

LebanonCroatia

IT StCIT StC

Azerbaijan

Czech

ITSWITSWITAWITAW ITQWITQW

IT CoordinationGroup

IT CoordinationGroup

Groupcompanies

Groupcompanies

NZ, Australia

Others

AI UK

HGS

China

Holcim Trading

BulgariaItalyRomania

Belgium Netherland

Austria SlovakiaSerbia

Mexico


AI USACCACLACCCL

© 2013 LASER ITSC

LASER Governance

• LASER is not a legal entity� Cost Center within each OpCo’s

• IT Coordination Group: Global � LATAM Representatives

− Business CEO Holcim Colombia− IT LASER ITSC Head

• LASER Steering Committee: Regional� Executive Committee Member for Latam� CEO’s of each country in Latam� Head of Group Corporate IT � St. Committee Delegate: CEO Holcim Colombia � Meetings: 3 – 4 / year


© 2013 LASER ITSC

LASER Governance• BPO Business Process Owners (by functional area)

� Chair: CEO OpCo� Participants:

− Business: Directors of each function per country

− Regional Management Support Organization RMSO

− Corporate Functional Heads of Holcim Group

− LASER Business Processes Coordinators � Meetings: 1 – 3 / year

• Delegate of LASER St. Committee� Supports and guides the ITSC Head, on behalf the LASER St.

Committee� Liaison between ITSC and Steering Committee� Open and close communication on a regular basis for strategic

and operational topics (eg. Business Planning, Finplan, Budget, organization, etc.)

� Meetings with the entire team 1-2 / year (and also, conference calls, video conference)


© 2013 LASER ITSC

LASER Organization


© 2013 LASER ITSC

Agenda

LASER IT - Service Center, Edson Massami Tsuda, 2013-01-15 25


© 2013 LASER ITSC

Pillar: Regional / Local BPO’s

RBPO: Responsible for managing business needs and assuring the common business processes at a regional levelBPO: Responsible for managing business needs and assuring the common business processes at Group Company levelITSC Resources:Provide functional expertise, e.g. SAP

Group Company Level

BPO

BPO

BPOe.g.

Finance

Group Company Level

Regional level

Regional Functional Team C

Regional Functional Team B

Regional Functional Team A, e.g. Finance

BPO

BPO

RBPO

BPO

ITSC

BPO

BPO

RBPO

BPO

ITSC

BPO

BPO

RBPO

BPO

ITSC


© 2013 LASER ITSC

LATAM: BPO Organization

• Key roles and responsibilities:� Maintain sustainability of the LASER standard

business model� Focus on IT / business alignment� Propose and monitor the SLA – Service Level

Agreement• Chair of BPO Stream: CEO of a Group Company

� Leads the participants towards to the standardization of the business model, promoting the concept of Key Users, ensuring a better usage of the available systems and its functionalities.

� Agree on the priorities of the Business Projects and specifics requirements, to be integrated into the Business Planning, Financial Planning and Budget.

� Guarantee the full alignment between business and IT.


© 2013 LASER ITSC

LATAM BPO’s Organization – Matrix (example)


Commercial

Cement

Operations AFR Finance Procurement

Human

Resources

Ready-Mix

Concrete Aggregates OH&S

Argentina

Brazil

Chile

Colombia

Costa Rica

Ecuador

El Salvador

Mexico

Nicaragua

RBPO - CEO

Regional

Business Support

LASER

Holcim Group

Directors of each function / area

CEO of one country in Latam

Regional functional support

IT Manager per processCorporate functional support for Cement Operations, RMX and Aggregates

© 2013 LASER ITSC

LATAM: Key User Organization• Key roles and responsibilities:

� On-site support for the end users� Assure the effective usage of the systems� Link between the end user and the ITSC� Support Continuous Business Improvement process

IT Service Center

GC ...GC 3

GC 2GC 1

Key Users

End Users

Key Users train and support End Users

1:10ITSC trains

and supports Key Users


© 2013 LASER ITSC

LATAM Experience: Key User (KU)

• Training is the key!

• The KU function must be part of the job description, and sufficient time must be available for the related tasks.

• Skills required: profound business process knowledge, communication and team work skills.

• “2nd Key User” must assure continuity (vacation, leave, etc.)

80%

daily activities

20% KU activity

100% time availability

Key User time assignment


© 2013 LASER ITSC

Training of Key Users

• Training Catalogues

• Training Calendar� In https://portal.holcim.com/irj/portal (LASER)


© 2013 LASER ITSC

Learnings and final message 1/2

• Active and visible level of commitment and support frommain stakeholders:� Executive Committee Member� Countries CEO’s

• Strong BPO Business Process Owners and Key Usersorganization in place

• Alignment between Business and IT: Discipline is a MUST!• Human Resources

� High skilled IT personnel� Development and retention strategy

• Knowledge sharing amongst the Holcim ITSC’s


© 2013 LASER ITSC


• Sustainability of the Regional Standard Business Model is key!

• Close coordination between Business and IT� All IT needs MUST BE addressed to LASER ITSC� OpCo’s are not allowed to hire / buy a local IT

Development or IT Solutions, without LASER involvement and/or agreement

� LASER is fully accountable for the IT Budget at Regional Level in LatAm


© 2013 LASER ITSC


• Sustainability of the Regional Standard Business Model is key!

• Close coordination between Business and IT� All IT needs MUST BE addressed to LASER ITSC� OpCo’s are not allowed to hire / buy a local IT

Development or IT Solutions, without LASER involvement and/or agreement

� LASER is fully accountable for the IT Budget at Regional Level in LatAm


and the Journey never ends…

38

LASER ITSC Reunião Gerencial LASER – Junho 2010 BIA 11.06.2010 / AC

uso interno

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