The ERP system enabling Billerud to grow to be completely knowledge pushed – Model Slux

All through its 150 years, Billerud has a protracted custom of adapting to vary within the forest and paper trade.

Immediately, the corporate has 5,800 workers in over 19 international locations, and 9 manufacturing models in Sweden, Finland, and the US. 

Up to now, a correct enterprise system was solely accessible within the US, however over the approaching years, all the world operation can be linked to SAP S/4Hana, because the system will get rolled out to all 9 manufacturing models. 

“What’s fascinating about our mission is it’s a pure greenfield,” says CIO Jens Nielsen. “We’re constructing it from begin to end. Virtually all of my colleagues have an ERP system of their legacy that must be upgraded, however we’ll set up from scratch.”

Circulate to the manufacturing unit

One other factor that’s uncommon about Billerud‘s rollout is that enterprise methods typically have problem absolutely supporting the method trade, particularly in the case of manufacturing planning. 

This has to do with the truth that manufacturing industries usually contain taking many elements and placing them collectively to create a product. However that’s not the case within the course of trade, the place you do the identical factor however in reverse, says Nielsen. 

“We construct a product after which break up up the massive paper roll to completely different prospects,” he says. “Traditionally, there’s been no ERP that’s been capable of assist this. However now SAP can deal with all the enterprise movement right down to the paper machine.” 

By stitching the corporate collectively from the enterprise aspect all the best way to the manufacturing unit, it’s potential to put the inspiration to meticulously analyze and use knowledge. 

A calculated strategy to AI

Every little thing gained’t be AI-driven tomorrow, nevertheless. In round three years, Nielsen believes AI can be of nice significance, however not in its present kind. 

“AI could be very tough to navigate, not least as a result of within the IT trade, there are too many consulting and software program corporations with far too giant advertising budgets that attempt to create demand by giving firm administration a responsible conscience,” he says. “It’s necessary to maintain your eyes on the ball. What we wish now are automation to extend productiveness, and perception to win prospects and new markets.”

In these areas, there’s already rather a lot at present to point out for, resembling statistical inference evaluation and machine studying. 

“What I need to focus on are automation, effectivity, and perception,” he provides. “If AI will help us, that’s nice, however AI within the sense that methods study utterly by themselves, we’re not there but.”

A pure development

AI will progressively enter the enterprise by being embedded and built-in into purposes. “I believe most issues are available that method,” he says. “Then you’ll be able to construct particular purposes as nicely.”

Relating to gen AI specifically, Copilot is presently used however Nielsen says Billerud hasn’t confirmed a long-term technique. 

“We’ve reduce lots of slack to search out our technique,” he provides. “So inside the subsequent 12 months, we’ll have one thing in place based mostly on an strategy to upskill all our customers.” 

Regardless that AI is integral to future success, perception into automation is taking over lots of Nielsen’s bandwidth. 

“The widespread thread for us is automation,” he says. “It’s basically easy. Automation means constant knowledge all through the chain.”

And for a few years, there’s additionally been a gaggle inside the firm working with superior knowledge analytics. Based on Nielsen, the group has already saved the corporate lots of of tens of millions by optimizing power use and equipment.  

“I normally name them Billerud’s hidden asset,” he says, “as they’re not seen and there’s not a lot of them. However we’ll increase group over time.” 

And there’s loads of knowledge to feed the analyses and insights, not least within the large paper machines on the mills. 

“That’s the place we now have the most effective management over our knowledge,” says Nielsen. “The info is there to research and optimize the machine. However on the executive aspect, issues aren’t nearly as good, in order that’s what we’re going to get so as, by taking the massive step to S/4Hana.” 

Bringing down the firewalls

As the corporate turns into extra data-driven, the interior firewalls that beforehand existed between production-related IT and the common IT operations are additionally being eradicated.  

“There’s lots of knowledge going between us, in order that firewall is like Swiss cheese,” says Nielsen. “That’s why you need to work collectively in a very completely different method, each for knowledge trade and to make the provision chain work collectively. My problem isn’t distinctive there since in lots of locations IT and operational expertise are combining in new methods.” 

To make sure success, modernizing the IT division itself can also be required, and the journey has begun with two separate IT organizations — one within the Nordics and one within the US — to grow to be a worldwide group. In whole, there are actually 170 individuals, however the plan is to extend to 200 by the tip of the 12 months. 

Upkeep and security

One specific precedence is to make the IT group higher at working with preventive upkeep since there’s nonetheless far an excessive amount of break-fix, in keeping with Nielsen. One other space is cybersecurity. And there’s one space the place preventive upkeep and cybersecurity have in widespread: to be good at each, you should have management over your tools and methods. 

“You probably have management over your IT, you’ll be able to simplify the atmosphere in addition to automate the processes,” says Nielsen. “So then cybersecurity turns into a path to higher effectivity inside IT. They’re additionally prerequisite to succeed with AI, because it requires us to ship the correct knowledge on the proper time to the correct place or individual. There are merely no shortcuts.”  

Above all, preventive upkeep is a prerequisite for severe data-driven work. 

“By harmonizing and maintaining monitor of issues, we are able to automate, which makes us safer and offers us extra environment friendly IT,” he provides. 

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