Cemex Case Essay Sample
CEMEX is one of the world’s top manufacturers of cement and concrete maker and it is quickly distributing across the Earth. functioning 1000s of customer’s everyday through a world-wide web. CEMEX based in Mexico. At first CEMEX’s scheme are improve and increase their net income to more efficient by selling merchandises and turn into selling of complete solution because they have troubles in their concern. because of deficiency of good communicating system. conditions alterations. traffic jams and jobs with edifice licenses. In 1985. CEMEX developed a series of systems that would enable to pull off unforecastable demand better than its rivals. A major program was to construct a telecommunication substructure. However. it was hard to set up fast and dependable telecommunications between CEMEX’s geographically dispersed operations via Mexico’s public telephone company. They apply an information system that gives solutions to the jobs. CEMEX Net was established. and it’s allowed informations and voice transmittal among the 11 production installations in Mexico. And that CEMEX addition efficient production. distribution and bringing procedure. It is for the company to increase their productiveness and manages operations good.
As the company because larger. more workss in different locations. direction had a greater demand for accurate. seasonably and easy information for public presentation reappraisal and determination devising. CEMEX needs to be able to accurately observe and measure exposures to proactively protect the systems on its web. It besides needs to proactively forestall informations loss. particularly the loss of rational belongings. Otherwise. with bringings of majority pulverizations. errors are non merely an incommodiousness. Should CEMEX present the wrong class of cement to a client who so used it for the foundations of a edifice. this would be an improbably dearly-won and clip devouring mistake to rectify. That’s the challenge was CEMEMX confronting to guarantee the right vehicle delivers exactly the right merchandise to the right client site.
CEMEX had trained employees on concern package through category room direction plans. This included preparation of endeavor applications and a assortment of diverse concern systems. CEMEX’s IT section faced the challenge of implementing new system throughout CEMEX’s planetary parts in the United Kingdom. Germany. France. Poland. Ireland and Croatia. This important undertaking required preparation 6000 users on the new system located throughout the six different parts and within a short length of clip. With such a big preparation on new system. schoolroom merely direction for employees at each geographic location would be really hard and cost prohibitive. CEMEX worldwide users needed to be trained rapidly and knowledge needed to be transferred into different linguistic communications that’s the preparation challenges CEMEX faced. Besides. CEMEX faced the immense challenge of how to quickly incorporate the freshly acquired companies into its bing operations and to turn around any under-performing or ill managed companies. The post-acquisition integrating squad. made up of gifted and experient executives and employees. was sent to analyse and incorporate every new acquisition.
They performed undertakings such as reassigning direction accomplishments to local directors. extinguishing duplicate functional countries and functions. bettering information engineering. standardising concern procedures. and enrolling and developing people with endowment. To better information engineering. the integrating squad installed new computing machines and package harmonizing to the CEMEX IT criterions and procedures. The squad believed that altering the values and behaviours of employees in the freshly acquired company was of import. Communicate with each other can via electronic mail and throwing off in trays and out trays. Therefore. integrating squad frequently spent months—even up to a twelvemonth for developing people in how to utilize the IT and follow the new concern procedures.
Reflecting on experience of incorporating the first few acquired companies into CEMEX. edifice IT substructure was non sufficient. hence CEMEX included being “people oriented” as a choice for engaging IT directors and launched developing class on human doctrine as portion of the concern procedure plan. So that the direction squad learned how to increase people’s willingness to accept new thoughts and follow new patterns. At last. this plan was really successful ; it helped to switch the focal point of planetary information system design from technological substructure to information procedures and utilizing it. On the other manus. squad members were motivated and rewarded by sharing portion of the cost nest eggs.
Equally good as altering the focal point of information system design. CEMEX enhanced its technological substructure and reorganized its IT squad during this period. In 1992 CEMEX installed ISDN to replace the orbiter communications system and adopted JD Edwards’ criterion package bundle for finance and distribution. So they can concentrate on measuring concern demands for IT. In 1993 CEMEX realized that its IT squad had been developing competency in incorporating IT platforms and foresaw the potency of leveraging this competency to offer confer withing services to other companies. At the same twelvemonth. CEMEX rolled out Lotus Notes. they to the full back up paperless information sharing and pushed his staff to follow the new information engineering. Besides. cut down utilizing paper. It’s good for environment. CEMEX’s distribution challenge did non depend on the IT substructure. it besides relied on direction patterns to roll up and treat client feedback. CEMEX give clients short studies to finish upon bringing and entered into on-line client files and displayed diagrammatically. Furthermore. roll uping elaborate client information subsequently facilitated the development of a package that used construction type and clime conditions to cipher the precise strength and lastingness of the remark a client would necessitate.
The information system helped alter how people managed their clip and work. Information was readily available in the system. Employees no longer had to halt what they were making expression for information. It allowed persons more clip for more originative job resolution.
CEMEX besides developed an internal worldwide benchmarking database on production and gross revenues to let employees entree to information about operations. Many acquired entities were traditional companies. in which information had by and large been reserved merely for senior direction. It’s aid to take the incredulity of some employees. The information system besides allow employees to larn from errors and increase fruitfully and pull off its operations more expeditiously. The company has gained a important competitory cost advantage over its rivals by puting up an first-class distribution substructure and centralized. computerized bringing web in which every minute of every truck is monitored in existent clip. enabling on-time bringing of cement and ready-mix to clients.
They put more clip on the engineering information cause of CEMEX had the vision to see the challenges presented by that scheme how engineering could be used to get the better of them. CEMEX understanding the trucks on the route can be re-routed to more immediate demands. but instead that improved communicating between CEMEX’s disparate locations could better company public presentation as a whole. In add-on to this vision. have the fortitude to take on traditional corporate methods of operations and revamp them for success in a technologically goaded concern environment.
As described in the instance. CEMEX’s gross increased about 500 % over a 10 twelvemonth period. CEMEX achieved this degree of success by holding a strong apprehension of its industry and by besides using reasonable concern determinations that leveraged this apprehension. Specifically. they understood early on that the company’s primary merchandise. cement. had low labour costs but high transit costs. Although a simple and apparent construct. better client services and trueness could be achieved. At last. CEMEX rollout of assorted companywide e-enabling enterprises such as e-selling. e-procurement and e-workforce. These e-business enterprises were launched to promote clients. providers and employees to leverage on CEMEX’s investing in the cyberspace and intranet in order to intensify the relationship with these stakeholders and to take down costs. CEMEX had legion options for the future way to planetary growing. international acquisitions. e-business consulting. procurance portals distribution logistics and enlargement in the building industry. Those tendencies are really of import feature of the industry.
