PADIBERAS NASIONAL BERHAD
BERNAS Digital Transformation JourneyDigitalizing Value Chain
PADIBERAS NASIONAL BERHAD
Contents
•01 – The Introduction
•02 – The Journey
•03 – The Roadmap
•04 – How Big Data helps?
PADIBERAS NASIONAL BERHAD
The Introduction
01
PADIBERAS NASIONAL BERHAD
About BERNAS
• Padiberas Nasional Berhad started as Lembaga Padi dan Beras Negara, established in 1974 to manage the upstream and downstream business of rice industry in Malaysia
• It was corporatized in 1994 as Padiberas Nasional Berhad and later privatized in 1997, it has gone through quite number of changes throughout its lifecycle but still maintain some key strategic responsibilities and national obligation• Caretaker of National Rice Stockpile
• Managing the upstream activity of local paddy industry
• Buyer of the last resort
• Ensuring no shortage of rice supply nationally
2 June 2016 4
PADIBERAS NASIONAL BERHAD
Key Takeaways
• The biggest culprit in transformation is CULTURE, which is embedded in all aspect of Enterprise including People, Process, Technology, Collaboration & Information
• A lot of changes that require transformation are outside of IT but intercept and interact with technology
• Traditional IT per se is still important aspect until the Enterprise is fully transformed but must be compliment with strategic approach by addressing all the breadth and depth of the Enterprise
• Never discount the important of disruptive trends and technologies (Internet of Things, Autonomous Robots, 3D Printing, XaaS, Smart Machines, Digital Transformation)
• Sense of ownership from all stakeholders with full responsibility and accountability will drive the success of each initiative implementation
2 June 2016 5
PADIBERAS NASIONAL BERHAD
The Journey
02
PADIBERAS NASIONAL BERHAD
How it started
• BERNAS went through privatization exercise in mid 2014 and immediately after that, fresh face of senior management were brought in.
• The tasks were to transform back-office (enterprise) services, increase the turn around on local paddy and rice sales and imported rice sales; improve value chain efficiency in general.
• The management decided to run an ambitious transformation strategy including revamping on the back-office services and re-establishing the IT services and functions.
• Thus the journey started with bringing on board a person to lead the transformation….
2 June 2016 7
PADIBERAS NASIONAL BERHAD
The Challenges
2 June 2016 8
Legacy System Legacy Process Outdated Policies Incomplete SOPs
No Straight-Through
ProcessingIT Literacy
Workforce Competencies
Limited Resources
Lack of Ownership from Process
Owners
Lack of involvement from
Stakeholders
Information Lifecycle Not
Properly Addressed
PADIBERAS NASIONAL BERHAD
Understanding the Capability & Maturity Level
2 June 2016 9
CAPABILITY AND MATURITY ASSESSMENT AREAS
PEOPLE
Knowledge Management • Talent Management • Performance Management • Succession Planning
Reward Management • Process Competencies
PROCESS
Business Requirements • Change Management • Process Integration • Best Practices • Business Intelligence
Workforce Competencies
TECHNOLOGY
Business Requirements • Change Management • Process Integration • Best Practices • Process Improvement
Capacity Management
COLLABORATION
Stakeholders Management • Change Management
Process Integration • Best Practices
Straight Through Processing
INFORMATION
Lifecycle Management • Change Management
Data Dictionary & Attributes • Best Practices
Ownership & Stewardship
PADIBERAS NASIONAL BERHAD
The Digital Blueprint
• With clear vision and mission overarching the overall roadmap
• The blueprint is spread over 3 – 5 years period with three different phases of implementation
• The first phase focus on improving the foundation in this case the underlying infrastructure, IT functions, IT process models and enterprise applications; and mapping of all value chains throughout enterprise.
• The second phase focus on serving the business with by enabling STP on the overall value chain and the improvement on Business Intelligence, Data Analytics, Business Algorithm and Business Model; also addressing the digital gaps between different functions.
• The last phase involves maturing the organization which focus on embedding all necessary frameworks in place
• The overall roadmap is governed by clear project management approach and proper change management program
2 June 2016 10
PADIBERAS NASIONAL BERHAD
The Blueprint
Providing strategic IT vision,
leadership, and Core Business & Enterprise
solutions to BERNAS and enhancing the company’s business growth.
