Consumer Products

Business challenge In the face of increasing competition -Denma rk needed to enhance customer service levels and increase business efficiency by optimizing customer- facing and internal processes

Transformation Using IBM® Business Process Manager and IBM Blueworks Live™ software, the company identified areas of process improvement, modelled new processes and employed a collaborative, agile process development model.

Business benefits “For us, customer service is The Carlsberg a key priority… and that boils down to having 90% processes that are as reduction Group – in back- office time required to efficient as possible.” process cooler orders for —Kenneth Lindegaard, IT Director, customers Optimizing customer service Carlsberg Denmark Eliminates with IBM business process errors relating to product orders software Redefines the relationship Based in , Denmark and founded in 1847, Carlsberg is a Between business and IT in brewing company, selling and distributing over 500 brands in 150 markets process development worldwide. Its most prominent brand is Carlsberg Beer. Globally, the company employs approximately 46,000 people, 1,600 of whom work in the Denmark headquarters, managing IT and other functions for the Danish market. Share this Business process management project, Mr. Lindegaard The manual nature of Carlsberg’s modelling and IBM Business Process and his team identified a significant cooler order processes made it Manager software for process optimization number of process gaps and virtually impossible to definitively optimization and automation—his Brewing beer is a centuries-old inefficiencies. “We needed to quantify the cost of those manual team has implemented 16 business handcraft, but in today’s ever- improve and orchestrate our external processes to the organization; processes into production in changing competitive and technology customer- facing processes and however, the toll taken on the quality 18 months, including platform environments the IT systems that optimize back- office processes of the internal and external customer installation and configuration. support business processes and for our internal customers,” says experience was obvious. “Our back Processes span across the whole operations are just as integral to a Mr. Lindegaard. office was sending out three organization, from customer and beer company’s success as the spreadsheets a day, so a field rep material master data, coolers and By way of example, Mr. Lindegaard brewing art itself. might order a cooler that wasn’t in equipment, reporting and approval points to the largely manual stock because he was looking at the flows to ordering of IT equipment. Kenneth Lindegaard leads Carlsberg processes that governed how wrong sheet,” Mr. Lindegaard recalls. Denmark’s IT department situated Carlsberg’s field force ordered “Or he’d order the wrong type of “Our approach to business process on the grounds where the founder in- store beer coolers for their bar and cooler for a particular classification of management has been to use the J.C. Jacobsen started brewing beer retail customers. “Ordering a cooler customer. That was an unacceptable 80- 20 rule,” says Mr. Lindegaard. in 1847. His responsibilities range sounds simple, but they come in and unsustainable situation.” “Instead of spending time on building from overseeing all business multiple designs and configurations. deep and expensive integrations, processes to ensuring that the We have a field force of almost Collaborative we’ve chosen to orchestrate the company’s IT systems support 300 people, and each needs to processes at the outset, and that’s operations from one end of the value know stock levels for each cooler business process where we’ve used IBM Business chain to the other. “For us, customer configuration on an ongoing basis, management Process Manager. We can now do service is a key priority. We need to and they need to know which model our process optimizations based Mr. Lindegaard has assigned process have state-of-the-art­ ­ ­ technology that is available for each category of on what impacts our customers managers to oversee all process and optimizes service to customers, and customer,” he says. “That used most directly, like the cooler ordering IT- related activities for each functional that boils down to having processes to all be done through spreadsheets process, rather than spending area within the business, from that are as efficient as possible.” and emails, consuming a lot of time in areas that ultimately won’t back- office hours and resulting in a marketing and sales to production provide the benefit we might have During a large- scale migration to the lot of errors in our cooler orders.” and logistics. Using IBM business anticipated.” SAP ERP platform across Western process software—IBM Blueworks Europe and a subsequent change Live for process discovery and

2 Accelerating this effort, the process want. We’re collaborating with them “When we started analyzing the the business to ensure each process managers and developers use the to develop the processes they problems and the time consumption implemented reaches its full value- Brazos toolkit and Brazos Portal depend on, and we’re doing it in on cooler orders, nobody in the add potential. “Internally, people love developed by BP3, an IBM Business an agile way.” organization had an idea how big the the way that we’re talking to them on Partner that operates in Denmark, benefits would be. We knew it took a business level; we’re not talking the USA, and the UK. “Carlsberg is Business process some time, but everybody was systems until the very end. They’re under pressure to deliver a great user surprised how much time it actually keen on the fact that they don’t have interface for their business users. But transformation cost,” Mr. Lindegaard says. “We’ve to wait 12 months after handing it’s not just about how the interface To Mr. Lindegaard’s way of evolved from a resource-in tensive us their requirements only to get looks, it’s about how it behaves, how thinking, his company’s business and error-pr one model into one that something back that may or may not it either improves or impedes their process management journey vastly improves customer service and be what they were expecting. We can productivity,” says Scott Francis, has transformed Carlsberg into a that allows our consultants to spend now actually accelerate and provide chief executive officer of BP3 Global. streamlined, data-dr iven organization. much more time advising customers mockups in just a few days. So He points again to cooler ordering, than performing administrative duties. they’re giving us new requirements Mr. Lindegaard is thus sure to engage where Carlsberg has reduced the In a competitive market, the better we every week, because they’ve taken business users during process hours back office personnel must are at advising the customer on what ownership in business process development. “We have business dedicate to processing by over he should have on tap and how it management and appreciate the representatives as part of process 90 percent, this while virtually should be positioned, the more he collaborative way we’re working development because it infuses eliminating order errors. Field sales sells and the better supplier we are.” with them.” ownership of the processes all the personnel now access real-tim e way into the company, so we don’t Beyond customer-f acing processes, cooler inventory data and identify have to sell the solution to the rest Mr. Lindegaard’s group is monitoring the appropriate cooler model for a of the organization. Business is before-and-after­ ­ metrics throughout particular customer directly from their now embracing process changes mobile device at the customer site. because we’re providing what they

3 Solution components

●● IBM Blueworks Live

●● IBM Business Process Manager

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Take the next step To learn more about IBM business process software—IBM Blueworks Live and IBM Business Process Manager—, please contact your IBM marketing representative or IBM Business Partner, or visit the following websites: ibm.com/blueworkslive­ , ibm.com/software/products/en/­ ­ ­ business-process-manager-family­ ­ ­ ­

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