Andritz and S&T –partnership for business success

Klaus Glatz – CIO Andritz Group

Andritz and S&T – partnership for business success

2 Andritz and S&T – partnership for business success


The Andritz Group – Overview and company profile

Main areas of cooperation with IMG and S&T

ERP strategy definition and ASAP implementation

CIO Organizational Consulting

Office Communication Services and LiveMeeting

Summary

Questions and Answers

Contents

3

The ANDRITZ GROUP

Overview

Company

ANDRITZ AG, Graz, Austria (Group headquarters).

More than 150 production and service sites worldwide.

Employees: ~13,400 worldwide (as of June 30, 2009).

Key figures 2008

Order intake: 3,705 MEUR.

Sales: 3,610 MEUR.

Net income (incl. minority interests): 147 MEUR.

Equity ratio (as of December 31, 2008): 18.7%.

Products and services

Customized plants, process technologies, and services for the hydropower, pulp and

paper, metals, and other industries (solid/liquid separation, feed and biofuel).


4

The ANDRITZ GROUP

A world market leader in most business areas

Plants and services for solid/liquid separation for

municipalities and industries (e. g. mining, food

industry).

~10% ofGroup sales

Electromechanical systems for hydropower stations

– in particular turbines, hydropower generators, and

turbo generators; pumps.

~40% ofGroup sales

Plants and services for the production of pulp, paper

(especially tissue paper), board, and fiberboard;

biomass boilers.

~30% ofGroup sales

Production and finishing lines for metallic strip (for

carbon steel, stainless steel, and non-ferrous metal);

industrial furnace systems.

~15% ofGroup sales

Plants and services for production of animal feed (for

the petfood industry, the fish and shrimp feed indus-

try) and biomass pellets (especially wood pellets).

~5% ofGroup sales


5

The ANDRITZ GROUP

Growth through organic expansion and acquisitions


Compound Annual Growth Rate (CAGR)

of Group Sales 1998-2008: +17%

666 656

937

3.610

3.283

2.710

1.744

1.481

1.2251.110

1.319

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Sales of the ANDRITZ GROUP (MEUR)

PULP & PAPER

1990 Sprout-Bauer

1992 Durametal

1994 Kone Wood

1998 Kvaerner Hymac

1999 Winberg

2000 Ahlstrom Machinery

2000 Lamb Baling Line

2000 Voith Andritz Tissue LLC (JV)

2002 ABB Drying

2003 IDEAS Simulation

2003 Acutest Oy

2003 Fiedler

2004 EMS (JV)

2005 Cybermetrics

2005 Universal Dynamics Group

2006 Küsters

2006 Pilão

2007 Bachofen + Meier

2007 Sindus

2008 Kufferath

FEED & BIOFUEL

1995 Jesma-Matador

2000 UMT

2005 Chemes Strojarne

HYDRO

2006 VA TECH HYDRO

2007 Tigép

2008 GE Hydro business

2008 GEHI (JV)

ENVIRONMENT &

PROCESS

1992 TCW Engineering

1996 Guinard

2002 3SYS

2004 Bird Machine

2004 NETZSCH Filtration

2004 Fluid Bed Systems of

VA TECH WABAG

2005 Lenser Filtration

2006 CONTEC Decanter

METALS

1997 Sundwig

1998 Thermtec

2000 Kohler

2002 SELAS SAS

Furnace Div.

