With its roots in the processing of petroleum and petroleum products into plastics and a company history of more than 60 years, Mexichem is today a leading producer of innovative solutions for a wide variety of industries and industrial sectors. Its business areas include the production and infrastructure of plastic pipe systems, data communication, irrigation and the development of special materials.
The acquisitions I mentioned are global in their nature and they all have the potential to continue growing internationally at breakneck speed. So to deliver the same user experience and underlying technology infrastructure – whether it is in Norway, Colombia, Israel or the States – we need dynamic scalability. This helps us move forward fast and provide standardised core applications, such as our harmonised human resources processes. Also, it allows us to deliver in a timely fashion and offer specific solutions for certain geographies or business groups.
What was behind your strategic decision to task T-Systems with transitioning your SAP operations to a cloud technology platform? The initial decisiondriving factors were scalability and reliability combined with T-Systems’ global footprint. We also wanted to minimise operational outages and perform according to established KPIs. The cost reductions we have achieved are a consequence of executing this strategy well and reaching a more significant critical mass. We were also looking for a longterm perspective to help the relationship work smoothly; mainly to overcome the first steps of the learning curve in new implementations.
T-Systems helped us to set the stage for this migration, from the financial business case to educating on using the cloud securely for a public company (listed on the BMV stock exchange). We are currently executing this program in the Americas and have already migrated more than 47 onpremise SAP servers and 63 TB of data. T-Systems has consistently delivered what was promised, and worked seamlessly with our internal IT team, both during the projects themselves and afterwards to ensure availability and service levels. Collateral benefits included the reinforcement of best industry practices and continuous improvements in the IT processes affected by this program.
An excellent example is the launch of NetBeat™ in May 2018. This enables the substitution of flood or sprinkler systems with drip ones (which means lower water consumption and increased yield) and we are now setting up the first intelligent irrigation system. A powerful algorithm combines the knowledge accumulated in years spent studying each type of plantation, with current figures recorded by sensors in the ground, as well as local weather forecast information or photographs captured by drones that show the colour of the fields. The possibility to store, classify and analyse huge amounts of data from customers around the globe in the cloud is revolutionising the way we optimise the industry and benefitting the communities depending on it.
We are just scraping the surface of the immense possibilities that connected factories offer. We have one of the most significant concentrations of extrusion and moulding machines within our pipe manufacturing plants. Since 2017, we have successfully launched IoT smart adaptations in our plants (the first in Sumaré in Brazil). Moreover, we have seen savings in raw material and waste reduction that delivered financial payback in less than ten months. These successes are boosting interest in Industry 4.0 across more than 130 Mexichem plants.
Our digital projects call for a new approach to design where the traditional lengthy methodology of capturing requirements and selecting a vendor does not necessarily fit. In the NetBeat™ example, the solution prototype was the result of joining forces with three startups in Israel that provided ideas for hardware, programming, and user experience. We have recently launched a corporate digital strategic pillar to convey this new way of working. This means we will need to adapt significant portions of our IT architecture, attract and develop new talent capabilities (such as data science, content design and user experience), and recalibrate the balance between internal and external resources.
I believe there is a very delicate equilibrium of protecting the assets used internally by more than 10,000 users (without counting our customers, vendors, and stakeholders), while not disrupting our business operation requirements. That is the ongoing challenge I was referring to. To help us on this longterm journey, T-Systems has been assisting us with our global security operation centre (SOC) since late 2018. This is another excellent example of how the partnership helps us deliver consistent global 24x7 service and monitor, respond to, and resolve cyber incidents.