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PADIBERAS NASIONAL BERHAD BERNAS Digital Transformation Journey Digitalizing Value Chain

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Page 1: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

BERNAS Digital Transformation JourneyDigitalizing Value Chain

Page 2: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Contents

•01 – The Introduction

•02 – The Journey

•03 – The Roadmap

•04 – How Big Data helps?

Page 3: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

The Introduction

01

Page 4: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

About BERNAS

• Padiberas Nasional Berhad started as Lembaga Padi dan Beras Negara, established in 1974 to manage the upstream and downstream business of rice industry in Malaysia

• It was corporatized in 1994 as Padiberas Nasional Berhad and later privatized in 1997, it has gone through quite number of changes throughout its lifecycle but still maintain some key strategic responsibilities and national obligation• Caretaker of National Rice Stockpile

• Managing the upstream activity of local paddy industry

• Buyer of the last resort

• Ensuring no shortage of rice supply nationally

2 June 2016 4

Page 5: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Key Takeaways

• The biggest culprit in transformation is CULTURE, which is embedded in all aspect of Enterprise including People, Process, Technology, Collaboration & Information

• A lot of changes that require transformation are outside of IT but intercept and interact with technology

• Traditional IT per se is still important aspect until the Enterprise is fully transformed but must be compliment with strategic approach by addressing all the breadth and depth of the Enterprise

• Never discount the important of disruptive trends and technologies (Internet of Things, Autonomous Robots, 3D Printing, XaaS, Smart Machines, Digital Transformation)

• Sense of ownership from all stakeholders with full responsibility and accountability will drive the success of each initiative implementation

2 June 2016 5

Page 6: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

The Journey

02

Page 7: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

How it started

• BERNAS went through privatization exercise in mid 2014 and immediately after that, fresh face of senior management were brought in.

• The tasks were to transform back-office (enterprise) services, increase the turn around on local paddy and rice sales and imported rice sales; improve value chain efficiency in general.

• The management decided to run an ambitious transformation strategy including revamping on the back-office services and re-establishing the IT services and functions.

• Thus the journey started with bringing on board a person to lead the transformation….

2 June 2016 7

Page 8: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

The Challenges

2 June 2016 8

Legacy System Legacy Process Outdated Policies Incomplete SOPs

No Straight-Through

ProcessingIT Literacy

Workforce Competencies

Limited Resources

Lack of Ownership from Process

Owners

Lack of involvement from

Stakeholders

Information Lifecycle Not

Properly Addressed

Page 9: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Understanding the Capability & Maturity Level

2 June 2016 9

CAPABILITY AND MATURITY ASSESSMENT AREAS

PEOPLE

Knowledge Management • Talent Management • Performance Management • Succession Planning

Reward Management • Process Competencies

PROCESS

Business Requirements • Change Management • Process Integration • Best Practices • Business Intelligence

Workforce Competencies

TECHNOLOGY

Business Requirements • Change Management • Process Integration • Best Practices • Process Improvement

Capacity Management

COLLABORATION

Stakeholders Management • Change Management

Process Integration • Best Practices

Straight Through Processing

INFORMATION

Lifecycle Management • Change Management

Data Dictionary & Attributes • Best Practices

Ownership & Stewardship

Page 10: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

The Digital Blueprint

• With clear vision and mission overarching the overall roadmap

• The blueprint is spread over 3 – 5 years period with three different phases of implementation

• The first phase focus on improving the foundation in this case the underlying infrastructure, IT functions, IT process models and enterprise applications; and mapping of all value chains throughout enterprise.

• The second phase focus on serving the business with by enabling STP on the overall value chain and the improvement on Business Intelligence, Data Analytics, Business Algorithm and Business Model; also addressing the digital gaps between different functions.

• The last phase involves maturing the organization which focus on embedding all necessary frameworks in place

• The overall roadmap is governed by clear project management approach and proper change management program

2 June 2016 10

Page 11: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

The Blueprint

Providing strategic IT vision,

leadership, and Core Business & Enterprise

solutions to BERNAS and enhancing the company’s business growth.

