Technology growth platform IT One Siam Cement Credential Client Background The Siam Cement Group (SCG) is Thailand’s largest industrial business conglomerate with more than 100 companies under five business groups. It has approximately 38,000 employees and offers more than 64,000 products. SCG began as a cement manufacturer and has diversified to meet the needs of Thailand’s growing economy, establishing and participating in new industries as technology and market demand warranted. At present, the group has business interests in paper and packaging, petrochemicals, cement, building materials and distribution. Business challenge As part of a major restructuring program, SCG sought to introduce fundamental changes in the way it conducted business. Emerging from the 1997 Asian financial crisis, it needed to aggressively divest non-core divisions and focus on its core businesses to reduce costs, regain stability and increase profitability. SCG decided to outsource its information technology (IT) functions and service delivery to gain access to deep technical skills at a lower cost. The objective was to align SCG’s IT landscape with defined business needs to position it as a high performance business. Accenture and SCG shared an excellent, long-standing relationship. This led SCG to form a joint venture—IT One—with Accenture. By collaborating with Accenture, SCG gained access to recommended practices, insights and skill sets to support and help enable SCG’s growth agenda. Today, SCG is looking to rapidly expand internationally, particularly in the Association of Southeast Asian Nations (ASEAN) region as well as introduce value-added services and products in each of its business lines. SCG seeks to continue on this growth trajectory with the help of the robust IT support and services provided by IT One and Accenture. How Accenture helped In the initial contract that commenced in 2001, Accenture, through IT One, helped SCG implement and manage Asia’s biggest SAP customer relationship management (CRM) enterprise solution and other large enterprise business applications, delivering on its target of 30 percent productivity gains to the client. Accenture also provided IT skills training to 240 employees of SCG’s IT team and prepared them to implement 10 key strategic initiatives for IT and e-commerce. They were trained to provide complete IT business support, including Web-based applications, ERP, SCM, CRM and e-commerce infrastructure. These employees were later absorbed into IT One. The first phase of IT One’s business plan was so successful that in early 2004 SCG renewed its agreement with Accenture to continue with IT One for an additional four years. In this second phase, IT One’s challenge was to continue to deliver worldclass IT services that further increased capability and efficiency to SCG as well as to become a powerful end-to-end service provider in Thailand’s IT market. To help achieve this vision for IT One, Accenture worked with SCG on multi-tiered outsourcing and technology programs with Accenture continuing to take responsibility for infrastructure and applications outsourcing as well as key systems integration projects. Infrastructure Outsourcing The backbone of the initial engagement was infrastructure outsourcing (IO). Accenture provided, and continues to provide, ongoing infrastructure management of IT One’s infrastructure functions, including service desk support for technology incidents and requests, end-to-end management of distributed computing environments, delivery of consistent and secure network experience, optimizing IT spend and helping to enable a secure and stable environment. In fact, with a staff of 120 infrastructure personnel, IT One manages all applications across all business units for more than 100 SCG group companies. In addition, Accenture helped design and develop one of the largest virtualized data centers for SCG. This cutting-edge virtualized environment supports the entire application suite with uptime and service level agreements (SLAs) for critical applications like ERP, Web applications that touch customers and internal mail systems, among others. The data center hosts external clients with more than 370 managed servers and 200 managed WAN links. It provides the full spectrum of IO domain offerings from centralized service desk to the data center, security, network and workplace services to all its clients. Application Outsourcing In the application outsourcing (AO) space, IT One manages more than 160 applications and provides 24x7 support. The full suite of services includes application development, application maintenance, production support, enhancements, upgrades and testing, covering a wide range of technologies including ERP, SCM, CRM, e-business (especially Java), business intelligence, data warehousing and workflow management. IT One offers a shared customer service desk that handles incidents and requests for both applications and infrastructure, supporting more than 25,000 users spread over 22 countries. The service desk, with two levels of support, handles more than 10,000 calls each month, averaging above 400 daily calls. IT One also manages more than 60 SAP systems supporting 4000+ concurrent users and 100+ non-SAP applications. Underlining its leadership position in SAP, IT One was awarded the SAP Partner Awards 2007 for “Best ERP Project- SAP Implementation” and “Best Project with Leading Technology—SAP CRM Implementation.” Systems Integration Leveraging leading processes, methods and tools, Accenture has also helped with the following key systems integration projects to keep SCG competitive in the marketplace: • Upgraded SCG’s enterprise-wide SAP R3 system to Enterprise Edition 4.7. The enhanced system serves more than 20,000 employees and 5,000 SAP endusers • Helped implement the first SAP CRM installation in APAC for SCG Chemicals & Distribution • Implemented leading supply chain solutions from AspenTech & i2 • Helped with one of the largest PeopleSoft HR implementations in the ASEAN region • Implemented leading practice for accounting shared service solutions from SAP R3 and OpenText document management/business process management products • Introduced several new technologies across the enterprise, such as: — Enterprise integration: enterprise service bus and business process management — Virtualization: servers, storage — Web applications IT One completed the transformation into an independent IT services vendor successfully, adding prestigious companies such as Siriraj Hospital, Mitr Phol Sugar and Bureau of the Crown Property as its clients. Today, IT One provides application development, application management, customer support and infrastructure support services to more than 150 companies. The current contract will run till 2015. High performance delivered With more than 400 employees possessing extensive IT skills, including 250 SAP professionals, best-in-class resources and deep technology skills and industry focus, IT One delivers solutions that make a key difference to the profitability and performance of its clients’ businesses. IT One’s fast-paced, service-oriented environment is highly responsive to the business needs of its clients. Continuous improvements in service quality, introduction of new services and flexible pricing structures provide the clients with improved cost efficiencies and lower total operating costs for their infrastructure services. The integration of the entire infrastructure and application landscape, with service delivery across all offerings, was a new and innovative way of delivering application solutions that IT One pioneered in Thailand. As a result, IT One can quickly analyze and troubleshoot all incidents and service requests. Process efficiencies, such as directto-dealer shipment, have helped to eliminate most of SCG’s building-products warehouses and cut product delivery times from two weeks or more to a day or two. Other tangible benefits delivered by Accenture include: • Transformed the in-house, decentralized infrastructure service management capability from a business unit-siloed non-optimized environment to a stateof-the-art, centralized and virtualized utility computing environment • Introduced over 15 utility-based infrastructure services • Enhanced service levels with SAP R3 Actual Availability exceeding 99.94 percent in 2010 • Introduced ITIL-aligned service management for an application portfolio comprising more than 100 applications • Consistently exceeded SLAs for Actual Production Uptime across the application portfolio • Delivered year-on-year productivity improvements over the life of the contract • Delivered 30 percent operational cost savings over a three-year period Today, IT One has expanded its service footprint to 22 countries across the world, added more than 150 companies to its client list and serves more than 25,000 users. The venture has provided SCG with access to world-class IT skills, delivering even greater value to the shareholders. Through the IT One joint venture, Accenture has had a significant and positive impact on SCG’s growth across business units, helping the company to realize its business goals and achieve high performance. About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 246,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become highperformance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture. com. Copyright © 2012 Accenture All rights reserved. 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