Case 1-5: Royal DSM N.V. : Information Technology Enabling Business Transformation : Case 1-5: Royal DSM N.V. : Information Technology Enabling Business Transformation Group 5
Pimonpich - Ariyawan - Tacha
Kirakit - Wiphu – Kittiphon
07/15/2010 Outline : Outline A) General Issues (by Ariyawan)
B) Main Stakeholders (by Wiphu)
C) Theory and Concepts (by Wiphu)
D) Symptoms and Problems (by Kittiphon)
E) Alternatives & Evaluation Criteria (by Kirakiat)
F) Best Solution & Implementation Plan (by Tacha)
G) Evaluation and Review (Pimonpich)
H) Current Status Update (Pimonpich) A) General Issues : A) General Issues Facts:
- DSM founded in 1902 ,and in 1906 first coal produced in Netherland.
- In 1921, DSM started to produce coke-oven gas.
- DSM began to leverage its position and capibilities to produce chemical in 1929.
- After World War II, DSM opened its first research lab.
- DSM began to produce caprolactam during the 1950s.
- DSM built polyethylene and melamine plants in 1960s.
- In 1970, DSM stoped coal mining business and closed its last coal mine in 1973.
- During the 1980s, DSM restructured and extended its product through acquisitions.
- DSM starts joints ventures with Asian manufacturers at the end of the decade.
How can DSM upgrading the company’s Information and Communication Technology (ICT) to meet the demands of the new diversified company ? B) Main Stakeholders : B) Main Stakeholders We can divide the Stakeholders in two parts
Board of the committee
Executive level of the company
Customer C) Theory & Concepts : C) Theory & Concepts IT Impact map D) Symptoms & Problems : D) Symptoms & Problems E) Alternatives & Evaluation Criteria : E) Alternatives & Evaluation Criteria F) Solution & Implementation Plan : F) Solution & Implementation Plan Solution: VISION 2005
“Vision 2005” is the best solution to solve the current situation of the company because it focuses on establishing operational efficiency by implementing IT enabled operations which are standardized and flexible. It allows the company to have periodically change without costing too much time or reducing its productivity. The company can also develop a long-term technology plan which accommodates changes in operations and strategic changes with time.
Set up a qualified analysis team consisting of experts from various business units
Develop a cross-industry outlook and benchmark strategies from successful mergers
Create a benchmark to keep track on quality of operations (Six Sigma practices)
Keep track of international supply chain practices by adopting proactive outlook and, in the same time, learn from the best world wide practices
Develop efficient business practices that meet the requirements of suppliers and stakeholders by establishing a secure and reliable network infrastructure. G) Evaluation & Review : G) Evaluation & Review Evaluation Criteria
1. The effectiveness of each department can be evaluated by the Kaizen strategy “continuous process improvement” in order to improve productivity in the work place by minimizing and eliminating waste.
2. Ensure the goal of standardized IT infrastructure to be on the right track by controlling the business group not to influence network requirements.
3. Analyze the DSM to be capitalized on its core capabilities, proactively adding value creating through innovation, getting the required return on their investment and in effect creating a competitive edge over their competitors in order to evaluate the solution.
Review of the case
As DSM creates the new business as a core part of its growth strategy, the processes its ICT group developed to performance materials and life science product business to make its company more stable with high growth opportunities. The successful strategy of Vision 2005 leads DSM to the same high level of achievement of probably Vision 2010 in the future and became the business-oriented management organization. H) Current Status Update : H) Current Status Update In 2009 - Opening of DSM China Campus and being the first company to endorse the 'Roadmap to End Global Hunger'
In 2010- DSM sells DSM Agro and DSM Melamine to Orascom Construction Industries (OCI)
From the latest new on 30 June 2010, DSM announces breakthrough in technology for second generation.
As the graph below shows that the stock of DSM has been increasing after using the Vision 2005 from the year of 2000. In 2005, DSM starts using the Vision 2010 which builds on the strong foundation of the former vision 2005 program. Therefore, the company will keep continuing the vision 2010 because DSM is strengthen competitive position and then DSM does not want to change strategic direction.