"Manufacturer Ups Efficiency and Agility, Cuts IT Costs by $325,000, with New Software"
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DESCRIPTIONScholle had an older, decentralized Novellbased infrastructure that limited communications options, saddled the IT staff with excessive management chores, and frequently failed.
- 1. Microsoft Infrastructure Optimization Customer Solution Case Study Manufacturer Ups Efficiency and Agility, Cuts IT Costs by $325,000, with New SoftwareOverviewWith the Microsoft business productivity Country or Region: United States Industry: ManufacturingPackaging 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 hasScholle 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 Situationproducing 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 ITcompanys 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 corebusiness productivity and core IT infrastructures. It deployed infrastructure using Windows Servermodern 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 BenefitsU.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 ofIT staff more responsive to business needs. U.S.$250,000 IT staff cost avoidance of $75,000 Downtime reduced by 60 percent
2. Teams wanted to useSituationinfrastructure wouldnt support them. Also, Scholle Packaging, headquartered in Irvine,because we couldnt give vendors and instant messaging,California, invented bag-in-box packagingcustomers access to our file-shares for Skype, blogs, forums, (think boxed wine) more than 60 years agosecurity reasons, we had to use e-mail as a and has since evolved into a world leader of collaboration method. Management issued a wikis, videoflexible packaging solutions for the food, mandate to reduce time-to-market for new conferencing, and other beverage, and industrial markets. Scholle hasproducts, and our messaging infrastructure 1,800 employees, 20 manufacturingwas slowing us down. innovativelocations on five continents, and sells its communication products in more than 60 countries.A richer, more flexible communicationsinfrastructure could also facilitate work on methods, but our Novell For years, Scholle was organized regionally, the companys multiple LEAN initiatives, infrastructure wouldnt 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 Packagingthe business horizontally around strategic LEAN teams hold several weeklong events business units, each tasked with developingthroughout the year where staff members products for a global market.focus on improving particular processes.Team members communicated through E-Mail Messaging Insufficientoverseas conference calls, sending With this horizontal restructuring, teams were documents back and forth as e-mail attach- suddenly working with colleagues around thements. 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 themembers. Communicating by e-mail was companys older Novell-based messaging frustrating with so many parties involved, and infrastructure provided limitedit burdened the messaging system. communication and collaboration options. Basically, all we had was e-mail andServer Downtime Interrupts Business telephones, says Keith Anderson, ManagerAll of the companys Novell servers were out of Global Network Systems for Scholleof warranty, and its operating systems and Packaging. This wasnt enough toMicrosoft Office productivity programs were communicate effectively between plants inout-of-date. The older servers failed different countries and time zones. frequently, for 24 hours or longer, whichslowed or stalled production, delayed Employees experienced huge time lags asshipments, and sometimes upset customers. they waited for e-mail message replies fromReturning 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 to27 server locations. large CAD files that coworkers sent as e-mail attachments. E-mail messaging served itsWe 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 instantstaff to identify and install needed parts. We messaging, Skype, blogs, forums, wikis, videoalso flew IT staff around the world to perform conferencing, and other innovative server upgrades. Also, because there were communication methods, but our Novellno IT staff members in most plant locations, 3. We looked at Scholle could not securely place domain understand how the Microsoft Infrastructure controllers there, which forced local users toOptimization model could help Scholle communications andauthenticate over the wide-area network, aemployees be more productive and IT staff be collaboration solutions slow and often frustrating process. more effective and efficient.from Novell, Oracle, andIn addition, many newer business applica- We looked at communications and Microsoft, but thetions that Scholle added needed to connectcollaboration solutions from Novell, Oracle, to the enterprise e-mail system for sending and Microsoft, but the Microsoft solution set Microsoft solution setalerts 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 theAnderson says. Novells solutions seemed integrated management applications with Novell GroupWiselike a forced fit and based on old protocols, solutions we were messaging software; once integrated, theand Oracles 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 Packagingwas 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 dedicatedof Microsoft business productivity to managing the 18 GroupWise messaginginfrastructure products: servers. I wanted my people to work on new solutions that impacted the business, not onMicrosoft Exchange Server 2007 messaging services, which I consider amessaging and calendaring software utility, Anderson says.Microsoft Office SharePoint Server 2007 collaboration software SolutionMicrosoft Office Professional 2007 Anderson knew that Scholle needed toproductivity programs modernize its communications andMicrosoft Office Communications Server collaboration infrastructure, consolidate and 2007software that integrates instant centralize servers, and simplify IT messaging, presence, Web conferencing, management tasks if the company was toand software-powered voice over Internet continue to grow. He envisioned a Protocol (VoIP) centralized, flexible messaging and Microsoft Office Communicator 2007a collaboration infrastructure that would giveunified communications client that people global employees plenty of options foruse 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 functionalityMicrosoft Office application such as user account information, workflows, and searchthat could be centrallyModernizing 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. 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 2008based servers in 4 reliability and easy IT oversight. Scholle locations. employees now have conveniences such asshared calendars, which they did not have in PLA also helped Scholle get the maximumGroupWise, 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 businessused Office Outlook at home, in school, or in productivity infrastructure programs. Untilprevious jobs, Anderson says. In contrast, it then, Scholle had only taken advantage of thetook a month or more for employees to learn Windows Server 2003 operating system toGroupWise. Employees similarly embraced It was far more cost-run custom and third-party businessOffice Communications Server 2007 with no effective to licenseapplications and Microsoft SQL Server 2005formal training. data management software. It was far more these new programscost-effective to license these new programs With this integrated suite of communications through the Enterprisethrough the Enterprise CAL, since we weretechnologies, Scholle employees now have rolling out so many Microsoft solutions,access to security-enhanced instant CAL, since we wereAnderson says. It also helps us to stay messaging, presence, computer-based Web rolling out so many current with the latest releases, which hasconferencing, and software-powered VoIP. always been a struggle. This abundance of flexible communications Microsoft solutions. Itoptions 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 upinternational design teams can use the current with the latest virtual machines, assistance in deployingpresence 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 companys directory structure from NovellWith just a few mouse clicks, they can add Systems, Scholle PackagingeDirectory to Active Directory Domain new people to the conversation and even Services, and more. Theres no way that weescalate the conversation to an audio or Web could have tackled this ambitious projectconference. 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 AugustCommunications Server 2007, Anderson 2008. In just seven months, Scholle was able says. If I get an e-mail message from to completely replace its companywidesomeone and see from the presence business productivity infrastructure and indicator that they are online, I can send consolidate servers for easier managementthem 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 companyis much faster now. Also, we had no chatcapability before, because we didnt want ourintellectual property being discussed across 5. our firewall. With Office Communicationsso 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 additionalsite where executives and upper-level communications enhancements: replacing itsmanagement 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 unifiedrapid consumption and feedback, rather than communications; and implementing Microsoftwaiting to discuss it in monthly meetings. RoundTable conferencing and collaboration devices in branch offices. RoundTable is aAnother SharePoint site provides a forum in video conferencing phone that captures andwhich 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 thethan sharing them through lengthy e-mail conversation and broadcasts a close-up of trails and waiting for replies. the speaker. Virtualization, Centralized Management Online CollaborationThe companys 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), sharinghas created 143 virtual machines on these project calendars, hosting discussion groups, 13 servers, which host the companys providing contact lists, and more. To date, messaging, collaboration, and file-server about 120 teams have created their ownworkloads. Guest servers (virtual mac...