Optimizing Operations h h M d through Managed

ServicesServices

Room 4

Optimizing Operations through Managed Services – Room 4

Reshaping IT How Fujitsu Supports Campofrio’s Strategy and New European SAP Implementation

Fabio di CapuaFabio di CapuaCTOCampofrio Food Group

10:00 h

2

10:00 h

3

C f i F d GCampofrio Food Group

Fabio Di CapuaMunich, November 9th 2011

4

Agenda

• Company introductionC• Challenge and IT solution

• Critical success factors• Lessons learned• Q&A

5

Yesterday, early in 2009

6

Today

7 i t d d t ti i (IOC’ )7 interdependent operating companies (IOC’s)+ Caroli Foods Group (Romania)

7

Joint Venture between Campofrio and Caroli

Campofrio Food Group is the largest European operator in the processed meats…

7 interdependent operating companies + a JV in Romaniathat are leaders in their markets / categories

France (#1) & Switzerland 12 manufacturing plants

The Netherlands (#1)2 manufacturing plants

Germany1 Sales/Marketing office

Belgium (#2) & LuxembourgSpain (#1)

Romania (#1)2 manufacturing plants

Belgium (#2) & Luxembourg5 manufacturing plants

Spain (#1)10 manufacturing plants

Portugal (#1)2 manufacturing plants

8Italy & USA (#2)5 manufacturing plants

…leveraging a unique European footprint with strong local brands in our product categories

The Netherlands

France

18%Belgium

`

23% Germany

1%R i

25%

CFG Brands Value Share`

` `Spain

29% Italy

15%

Romania

16%Italy

(%)*Portugal*

63%

15%

`

63%

9Source: MAT Nielsen / IRI December 09 – Value share of Branded Processed meats in Modern Retail channels

Source: MAT Nielsen / IRI May 2011Value share of Branded Processed meats in Modern Retail channels Self-service

* In Cooked Ham only

Our Brands

More than half of our sales are branded products, most of them in premium segments, representing the highest possible standards of quality and taste for our consumers

Although these brands still have very strong roots in their country of origin, where they have been built on years of tradition in the art of making the finest “charcuterie” products, some of them are already well-known in other European countries.

Because we believe that investing in strong brands consists in having the best possible structured portfolio of both local and European brands and products, developing best practice approaches to product management, and keeping a very determined focus on the actual return of all our marketing investments, we are also able to maximize the efficiency of our response to our customers.

GROUPE AOSTEFrance & Switzerland

CAMPOFRIOSpain

FIORUCCIItaly

IMPERIAL MEATSBelgium & Luxembourg

NOBREPortugal

CAROLI FOODS GROUPRomania

STEGEMANThe Netherlands

CFG DEUTSCHLANDGermany

10 Note: Oscar Mayer and Weight Watchers are licensed brands

Our Key Facts

7 interdependent companies operating in 9 countries + a Joint Venture inin 9 countries, + a Joint Venture in Romania

8 700 employees8,700 employees

35 manufacturing facilities

469,000 tons - total annual volume

2.1 billion euros annual sales

Company headquarters in MadridCompany headquarters in Madrid

11Source: Campofrio Food Group December 2010Note: Figures do not include Caroli Foods Group

How big are 469.000 TONS ?

• 600 Million iPad (780 gr)

• 120 000 Hummer H2 (3 900 kg)120.000 Hummer H2 (3.900 kg)

• 39.000 African Elephants (12.000 kg)

• 2.500 Blue Whale (181.000 kg)

• 795 Fully loaded Airbus 380 (590.000 kg)

• 1,28 Times New York Empire State Building (365.000 tons)

0 93 Ti D b i B j Kh lif (500 000 t )• 0,93 Times Dubai Burj Khalifa (500.000 tons)

12• But only 1/14 of the Great Pyramid of Gyza (6,5M Tons)

How this translates into IT terms?

• 2 of everything….

• But also 3, 4, 5 …..