2004 Kaiser

2005 Lynson

2008 Maerz

6







Summary


Contents


S

Andritz Group

IT Strategy

Definition of an Andritz Group IT Strategy, continuous modification and extension

Definition of an Andritz Group IT organization

Global biz Apps vs. local IT infrastructure rework of the IT strategy, critical review of the IT

organization and structures, development of an implementation plan currently on – going

ERP Strategy &

ERP

implementation

support

Definition of the Andritz Group ERP strategy which resulted into on global ERP for the

Andritz Group

Rollout and implementation support to execute the defined strategy

External staffing of missing internal competence & personnel

Initialization and execution of “Think tank” meetings to identify and discuss actual but also

possibly upcoming topics

Is used as a discussion forum to challenge upcoming further development possibilities

Those two days meetings are held 3 – 4 times a year

“Think tank”

Infrastructure

related topics

Infrastructure concept mainly for ADS and Exchange to align multiple domains into one

single domain concept (GECITS Computacenter S&T)

Implementation and daily support of infrastructure related topics

Hardware and appliance delivery


Summary of main topics

Andritz and S&T – partnership for business success7

Andritz Group IT Strategy

CIO services

ERP Strategy

ERP implementation support (ASAP)

“Think tank”

Main areas of cooperation with IMG

Cooperation exists since 2003

Infrastructure related topics

ADS / Exchange

OCS & LM

MS Operations Manager

Hardware delivery

Main areas of cooperation with S&T

Cooperation exists since <1998

S&T Group


Summary of main topics


9







Summary


Contents


10


Andritz Group ERP strategy

Goals

Develoipment of harmonized business

processes

Development of a common ERP group

solution

ERP landscape that has to support

Group structure changes (Organizational

flexibility)

Common business processes

Step-by-step migration, no big-bang

Migration drivers

replacement priorities

cost considerations

Change Management

Clear existing uncertainty “What will

happen when…”

Change from random “Bottom-up” to

planned “top-down” (from local to a global

ERP strategy)

Predictability and credibility

Principles

Development Focus of ERP Roadmap

Lowest possible disturbance of running

businesses

Variant with lowest cost at manageable

risk

Implementation focus (to keep costs low)

Stay as much as possible with ERP

provided standard processes

Roll-out of same ERP processes globally

Strict version policy

Repositioning of IT Organization

System operation will be outsourced

Set-up of global competence center

Global cost sharing principles (e.g for Blue

Print Project)


11


Setup of the ASAP Competence Center (ASAP CC)

The Global ACC Rollout Team is responsible

for the implementation of the global template

with adoptions to local processes and the

training of the key users during a rollout

project.

Following roles are involved:

ACC Lead Consultants

ACC Consultants

Global ACC Development Coordination

Global ACC Basis Coordinator

Global ACC Rollout Team

The Global ACC Incident Team is responsible

for the fast and efficient collecting, tracking

and resolving of system errors and problems

based on already implemented processes and

functionalities.

Participants will be nominated on a limited

time period

Following roles are involved:

Global ACC Incident Coordinator

ACC Lead Consultants & ACC Consultants

External Consultants

Global ACC Incident Team

ASAP Competence Center



ASAP Rollout project overview 2009/2010

# Project

Name

Sta

tus

Ro

llou

t

Mo

del

Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11

R15 Andritz SWE (all entities)

3 A

R16 Andritz Fiedler

3 A

R17 Sundwig 3 A

R18 Andritz Singapore

3 B

R19 Andritz Uruguay/ Chile

3 C

R20 New Hydro locations within ATC

1 B

R21 Andritz Lenser

1 A

R22 Andritz BrazilPP

1 A

Kickoff Go live

Status:

1 = Project expected (proposal under consideration)

2 = Project approved (budget available)

3 = Project started

4 = Project finished – handed over to ACC

ASAP Rollout Models:

A = ASAP Standard Rollout Model (Model A)

B = ASAP Light Rollout Model (Model B)

C = ASAP Financial Rollout Model (Model C)

Q4/2009 Mar 2009

Q1/2010 Q3/2009

Jun/2010 Sep/2009

Q4/2009Feb 2009

Pre Kickoff

Jul/2009Apr/2009

Feb/2010Nov/2009

Q3/2010 Mar 2010

Blueprint May/2010 Q4/2010

Blueprint



ASAP Rollout project overview 2010/2011+

Kickoff Go live

Status:

