Joanne Louis     Nathania
Aaron Naisbitt   Ouwen Gu
Ross Simons      Matt Marrazzo
Presentation Outline
    • Company Overview
*   • Company Tour


    • Introduce problem
*

    •Discuss Social Network Analysis
*   •Introduce Microsoft Lync
What is ABI?
       Anheuser-Busch
       InBev
            Mission:
       “ To Be the Best
       Beer Company
          In a Better
           World”””
“The best beer company…”




            114,000 employees
       23 countries around the world
    Top 2 market position in 19 countries
“…in a better world”
Responsible Drinking
                       Environment
  Community
                   Our people
C
 o
Tour
m
 p
 a
 n
 y
Budweiser Brewing Process
                     Milling


      Beachwood                    Mashing
       Lagering




     Fermentation                  Straining




                    Brew- kettle
InBev Acquisition of 2008



      InBev         AB
Problems
     - Merger Conflicts
     - Communication
     - Informal Relationships
     - Employee Satisfaction
     - Lack of Mentorship
Management Conflict



Anheuser Busch Values:   InBev Values:
• Brand                  • Increasing Profits
• All American Company   • Global Leader
• Long Term Image        • Cost Cutting
• Tradition              • Production Efficiency
Transparency
                            Jackie Hamel
                            “…they are trying to be
                            more transparent. Not
                            easy with 120,000
                            employees.”


Jackie Hamel
“InBev sets targets which
are out of reach and asks
you to make them. We
perpetually have gaps we
can hit…”
Jeffrey Sonnenfeld
“Companies must take at least
as much time as they spend
with financial analysts and
spend it with their employees.
People care about where they
work. "



                             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.”
Geert Hofstede Cultural Dimensions
        United States vs. Belgium/Brazil
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
Problem: Communication
         -Rigid Structure
         -Multiple Platforms
         -Loss of informal
         relationships
Solution: Enterprise 2.0
The evolution



 of business
In Numbers
A culture, united
Not Management, separated
not heirarchy
Collaboration
Case Study: Cisco
               • $772mil return on $82mil
               • Increased margins by $142 mil
Quantitative   • Reduced costs by $251 mil
               • Employee time savings: $380mil




               • Increased remote collaboration
Qualitative    • Better usage of employee skills
               • Quicker access to knowledge


                         Source: Mckinsey/Cisco
MSFT
      Lync
SNA                Other

      Enterprise
         2.0
Social Network Analysis
2. Analyze/Map   3. Create
1. Conduct       informal
  Surveys        network      Solutions
Formal vs. Informal Networks
Business
Development

R&D




                                                International
                                                Business
              Strategic Business Unit   Other
Terrible communication
bottlenecks
Disintegration
SNA as TOM
-Information = Inventory

-Pull System

-Degrees of Separation=process steps
Case Study: ABI
Relationship   • 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 committee
Management     • Zero people from old AB
“ Lync is changing the way we
   communicate today, but it will
   change the way our business tools
   work in the future.

                                 ”
“   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

                                                   ”
“ 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
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
“   Managers spend 2 hours/day
    looking for information

    50% of the information found is of
    no value


                                           ”
                       Source: Accenture
“   Respondents reported benefits
    that included better access to
    knowledge and internal experts,
    greater employee and customer
    satisfaction, and higher rates of
    innovation.

                                          ”
                       Source: Mckinsey
“   The magnitude of the gains was
    striking

    20%=innovation rates
    to
    35% (access to internal experts).

                                           ”
                        Source: Mckinsey
Add/Drop Analysis




      Assumption: Scalability to Anheuser-Busch Inbev
Balanced Scorecard
             Strategy                             Metric
Financial    - 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 by
Process
                                                  facility.
                                                  - Degree of separation

Learning     - 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)
Presentation Summary
     • Company Overview
 *   • Company Tour

     • Introduced problem
 *

     •Discussed Social Network Analysis
 *   •Introduced Microsoft Lync
Thank You!!!
Costs                    Initial      Year 1      Year 2     Year 3        TOTAL

Software 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
           Party


Training Cost: Internal Labor     $1,300,000                                      $1,300,000



           TOTAL                  $2,511,695   $170,369    $170,369    $170,369   $3,022,802
Ref.        Metric          Calculation          Year 1         Year 2       Year 3        Total

