"Manufacturer Ups Efficiency and Agility, Cuts IT Costs by $325,000, with New Software"


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Scholle had an older, decentralized Novellbased
infrastructure that limited
communications options, saddled the IT
staff with excessive management chores,
and frequently failed.

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"Manufacturer Ups Efficiency and Agility, Cuts IT Costs by $325,000, with New Software"

  1. 1. Microsoft Infrastructure Optimization Customer Solution Case Study Manufacturer Ups Efficiency and Agility, Cuts IT Costs by $325,000, with New Software Overview “With the Microsoft business productivity Country or Region: United States Industry: Manufacturing—Packaging infrastructure, we have the flexibility to integrate the latest Microsoft solutions.… This is a real competitive Customer Profile Scholle Packaging designs and advantage for us.” manufactures bag-in-box packaging for the Keith Anderson, Manager, Global Network Systems, Scholle Packaging food, beverage, and industrial markets. The company employs 1,800 people and has Scholle Packaging is the leader in bag-in-box packaging for the 20 manufacturing plants around the world. food, beverage, and industrial markets. When Scholle began Business Situation producing products globally rather than regionally, employees Scholle had an older, decentralized Novell- based infrastructure that limited around the world needed better ways to communicate, but the communications options, saddled the IT company’s older, decentralized server infrastructure was a barrier staff with excessive management chores, and frequently failed. to flexible communications and business agility. Scholle used its Microsoft® Enterprise Agreement to cost-effectively overhaul its Solution Scholle upgraded and consolidated its core business productivity and core IT infrastructures. It deployed infrastructure using Windows Server® modern communications and collaboration software to facilitate 2008 with Hyper-V™, and deployed a suite of Microsoft® business productivity information sharing and problem solving across the company. Using software to enhance collaboration. Microsoft virtualization and management software, Scholle avoided Benefits U.S.$325,000 in hardware and staffing costs while reducing server More agile responsiveness downtime by 60 percent. Employees are more productive, and the Faster product design Hardware cost avoidance of IT staff more responsive to business needs. U.S.$250,000 IT staff cost avoidance of $75,000 Downtime reduced by 60 percent
  2. 2. “Teams wanted to use Situation infrastructure wouldn’t support them. Also, Scholle Packaging, headquartered in Irvine, because we couldn’t give vendors and instant messaging, California, invented bag-in-box packaging customers access to our file-shares for Skype, blogs, forums, (think boxed wine) more than 60 years ago security reasons, we had to use e-mail as a and has since evolved into a world leader of collaboration method. Management issued a wikis, video flexible packaging solutions for the food, mandate to reduce time-to-market for new conferencing, and other beverage, and industrial markets. Scholle has products, and our messaging infrastructure 1,800 employees, 20 manufacturing was slowing us down.” innovative locations on five continents, and sells its communication products in more than 60 countries. A richer, more flexible communications infrastructure could also facilitate work on methods, but our Novell For years, Scholle was organized regionally, the company’s multiple LEAN initiatives, infrastructure wouldn’t with each geographical region developing and which required input from staff members all marketing products for its market. This led to over the world. (LEAN is a manufacturing support them.” a great deal of duplicate effort and products. efficiency program that seeks to eliminate Keith Anderson, Manager, Global Network In 2006, management decided to restructure waste from business processes.) Scholle Systems, Scholle Packaging the business horizontally around strategic LEAN teams hold several weeklong events business units, each tasked with developing throughout the year where staff members products for a global market. focus on improving particular processes. Team members communicated through E-Mail Messaging Insufficient overseas conference calls, sending With this horizontal restructuring, teams were documents back and forth as e-mail attach- suddenly working with colleagues around the ments. Overseas calls were expensive and world rather than with people in their own involved late-night meetings for many staff region. It became apparent that the members. Communicating by e-mail was company’s older Novell-based messaging frustrating with so many parties involved, and infrastructure provided limited it burdened the messaging system. communication and collaboration options. “Basically, all we had was e-mail and Server Downtime Interrupts Business telephones,” says Keith Anderson, Manager All of the company’s Novell servers were out of Global Network Systems for Scholle of warranty, and its operating systems and Packaging. “This wasn’t enough to Microsoft® Office productivity programs were communicate effectively between plants in out-of-date. The older servers failed different countries and time zones.” frequently, for 24 hours or longer, which slowed or stalled production, delayed Employees experienced huge time lags as shipments, and sometimes upset customers. they waited for e-mail message replies from Returning servers to service was difficult, colleagues on the other side of the globe. because Scholle had IT staff in only 5 of its Engineers spent hours assimilating edits to 27 server locations. large CAD files that coworkers sent as e-mail attachments. “E-mail messaging served its “We were reactive in server management,” purpose, but we needed more than e-mail to Anderson says. “If a server broke at a location succeed in fast-moving global markets,” with no IT staff, we had to work with the local Anderson says. “Teams wanted to use instant staff to identify and install needed parts. We messaging, Skype, blogs, forums, wikis, video also flew IT staff around the world to perform conferencing, and other innovative server upgrades.” Also, because there were communication methods, but our Novell no IT staff members in most plant locations,