IMPROVING THE FOUNDATION

1. Re-establishment of BERNAS IT

Department

2. Integrating Local Rice Information System

3. Integrating Supply Chain Management

System

4. Improving Enterprise Solutions

5. IT OPEX Rationalization

6. Improving IT Infrastructure

7. Mapping of all Enterprise Value Chains

SERVING THE BUSINESS

1. Improving IT Service Management

Framework

2. Enhancing Local Rice Information System

3. Integrating Retail Management into Supply

Chain Management System

4. Enhancing Business Intelligence System

5. Automating Infrastructure Functions

6. Addressing Digital Gaps between

functions

MATURING THE ORGANIZATION

1. Improving Enterprise Information

Management Framework

2. Enhancing Enterprise Architecture

3. Enhancing IT Business Operations

4. IT Infrastructure Rationalization

5. Full Review of the Blueprint

FULL STAKEHOLDERS ENGAGEMENT AND EXCELLENT SUPPORT FUNCTIONS

SUFFICIENT FUNDINGS AND RESOURCES

2 June 2016

Page 12: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

The roadmap

03

Page 13: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Improving the Foundation

•Re-establishment of IT Structure, enhancing IT Functions and improving IT Process Model• Integrating Local Rice Information System•Connecting Core Value Chain Systems• Improving Enterprise Value Chain Solutions• IT OpEx Rationalization• Improving IT Infrastructure•Mapping of all Enterprise Value Chains

2 June 2016 13

Page 14: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Establishment of IT Departments

Head of Department

Infrastructure & Operations

Services

Network & Connectivity

Data Center & Systems

Operations & Support

IT Security

Application Services

Core Applications

Enterprise Applications

Big Data & Analytics

Application Support

Auxiliary Services

PMO/ETO IT Governance

Risk Management

Non Functional

Department Manager

2 June 2016

Page 15: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Mapping IT Functions & Process Model

Benefits Management

Information Management

IT Governance Digital Strategy

Service Management

Opportunity Development

Risk Management

Program/Project Management

Organization Management

Maintenance & Change

Management

Infrastructure Operations

Support

2 June 2016

Page 16: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Integrating Core Value Chains

CORE APPLICATION LAYER

WAREHOUSE & DISTRIBUTIONLOCAL RICE

New Weighbridge Application System

(A – D – E)

Warehouse Management

Application (A – B – F)

SALES & MARKETING IMPORTATION & LOGISTICS

Planning Management Application

Rice Procurement

Application (A – B)

Logistic Management

Application (A – C – D)

CRM – Sales Automation

Local Rice Management

System (A – F)

WBS WBS

CRM – (Case Management | Account Management | Problem Management)

INTEGRATION POINTSA – Dynamics AX Integration B – Logistic Management ApplicationC – Rice Procurement Application D – Warehouse Management ApplicationE – Local Rice Information System F – Weighbridge Application System

DOA CIS

Quality and Compliance Management System

Customer Portal

CORE APPLICATION LAYER

WAREHOUSE & DISTRIBUTIONLOCAL RICE

New Weighbridge Application System

(A – D – E)

Warehouse Management

Application (A – B – F)

SALES & MARKETING IMPORTATION & LOGISTICS

Planning Management Application

Rice Procurement

Application (A – B)

Logistic Management

Application (A – C – D)

CRM – Sales Automation

Local Rice Management

System (A – F)

WBS LCWBS WH

CRM – (Case Management | Account Management | Problem Management)

INTEGRATION POINTS:A – Dynamics AX Integration B – Logistic Management ApplicationC – Rice Procurement Application D – Warehouse Management ApplicationE – Local Rice Information System F – Weighbridge Application System

DOA CIS

Quality and Compliance Management System

Customer Portal

SYSTEM LEGENDS:Proposed New System Current System (TBR)

New System Implementation System in Discussion

2 June 2016

Page 17: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Network Connectivity Upgrades

BERNAS

IPVPN

CLOUD

BERNAS MILLS

(30 Sites)

BERNAS

WAREHOUSES

(11 Sites)

BERNAS

REGIONAL

OFFICES

(4 Sites)

EBN (1 Site)

PUBLIC

INTERNET

CLOUD

2 Mbps

1 – 10 Mbps

1 Mbps

1 – 2 Mbps

BERNAS HLA

BERNAS

GLENMARIE

BERNAS DATA

CENTRE

(DRB HICOM)

BERNAS DISASTER

RECOVERY CENTRE

(CYBERJAYA)

18 Mbps10 Mbps

10 Mbps

10 Mbps

10 Mbps

4 Mbps

10 Mbps

2 Mbps

LEGENDS

Wireless P2P

Wired Fibre

Direct Internet

BERNAS

IPVPN

CLOUD

BEFORE AFTER

BERNAS MILLS

1. KBB Simpang Empat

2. KBB Kuala Perlis

3. KBB Utan Aji

4. KBB Telok Kechai

5. KBB Bukit Besar

6. KBB Bukit Raya

7. KBB Kangkong

8. KBB Sungai Limau

9. KBB Guar Chempedak

10. KBB Sungai Baru

11. KBB Pering

12. KBB Jerlun

13. KBB Kerpan

14. KBB Kodiang

15. KBB Megat Dewa

16. KBB Langgar

17. KBB Paya Keladi

18. KBB Simpang Lima

19. KBB Sungai Manik

20. KBB Changkat Lada

21. KBB Sungai Ranggam

22. KBB Seri Tiram Jaya

23. KBB Sekinchan

24. KBB Sungai Besar

25. KBB Tumpat

26. KBB Pasir Puteh

27. KBB Bukit Kenak

28. KBB Rompin

BERNAS WAREHOUSES

1. Gudang BERNAS BSS

2. Gudang BERNAS Gebeng

3. Gudang BERNAS Pasir Gudang

4. Gudang BERNAS Pending

5. Gudang BERNAS Sibu

6. Gudang BERNAS Bintulu

7. Gudang BERNAS Telipok

8. Gudang BERNAS Kudat

9. Gudang BERNAS Sandakan

10. Gudang BERNAS Lahad Datu

11. Gudang BERNAS Tawau

BERNAS RELAY SITES

1. KBB Peringat

2. Gudang BERNAS Prai

3. Gudang BERNAS JASA

EBN

PEJABAT

GLENMARIE

(BERNAS DC)

PUBLIC

INTERNET

CLOUD

2 Mbps

2 Mbps

4 Mbps

2 Mbps

PEJABAT

BERNAS

JITRA

30 Mbps

PEJABAT

BERNAS

PENGKALAN

CHEPA

1. PEJABAT BERNAS SATOK

2. PEJABAT BERNAS SAN HIN

2 Mbps

10 Mbps

100 Mbps100 Mbps

2 June 2016

Page 18: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Improving IT Infrastructure

Application Rationalization

Platform as a Service

Hybrid Cloud IaaS

Unified Communication

Hybrid Connectivity

Converged Security

2 June 2016 18

Page 19: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

IT Infrastructure Framework

FINANCIAL MANAGEMENT

PEOPLE & RESOURCES SERVICE PLANNING&ARCHITECTURE

INFRASTRUCTURE &OPERATIONS

SECURITY & RISK

PROJECTS

IT Infra Strategy

SG01

Policies

SG02

Innovation

SG03

Knowledge Management

PR01

Infra Organizational Design

PR02

Cost & Budget Management

FM01

Vendor Management

FM02

Asset Management

IO01

Availability & Capacity Management

IO02

Operations Management

IO03

Incident & Problem Management

IO04

Configuration Management

IO05

Service Desk

IO06

Document & Report Management

IO07

Change & Release Management

IO08

Business Continuity Management

SR01

Business Process Control & Internal Audit

SR02

Disaster Recovery Plan Management

SR03

Risk Management

SR04

IT Security

SR05

Infra Architecture

SPA01

Service Management

SPA02

Project Management

P01

Organizational Change Management

P02

Requirements Gathering

P03

2 June 2016

Page 20: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Infrastructure Landscape

SYSTEM & STORAGE NETWORK & SECURITY BACKUP & RESTORE

o SERVER ADMINISTRATION & MANAGEMENTo SERVER PROVISIONINGo PATCHES ADMINISTRATION & MANAGEMENTo STORAGE ADMINISTRATION & MANAGEMENTo EMAIL ADMINISTRATION & MANAGEMENTo AD ADMINISTRATION & MANAGEMENT

o NETWORK MANAGEMENTo SECURITY MANAGEMENTo INTERNET MANAGEMENTo ACCESS MANAGEMENT

o BACKUP AND RESTORE ADMINISTRATION & MANAGEMENT

o ENTERPRISE BUSINESS CONTINUITY MANAGEMENTo DISASTER RECOVERY PLANo DATA REPLICATION

o EXCHANGE o SCCMo VMWAREo SKYPE FOR BUSINESSo SCOMo SAN/NAS STORAGE ( QUANTUM | DELL )o OPERATING SYSTEMo ACTIVE DIRECTORY ( GPO | DC MANAGEMENT )o SHAREPOINTo CITRIXo DNSo WEB SERVER