13

The Future?

• Vision: becoming one of Europe´s most admired and successful food companiesand successful food companies

• Organic and Inorganic grow– Merge and acquisitions– Joint ventureJoint venture– Sales

N M k t– New Market

• We need to be ready!!

14

How do we approach this

Infrastructure Outsourcing Project• Infrastructure Outsourcing Project (Network, Data Center and System Support)Support)

• Unified ERP Project

15

Fujitsu role

• Provide CFG Corporate Data Center – IU4SAP (HW Storage SAP Basis System support)– IU4SAP (HW, Storage, SAP Basis, System support)– non-SAP systems (Corporate WEB, BI, DW..)

• Provide System Support for all Data Center Systems• Provide System Support for all Data Center Systems• Lisbon SPOC for Spanish / English languages

16

Fujitsu designed technical solution for CFG

• The main principle in the design has been to adopt a modular approach, based in IU and IU4SAP concepts. CFG policy is focused on developing higher-margin products and growth prospects, through acquisition. The highly fragmented European market is a key growth opportunity for CFG, and consequently Fujitsu has designed a modular service with flexibility and responsiveness which can be expanded easily to include new acquisitions.

• With this modularity Fujitsu achieve:• With this modularity Fujitsu achieve:– A scalable service, regardless of the growth and decline of demand due to external factors– A service that will quickly adapt to possible requirements of new business or from existing

infrastructure– A very flexible and agile service that can be extended to new business functionality – A predictable financials and easy to billing mode.

T h i l S l ti• Technical Solution:– Use one of Fujitsu strongest and best Data Centers in Europe– Most of the aplications can benefit from this, using a Campus solution for DR– When necessary use a Metro Solution between our both DCs with a DWDM interconnectWhen necessary, use a Metro Solution between our both DCs with a DWDM interconnect– Standardization and virtualization are the main goals. – Avoid any legacy components.– As basis for SAP and Non-SAP services Fujitsu use an IaaS-like utility model that can also be

17

extended to deliver metro DR.– The storage layer is based on a full virtualized SAN with sync-mirror between the DCs.

Fujitsu designed technical solution for CFG

• The main principle in the design has been to adopt a simple and transparent Service Model.– using simple Parameters for a flexible monthly measurementusing simple Parameters for a flexible monthly measurement– using parameters which correspond with CFG business– And using as few parameters as possible

• IU4SAP solution is based in the innovative concept of Managed transactions, as these are representing the real utilization of a SAP system. IU4SAP is billing using:– A monthly fix fee per system: Baseline– A monthly fix fee per system: Baseline– A variable fee based in Managed Transactions per system– A fee for the “real” storage utilization (Managed Storage)

• IU solution is based in a “Service catalogue” that includes a unit price for any item needed:

WM H ti d t i it CPU RAM– WMware Hosting: managed storage; processing capacity; vCPU; vRAM– WMware Management: operating system (linux/windows); Database managed

(Oracle; SQL); Middleware managed

18

Managed Transactions

• Managed transactions are representing the real utilization of a SAP system. This measure has several benefits:y

– SAP Transactions represents the business of the customerTransactions are absol te al es– Transactions are absolute values

– Transactions are not open to interpretation and are clearly defined– Transactions are transparent and verifiable and can be checked

directly within the system (using SAP dialog transaction ST03N)– Transactions cannot be significantly influenced by the service

provider – as is the case with data backup, for examplep p, p– Transactions are independent, i.e. not related to any other metric

(such as response times, hardware/load, etc.)– Transactions can be measured for all SAP applications– Transactions can be measured for all SAP applications– Metric corresponds to the services provided and is therefore suitable

for SAP outsourcing

19

Managed Transactions

• Monthly fee per SAP systems consists of : Baseline Fee + Executed Transactions + Database Storage size

• Managed transactions have a Unit of Measure of 100k managed• Managed transactions have a Unit of Measure of 100k managed transactions and systems