  3. 3. “We looked at Scholle could not securely place domain understand how the Microsoft Infrastructure controllers there, which forced local users to Optimization model could help Scholle communications and authenticate over the wide-area network, a employees be more productive and IT staff be collaboration solutions slow and often frustrating process. more effective and efficient. from Novell, Oracle, and In addition, many newer business applica- “We looked at communications and Microsoft, but the tions that Scholle added needed to connect collaboration solutions from Novell, Oracle, to the enterprise e-mail system for sending and Microsoft, but the Microsoft solution set Microsoft solution set alerts and providing other e-mail integration offered the centralized, integrated offered the centralized, services. However, it was time-consuming, management solutions we were looking for,” and sometimes impossible, to integrate the Anderson says. “Novell’s solutions seemed integrated management applications with Novell GroupWise like a forced fit and based on old protocols, solutions we were messaging software; once integrated, the and Oracle’s products solved some issues new applications were often unreliable. but not all.” looking for.” Keith Anderson, Manager, Global Network When the company restructured, the IT staff Rapid, Economical Infrastructure Systems, Scholle Packaging was asked to do more but not given more Replacement resources; in fact, IT headcount was cut. Yet Scholle decided to deploy an integrated suite two full-time staff members were dedicated of Microsoft business productivity to managing the 18 GroupWise messaging infrastructure products: servers. “I wanted my people to work on new solutions that impacted the business, not on Microsoft Exchange Server 2007— messaging services, which I consider a messaging and calendaring software utility,” Anderson says. Microsoft Office SharePoint® Server 2007— collaboration software Solution Microsoft Office Professional 2007— Anderson knew that Scholle needed to productivity programs modernize its communications and Microsoft Office Communications Server collaboration infrastructure, consolidate and 2007—software that integrates instant centralize servers, and simplify IT messaging, presence, Web conferencing, management tasks if the company was to and software-powered voice over Internet continue to grow. He envisioned a Protocol (VoIP) centralized, flexible messaging and Microsoft Office Communicator 2007—a collaboration infrastructure that would give unified communications client that people global employees plenty of options for use to move seamlessly between e-mail sharing information. He wanted the core messaging, instant messaging, voice, and infrastructure to be consistent and easy to video communications from within any manage, and to offer common functionality— Microsoft Office application such as user account information, workflows, and search—that could be centrally Modernizing its business productivity maintained and reused across multiple infrastructure and replacing the older Novell applications. servers would require about 25 new servers, however, which was a significant expense. At Integrated Productivity Suite that point, PLA introduced Scholle to the In 2008, Scholle sought the help of Project Windows Server® 2008 operating system Leadership Associates (PLA), a Microsoft Gold with Hyper-V™ virtualization technology, Certified Partner in Chicago, Illinois, to better which would enable Scholle to move forward
  4. 4. with its business productivity enhancement Unified Communications with about one-third the expected server Scholle runs Microsoft Exchange Server 2007 expenses. Scholle was able to replace 40 on a cluster of four physical servers in the Novell servers in 27 locations with 13 new Scholle data center, which provides nonstop Windows Server 2008–based servers in 4 reliability and easy IT oversight. Scholle locations. employees now have conveniences such as shared calendars, which they did not have in PLA also helped Scholle get the maximum GroupWise, and a far more intuitive e-mail benefit from its investment in the Microsoft client (the Microsoft Office Outlook® 2007 Enterprise Client Access License (CAL) Suite, messaging and collaboration client). “Training which gives organizations an easy way to takes no time, because most employees have license 11 popular Microsoft business used Office Outlook at home, in school, or in productivity infrastructure programs. Until previous jobs,” Anderson says. “In contrast, it then, Scholle had only taken advantage of the took a month or more for employees to learn Windows Server 2003 operating system to GroupWise.” Employees similarly embraced “It was far more cost- run custom and third-party business Office Communications Server 2007 with no effective to license applications and Microsoft SQL Server® 2005 formal training. data management software. “It was far more these new programs cost-effective to license these new programs With this integrated suite of communications through the Enterprise through the Enterprise CAL, since