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Akzo Nobel – OneHub
Arjan Croezen, Akzo Nobel NV
Bas van Amerom, Akzo Nobel NV
Agenda
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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
Key facts new Akzo Nobel
Revenue by segment
32%
36%
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2007 revenue EUR14.4 billion
Around 60,000 employees
EBITDA: EUR 1.9 bln
EBIT: EUR 1.4 bln
Net income: EUR 942 mln
32%
Decorative Paints
Performance Coatings
Specialty Chemicals
Pro forma 2007
© Akzo Nobel 2008
Akzo Nobel in the world
Revenue by destination*
21% North America
49% Europe (incl. 7% emerging Europe)
19% Asia Pacific
8% Latin America
2% Other regions
* Pro forma 2007
© Akzo Nobel 2008
Akzo Nobel in short
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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
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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
Organizational overview
Supervisory Board
Board of Management
Corporate Staff Departments
Business area
Decorative Paints
Business area
Performance Coatings
• Continental Europe
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• Northern & Eastern
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Europe
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• UK, Ireland & South Africa
• Asia
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• United States
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• Canada
• Latin America
Industrial Finishes
Powder Coatings
Marine & Protective
Coatings
Car Refinishes
Packaging Coatings
Business area
Specialty Chemicals
Service
Business
• Pulp & Paper
Chemicals
• Base Chemicals
• Functional Chemicals
• Surfactants
• Polymer Chemicals
• Specialty Polymers
• Regional & Industrial
• 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
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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
Stock and/or Forecast
Purchase order
(Planned) Delivery
AN site/
Customer
Supplier/
AN site
Goods receipt
Invoice
© 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
Akzo Nobel
sites
Suppliers
VMI
Web
1
HUB
© 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
Coverage
Transactions
 > 100 AN sites
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 > 1850 partners connected
 Worldwide
172.000 transactions in 2005
278.000 transactions in 2006
373.000 transactions in 2007
> 750.000 expected in 2008
 All BU’s connected; last
one in development
 Suppliers, transport
companies, customers,
internal AN
Performance
 17 trading networks
 VMI, OTC / PTP, e-Logistics,
JIT, e-invoicing, EDI, eWarehousing, e-HRM,
Master data synch., etc
 99.7% uptime
 Less than 1 critical incident
per quarter
 0 messages lost
© Akzo Nobel 2008
The OneHub team is lean and partly
outsourced
Bill Stubbins
Bas van Amerom
Steering Groups
CIO
OneHub manager
Marjon Oomens
Arjan Croezen
Roll-out mgr
Customer relations & business
process consultancy
Service Delivery Mgr
Operations, support &
standard connections
Implementation mgr
(New) product development
 Development & Maintenance (on site)
 Managed Operations (off-shore)
© Akzo Nobel 2008
OneHub technical architecture
Trading
Partner
Manager
Incoming Channel
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Routing
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Outgoing Channel
Incoming Channel
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Routing
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Outgoing Channel
Incoming Channel
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Routing
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Outgoing Channel
Incoming Channel
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Routing
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Outgoing Channel
Incoming Channel
Q
Routing
Q
Outgoing Channel
Incoming Channel
Q
Routing
Q
Outgoing Channel
Incoming Channel
Q
Routing
Q
Outgoing Channel
Incoming Channel
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Routing
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Outgoing Channel
Canonical Format
Pass-through Channel
Pass-through Channel
© Akzo Nobel 2008
OneHub technical capabilities
• Formats
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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
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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
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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
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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
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Change mindset & way of working
Communicate and guide employees well:
- People are essential to successful e-business
© Akzo Nobel 2008