1 = Project expected (proposal under consideration)

2 = Project approved (budget available)

3 = Project started

4 = Project finished – handed over to ACC

ASAP Rollout Models:

A = ASAP Standard Rollout Model (Model A)

B = ASAP Light Rollout Model (Model B)

C = ASAP Financial Rollout Model (Model C)

# Project

Name

Sta

tus

Ro

llou

t

Mo

del

Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

R23 Andritz Hydro USA / CA

1 A

R24 Andritz Kufferath DE + SK

1 A

R25 Andritz FB Humenne/SK

1 A

R26 Andritz HydroBrazil

1 A

Q2/2011Sept/2010

Q2/2011Sept/2010

May/2011 Q1/2012

Q2/2011Nov/2010


14

Global MDM

Concepts &

Processes

Definition of global standardization concepts (e.g. AST, AMC,

Classification, Characteristics, etc.)

Definition of globally valid master data processes (Creation, Change,

Lifecycle management)

Organizational

responsibility

Definition of roles

Assignment of group wide acting people to these roles

Provision and

management of

global master

data (data pool)

Identification and set-up of global master data (incl. identification of

potential scope, set-up in relevant applications, e.g. Matrix)

Management of global master data to support all core business

processes


Master Data Management – Global activities

Implementation

Permanent technical and organizational implementation of global MDM

Roll-out specific implementation of MDM (incl. pro-active preparation and

post roll-out activities)


Main consulting partner for the definition of

the ERP strategy for the Andritz Group

Analysis of the current ERP situation

Development of possible scenarios

Preparation of the strategy document for the

Executive Board meeting

ERP strategy definition

Support during the setup of the whole ASAP

program

Definition of an ASAP organization together

with meeting structures, principles,

templates and template structures,

documentation and communication, …

Being a member in the overall ASAP

steering committee and different

coordination teams

Usage of consultants intensively for the

blueprint phase

Usage of consultants in the rollout projects

Produce new ideas and experiences from

customers in the same industry

IMG has been a key player in the overall

ASAP program

SAP implementation project


Role of IMG


16







Summary


Contents


17


Establish a new Andritz Group IT

Achieve 10% yearly growth in

sales

50% Organic

50% complementary acquisitions

Increase share of service

business

30% of overall turnover

15% EBIT margin

Achieve EBIT goal

7% EBIT of Andritz Group

Customer proximity in new

BRIC core markets

Brazil

Russia

India

China

Strategic Goals Andritz Group Main Challenges for IT

Set-up of

regional IT

competencies

• Streamline of IT organizations within legal

entities

• Set-up of regional IT competence centers in

China, Brazil and India

• IT consolidation wherever reasonable

Fast integration

of new

acquisitions

• Integration at infrastructure level is established

• Allow fast roll-out of ASAP global processes

and applications after deal closing

Increase

Efficiency of IT

Organization

• Globalization of IT

• Clearly defined roles and functions

• Roll-out of global IT Processes

• Define global project portfolio management

• Implement global cost management


18



The organizational maturity level has to be improved

There is need for action in various IT functions

Maturity Level

205 IT staff are spread across 45 locations

No possible consolidation of competences

Fragmentation of Resources

840 servers are spread across more than 85 locations

Possible server consolidation potential not utilized

Fragmentation of Infrastructure

IT staff has to be managed via direct and multiple dotted

lines

Complexity of Reporting Lines


19



Scattered Andritz Group IT

High fragmentation of IT staff

Lack of consolidation of IT staff

Lack of consolidation of IT Infrastructure

Low level of maturity of IT organization

High complexity of IT organization

Low efficiency of IT organization

Future Andritz Group IT

Establishment of basic governance

principles

Implementation of a good practice IT

organization

Consolidation of application mgmt to major

sites

Consolidation of infrastructure mgmt. to

major sites

Implementation of a follow the sun

operations concept

Evaluate the possibilities for external

sourcing of services


Phase I

20


Establish a new Andritz Group IT – Transformation Program

Phase 2

Design Planning Implementation

n

Sustainability

Implementation of

the transformation

program

Ensure a

sustainable

implementation

Definition of the to

be status

Development of a

transformation

program

Change Management

Program and Project Management


21


Role and experiences with IMG – CIO Org Consulting

“As Is” analysis

Ro

le

“To Be” definition

General discussion about the “As Is”

