LEGO: Building the IT blueprints for business growth
IBM Systems & Technology Group Consumer ProductsSmarter Computing LEGO: Building the IT blueprints for business growth LEGO Company (www.LEGO.com) is one of the world’s leading Overview manufacturers of play materials for children. With revenues of USD1.57 billion, the company employs an estimated 8,000 people The need around the world. Staying relevant in the retail toy market requires rapid development and deployment of new products and Securing the foundation for innovation and markets. To support this, LEGO needed a flexible IT infrastructure that could quickly growth scale. When increased competition from online and similar digital toys and games combined with already fierce competition in its more traditional The solution retail markets, LEGO—a privately owned and family-run business— Working with IBM, LEGO has engaged in a phased, multi-year IT transformation boldly reshaped its corporate strategy and transformed its culture to that has used consolidation, virtualization focus aggressively on innovation. Following this strategy, the company and standardization technologies to has rapidly introduced new products, LEGO Games Systems, and create a dynamic infrastructure. signed agreements with Lucasfilm® for LEGO Star Wars® characters, The benefit as well as new channels to market. Among LEGO’s business needs LEGO estimates business benefits were rapid product development, scalable operations for new retail worth USD150 million on technology investments of approximately USD45 stores and manufacturing plants and always-on logistics to manage million that have been made to simplify international manufacturing and distribution. and streamline its applications and infrastructure. Designing the building blocks of an integrated infrastructure To support this new business strategy, LEGO turned to IBM for help in transforming its IT infrastructure from a mix of legacy systems and applications to an integrated, agile platform for supporting business growth. Working with IBM on a multi-year, phased approach, LEGO consolidated its enterprise infrastructure to dual datacenters that now support all the company’s business applications, across all its global locations, through a matrix of server, operating system, network and storage services. Esben Viskum, Senior Director, LEGO Service Center, says, “Integration really makes a difference to the way we can go to market. We have one copy of the data, one system, running in the background. All prices, costs and manufacturing, and all campaigns and initiatives are driven the same way from the same data for all countries.”
IBM Systems & Technology Group Consumer ProductsSmarter Computing Increasing market velocity through automation Designed for Data technology • Sales data from multiple channels around Consolidation and standardization in the data center also enabled the world are consolidated and analyzed to improve production planning and LEGO to automate critical business processes. For example, now forecasting. data from different company locations, as well as from the company’s suppliers and retailers, is automatically transferred to the company’s Tuned to the Task • All LEGO data is secured with advanced main system and analyzed, significantly improving production planning high availability, backup, archive and and forecasting across its manufacturing sites in Denmark, Czech disaster recovery technology, meeting Republic, Hungary and Mexico. international regulatory standards and controlling business risk. Securing the alignment of business and IT Managed in the Cloud • Designed and built an IT infrastructure strategy that enables rapid development of Making sure LEGO was empowered to manage and control its new new markets and products. Employs a infrastructure was vital to the success and sustainability of its IT cookbook approach to rapidly deploying transformation. To create an appropriate level of governance, LEGO new workloads. established clear processes to document its business strategy and Driving Innovation requirements through relationship managers who read unit business • Worked with IBM to design and plans and convert them into an IT business case. Once implemented, implement a private cloud platform based on consolidation, virtualization the IT department provides the services and measures the results, and standardization technologies. enabling LEGO to rapidly respond to changing requirements. Transformed IT from an inhibitor of Additionally, all LEGO data is secured with advanced high availability, business to an accelerator of growth and innovation. backup, archive and disaster recovery technology, meeting international regulatory standards and controlling business risk. Making private cloud fully operational LEGO’s IT infrastructure has freed IT from becoming a bottleneck to business growth. Using IBM and third-party solutions, LEGO has created a private cloud platform on which each application is allocated the processor, memory, network and storage resources required to deliver the necessary business service levels. Individual physical servers can be added, upgraded or retired without interrupting the service delivery. For example, during peak seasonal sales periods, web applications are allocated additional application servers from the cloud resources with no procurement, configuration or deployment delay. After the peak has passed, the resources are released and made available for use as needed by other workloads, optimizing efficiency and increasing operational agility. Putting IT at the service of business Transforming its IT infrastructure to support an agile business strategy is reaping significant rewards for LEGO, helping fuel a 22 percent increase in business. LEGO estimates that, based on its technology investments of USD45 million, made to simplify and streamline applications and infrastructure, it will realize business benefits worth some USD150 million.
IBM Systems & Technology Group Consumer ProductsSmarter Computing By consolidating and integrating, LEGO has simplified and streamlined data and processes across its operations around the world. Solution Components Consolidation has also enabled investment in areas such as data Software governance, security, management and control. LEGO is also achieving • IBM® AIX® very high resource utilization through virtualization technologies. And • IBM PowerHA® • BM Tivoli® Storage Manager a template approach is enabling IT to deploy new workloads quickly, • IBM Tivoli Netcool®/Webtop starting small and growing fast. • IBM Tivoli Netcool/OMNIbus Probe • IBM Tivoli Composite Application According to Viskum, “Due to the architecture and design of the Manager • IBM Tivoli Monitoring cloud-based LEGO Matrix, IT is not a bottleneck on growth. When • IBM Tivoli Enterprise Console the executives make the decision to open a new office or shop, we have • IBM Tivoli Network Manager a template for rollout that we can apply to the solution, ensuring that • IBM Tivoli Performance Analyzer • IBM System Storage® SAN Volume we have the right total cloud capacity, and the IT services are ready and Controller waiting.” • IBM TotalStorage Productivity Center Servers For more information • IBM Power 570 ® To learn more about smarter computing from IBM and how we can • IBM BladeCenter® HS22 blade servers help you integrate, automate, protect and transform your IT, contact • IBM System x3650 servers • IBM System Storage DS4800 your IBM sales representative or IBM business partner, or visit: • IBM System Storage DS8700 ibm.com/smartercomputing • IBM Tape Library Services • IBM Global Financing • IBM Global Technology Services – Maintenance and Technical Support “Due to the architecture and design of the cloud- based LEGO Matrix, IT is not a bottleneck on growth.” — Esben Viskum, Senior Director, LEGO Service Center