we were technologies, Scholle employees now have rolling out so many Microsoft solutions,” access to security-enhanced instant CAL, since we were Anderson says. “It also helps us to stay messaging, presence, computer-based Web rolling out so many current with the latest releases, which has conferencing, and software-powered VoIP. always been a struggle.” This abundance of flexible communications Microsoft solutions. It options helps project teams collaborate also helps us to stay PLA provided overall project management, faster and more easily. For example, best-practices guidance, help with setting up international design teams can use the current with the latest virtual machines, assistance in deploying presence indicator to see if colleagues are releases.” Exchange Server 2007 and migrating online any time of the day or night, to get fast mailboxes from GroupWise, help migrating answers to questions over instant messaging. Keith Anderson, Manager, Global Network the company’s directory structure from Novell With just a few mouse clicks, they can add Systems, Scholle Packaging eDirectory to Active Directory® Domain new people to the conversation and even Services, and more. “There’s no way that we escalate the conversation to an audio or Web could have tackled this ambitious project conference. ourselves,” Anderson says. “Presence, Web conferencing, and instant The business productivity optimization project messaging are big home runs with Office began in January 2008 and ended in August Communications Server 2007,” Anderson 2008. In just seven months, Scholle was able says. “If I get an e-mail message from to completely replace its companywide someone and see from the presence business productivity infrastructure and indicator that they are online, I can send consolidate servers for easier management them an instant message and get an answer and more flexible response to business without waiting on, or burdening, our e-mail needs. system. Communication across the company is much faster now. Also, we had no chat capability before, because we didn’t want our intellectual property being discussed across
  5. 5. our firewall. With Office Communications so executives can access it anytime, from any Server 2007, we have secure instant Web browser. messaging that can be monitored.” The packaging group created a SharePoint Scholle is interested in pursuing additional site where executives and upper-level communications enhancements: replacing its management can collaborate on daily, branch-office PBX systems with Office weekly, and monthly financial, marketing, and Communications Server 2007 VoIP; market-assessment information. Participants integrating e-mail, voice-mail, and fax inboxes are able to post information in real time for through Exchange Server 2007 unified rapid consumption and feedback, rather than communications; and implementing Microsoft waiting to discuss it in monthly meetings. RoundTable™ conferencing and collaboration devices in branch offices. RoundTable is a Another SharePoint site provides a forum in video conferencing phone that captures and which the 27 Scholle manufacturing facilities broadcasts a 360-degree view of everyone in can report quality issues as they arise, rather a meeting room. RoundTable follows the than sharing them through lengthy e-mail conversation and broadcasts a close-up of trails and waiting for replies. the speaker. Virtualization, Centralized Management Online Collaboration The company’s business productivity Teams across Scholle have also embraced infrastructure now relies on 13 physical Office SharePoint Server 2007 for posting servers running Windows Server 2008 and sharing documents, creating blogs and Datacenter with Hyper-V. To date, Anderson collaborative Web sites (wikis), sharing has created 143 virtual machines on these project calendars, hosting discussion groups, 13 servers, which host the company’s providing contact lists, and more. To date, messaging, collaboration, and file-server about 120 teams have created their own workloads. Guest servers (virtual machines SharePoint team sites, and Anderson has running on a host server) run the Windows moved the corporate intranet to Office Server 2008 Standard and Windows Server SharePoint Server 2007. All information 2003 Standard operating systems. across all the SharePoint sites is searchable, and business users have the ability to control Scholle still has about 20 stand-alone document-access rights without going application servers that will eventually be through the IT staff. Scholle uses SQL Server moved to virtual machines. In the meantime, 2005 to store its SharePoint site documents Scholle has connected them to its Active and data. Directory Domain Services directory structure, which has made them much easier to Scholle Corporate, for example, has created a manage. Scholle also found it easy to SharePoint site where the chief financial integrate third-party applications such as the officer posts monthly financial reports and Baan enterprise resource planning system announcements for Scholle executives. with Active Directory and Exchange Server Previously, this information was sent in e-mail 2007. Anderson was able to use Active messages or shared in conference calls that Directory Domain Services to create a single were tricky to organize because of multiple sign-on to all key applications, which schedules and time zones. Now, the simplifies logon procedures for employees. information is always online and up-to-date,
  6. 6. “I can see from Office In plant sites where there is no IT staff, Using server virtualization, Scholle was able Scholle uses read-only domain controller to avoid a U.S.$250,000 hardware expense Communicator that a (RODC) technology in Windows Server 2008 and a $75,000 IT salary. The more reliable colleague in Brazil is to deploy a Server Core installation of the infrastructure has led to a 60 percent operating system that hosts read-only reduction in downtime, which further online, tell him or her partitions of the Active Directory Domain increases companywide productivity. what I need, and get an Services database. An RODC provides a security-enhanced way to deploy a domain More Agile Responsiveness immediate response.” controller in locations that require fast and With its integrated business productivity Keith Anderson, Manager, Global Network reliable authentication services but cannot infrastructure, Scholle employees are able to Systems, Scholle Packaging ensure physical security for a writeable distribute and share information much faster, domain controller. which increases productivity, speeds problem resolution, and increases overall business Scholle is deploying several Microsoft System agility. Management has access to fresh Center data-center solutions to centralize and financial and operational data throughout the further simplify the management of its server day, rather than waiting for conference calls and client computers: to be organized. Employees throughout the company can contact one another over Microsoft System Center Configuration instant messaging and Web conferencing to Manager 2007 is used to automate the resolve issues the very same day, or hour, deployment of operating systems, rather than waiting for meetings or wading applications, and security updates to through lengthy e-mail threads. Using the computers in any location, and to easily designated SharePoint site, for example, the report on the company’s technology assets. manufacturing facilities can react to quality Microsoft System Center Operations issues in minutes or hours rather than days. Manager 2007 is used to proactively monitor the company’s distributed servers. The enhanced productivity infrastructure has Microsoft System Center Virtual Machine also positively affected the efficiency of the Manager 2008, planned for mid-2009, company’s LEAN events. Scholle created a provides easy physical-to-virtual server SharePoint site for each LEAN initiative, and a migration, virtual-machine performance sub-site for each event under those optimization, and easier management of initiatives, where all information related to an both physical and virtual servers. event is stored. “I can see from Office Microsoft System Center Data Protection Communicator that a colleague in Brazil is Manager 2007, also to be deployed in mid- online, tell him or her what I need, and get an 2009, will be used to automate the backup immediate response,” Anderson says. “Just of data on servers in all locations and store as important as the communication time that data on both disk and tape. savings is the fact that all documentation is posted on a SharePoint site for later Benefits reference.” Although LEAN events still last a With its new business productivity week, participants save two to three hours infrastructure, Scholle Packaging can quickly every day during the LEAN event. Instead of respond to global market demands by working late into the night, they finish by 5:00 enabling employees to communicate and P.M. or earlier. collaborate faster. Ultimately, these efficiencies will translate into faster time-to- Use of presence, instant messaging, and market with new products. audio and Web conferencing across the
  7. 7. “Our investment in 13 company similarly accelerate reaction times reduce miscommunication, and accelerate and enrich phone and e-mail conversations. overall time-to-market. servers running Hyper-V “We can accomplish in a five-minute Web gave us the processing conference what previously might have taken Hardware Cost Avoidance of $250,000, hours,” Anderson says. Staff-Time Reduction of $75,000 equivalent of 143 With its use of Windows Server 2008 with servers, a hardware cost Scholle also has a technology foundation that Hyper-V, Scholle was able to consolidate 40 can accommodate new productivity-boosting physical servers to 13 physical servers, and avoidance of innovations without extensive development still increase capacity. “Our investment in 13 $250,000.” work. “With the Microsoft business servers running Hyper-V gave us the productivity infrastructure, we have the processing equivalent of 143 servers, a Keith Anderson, Manager, Global Network flexibility to integrate the latest Microsoft hardware cost avoidance of $250,000,” Systems, Scholle Packaging solutions, third-party software, hosted Anderson says. solutions, and custom applications,” Anderson says. “This enables the business to Scholle now has a consistent technology embrace innovation without technology being infrastructure that is easier to manage and a barrier. This is a real competitive advantage more flexible, making it possible for the IT for us.” staff to keep headcount stable as it expands its IT role. “The IT staff was being asked to Faster Product Design perform more duties with fewer resources, Improved productivity is expected to have a and we now have an infrastructure that long-term positive impact on product enables us to do that,” Anderson says. “The development. “With a more flexible System Center solutions will give us communications and collaboration additional efficiencies that will enable us to infrastructure, we’ll be able to get products to proactively manage our infrastructure, avoid market faster in our new global business problems that used to eat up huge amounts structure by connecting team members of time, and automate many routine tasks. around the world,” Anderson says. We will eliminate the work of one full-time staff person, valued at $75,000, by Scholle