o MANAGED F IREWALL SERVICES ( T1 | T2 )o MANAGED IPS ( F IREPOWER )o ANTI SPAM ( MAIL GATEWAY )o WEB F ILTERING ( WEB GATEWAY )o ANTIVIRUSo POLICIESo RISK & THREATo IDENTITY MANAGEMENTo USER ACCESS MATRICSo SERVER LOAD BALANCEo REVERSE PROXYo BANDWIDTH MANAGEMENT

o VIRTUAL & PHYSICAL BACKUP & RESTOREo DATABASE BACKUP & RESTOREo ENDPOINT BACKUP & RESTOREo SERVER BACKUP & RESTOREo POLICIESo BACKUP & RESTORE DRILL ACTIVITY

MONITORING & OPERATION

o LOG M A NAGEMENTo DA T A C ENT ER M A NAGEMENTo END - USER M A NAGEMENTo C ONFIGURATION M A NAGEMENTo NET WORK UT I L IZATIONo T HREAT, VULNERABIL ITIES , V I RUS M ONITORINGo DOC UMENTATIONo REP ORTINGo A LERT & NOT I FICATION M A NA GEMENT ( HA RDWARE &

S OFTWARE )o I T A S SET M A NAGEMENT

o REMOTE DESKTOP MANAGEMENTo MANAGED AD, EXCHANGE, ANTIVIRUS SERVICESo MONITORING BACKUP ACTIVITYo ANTIVIRUS DEPLOYMENT AND MONITORINGo SKYPE FOR BUSINESS DEPLOLMENTo MONITORING, ADMINISTERING AND DIAGNOSTIC OF NETWORK AND SECURITY

COMPONENTo WARRANTY INFORMATION & L ICENSING o DATA CENTER MANAGEMENT

2 June 2016

Page 21: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Mappings enterprise value chains

Value Chain Area of Improvement Deliverables

Information Technology – Service Management

• Change Management• Process Integration• Process Improvement• Lifecycle Management

• Automated Service Management System through Online Helpdesk

• SLA Integration• Policies & Procedures

Information Technology – Program / Project Management

• Change Management• Process Integration• Lifecycle Management• Knowledge Management

• Complete Project Management Portfolio based on Project Management Institute

• Policies & Procedures

Information Technology – Infrastructure Operations

• Change Management• Process Integration• Process Improvement• Capacity Management

• Revision on Infrastructure operation model• Integration with Service Management• Policies & Procedures

Information Technology – Organizational Management

• Change Management• Process Improvement• Knowledge Management• Talent Management• Performance Management

• Restructuring of Organizational Structure• Redefinition of Process Models & Functions• Policies & Procedures

212 June 2016

Page 22: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Mappings enterprise value chains

Value Chain Area of Improvement Deliverables

• Services & Indirect Materials Department

• Shipping Department

• Process Integration• Process Improvement• Lifecycle Management• Vendor Management

• Automation of Lifecycle Management into integrated system

• Enhancement of Vendor Management through automated functions

• Savings of RM1.2 millions through process automation• Income generation of RM230,000 yearly

Operations Divisions – Logistic Functions • Process Integration• Process Improvement• Workforce

Competencies

• Automation of Lifecycle Management into single integrated system

• Integration with other back-end system to provide seamless data flow

• Savings of RM16 million from initiatives implementation

• Finance Department• Local Rice Department

• Process Integration• Process Improvement• Capacity Management• Workforce

Competencies

• Automation of 3 different systems integration• Providing seamless data flow and extraction to reduce

account closing and reporting wait time• Savings of RM12 million from initiatives

implementation

222 June 2016

Page 23: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Improving the foundation >>IT OPEX RATIONALIZATION

Budget Description Year 2014 (RM) Year 2015 (RM) Year 2016 (RM)

IT Structure & Function 250,000 (R) 1,250,000 (R) 1,425,000 (P)

IT Outsourcing Support 5,830,560 (R) 1,943,520 (R) Nil

Communication Services(sWANet, P2P, DIA)

4,068,130 (R) 3,723,000 (R) 3,342,880 (P)

PC Leasing 3,091,200 (R) 1,698,000 (R) 478,000 (R)

Output Devices Leasing 468,000 (R) 398,000 (R) 300,000 (P)

