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​How Australia’s Treasury Wine Estates went behind to basis with the IT overhaul


Image: Treasury Wine Estates

Treasury Wine Estates (TWE) is an Australian-based tellurian winemaking and placement business, and until a demerger in May 2011, was a booze multiplication of general brewing association Foster’s Group.

In 2014, TWE found itself in a bit of a hole, association tellurian resolution executive David Jones told reporters during a new Red Rock Leadership Forum in Sydney.

According to Jones, a association undertook a “massive” AU$130 million write-down of a register that also resulted in a share cost on a ASX “tank” before a company’s eyes.

At a same time, TWE’s arch information officer, arch financial officer, arch sales officer, and authority of a house were all discharged within 6 months.

“We were entrance off a unequivocally low base,” Jones explained.

“New government came in, IT budgets got cut, and a conditions was we couldn’t means to keep all of a really big, really expensive, really siloed, really customised program that we had.”

Jones explained a uneasy association also couldn’t means to repair a IT if a business was going to continue to work a same approach it always had.

“So if we didn’t do something dramatically different, a IT was going to be relegated to usually gripping a lights on and perplexing to not make it tumble over,” he added.

The tellurian solutions executive — who assimilated TWE from Ernst Young after consulting for some time to TWE on several IT plan hurdles — and his group were afterwards charged with a whole-of-business turnaround and mutation to get a association behind on track.

“For a initial time for us, and for a initial time for Red Rock, we effectively intent Red Rock to broach us an ERP-as-a-service,” Jones explained. “Everything from a tin by microprocessors and networks, right by to program delivery.”

Jones pronounced his teams managed to decommission 6 ERPs, 4 room government systems that were all siloed around a world, and about 25 other small systems — during a same time as kicking off a business comprehension (BI) project.

TWE wrote-off over AU$100 million of IT infrastructure and transposed it with something that was a fragment of a cost, Jones explained.

“We reduced a change sheet. It was a usually time I’ve ever seen a vital IT plan get delivered and not write to a change sheet,” he said. “We reduced IT costs by about 50 percent.”

Jones pronounced his organization went from information entered mixed times into mixed systems, to a singular ERP resolution that runs a whole company.

The JD Edwards ERP resolution even annals information from grape contrast in a Napa Valley, such as sugarine content, approaching collect date, and what booze it’s ostensible to go into, Jones said.

From an design perspective, Jones pronounced TWE radically implemented an “old-school big-honking ERP, big-honking BI platform”, replacing all that was going on in a business, while dramatically shortening costs.

“We effectively went from saying, ‘this all needs to be really siloed and really special and on-premises and tranquil by IT’ to ‘that’s not what we’re about anymore’,” he said.

“That’s not what IT departments should be about anymore; we wish somebody else to do that, and we wish something elementary and customary we can usually buy, and we’ll concentration on things where we can supplement value.

“We are a code government and a booze creation association — we shouldn’t be spending a lot of income on IT.”

The digital mutation saw TWE revoke a headcount by about 30 percent, though Jones pronounced a restructure went deeper than simply culling staff.

“We brought opposite forms of people on; fewer people to block in cables and some-more people who know how to go out and rivet with a business and know how to precedence a height to urge processes,” he explained.

“Now that we’ve finished a pursuit of regulating a core and removing a height right, rather than plugging pieces and pieces together to keep a business rolling, we’ve got now a whole garland of ability and capability to deposit in.

“We’re looking some-more during best use solutions that precedence off that platform.”

One instance is restraining in TWE’s margin automation platform.

With staff out in a vineyards carrying tablets, as good as sensors peppered around a grape fields, Jones pronounced TWE is now means to tie in information feeds from mobile, a Internet of Things, and a cloud.

“We’re removing that information in now and putting that directly into a ERP and into a BI height as well, we’re also means to get stereotyped marketplace information in,” he said, observant that Salesforce is another thing being plugged into a systems.

“Our differentiator is in a wine, not a ERP.”

Most importantly, Jones pronounced his organization didn’t do anything to change a peculiarity of a booze via a IT overhaul.

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