enable one communication portal in a diversified it environment akzo nobel – onehub arjan croezen,...
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Enable One Communication Portal in aDiversified IT Environment
Akzo Nobel – OneHub
Arjan Croezen, Akzo Nobel NVBas van Amerom, Akzo Nobel NV
© Akzo Nobel 2008
Agenda
• Introducing Bas and Arjan• Introducing AkzoNobel• The AkzoNobel IT Landscape• Initiating OneHub• The OneHub Solution today• Lessons learned
© Akzo Nobel 2008
Introducing Bas and Arjan
• Bas van Amerom- Studied Information Management at the Erasmus University Rotterdam, NL
- Business consultant focusing on business improvement through IT
- Manager OneHub since August 2007
• Arjan Croezen- Studied Business Information at the HES Groningen, NL
- Project manager at Akzo Nobel for 18 years
- Service Delivery Manager OneHub since April 2005
© Akzo Nobel 2008
Agenda
• Introducing Bas and Arjan
• Introducing AkzoNobel
• The AkzoNobel IT Landscape
• Initiating OneHub
• The OneHub Solution today
• Lessons learned
© Akzo Nobel 2008
Revenue by segment
36%
32%
32%
Decorative Paints Performance Coatings
Specialty Chemicals
Key facts new Akzo Nobel
• 2007 revenue EUR14.4 billion• Around 60,000 employees• EBITDA: EUR 1.9 bln• EBIT: EUR 1.4 bln• Net income: EUR 942 mln
Pro forma 2007
© Akzo Nobel 2008
Akzo Nobel in the world
Revenue by destination*
49% Europe (incl. 7% emerging Europe) 21% North America
19% Asia Pacific
8% Latin America
2% Other regions
* Pro forma 2007
© Akzo Nobel 2008
Akzo Nobel in short
• Akzo Nobel: Global Fortune 500 company• Leading industrial company in coatings and chemicals• Listed on Euronext Amsterdam stock exchange• Chemicals Industry leader on the Dow Jones Sustainability Indexes• Combined revenue for 2007 totaled EUR 14.4 billion (pro forma figures)• Akzo Nobel currently employs around 60,000 people (pro forma figures),
with operating subsidiaries in more than 80 countries
© Akzo Nobel 2008
Great products and brands for a better tomorrow
© Akzo Nobel 2008
Brands and products that
• Protect the world’s buildings and infrastructure• Bring color to all aspects of our lives• Promote safety and good health• Allow us to travel and communicate• Furnish our homes and offices• Help society respond to the challenges of sustainability
© Akzo Nobel 2008
• Pulp & Paper Chemicals
• Base Chemicals• Functional Chemicals• Surfactants• Polymer Chemicals• Specialty Polymers• Regional & Industrial
• Continental Europe• Northern & Eastern
Europe• UK, Ireland & South Africa• Asia• United States• Canada• Latin America
Business areaSpecialty Chemicals
Business areaDecorative Paints
Organizational overview
Supervisory Board Board of Management
Corporate Staff Departments
Business areaPerformance Coatings
Service Business
• Industrial Finishes• Powder Coatings• Marine & Protective
Coatings• Car Refinishes • Packaging Coatings
• Technology & Engineering
© Akzo Nobel 2008
Agenda
• Introducing Bas and Arjan
• Introducing AkzoNobel
• The AkzoNobel IT Landscape
• Initiating OneHub
• The OneHub Solution today
• Lessons learned
© Akzo Nobel 2008
AkzoNobel is bundling IT into shared services
• Untill recently BU’s and sometimes regions (until 2008; 10 BU’s existed) were free in their IT software selection and implementation- Resulting in a number of different ERP and other back-office supporting systems
- Resulting in a number of separate datacenters
• Last two years AkzoNobel is moving towards a more centralized, shared service approach- Strategy to try and move to one preferred system per information area
- Share contracts and physical layer of IT
- Shared service initiatives were named One-xxx….
• Currently datacenters, voice, firewall, wan, external connectivity are shared- OneHub is the shared e-gateway for connectivity to external partners
© Akzo Nobel 2008
Agenda
• Introducing Bas and Arjan• Introducing AkzoNobel• The AkzoNobel IT Landscape• Initiating OneHub• The OneHub Solution today• Lessons learned
© Akzo Nobel 2008
AkzoNobel OneHub
• Role/service:- optimizing B2B processes through e-technology
- typical business scenarios are VMI, OTC, e-Logistics & EDI
• Drivers: - reducing OWC, transaction, transportation & supply chain costs
- increasing service & efficiency (= time & quality)
- reduction of IT costs & sharing knowledge
• Focus/core product:- single e-transaction gateway of Akzo Nobel to outside world
- based on principle “connect once, connect to all”
© Akzo Nobel 2008
Business drivers initiated the OneHub shared initiative
• 7 years ago Akzo Nobel Coatings launched a project to roll-out Vendor Managed Inventory (VMI) across all sites
Purchase order
Stock and/or Forecast
Invoice
Goods receipt
(Planned) Delivery
Supplier/AN site
AN site/Customer
© Akzo Nobel 2008
Strong and re-useable IT architecture required to support VMI
• VMI requires extensive information exchange between Akzo Nobel and it’s suppliers- IT was asked to support this business process in an efficient and re-useable
manner
SuppliersAkzo Nobel sites
VMIWeb
HUB1HUB1
© Akzo Nobel 2008
Agenda
• Introducing Bas and Arjan
• Introducing AkzoNobel
• The AkzoNobel IT Landscape
• Initiating OneHub
• The OneHub Solution today
• Lessons learned
© Akzo Nobel 2008
Coverage, transactions and performance make OneHub a professional and reliable service
> 100 AN sites
> 1850 partners connected
Worldwide
All BU’s connected; last one in development
Suppliers, transport companies, customers, internal AN
17 trading networks
VMI, OTC / PTP, e-Logistics, JIT, e-invoicing, EDI, e-Warehousing, e-HRM, Master data synch., etc
Coverage Transactions
172.000 transactions in 2005 278.000 transactions in 2006 373.000 transactions in 2007 > 750.000 expected in 2008
99.7% uptime Less than 1 critical incident
per quarter 0 messages lost
Performance
© Akzo Nobel 2008
The OneHub team is lean and partly outsourced
OneHub manager
Roll-out mgr
Service Delivery Mgr
Implementation mgr
CIO Steering Groups
Customer relations & business process consultancy
Operations, support & standard connections
(New) product development
Development & Maintenance (on site)
Managed Operations (off-shore)
Bas van Amerom
Marjon Oomens
Arjan Croezen
Bill Stubbins
© Akzo Nobel 2008
OneHub technical architecture
Canonical Format
Trading Partner Manager
Incoming Channel
Incoming Channel
Incoming Channel
Incoming Channel
Incoming Channel
Incoming Channel
Incoming Channel
Pass-through Channel
Outgoing Channel
Outgoing Channel
Outgoing Channel
Outgoing Channel
Outgoing Channel
Outgoing Channel
Outgoing Channel
Pass-through Channel
Routing
Routing
Routing
Routing
Routing
Routing
Q
Q
Q
Q
Q
Q
Q Routing
Q
Q
Q
Q
Q
Q
Q
Incoming Channel Q Routing Outgoing ChannelQ
© Akzo Nobel 2008
OneHub technical capabilities
• Formats- CIDX (www.cidx.org)- iDOC (ifr.sap.com)- xCBL (www.xcbl.org)- GUSI- XMLANC (OneHub proprietary)- CSV (OneHub proprietary)- EDI (Edifact, X12)- Flat ASCII files
© Akzo Nobel 2008
OneHub technical capabilities
• Message protocols- Plain HTTPS with client certificates- Plain HTTPS with username/password (AN internal)- RosettaNet (Elemica Trading Network)- FTP (AN internal)- SMTP (outbound only)- SAP RFC (AN internal)- AS2 (VAN)
© Akzo Nobel 2008
OneHub service levels
• Availability of 99,7%• Severity 1
- 1 hour notification time
- Resolution time : 95% within 4 hours
• Severity 2- 2 hour notification time
- Resolution time : 95% within 1 business day
• Severity 3- 2 hour notification time
- Resolution time : 95% within 2 business days
• Severity 4- 2 hour notification time
- Resolution time : To be agreed with management team
© Akzo Nobel 2008
OneHub monitoring
• End2End Monitoring between 2 business partners (replaced by iWay BAM demo)
© Akzo Nobel 2008
OneHub growth areas
• Application to Application integration• Further optimising EDI• eCustoms scenarios• eLogistics
© Akzo Nobel 2008
Agenda
• Introducing Bas and Arjan
• Introducing AkzoNobel
• The AkzoNobel IT Landscape
• Initiating OneHub
• The OneHub Solution today
• Lessons learned
© Akzo Nobel 2008
Lessons learned
• Focus on business (willingness to) change, not on IT solution• Multi-disciplinary project team (customer & supplier)• “Back to internal basics” / data accuracy, before implementing VMI• Agree on improvement targets & evaluate using supply chain KPI’s• Negotiation of e-business agreements can be time consuming, but it
pays off• Standardisation of business process and data exchange• Messaging hub = proven concept• Priority setting: speed of implementation is key
• Change mindset & way of working • Communicate and guide employees well:
- People are essential to successful e-business