Acesita Reformulates Business Management Model With IBM

IBM Global Business Services Project Enables Improved Decision-Making and Profitability

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SÃO PAULO, BRAZIL - 29 Jun 2006: Acesita, the sole integrated manufacturer of flat stainless and silicon steels in Latin America, announced today the results of a major investment in the transformation of its management model and overhaul of its IT environment. The implementation was jointly led with IBM Global Business Services. Two hundred professionals were involved in the project.

"Based on the identification of key business factors and the implementation of SAP R/3, Acesita can now review and adapt its IT governance and information systems model. This initiative is fundamental for our corporate strengthening as we can now work in a way that is more closely integrated with the changing needs of the business," said Ilder Camargo, Project and Systems Executive, Acesita.

By implementing a new business management model based on SAP R/3 with IBM, Acesita has increased the speed of decision-making as the project has made available a new cost and profitability model that enables online profit margin management. This allows the company to decide whether a given proposal should be pursued further or not.

Additionally, Acesita is reaping benefits in areas including increased labor productivity, improved supply chain process and reduced information systems maintenance costs.

According to Alexandre Kato, IBM Global Business Services consultant, "We conducted a sophisticated implementation; it not only involved change to introduce technology adjustments, but was also capable of predicting the benefits that the wide-ranging management project would bring to the business."

Acesita selected IBM Global Business Services as its partner in the project, after a process that included the assessment of the provider's business knowledge, and change management experience -- a key factor in the implementation of business management solutions; technical implementation skills and subsequent transfer of knowledge to Acesita. Another major requirement was the integration of the ERP system with Acesita's legacy production systems, which was solved using IBM's WebSphere Business Integration solution.

Background to project

This initiative derived from the company's need to update its information technology. As it carried out an assessment of its IT, Acesita identified the opportunity to conduct a wider-scope reformulation of its business, involving a new management model, of which technology was just one component. The company with IBM went on to define its core competencies and the business and IT infrastructure that would be required to support the new model.

As a result of this effort, the company arrived at five elements it considered key factors for the success of its business operations: becoming a world-class manufacturer, dominating its target market, achieving excellence in global finance and process management, improving personnel recruitment and development and increasing shareholders' trust.

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