Hardware Maintenance 1,589,000 (R) 462,320 (P) 500,000 (P)

DC/DR Services 3,624,000 (R) 968,000 (R) 100,000 (P)

Application Maintenance 3,224,000 (R) 1,650,000 (R) 1,500,000 (P)

TOTAL 22,144,890 12,092,840 7,645,880

232 June 2016

Page 24: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Serving the Business

•Improving IT Service Management Framework

•Enhancing Local Rice Information System

•Integrating Retail Management and xRM into Supply Chain Information System

•Enhancing Business Intelligence and Data Analytics

2 June 2016 24

Page 25: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

New Application Landscape

25

ANALYTICS AND BUSINESS INTELLIGENCE LAYER

Strategic Analytics Financial Analytics Predictions & Prescriptions

ENTERPRISE APPLICATION LAYER

Financial Management System HR Management System Asset Management &

Maintenance ManagementProcurement Management Time Management System

Helpdesk System

Enterprise Content Management System (Document Management & Workflow Automation System)

DATA REPOSITORY LAYERApplication Databases Enterprise Data Warehouse Unstructured Datafiles

EXTERNAL FEEDS

Social Listening

Agriculture Flagship

Application System

Port Information

Wholesaler Information

Operational Analytics

CORE APPLICATION LAYER

WAREHOUSE & DISTRIBUTIONLOCAL RICE

New Weighbridge Application System

Warehouse Management Application

SALES & MARKETING IMPORTATION & LOGISTICS

Planning Management Application

Rice Procurement Application

Logistic Management Application

CRM – Sales Automation

Local Rice Management System

WBS LC WBS WH

CRM – (Case Management | Account Management | Problem Management)

DOA CIS

Quality and Compliance Management System

Customer Portal

SYSTEM LEGENDS:Proposed New System New System Implementation System in Discussion Current System (Maintained) Current System (TBR)

2 June 2016

Page 26: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Improving Financial Subsystem

FINANCIAL SUBSYSTEMS

Treasury Management Modular System

MICROSOFT DYNAMICS AXAPTA

Financial Management

(AP – AR - GL)

Inventory Management

AR Automation

Bad Debt Management & Reverse Charge

Financial Reporting

Trade & Logistics

Sales Confirmation

Budget Module Project Accounting

INTEGRATION POINTS

SYSTEM LEGENDS:Proposed New System New System Implementation Proposed Supporting Subsystem Current System (Maintained)

EXTERNAL FEEDS LAYER

CORE APPLICATION

LAYER

ENTERPRISE

APPLICATION LAYER

2 June 2016

Page 27: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Introducing Enterprise Data Warehouse

Core Application Repositories

Enterprise Application Repositories

ENTERPRISE DATA WAREHOUSE

Ap

plic

atio

n In

tegr

atio

n

Laye

r

Staging Database

Clean Master Data

Master Data Management

Analytics & Business Intelligence Layer

Strategic Analytics Operational Analytics Financial Analytics Predictions & Prescriptions

Dat

a D

icti

on

ary

Def

init

ion

External Feeds Repositories

2 June 2016

Page 28: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

Maturing the Organization

•Improving Information Management Framework•Implementing Digital Transformation•Enhancing Enterprise Architecture•Enhancing IT Business Operations•Enhancing IT Risk Management and IT Governance•Rationalizing IT Infrastructure

2 June 2016

Page 29: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

How Big Data Helps?

Page 30: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

The Evolution of Digital Transformation

Historical Real-Time Prediction PrescriptionMachine Learning

Data collected & Analysed for Statistical Purposes

Data Collected & Transformed into Data warehouse, providing Real-Time Information updates & trending

Integration with External Data Sources & Business Direction Inputs

Current Evolution Stage

2 June 2016

Page 31: BERNAS Digital Journey

PADIBERAS NASIONAL BERHAD

What have we achieved?

Overview and Insight on Capacity

Planning

Tarnish & Spillage Information

throughout Value Chain

Better management on Local Rice planting and

Harvesting season

Reduction on Port Detention and

Demurrage charges

Detail trends on rice distribution

nationwide

Reduction on Account Closing

turn-around-time

2 June 2016

Page 32: BERNAS Digital Journey

Thank You!

Fadhli Abdul Malek

(PMP, ITIL, TOGAF, CITA-A)

[email protected] +60129763732