JSE-listed IT group CS Holdings has completed a strategic IS architecture project and has now been tasked with two additional IT projects for Foskor, the mining and manufacturing subsidiary of the Industrial Development Corporation (IDC). CS Holdings` Strategy Solutions division, in partnership with Manase and Associates, conducted the project, worth an estimated R850 000 in total.
According to Andre Farber, Lead Business Consultant for CS Strategy Solutions, the intervention was necessary because of Foskor`s expansion and recent acquisition of Indian Ocean Fertiliser (IOF), and the integration of the two companies in the group. "The Foskor Group is made up of Foskor Phalaborwa, where phosphate is mined and refined, and IOF at Richards Bay, where the phosphate is used to produce phosphoric acid and phosphate based fertilisers. The Foskor Group realised that their IS Strategy would be of critical importance to remain competitive. The Foskor Group required the consolidation of the IT infrastructure and existing business applications of Foskor Phalaborwa and IOF. Their supply chain and complexity of the business became more complicated as a result of merger of the two companies. It was inevitable that a review of the current IS Strategy and architecture of the two business units was conducted, and a new IS Strategy and Architecture for the Group developed."
Yekani Tenza, Chief Financial Officer of the Foskor group, says that Foskor had to focus on their core business, which is the production and selling of phosphoric acid, and the management of the cost drivers. "We contracted CS Strategy Solutions to firstly deliver a detailed IS strategy. They delivered a plan of the integration of the companies` hardware infrastructure, business systems, and they defined the new management structure for the group`s IS organisation. For phase 2, they have to define the detail business requirements specifically for the integrated business systems, catering for core business functions such as logistics, financials, procurement and manufacturing processes. They also have to define the policies, standards and procedures related to information technology and information systems."
"Cost-efficient IT management is no guarantee of business-effective IT deployment, " comments Farber. "Business and IT alignment is the prerequisite for delivering IT value. As the criteria for the IT value contribution expand to incorporate a strategic capability and the ability to respond rapidly to market-driven events, IT management is focusing on risk assessment and limitation, project prioritisation and development of generic and quickly mobilised service skills. Foskor`s IT management asked two basic questions: Are we doing all we can to support the business strategy and corporate goals? Are we seeking new ways to deploy IT in pursuit of increased corporate success? The measurement of IT and business alignment is talked about by many but practised by only a few. Foskor is taking this alignment very seriously, since the group knows what its core business is and what is required to take them to success."
Tenza feels that the project is a critical element in reaching the ultimate goal in Foskor`s IT strategy, "Our Information Systems, in partnership with the business units, must be able to facilitate the availability of timely and accurate information needed to manage the day-to-day operations and strategic direction of the company by deploying appropriate information systems and technology. This will assist us in creating, maintaining and enhancing a financially viable, performance driven business, capable of delivering sustained superior financial and social returns to our shareholders."
CS Strategy Solutions used the German software suite Aris from IDS Scheer, a leading business engineering toolset that facilitates documenting and analysing business processes and business applications across the group.
Farber says Aris was used, " since it can accommodate detailed architectures such as the Zachmann Framework," with specifically-adapted filters to suit the conditions and requirements of the client. However, the use of advanced software was not the most important aspect of the project since CS Strategy Solutions specialises in business improvement initiatives from a practical angle: "We identified the gaps between the two independent environments, and the requirements to bridge the gaps - and estimated the overall cost. We produced a practical plan of action to migrate Foskor`s IT systems and infrastructure from where they are to where they want to be. We don`t immerse ourselves and our clients in theory or software features - we believe in practical implementation, hard facts and practical plans. We have a good relationship with Foskor and we will leave them with practical plans of action, and a knowledge base of defined roles & responsibilities, standards and procedures to their exact requirements. " He emphasises that CS Strategy Solutions takes pride in delivering practicable business engineering solutions that will ultimately work and deliver bottom-line benefits for the client, and that they will walk with the client all the way to the ultimate destination.
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