IT TransformationIT Transformation
Personal Introduction – Maarten Buikhuisen
Joined Heineken in 2001: Enjoy to be there
General background at large International Companies – Alcatel: Sales, Project management and Operations
– ePearle: Internet start-up
Content
2. IT in Heineken
21 May 2008Heineken - IT Transformation page 4Heinekenpage 4
Heineken Today at a glance
Heineken brews great beers and builds great brands
Number 1 brewer in Europe, number 4 in the world (#3 with Scottish & Newcastle)
More than 170 international, regional, local and specialty beers
Employs over 54,000 people
Heineken® brand is the largest international beer by far
Available in almost every country on the planet (except for regions like Antarctica, the Sahara, etc.)
Consolidated beer volume about 120mhl (2007)
Revenue exceeds €12m (2007, before S&N acquisition)
Organic profit growth 2007: 22.6%
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Priorities for Action and Key Initiatives for 2007
The Heineken® brand
Central Purchasing
Continued focus on supply chain efficiency and Total Productive Management (TPM)
Where we choose to compete aim for #1 or # 2 position
Performance driven culture
Leaner management structure
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Information Technology @ Heineken
... because it's about people
Workplace Users 27,000 (before S&N)
SAP Users >15,000
65 on more than 350 sites
IT Employees ~700 (of which 150 are at Shared Service Centre)
SAP Systems >50 Production instances
>200 instances in total
Around 2%
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Delivering change to the business
Supplying and supporting infrastructure
development 3. Business
enhancement 4. Technology
advancement 5. Sourcing
Demand Side Controls quality of supply
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Extended Business Partners
Distributed IT Organizations
Role 3. Product Mgmt.
Role 4. Relationship Mgmt.
Where do we come from, where do we go ?
Significant progress in the past, including: – Introduced integrated systems (SAP) in most large OpCos
– Built a common ERP system and deployed it across some OpCos – Can be rolled out in medium OpCos in about 7 months
– Contains multi-year knowledge and experience
– Created one of the first central shared services in Heineken
– Integrated all Heineken OpCos in one Active Directory structure
but we’ve reached our limit in the current organizational model, Hence
... IT Sans Frontières (ITSF)
ITSF started in January 2007
Key principles guiding IT Sans Frontières: – Secure Business – IT alignment;
– Business Processes will be based on proven practices shared across the organisation.
– Functional governance to develop and use common processes
– IT infrastructure will be standardised globally.
– When a major business application implementation or upgrade is required, the common solution will be adopted.
– IT resources (including people, budgets, contracts, etc.) are centrally managed.
– Efficiency should improve both within IT and in the business processes through better use of IT.
– Maximise the value of partnerships
– Make stakeholders embrace IT value and direction, control IT costs and make IT value more transparent
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Demonstrate IT Value: Activities Value Pyramid
Commodities
ITSF work streams
Applications: ERP, CRM, Bus.Intelligence
IT Cost Control: running cost reduction, total investment management
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IT Transformation
– Network: in progress, from 200 contracts to 1
– Workplace: in progress
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Centralization standardization Outsourcing
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IT Sourcing and Services – accelerate transformation to IS LITE
From decentralized IT, where demand+supply is local, to:
Supply: – IT shared services retained organization coordinate system
development/deployment, support and vendor management
– Outsourcers provide technical work/execution at best cost (2-4 global partners)
– Key rationale: centralization leads to standardization, IT is not core business for Heineken
Demand: – Lean OpCo IT provide IT demand management and OpCo interface
– Business Information Management role is critical for change mgmt
– Focus on Vendor, Service and Project management
– Key rationale: demand/change management is better understood/done through co-location with users
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Towards the typical Future local IT organisationtion
Group IT Director
Functional
support
Demand • Local core
Group IT Director
Regional IT
Functional
Demand • Local core
Required alignment and attitude
Centralisation requires mutual trust: trust your colleagues
Centralisation is not loss/gain of power, but a shift of focus and accountability
Communication of direction is vital for standardisation/ centralisation
Balance process complexity and automation against related administrative burden: keep it simple.
Empowered Functional/Process Ownership enforce implementation of common processes
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IT Transformation is all about people
Clear communication about direction is key
Accept that transition takes time
Accept every OpCo has a different starting position
Be flexible with change in events
Represent the IT Function towards OpCo Management and vice-versa is a different role and requires a different mindset
Central IT has to take the lead in establishing new structure
Understand that (initial) managing a partner is very different and very difficult (internal and external)
Remember: Potential Loyalty conflict exists
21 May 2008Heineken - IT Transformation page 21page 21
Summary
... it's all about people
Priorities for Action and Key Initiatives for 2007
Information Technology @ Heineken
Gartner’s IS Lite
Where do we come from, where do we go ?
ITSF started in January 2007
Demonstrate IT Value: Activities Value Pyramid
ITSF work streams
Towards the typical Future local IT organisation
End target: typical Future local IT organisation
Required alignment and attitude
Summary