Innovation of organisational capability

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Innovation of organisational capability
Below is an article that I wrote a few years ago to give an update to the employees across the company on a newly formed division through merger and acquisition (M&E). The division was successfully integrated and value of the business was doubled in two years through innovation of organisational capability. Organisational capability comprises of innovation of technology/services in line with innovation of an organisation, as a competitive edge. The division had a transformational growth with our existing customer base and a significant jump in our new customers internationally. In line with our corporate strategy, the division was sold to a PE (private equity) firm at a twice the value than initially forecasted. Enjoy the article:
Since I assumed responsibility for the business division over half a year ago. I have had the pleasure of meeting nearly hundred existing and prospective customers. Customers consistently seem to understand and appreciate the value that our division offers. However, I don’t believe our story is as well known within company.
Who we are? – Our division was recently renamed to reflect more accurately what we do. We deliver proven business enterprise solutions to enable Operational Compliance and Control to the process and regulated industry. Our solutions allow pharmaceutical, life sciences, food and beverage, chemical and other process-related industries to enhance control of their manufacturing operations.
What are the target markets? – Our division targets two types of companies: mid-size process manufacturers (€100-€500m annual turnover), where we position our products as plant-centric business enterprise solutions and large process manufacturers (over €500m annual turnover), where our product is positioned as a key linkage point between standard shop floor manufacturing execution systems (MES) (e.g. in-batch solution) and corporate ERP (enterprise resource planning) systems (e.g. SAP, Oracle, JDE).
We now support nearly 800 clients. Some of the key clients include Kraft (running around 120 plants with our solution), Sun Chemical (17 plants), Cargill (second largest poultry factory in North America), Capsugel (a division of Pfizer) and McNeil Nutritionals (a division of Johnson & Johnson). Our most recent wins reinforce our global reach. NYCO, a French producer of lubricants for the global aerospace industry and Ben Than Breweries, a Vietnamese brewer, have both selected our product for their business enterprise solution needs.
Customers see our twenty years of developing process-specific solutions as a differentiator. For example, Omnichem, a worldwide supplier of speciality chemicals, quoted: “the main reason behind our decision to implement your product was because it was designed for process manufacturing and we felt that you understood process in a way that our enterprise solution vendors didn’t seem to.”
What value did we bring to our customers? – Operational compliance and control are key issues for senior executives. Our solutions help to address our customers’ most pressing business needs:
  • Reduce time to market
  • Minimise time to compliance
  • Control cost
  • Lower cost of ownership

Speed to market has a direct impact on the relative success or failure of a product. Companies need to react quickly to even the slightest changes in market conditions. Our solution’s patented production model provides precisely the flexibility our customers demand. Brewery Martin, a contract brewer, confirms “we have been able to reduce our overall inventory value by up to thirty percent and have achieved a flow of better and faster management information, and enhanced customer order management”.

Process manufacturers are also faced with complex and ever-changing regulations. Our solution enhances customers’ ability to minimise time to compliance with a full range of features including lot tracking and traceability, e-signature and electronic batch records. Cost control is essential in the process industry. Our solution’s advanced activity-based costing permits manufacturers to track, analyse and control costs at an extraordinarily detailed level. Our customers can create rolling budgets, perform historical analysis and simulate future business scenarios using “what-if” situational analysis, including finding ways to reduce wastage. According to Cargill, “product costing module has given us a flexibility in costing which before we didn’t have…., we are able to analyse our cost down to the individual cost component. The wealth of information available out of the system is invaluable”.

Our division pioneered the concept of “customisation without modification”(CWOM), ensuring that no changes are made to the source code. Thus, as customers adapt the product to their changing business environment, the initial investment is preserved. Our product was designed to facilitate integration to other business systems, including MES (manufacturing execution systems). Our product’s ease of use, stability and flexibility provide our customers with the lowest cost of ownership in the market.

Please feel free to contact us directly with any questions about our division and how we can help you and your customers achieve better business results.

Sanjay Razdan