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Enable One Communication Portal in a Diversified IT Environment

Enable One Communication Portal in a Diversified IT Environment. Akzo Nobel – OneHub Arjan Croezen , Akzo Nobel NV Bas van Amerom , Akzo Nobel NV. Agenda. Introducing Bas and Arjan Introducing AkzoNobel The AkzoNobel IT Landscape Initiating OneHub The OneHub Solution today

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Enable One Communication Portal in a Diversified IT Environment

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  1. Enable One Communication Portal in aDiversified IT Environment Akzo Nobel – OneHub ArjanCroezen, Akzo Nobel NV Bas van Amerom, Akzo Nobel NV

  2. Agenda • Introducing Bas and Arjan • Introducing AkzoNobel • The AkzoNobel IT Landscape • Initiating OneHub • The OneHub Solution today • Lessons learned

  3. 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

  4. Agenda • Introducing Bas and Arjan • Introducing AkzoNobel • The AkzoNobel IT Landscape • Initiating OneHub • The OneHub Solution today • Lessons learned

  5. 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

  6. 2% Other regions Akzo Nobel in the world Revenue by destination* 21% North America 49% Europe (incl. 7% emerging Europe) 19% Asia Pacific 8% Latin America * Pro forma 2007

  7. 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

  8. Great products and brands for a better tomorrow

  9. 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

  10. Organizational overview Supervisory Board Board of Management Corporate Staff Departments Business area Decorative Paints Business area Performance Coatings Business area Specialty Chemicals Service Business • Pulp & Paper Chemicals • Base Chemicals • Functional Chemicals • Surfactants • Polymer Chemicals • Specialty Polymers • Regional & Industrial • Continental Europe • Northern & EasternEurope • UK, Ireland & South Africa • Asia • United States • Canada • Latin America • Industrial Finishes • Powder Coatings • Marine & Protective Coatings • Car Refinishes • Packaging Coatings • Technology & Engineering

  11. Agenda • Introducing Bas and Arjan • Introducing AkzoNobel • The AkzoNobel IT Landscape • Initiating OneHub • The OneHub Solution today • Lessons learned

  12. 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

  13. Agenda • Introducing Bas and Arjan • Introducing AkzoNobel • The AkzoNobel IT Landscape • Initiating OneHub • The OneHub Solution today • Lessons learned

  14. 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”

  15. 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

  16. 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

  17. Agenda • Introducing Bas and Arjan • Introducing AkzoNobel • The AkzoNobel IT Landscape • Initiating OneHub • The OneHub Solution today • Lessons learned

  18. Coverage, transactions and performance make OneHub a professional and reliable service Coverage Transactions • > 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 • 172.000 transactions in 2005 • 278.000 transactions in 2006 • 373.000 transactions in 2007 • > 750.000 expected in 2008 Performance • 99.7% uptime • Less than 1 critical incident per quarter • 0 messages lost

  19. The OneHub team is lean and partly outsourced Bill Stubbins Steering Groups CIO OneHub manager Bas van Amerom Roll-out mgr Customer relations & business process consultancy Marjon Oomens Service Delivery Mgr Operations, support & standard connections Arjan Croezen Implementation mgr (New) product development • Development & Maintenance (on site) • Managed Operations (off-shore)

  20. OneHub technical architecture

  21. 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

  22. 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)

  23. 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

  24. OneHub monitoring • End2End Monitoring between 2 business partners (replaced by iWay BAM demo)

  25. OneHub growth areas • Application to Application integration • Further optimising EDI • eCustoms scenarios • eLogistics

  26. Agenda • Introducing Bas and Arjan • Introducing AkzoNobel • The AkzoNobel IT Landscape • Initiating OneHub • The OneHub Solution today • Lessons learned

  27. 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

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