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…
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© 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
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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.
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 2013 LASER ITSC
Dynamic Latin America
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© 2013 LASER ITSC
Agenda
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1. Holcim Group Overview2. Holcim Group: IT Strategy3. LATAM IT Clustering Process4. Governance5. BPO & Key Users Organization6. Learnings and final message
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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%
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 2013 LASER ITSC
Holcim: Group IT Clustering in progress
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From 1999 … …. 2013
Holcim Group, IT consolidation...
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 2013 LASER ITSC
Agenda
14
1. Holcim Group Overview2. Holcim Group: IT Strategy3. LATAM IT Clustering Process4. Governance5. BPO & Key Users Organization6. Learnings and final message
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 2013 LASER ITSC
LATAM : IT Clustering process
From 1999 … …. 2013
LATAM Journey, 14 years later!
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
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
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Brasil
Argentina
Chile
Ecuador
ColombiaEl Salvador
Nicaragua
Costa Rica
Mexico
Holcim left it s operations in Venezuela (2008) andPanama (2009)
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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
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Brasil
Argentina
Chile
Ecuador
ColombiaEl Salvador
Nicaragua
Costa Rica
Mexico
Holcim left it s operations in Venezuela (2008) andPanama (2009)
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 2013 LASER ITSC
SAP Customer Center of ExpertisePrimary Certification
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Valid until Jan. 2014
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 2013 LASER ITSC
Agenda
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1. Holcim Group Overview2. Holcim Group: IT Strategy3. LATAM IT Clustering Process4. Governance5. BPO & Key Users Organization6. Learnings and final message
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
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
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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)
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 2013 LASER ITSC
LASER Organization
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© 2013 LASER ITSC
Agenda
LASER IT - Service Center, Edson Massami Tsuda, 2013-01-15 25
1. Holcim Group Overview2. Holcim Group: IT Strategy3. LATAM IT Clustering Process4. Governance5. BPO & Key Users Organization6. Learnings and final message
© 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
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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.
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 2013 LASER ITSC
LATAM BPO’s Organization – Matrix (example)
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
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
Key User Organization
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 2013 LASER ITSC
Training of Key Users
• Training Catalogues
• Training Calendar� In https://portal.holcim.com/irj/portal (LASER)
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 2013 LASER ITSC
Agenda
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1. Holcim Group Overview2. Holcim Group: IT Strategy3. LATAM IT Clustering Process4. Governance5. BPO & Key Users Organization6. Learnings and final message
LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 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
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© 2013 LASER ITSC
Learnings and final message 2/2
• 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
35LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
© 2013 LASER ITSC
Learnings and final message 2/2
• 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
36LASER IT Service Center, Edson Massami Tsuda, 2013/06/12-14
and the Journey never ends…
© 2013 LASER ITSC
10 June 2013IKM/UBL
Strength. Performance. Passion.
38
LASER ITSC Reunião Gerencial LASER – Junho 2010 BIA 11.06.2010 / AC
uso interno