IMPROVING THE FOUNDATION
1. Re-establishment of BERNAS IT
Department
2. Integrating Local Rice Information System
3. Integrating Supply Chain Management
System
4. Improving Enterprise Solutions
5. IT OPEX Rationalization
6. Improving IT Infrastructure
7. Mapping of all Enterprise Value Chains
SERVING THE BUSINESS
1. Improving IT Service Management
Framework
2. Enhancing Local Rice Information System
3. Integrating Retail Management into Supply
Chain Management System
4. Enhancing Business Intelligence System
5. Automating Infrastructure Functions
6. Addressing Digital Gaps between
functions
MATURING THE ORGANIZATION
1. Improving Enterprise Information
Management Framework
2. Enhancing Enterprise Architecture
3. Enhancing IT Business Operations
4. IT Infrastructure Rationalization
5. Full Review of the Blueprint
FULL STAKEHOLDERS ENGAGEMENT AND EXCELLENT SUPPORT FUNCTIONS
SUFFICIENT FUNDINGS AND RESOURCES
2 June 2016
PADIBERAS NASIONAL BERHAD
The roadmap
03
PADIBERAS NASIONAL BERHAD
Improving the Foundation
•Re-establishment of IT Structure, enhancing IT Functions and improving IT Process Model• Integrating Local Rice Information System•Connecting Core Value Chain Systems• Improving Enterprise Value Chain Solutions• IT OpEx Rationalization• Improving IT Infrastructure•Mapping of all Enterprise Value Chains
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PADIBERAS NASIONAL BERHAD
Establishment of IT Departments
Head of Department
Infrastructure & Operations
Services
Network & Connectivity
Data Center & Systems
Operations & Support
IT Security
Application Services
Core Applications
Enterprise Applications
Big Data & Analytics
Application Support
Auxiliary Services
PMO/ETO IT Governance
Risk Management
Non Functional
Department Manager
2 June 2016
PADIBERAS NASIONAL BERHAD
Mapping IT Functions & Process Model
Benefits Management
Information Management
IT Governance Digital Strategy
Service Management
Opportunity Development
Risk Management
Program/Project Management
Organization Management
Maintenance & Change
Management
Infrastructure Operations
Support
2 June 2016
PADIBERAS NASIONAL BERHAD
Integrating Core Value Chains
CORE APPLICATION LAYER
WAREHOUSE & DISTRIBUTIONLOCAL RICE
New Weighbridge Application System
(A – D – E)
Warehouse Management
Application (A – B – F)
SALES & MARKETING IMPORTATION & LOGISTICS
Planning Management Application
Rice Procurement
Application (A – B)
Logistic Management
Application (A – C – D)
CRM – Sales Automation
Local Rice Management
System (A – F)
WBS WBS
CRM – (Case Management | Account Management | Problem Management)
INTEGRATION POINTSA – Dynamics AX Integration B – Logistic Management ApplicationC – Rice Procurement Application D – Warehouse Management ApplicationE – Local Rice Information System F – Weighbridge Application System
DOA CIS
Quality and Compliance Management System
Customer Portal
CORE APPLICATION LAYER
WAREHOUSE & DISTRIBUTIONLOCAL RICE
New Weighbridge Application System
(A – D – E)
Warehouse Management
Application (A – B – F)
SALES & MARKETING IMPORTATION & LOGISTICS
Planning Management Application
Rice Procurement
Application (A – B)
Logistic Management
Application (A – C – D)
CRM – Sales Automation
Local Rice Management
System (A – F)
WBS LCWBS WH
CRM – (Case Management | Account Management | Problem Management)
INTEGRATION POINTS:A – Dynamics AX Integration B – Logistic Management ApplicationC – Rice Procurement Application D – Warehouse Management ApplicationE – Local Rice Information System F – Weighbridge Application System
DOA CIS
Quality and Compliance Management System
Customer Portal
SYSTEM LEGENDS:Proposed New System Current System (TBR)
New System Implementation System in Discussion
2 June 2016