also is already communicating and consolidating our servers with Hyper-V and collaborating more closely with customers managing our entire infrastructure with and the suppliers with whom it works to Microsoft software.” develop custom products for specific customer needs. Scholle implemented Scholle has not only reduced IT management federation in Office Communications Server time and costs, but opened up more 2007 so that employees can extend the possibilities for creating innovative business efficiencies of presence, group conferencing, solutions that weren’t possible, or were cost- and instant messaging to these external prohibitive, in a Novell environment. For users. Anderson’s team is now using Office example, Anderson’s staff recently SharePoint Server 2007 to build an extranet implemented two new hosted solutions and that will enable Scholle staff to share was able to use single sign-on created with documents, online discussions, and Active Directory to enable access to those development schedules with customers and solutions. “This would not have been easy to vendors with optimized security. Sharing do with Novell,” Anderson says. drawings and other project documentation on SharePoint sites will eliminate the need to send large documents as e-mail attachments,
  8. 8. “IT always seemed to be Downtime Reduced by 60 Percent Anderson says in conclusion. “Business users Scholle now has a highly available messaging would request a new capability or application, a roadblock to the and collaboration infrastructure that but it was either not possible or would take business in our old employees around the world use to months to implement. That is no longer the communicate without interruptions. case. We can now give business users the Novell environment. We “Unscheduled Novell downtime averaged 50 power to drive the business. Technology is can now give business hours annually. In the nine months that we now a help rather than a hindrance.” have been on the Microsoft infrastructure, users the power to drive we’ve had 15 hours of unscheduled the business…. downtime,” Anderson says. “We’re on track to reduce unscheduled downtime by 30 hours Technology is now a annually.” help rather than a When there is a problem, it’s far easier to hindrance.” take remedial action. “I’m definitely sleeping Keith Anderson, Manager, Global Network better at night,” Anderson says of his new Systems, Scholle Packaging infrastructure’s stability. “I have a very high comfort level from the fact that all servers are in locations where we have IT personnel, so if something happens, we can reduce recovery time from 24 to 4 hours. Or, using virtualization, we can transfer workloads to new virtual machines in minutes. It used to take 6 hours to set up a physical server; now it takes 10 minutes to create a virtual machine.” Future Improvements Next, Scholle wants to use its intranet as an integration point for line-of-business applications and create workflows inside and around those applications. For example, different departments could use SharePoint sites as a central place for completing and routing forms or spreadsheets. Other business groups are very interested in using wikis, blogs, and social networking features on their SharePoint sites. When RoundTable is deployed companywide, Anderson estimates that Scholle will be able to reduce travel costs by $8,000 in the first year, with savings increasing by 10 percent annually. “IT always seemed to be a roadblock to the business in our old Novell environment,”
  9. 9. For More Information Microsoft Infrastructure Optimization For more information about Microsoft With infrastructure optimization, you can products and services, call the Microsoft build a secure, well-managed, and dynamic Sales Information Center at (800) 426- core IT infrastructure that can reduce overall 9400. In Canada, call the Microsoft IT costs, make better use of resources, and Canada Information Centre at (877) 568- become a strategic asset for the business. 2495. Customers who are deaf or hard-of- The Infrastructure Optimization model—with hearing can reach Microsoft text telephone basic, standardized, rationalized, and (TTY/TDD) services at (800) 892-5234 in dynamic levels—was developed by Microsoft the United States or (905) 568-9641 in using industry best practices and Microsoft’s Canada. Outside the 50 United States and own experiences with enterprise customers. Canada, please contact your local The Infrastructure Optimization model Microsoft subsidiary. To access information provides a maturity framework that is flexible using the World Wide Web, go to: and easily used as a benchmark for technical www.microsoft.com capability and business value. For more information about Project For more information about Microsoft Leadership Associates products and infrastructure optimization, go to: services, call (312) 441-0077 or visit the www.microsoft.com/io Web site at: www.projectleadership.net For more information about Scholle Packaging products and services, call (888) BAG-N-BOX or visit the Web site at: www.scholle.com Software and Services Microsoft Office Microsoft Server Product Portfolio − Microsoft Office Communications Server − Windows Server 2008 Datacenter 2007 − Windows Server 2008 Enterprise − Microsoft Office Communicator 2007 − Windows Server 2008 Standard − Microsoft Office Professional 2007 − Microsoft Exchange Server 2007 − Microsoft Office SharePoint Server 2007 − Microsoft SQL Server 2005 Technologies − Microsoft System Center Configuration − Active Directory Domain Services Manager 2007 − Hyper-V − Microsoft System Center Operations Manager 2007 Partner Project Leadership Associates This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Document published June 2009