AB-Inbev -- Problem identification and solution

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  • Source: Forrester, assuming 5000 employees

Transcript

  • 1. Joanne Louis NathaniaAaron Naisbitt Ouwen GuRoss Simons Matt Marrazzo
  • 2. Presentation Outline • Company Overview* • Company Tour • Introduce problem* •Discuss Social Network Analysis* •Introduce Microsoft Lync
  • 3. What is ABI? Anheuser-Busch InBev Mission: “ To Be the Best Beer Company In a Better World”””
  • 4. “The best beer company…” 114,000 employees 23 countries around the world Top 2 market position in 19 countries
  • 5. “…in a better world”Responsible Drinking Environment Community Our people
  • 6. C oTourm p a n y
  • 7. Budweiser Brewing Process Milling Beachwood Mashing Lagering Fermentation Straining Brew- kettle
  • 8. InBev Acquisition of 2008 InBev AB
  • 9. Problems - Merger Conflicts - Communication - Informal Relationships - Employee Satisfaction - Lack of Mentorship
  • 10. Management ConflictAnheuser Busch Values: InBev Values:• Brand • Increasing Profits• All American Company • Global Leader• Long Term Image • Cost Cutting• Tradition • Production Efficiency
  • 11. Transparency Jackie Hamel “…they are trying to be more transparent. Not easy with 120,000 employees.”Jackie Hamel“InBev sets targets whichare out of reach and asksyou to make them. Weperpetually have gaps wecan hit…”
  • 12. Jeffrey Sonnenfeld“Companies must take at leastas much time as they spendwith financial analysts andspend it with their employees.People care about where theywork. " Anheuser-Busch Employee “If you are young and have some sort of degree, you will like the campus like office with no professors to teach and guide you.”
  • 13. Geert Hofstede Cultural Dimensions United States vs. Belgium/Brazil
  • 14. Current Communication System Lacks variety of communication channels Rigid structure of communication Multiple platforms and software Collaborates with all Microsoft office functions One training program company wide One program serves all
  • 15. Problem: Communication -Rigid Structure -Multiple Platforms -Loss of informal relationships
  • 16. Solution: Enterprise 2.0
  • 17. The evolution of business
  • 18. In Numbers
  • 19. A culture, united
  • 20. Not Management, separated
  • 21. not heirarchy
  • 22. Collaboration
  • 23. Case Study: Cisco • $772mil return on $82mil • Increased margins by $142 milQuantitative • Reduced costs by $251 mil • Employee time savings: $380mil • Increased remote collaborationQualitative • Better usage of employee skills • Quicker access to knowledge Source: Mckinsey/Cisco
  • 24. MSFT LyncSNA Other Enterprise 2.0
  • 25. Social Network Analysis
  • 26. 2. Analyze/Map 3. Create1. Conduct informal Surveys network Solutions
  • 27. Formal vs. Informal Networks
  • 28. BusinessDevelopmentR&D International Business Strategic Business Unit Other
  • 29. Terrible communication
  • 30. bottlenecksDisintegration
  • 31. SNA as TOM-Information = Inventory-Pull System-Degrees of Separation=process steps
  • 32. Case Study: ABIRelationship • 1,400 salaried workers fired Map • 1000 employees took buyouts • "They wasted no time," says Juli Niemann, executive vice president of Smith, Moore & Co., a Clayton-based Executive financial advisory firm. "They delivered exactly what they promised. They demolished the executive suite." • ABI 14-person executive committeeManagement • Zero people from old AB
  • 33. “ Lync is changing the way we communicate today, but it will change the way our business tools work in the future. ”
  • 34. “ The Skill Search feature in Lync and SharePoint will be easy to use. Employees can view presence information and immediately contact the person they are searching for with one click Source: Forrester/ATKearney ”
  • 35. “ Problem resolution through IM 70% of time Help desk call times down from 5 calls per issue to .3 calls Lowered labor costs and showed an 80% improvement in customer response times Source: Forrester/Global Crossing
  • 36. Benefits Costs *(Over 3 Years) *(Over 3 Years) Replacing private telephone systems - $500,000* Software Licenses and Assurance Costs - $1,200,000*Direct Cost Savings from Web and Teleconferencing - $1,000,000* Server Hardware - <$60,000 Reduced IT and Telephony Labor - $1,000,000 Voice Terminal Equipment - $364,000 Fewer calls to the Help Desk - $190,000 Internal Labor for Testing - Increased User Productivity - $24,000 >$12,000,000* Travel Costs and Carbon Footprint Reduction - Internal Training Labor Opportunity Cost - $3,800,000 $1,300,000
  • 37. “ Managers spend 2 hours/day looking for information 50% of the information found is of no value ” Source: Accenture
  • 38. “ Respondents reported benefits that included better access to knowledge and internal experts, greater employee and customer satisfaction, and higher rates of innovation. ” Source: Mckinsey
  • 39. “ The magnitude of the gains was striking 20%=innovation rates to 35% (access to internal experts). ” Source: Mckinsey
  • 40. Add/Drop Analysis Assumption: Scalability to Anheuser-Busch Inbev
  • 41. Balanced Scorecard Strategy MetricFinancial - Zero-Based Budgeting - Number and size of budget - Cutting Costs requests per project. - COGS as a % of revenue targets.Customer - Customer Retention Program - % increase in sales by - Brand Equity distributor. - % market share.Internal - Voyager Plant Optimization - Comparison of cycle time - Implementation of Microsoft Lync and capacity utilization byProcess facility. - Degree of separationLearning - Overseas Growth - % of revenue earned - Prioritization of Focus Brands overseas by region.and Growth - % of marketing dollars spent on key brands (Budweiser, Stella Artois, Becks)
  • 42. Presentation Summary • Company Overview * • Company Tour • Introduced problem * •Discussed Social Network Analysis * •Introduced Microsoft Lync
  • 43. Thank You!!!
  • 44. Costs Initial Year 1 Year 2 Year 3 TOTALSoftware licenses and assurance $677,695 $169,424 $169,424 $169,424 $1,185,967 Hardware and Maintenance $56,000 $945 $945 $945 $58,853 Voice Terminal Equipment $364,000 $364,000 Pilot and Testing: Internal $24,000 $24,000 Labor Implementation Costs: Third $90,000 $90,000 PartyTraining Cost: Internal Labor $1,300,000 $1,300,000 TOTAL $2,511,695 $170,369 $170,369 $170,369 $3,022,802
  • 45. Ref. Metric Calculation Year 1 Year 2 Year 3 TotalA No. of Workers 5000B Hourly Rate $48.00C Number of ~70 min per 1.17 Hours Saved Per week WeekD Weeks 50E Percent 50% CapturedF Rollout of Lync 25% 50% 100%Total Incremental A*B*C*D*E*F $1,700,000 $3,500,000 $7,000,000 $12,250,000 Output per Worker
  • 46. Testimonials:•Nikon Corp. -“With Lync, communication is much more efficient because people do not have to switch programs to make a call or join a meeting.” -- Michiko Noborisaka General Manager of Information System Planning Department, Nikon Corporation•ATKearney -“The Skill Search feature in Lync and SharePoint will be easy to use. Employees can view presence information and immediately -contact the person they are searching for with one click.” - Kevin Rice Global Network Architect, A.T. Kearney•Global Crossing -Problem resolution through IM 70% of time -Help desk call times down from 5 calls per issue to .3 calls -Lowered labor costs and showed an 80% improvement in customer response times•Fortek -Developed emergency response system -Average response times down from 7 mins to < 2 mins