PADIBERAS NASIONAL BERHAD
Network Connectivity Upgrades
BERNAS
IPVPN
CLOUD
BERNAS MILLS
(30 Sites)
BERNAS
WAREHOUSES
(11 Sites)
BERNAS
REGIONAL
OFFICES
(4 Sites)
EBN (1 Site)
PUBLIC
INTERNET
CLOUD
2 Mbps
1 – 10 Mbps
1 Mbps
1 – 2 Mbps
BERNAS HLA
BERNAS
GLENMARIE
BERNAS DATA
CENTRE
(DRB HICOM)
BERNAS DISASTER
RECOVERY CENTRE
(CYBERJAYA)
18 Mbps10 Mbps
10 Mbps
10 Mbps
10 Mbps
4 Mbps
10 Mbps
2 Mbps
LEGENDS
Wireless P2P
Wired Fibre
Direct Internet
BERNAS
IPVPN
CLOUD
BEFORE AFTER
BERNAS MILLS
1. KBB Simpang Empat
2. KBB Kuala Perlis
3. KBB Utan Aji
4. KBB Telok Kechai
5. KBB Bukit Besar
6. KBB Bukit Raya
7. KBB Kangkong
8. KBB Sungai Limau
9. KBB Guar Chempedak
10. KBB Sungai Baru
11. KBB Pering
12. KBB Jerlun
13. KBB Kerpan
14. KBB Kodiang
15. KBB Megat Dewa
16. KBB Langgar
17. KBB Paya Keladi
18. KBB Simpang Lima
19. KBB Sungai Manik
20. KBB Changkat Lada
21. KBB Sungai Ranggam
22. KBB Seri Tiram Jaya
23. KBB Sekinchan
24. KBB Sungai Besar
25. KBB Tumpat
26. KBB Pasir Puteh
27. KBB Bukit Kenak
28. KBB Rompin
BERNAS WAREHOUSES
1. Gudang BERNAS BSS
2. Gudang BERNAS Gebeng
3. Gudang BERNAS Pasir Gudang
4. Gudang BERNAS Pending
5. Gudang BERNAS Sibu
6. Gudang BERNAS Bintulu
7. Gudang BERNAS Telipok
8. Gudang BERNAS Kudat
9. Gudang BERNAS Sandakan
10. Gudang BERNAS Lahad Datu
11. Gudang BERNAS Tawau
BERNAS RELAY SITES
1. KBB Peringat
2. Gudang BERNAS Prai
3. Gudang BERNAS JASA
EBN
PEJABAT
GLENMARIE
(BERNAS DC)
PUBLIC
INTERNET
CLOUD
2 Mbps
2 Mbps
4 Mbps
2 Mbps
PEJABAT
BERNAS
JITRA
30 Mbps
PEJABAT
BERNAS
PENGKALAN
CHEPA
1. PEJABAT BERNAS SATOK
2. PEJABAT BERNAS SAN HIN
2 Mbps
10 Mbps
100 Mbps100 Mbps
2 June 2016
PADIBERAS NASIONAL BERHAD
Improving IT Infrastructure
Application Rationalization
Platform as a Service
Hybrid Cloud IaaS
Unified Communication
Hybrid Connectivity
Converged Security
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PADIBERAS NASIONAL BERHAD
IT Infrastructure Framework
FINANCIAL MANAGEMENT
PEOPLE & RESOURCES SERVICE PLANNING&ARCHITECTURE
INFRASTRUCTURE &OPERATIONS
SECURITY & RISK
PROJECTS
IT Infra Strategy
SG01
Policies
SG02
Innovation
SG03
Knowledge Management
PR01
Infra Organizational Design
PR02
Cost & Budget Management
FM01
Vendor Management
FM02
Asset Management
IO01
Availability & Capacity Management
IO02
Operations Management
IO03
Incident & Problem Management
IO04
Configuration Management
IO05
Service Desk
IO06
Document & Report Management
IO07
Change & Release Management
IO08
Business Continuity Management
SR01
Business Process Control & Internal Audit
SR02
Disaster Recovery Plan Management
SR03
Risk Management
SR04
IT Security
SR05
Infra Architecture
SPA01
Service Management
SPA02
Project Management
P01
Organizational Change Management
P02
Requirements Gathering
P03
2 June 2016
PADIBERAS NASIONAL BERHAD
Infrastructure Landscape
SYSTEM & STORAGE NETWORK & SECURITY BACKUP & RESTORE
o SERVER ADMINISTRATION & MANAGEMENTo SERVER PROVISIONINGo PATCHES ADMINISTRATION & MANAGEMENTo STORAGE ADMINISTRATION & MANAGEMENTo EMAIL ADMINISTRATION & MANAGEMENTo AD ADMINISTRATION & MANAGEMENT
o NETWORK MANAGEMENTo SECURITY MANAGEMENTo INTERNET MANAGEMENTo ACCESS MANAGEMENT
o BACKUP AND RESTORE ADMINISTRATION & MANAGEMENT
o ENTERPRISE BUSINESS CONTINUITY MANAGEMENTo DISASTER RECOVERY PLANo DATA REPLICATION
o EXCHANGE o SCCMo VMWAREo SKYPE FOR BUSINESSo SCOMo SAN/NAS STORAGE ( QUANTUM | DELL )o OPERATING SYSTEMo ACTIVE DIRECTORY ( GPO | DC MANAGEMENT )o SHAREPOINTo CITRIXo DNSo WEB SERVER
o MANAGED F IREWALL SERVICES ( T1 | T2 )o MANAGED IPS ( F IREPOWER )o ANTI SPAM ( MAIL GATEWAY )o WEB F ILTERING ( WEB GATEWAY )o ANTIVIRUSo POLICIESo RISK & THREATo IDENTITY MANAGEMENTo USER ACCESS MATRICSo SERVER LOAD BALANCEo REVERSE PROXYo BANDWIDTH MANAGEMENT
