Michelin navigates change
Michelin needed to transform its IT applications performance. It was
costly to have and maintain a mixed bag of applications in different
locations.
New, standardized applications across the company would:
- drive down costs
- make processes work better
- help Michelin grow and compete.
Michelin is well-known for exploring new, better ways to do
things. This task was no exception. The idea of a fresh sourcing model
was born. Named co-management, it rejected the classic buyer-supplier
pattern. Instead, partners would work shoulder to shoulder with
Michelin. Partners would commit to the same goals Michelin had set for
itself. They would have to bring the right skills and delivery model.
Logica was a natural fit. Like Michelin, commitment, openness and
innovation were at the heart of Logica’s businesses and processes.
The results
The co-management approach is working well. On a day-to-day basis
the team works together to accomplish common goals. Problems are
resolved through open communication. With an eye on bigger savings, more
services are being moved offshore to our centres in Bangalore and
Chennai through 2009-10.
Michelin’s systems perform better now. What’s more, the new
systems are helping the company respond to changing business needs.
Savings from standardized operating costs are being invested in core
business and on promoting environmentally friendly solutions. Michelin’s
head of business solutions is sure this is the way ahead. “At
Michelin, we seek to collaborate with our suppliers, and relationships
are built on trust and behaviour. Trust is built up over time and is
about experience.”
For Michelin, this partnership with Logica has:
- improved overall productivity: applications management costs
less, performs better and reduces time to respond to changing business
needs
- increased innovation capabilities: teams access and share
knowhow on the latest technologies
- boost confidence: the company is now ready to explore ways to
improve other processes.
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