• Agreed flat rate (0 Euro) above certain number of transactions for production systems

• QA & DEV systems just pay for baseline, not for executed transactions– Not business related activitiesNot business related activities

GOLD BRONZEB li B li

Transactions monthly Price ( per SAP system)Baseline Quantity

Baseline Quantity

Per 100k Managed Transactions APer 100k Managed Transactions BPer 100k Managed Transactions CPer 100k Managed Transactions D

FLAT RATE

Managed Transactions 000K - 500kManaged Transactions 501k - 1.000kManaged Transactions 1.001k - 5.000kManaged Transactions 5 001k - 100 000k Per 100k Managed Transactions D

Per 100k Managed Transactions EManaged Transactions 100.001k - 200.000kManaged Transactions 5.001k - 100.000k

GOLD BRONZEF KG L

Managed Storage < 0.5 TBManaged Storage < 1 TB

Storage monthly Price ( per gigabyte & SAP System)

20

H MJ N

g gManaged Storage < 5TB

Managed Storage > 5 TB

IU – Infrastructure Utility

• Service Catalogue including all the forecasted needs in a standardize and virtualized environment.

• Each time a new requirement comes it is as simple as using this catalogue• Each time a new requirement comes…it is as simple as using this catalogue

Resource Category Unit of Measure

Baseline Quantity

Implementationprice

Monthly price

Vmware HostingManaged Storage GOLD incl. Backup Per Gbyte mirrored 1 -€ -€

Processing Capacity DR Metro per Virtual Instance 1 -€ -€

vCPU DR Metro Per virtual CPU 1 -€ -€

vRAM DR Metro Per 1 GB RAM 1 -€ -€

Managed Storage BRONZE incl. Backup Per Gbyte 1 -€ -€ Processing Capacity per Virtual Instance 1 -€ -€

vCPU Per virtual CPU 1 -€ -€

vRAM Per 1GB RAM 1 -€ -€vRAM Per 1 GB RAM 1 -€ -€

Vmware Management (Service)Operating System (Linux) no license instance 1 -€ -€ Operating System (Windows) no license instance 1 -€ -€ DataBase Managed ‐ Oracle instance 1 -€ -€ ata ase a aged O ac e sta ceDataBase Managed ‐ SQL Server instance 1 -€ -€

DataBase Managed ‐ MySQL instance 1 -€ -€ Apache per instance 1 -€ -€ Tomcat per instance 1 -€ -€

21

Uplift for 24/7 Support per Service 1 -€ -€

Why Fujitsu role is critical

• If SAP fail we can’t produce, ship, sell… • 2 Billion Euro’s per year means 5 million Euro every day• 2 Billion Euro s per year means 5 million Euro• Other systems are also critical (WMS, Web, etc)

every day

22

In summary: Why IU4SAP and IU

• Campofrio Spain Infrastructure EOL not able to support the new Unified ERP systemsupport the new Unified ERP system

• CFG landscape changing rapidly• 26-37-??

SAP s stems contracted r nning tomorro• SAP systems contracted-running-tomorrow• Test/QA/Dev systems fixed price• Production system based on capped transactions

SLA t t f• SLA to ensure system performance• Financial cost allocation

23

Lessons Learned

• Flexibility is the keyf• Include in the contract IU for other applications

• In deployment ensure alignment with application p y g ppteamStart Legal disc ssion pfront• Start Legal discussion upfront

• Engage with delivery team during negotiation

24

Our Identity

25

Export

We reach more than 250 million consumers worldwide through our export business with an active presence in four continents and more than 90 different destination countries, thanks to an ambitious export development strategy.

The export model of Campofrio Food Group provides aGroup provides a unique competitive advantage that none of its rivalsnone of its rivals can replicate: a complete response to consumers’ wantsconsumers wants through its presence in the key nations across all five continentsall five continents, enabling them to enjoy the food they love wherever they are

26

wherever they are.