o VIRTUAL & PHYSICAL BACKUP & RESTOREo DATABASE BACKUP & RESTOREo ENDPOINT BACKUP & RESTOREo SERVER BACKUP & RESTOREo POLICIESo BACKUP & RESTORE DRILL ACTIVITY
MONITORING & OPERATION
o LOG M A NAGEMENTo DA T A C ENT ER M A NAGEMENTo END - USER M A NAGEMENTo C ONFIGURATION M A NAGEMENTo NET WORK UT I L IZATIONo T HREAT, VULNERABIL ITIES , V I RUS M ONITORINGo DOC UMENTATIONo REP ORTINGo A LERT & NOT I FICATION M A NA GEMENT ( HA RDWARE &
S OFTWARE )o I T A S SET M A NAGEMENT
o REMOTE DESKTOP MANAGEMENTo MANAGED AD, EXCHANGE, ANTIVIRUS SERVICESo MONITORING BACKUP ACTIVITYo ANTIVIRUS DEPLOYMENT AND MONITORINGo SKYPE FOR BUSINESS DEPLOLMENTo MONITORING, ADMINISTERING AND DIAGNOSTIC OF NETWORK AND SECURITY
COMPONENTo WARRANTY INFORMATION & L ICENSING o DATA CENTER MANAGEMENT
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PADIBERAS NASIONAL BERHAD
Mappings enterprise value chains
Value Chain Area of Improvement Deliverables
Information Technology – Service Management
• Change Management• Process Integration• Process Improvement• Lifecycle Management
• Automated Service Management System through Online Helpdesk
• SLA Integration• Policies & Procedures
Information Technology – Program / Project Management
• Change Management• Process Integration• Lifecycle Management• Knowledge Management
• Complete Project Management Portfolio based on Project Management Institute
• Policies & Procedures
Information Technology – Infrastructure Operations
• Change Management• Process Integration• Process Improvement• Capacity Management
• Revision on Infrastructure operation model• Integration with Service Management• Policies & Procedures
Information Technology – Organizational Management
• Change Management• Process Improvement• Knowledge Management• Talent Management• Performance Management
• Restructuring of Organizational Structure• Redefinition of Process Models & Functions• Policies & Procedures
212 June 2016
PADIBERAS NASIONAL BERHAD
Mappings enterprise value chains
Value Chain Area of Improvement Deliverables
• Services & Indirect Materials Department
• Shipping Department
• Process Integration• Process Improvement• Lifecycle Management• Vendor Management
• Automation of Lifecycle Management into integrated system
• Enhancement of Vendor Management through automated functions
• Savings of RM1.2 millions through process automation• Income generation of RM230,000 yearly
Operations Divisions – Logistic Functions • Process Integration• Process Improvement• Workforce
Competencies
• Automation of Lifecycle Management into single integrated system
• Integration with other back-end system to provide seamless data flow
• Savings of RM16 million from initiatives implementation
• Finance Department• Local Rice Department
• Process Integration• Process Improvement• Capacity Management• Workforce
Competencies
• Automation of 3 different systems integration• Providing seamless data flow and extraction to reduce
account closing and reporting wait time• Savings of RM12 million from initiatives
implementation
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PADIBERAS NASIONAL BERHAD
Improving the foundation >>IT OPEX RATIONALIZATION
Budget Description Year 2014 (RM) Year 2015 (RM) Year 2016 (RM)
IT Structure & Function 250,000 (R) 1,250,000 (R) 1,425,000 (P)
IT Outsourcing Support 5,830,560 (R) 1,943,520 (R) Nil
Communication Services(sWANet, P2P, DIA)
4,068,130 (R) 3,723,000 (R) 3,342,880 (P)
PC Leasing 3,091,200 (R) 1,698,000 (R) 478,000 (R)
Output Devices Leasing 468,000 (R) 398,000 (R) 300,000 (P)
Hardware Maintenance 1,589,000 (R) 462,320 (P) 500,000 (P)
DC/DR Services 3,624,000 (R) 968,000 (R) 100,000 (P)
Application Maintenance 3,224,000 (R) 1,650,000 (R) 1,500,000 (P)
TOTAL 22,144,890 12,092,840 7,645,880
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PADIBERAS NASIONAL BERHAD
Serving the Business
•Improving IT Service Management Framework
•Enhancing Local Rice Information System
•Integrating Retail Management and xRM into Supply Chain Information System
•Enhancing Business Intelligence and Data Analytics
2 June 2016 24
PADIBERAS NASIONAL BERHAD
New Application Landscape
25
ANALYTICS AND BUSINESS INTELLIGENCE LAYER
Strategic Analytics Financial Analytics Predictions & Prescriptions
ENTERPRISE APPLICATION LAYER
Financial Management System HR Management System Asset Management &
Maintenance ManagementProcurement Management Time Management System
Helpdesk System
Enterprise Content Management System (Document Management & Workflow Automation System)
DATA REPOSITORY LAYERApplication Databases Enterprise Data Warehouse Unstructured Datafiles
EXTERNAL FEEDS
Social Listening
Agriculture Flagship
Application System
Port Information
Wholesaler Information
Operational Analytics
CORE APPLICATION LAYER
WAREHOUSE & DISTRIBUTIONLOCAL RICE
New Weighbridge Application System
Warehouse Management Application
SALES & MARKETING IMPORTATION & LOGISTICS
Planning Management Application
Rice Procurement Application
Logistic Management Application
CRM – Sales Automation
Local Rice Management System
WBS LC WBS WH
CRM – (Case Management | Account Management | Problem Management)
DOA CIS
Quality and Compliance Management System
Customer Portal
SYSTEM LEGENDS:Proposed New System New System Implementation System in Discussion Current System (Maintained) Current System (TBR)
2 June 2016
PADIBERAS NASIONAL BERHAD
Improving Financial Subsystem
FINANCIAL SUBSYSTEMS
Treasury Management Modular System
MICROSOFT DYNAMICS AXAPTA
Financial Management
(AP – AR - GL)
Inventory Management
AR Automation
Bad Debt Management & Reverse Charge
Financial Reporting
Trade & Logistics
Sales Confirmation
Budget Module Project Accounting
INTEGRATION POINTS
SYSTEM LEGENDS:Proposed New System New System Implementation Proposed Supporting Subsystem Current System (Maintained)
EXTERNAL FEEDS LAYER
CORE APPLICATION
LAYER
ENTERPRISE
APPLICATION LAYER
2 June 2016
PADIBERAS NASIONAL BERHAD
Introducing Enterprise Data Warehouse
Core Application Repositories
Enterprise Application Repositories
ENTERPRISE DATA WAREHOUSE
Ap
plic
atio
n In
tegr
atio
n
Laye
r
Staging Database
Clean Master Data
Master Data Management
Analytics & Business Intelligence Layer
Strategic Analytics Operational Analytics Financial Analytics Predictions & Prescriptions
Dat
a D
icti
on
ary
Def
init
ion
External Feeds Repositories
2 June 2016
PADIBERAS NASIONAL BERHAD
Maturing the Organization
•Improving Information Management Framework•Implementing Digital Transformation•Enhancing Enterprise Architecture•Enhancing IT Business Operations•Enhancing IT Risk Management and IT Governance•Rationalizing IT Infrastructure
2 June 2016
PADIBERAS NASIONAL BERHAD
How Big Data Helps?
PADIBERAS NASIONAL BERHAD
The Evolution of Digital Transformation
Historical Real-Time Prediction PrescriptionMachine Learning
Data collected & Analysed for Statistical Purposes
Data Collected & Transformed into Data warehouse, providing Real-Time Information updates & trending
Integration with External Data Sources & Business Direction Inputs
Current Evolution Stage
2 June 2016
PADIBERAS NASIONAL BERHAD
What have we achieved?
Overview and Insight on Capacity
Planning
Tarnish & Spillage Information
throughout Value Chain
Better management on Local Rice planting and
Harvesting season
Reduction on Port Detention and
Demurrage charges
Detail trends on rice distribution
nationwide
Reduction on Account Closing
turn-around-time
2 June 2016