situation

Identification of weakpoints and areas

for improvement

Guidance for the „As Is“ analysis

Evaluation of the „Need for action“

Triggering of the financial analysis

Support in the definition of the „To Be“

Andritz Group IT

Setup of an IT Transformation Program

Identification of the IT governance

model

Organizational regulations for a

business to IT alignment

Ex

pe

rie

nc

es

Using the existing knowledge and

experience accelerates the „As Is“

analysis phase

Based on their approach very efficient

and straight forward oriented

Whole topic was handled very slim and

target oriented

Utilization of existing know how

Outcome was a new organization and

needed functions

Additionally a transformation plan

which allows Andritz to go into the

planned directions

Governance definitions have been

formed

In the meanwhile the plans have been

approved


22






Office Communication Services (OCS) & LiveMeeting (LM)

Summary


Contents


23


Need for action


Calling to and from abroad creates very high costs through high roaming charges

Sharing of presentations and applications with internal and external partners is

heavily requested

Public tools are available which allows communication with almost no costs (e.g.

Skype) this tools create high security risks for enterprises but still are used for

erection sites

The implementation of OCS and LM inside our enterprise allows a secure VOIP

(Voice over IP) solution with additional features

The communication is routed inside our global network and therefore allows a cost

optimal way of communication

24


Usage of MS OCS & LM as a UC tool


Microsoft OCS delivers streamlined communication features for presence

information, instant messaging, conferencing and enterprise voice for businesses

around the world.

OCS key features:

VoIP (Voice over IP) based phone calls

Screen sharing

Instant Messaging

Main Benefits:

Improved communication methods with presence information for Andritz

employees

Reduced phone costs due to usage of the internal network

Cost savings by using Live Meetings without the need for travelling

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Summary


Contents


26

Customer

understanding,

external view

Know how about the customer and also the customers area of operation is essential

Proven track record for the area of the cooperation engagement

Cooperation should be a partnership, open communication

Continuity of resources especially in strategic topics is important

Attitude

Mode of

operation and

commercials

Structured and organized

Documentation of all activities as well as application/system related implementations

traceability

Proactive suggestions of further possibilities and ideas

Specialist expertise in the area of activities

Market oriented pricing

Delivery according to the agreed scope and time frame

Andritz’s

Initial Situation

A lot of small sales offices

Some big production sites

Big capital project sites typically in no man’s land

Andritz offices in approx. 50 countries globally

Customer oriented

High degree of willingness to perform and motivation

Agreements must be kept

Activities and tasks should be executed from the perspective of an internal resource

Attitude


Summary – Expectations in a close partnership


27


Summary – Experiences


High willigness

for success

Long lasting

partnership and

thrust

Successful

implementation

of projects

Due to their

experience

adding value to

our organization

Highly motivated

and engaged

people

Cooperation up

to an Executive

Level, therefore

enough attention

Summary

Experiences –

Andritz and S&T

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Summary


Contents


Thank you for your attention

29

Klaus GlatzDipl.Ing.

Chief Information Officer Andritz Group

Head of Information and

Communication Technology

Department

ANDRITZ AG

Stattegger Strasse 18

A-8045 Graz, Austria

Tel. +43 316 6902-2954

Fax +43 316 6902-92954

[email protected]

www.andritz.com

Any questions or comments?


mailto:[email protected]?subject=OCS Program Management

http://www.andritz.com/

Klaus Glatz – CIO Andritz Group


Andritz and S&T –partnership for business success

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