A       No. of Workers                    5000



B       Hourly Rate                       $48.00

C       Number of         ~70 min per     1.17
        Hours Saved Per   week
        Week



D       Weeks                             50

E       Percent                           50%
        Captured


F       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
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
AB-Inbev -- Problem identification and solution

AB-Inbev -- Problem identification and solution

  • 1.
    Joanne Louis Nathania Aaron Naisbitt Ouwen Gu Ross 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 beercompany…” 114,000 employees 23 countries around the world Top 2 market position in 19 countries
  • 5.
    “…in a betterworld” Responsible Drinking Environment Community Our people
  • 6.
  • 7.
    Budweiser Brewing Process Milling Beachwood Mashing Lagering Fermentation Straining Brew- kettle
  • 8.
    InBev Acquisition of2008 InBev AB
  • 10.
    Problems - Merger Conflicts - Communication - Informal Relationships - Employee Satisfaction - Lack of Mentorship
  • 11.
    Management Conflict Anheuser BuschValues: InBev Values: • Brand • Increasing Profits • All American Company • Global Leader • Long Term Image • Cost Cutting • Tradition • Production Efficiency
  • 12.
    Transparency Jackie Hamel “…they are trying to be more transparent. Not easy with 120,000 employees.” Jackie Hamel “InBev sets targets which are out of reach and asks you to make them. We perpetually have gaps we can hit…”
  • 13.
    Jeffrey Sonnenfeld “Companies musttake at least as much time as they spend with financial analysts and spend it with their employees. People care about where they work. " 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.”
  • 14.
    Geert Hofstede CulturalDimensions United States vs. Belgium/Brazil
  • 15.
    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
  • 16.
    Problem: Communication -Rigid Structure -Multiple Platforms -Loss of informal relationships
  • 17.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
    Case Study: Cisco • $772mil return on $82mil • Increased margins by $142 mil Quantitative • Reduced costs by $251 mil • Employee time savings: $380mil • Increased remote collaboration Qualitative • Better usage of employee skills • Quicker access to knowledge Source: Mckinsey/Cisco
  • 28.
    MSFT Lync SNA Other Enterprise 2.0
  • 29.
  • 30.
    2. Analyze/Map 3. Create 1. Conduct informal Surveys network Solutions
  • 31.
  • 32.
    Business Development R&D International Business Strategic Business Unit Other
  • 33.
  • 34.
  • 35.
    SNA as TOM -Information= Inventory -Pull System -Degrees of Separation=process steps
  • 36.
    Case Study: ABI Relationship • 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 committee Management • Zero people from old AB
  • 39.
    “ Lync ischanging the way we communicate today, but it will change the way our business tools work in the future. ”
  • 40.
    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 ”
  • 41.
    “ Problem resolutionthrough 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
  • 42.
    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
  • 44.
    Managers spend 2 hours/day looking for information 50% of the information found is of no value ” Source: Accenture
  • 45.
    Respondents reported benefits that included better access to knowledge and internal experts, greater employee and customer satisfaction, and higher rates of innovation. ” Source: Mckinsey
  • 46.
    The magnitude of the gains was striking 20%=innovation rates to 35% (access to internal experts). ” Source: Mckinsey
  • 48.
    Add/Drop Analysis Assumption: Scalability to Anheuser-Busch Inbev
  • 49.
    Balanced Scorecard Strategy Metric Financial - 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 by Process facility. - Degree of separation Learning - 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)
  • 50.
    Presentation Summary • Company Overview * • Company Tour • Introduced problem * •Discussed Social Network Analysis * •Introduced Microsoft Lync
  • 51.
  • 52.
    Costs Initial Year 1 Year 2 Year 3 TOTAL Software 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 Party Training Cost: Internal Labor $1,300,000 $1,300,000 TOTAL $2,511,695 $170,369 $170,369 $170,369 $3,022,802
  • 53.
    Ref. Metric Calculation Year 1 Year 2 Year 3 Total A No. of Workers 5000 B Hourly Rate $48.00 C Number of ~70 min per 1.17 Hours Saved Per week Week D Weeks 50 E Percent 50% Captured F 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
  • 54.
    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

Editor's Notes

  • #43 Source: Forrester, assuming 5000 employees