Chemtura’s Journey to the CloudCory Heiden

Director Enterprise SolutionsCory.Heiden@Chemtura.com

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Learning Points/Key Takeaways

Understand Chemtura’s Transformation Journey

Benefits/Challenges with this JourneyLessons Learned

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Chemtura Key Facts

Global specialty chemical company listed on the New York Stock Exchange/Euronext (“CHMT”)

Committed to global sustainability and engineering chemical solutions that meet our customers evolving needs.

More than 4,000 employees around the world

Manufacture in 12 countries and sell products in over 100 countries

2012 sales of $2.6 billion

Global Headquarters Philadelphia, Pennsylvania

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Major End Markets ServedAgricultureBuilding &

ConstructionDurable Consumer

GoodsElectrical &

ElectronicsIndustrialTransportation

Chemtura History

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Why TransformSeveral years of limited IT investmentPoor performance of key systems Poor network response timeSingle Datacenter worldwideMisaligned SAP License BaseSAP maintenance costs extremely highOperational costs too highLeverage commoditization of IT servicesLeverage latest technology advances

Transforming ChemturaDecember 2012: Decision made to

outsourceJanuary 2013 : Selected Partner to run

RFP ProcessApril 2013 : Selected HCL as

Outsourcing PartnerJuly 2013 : Operations Go Live with

HCLOctober 2013 : Move to New

Datacenter/Virtual CloudDecember 2013: System Stabilized

Key Transformation Elements

IT Service Delivery

Application Development & Support

Infrastructure & Operations

SAP Environment

Retains Governance & ArchitectureCore systems knowledge retained in-

houseRetained org focus on delivering

transformation

Managed Services ModelValue driven solution delivery

Charge back to business

Dedicated Private Cloud EnvironmentHeavily Virtualized

Chemtura owned AssetsDevice based Variablized Support

Model

On Premise, Perpetual License to :HCL Hosted Private Cloud Model (MCaaS)Term LicenseOpex based Model

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ChallengesAll inflight projects must

successfully complete Outsource partner must

assume operational activities on Day 1

Organizational Change ManagementRetained OrganizationUser Organization

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Private Cloud Design4 Datacenters:

Primary – GABackup – CORegional – Sweden,

SingaporeHCL OperatedPrivate CageRedundant

Everything24/7 Security

Primary - GA

Disaster Recovery - CO

Regional- SE

Regional - SG

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Security & Risk ManagementChemtura Owns HardwareRe-assignment rights on contracts

Example : DatacenterClear segmentation on security roles Contractual protections (SLAs)Focus on IT Governance OrganizationData Privacy & Security

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Benefits Obtained from JourneySAP maintenance costs significantly reducedIT operations costs significantly reducedState of the Art Datacenter built with near

real time synchronization to DR siteRegional datacenters built to improve

network performanceTransformational projects being implemented

to provide user with better experience

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Key Learning'sUsing a partner to help with RFP is crucial as

they bring structure and negotiating strengthOrganization has to have strong tolerance for

Change (Board/senior leadership support critical)

Knowledge transfer is key, provide longer overlap of resources

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Questions: