All through its 150 years, Billerud has an extended custom of adapting to alter within the forest and paper business.
In the present day, the corporate has 5,800 workers in over 19 nations, and 9 manufacturing items in Sweden, Finland, and the US.
Up to now, a correct enterprise system was solely accessible within the US, however over the approaching years, the whole international operation might be linked to SAP S/4Hana, because the system will get rolled out to all 9 manufacturing items.
“What’s fascinating about our challenge 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 facility
One other factor that’s uncommon about Billerud‘s rollout is that enterprise programs typically have problem absolutely supporting the method business, particularly in relation to 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 business, the place you do the identical factor however in reverse, says Nielsen.
“We construct a product after which break up up the big 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 the whole enterprise circulate right down to the paper machine.”
By stitching the corporate collectively from the enterprise facet all the best way to the manufacturing facility, it’s doable to put the inspiration to meticulously analyze and use information.
A calculated strategy to AI
All the pieces received’t be AI-driven tomorrow, nevertheless. In round three years, Nielsen believes AI might 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 business, there are too many consulting and software program firms with far too giant advertising budgets that attempt to create demand by giving firm administration a responsible conscience,” he says. “It’s vital 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 quite a bit right now to indicate for, equivalent to 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 programs be taught fully by themselves, we’re not there but.”
A pure development
AI will step by step enter the enterprise by being embedded and built-in into purposes. “I believe most issues are available in that method,” he says. “Then you possibly can construct particular purposes as properly.”
Relating to gen AI specifically, Copilot is presently used however Nielsen says Billerud hasn’t confirmed a long-term technique.
“We’ve lower quite a lot of slack to seek 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.”
Although AI is integral to future success, perception into automation is taking on quite a lot of Nielsen’s bandwidth.
“The frequent thread for us is automation,” he says. “It’s basically easy. Automation means constant information all through the chain.”
And for a few years, there’s additionally been a bunch inside the firm working with superior information analytics. In line with Nielsen, the group has already saved the corporate a whole lot of tens of millions by optimizing vitality 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 broaden group over time.”
And there’s loads of information to feed the analyses and insights, not least within the large paper machines on the mills.
“That’s the place we’ve the most effective management over our information,” says Nielsen. “The info is there to research and optimize the machine. However on the executive facet, issues aren’t pretty much 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 inner firewalls that beforehand existed between production-related IT and the common IT operations are additionally being eradicated.
“There’s quite a lot of information going between us, in order that firewall is like Swiss cheese,” says Nielsen. “That’s why you must work collectively in a totally completely different method, each for information alternate 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 be required, and the journey has begun with two separate IT organizations — one within the Nordics and one within the US — to change into a world group. In complete, there are actually 170 folks, 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, based on Nielsen. One other space is cybersecurity. And there’s one space the place preventive upkeep and cybersecurity have in frequent: to be good at each, you’ll want to have management over your tools and programs.
“In case you have management over your IT, you possibly can simplify the surroundings in addition to automate the processes,” says Nielsen. “So then cybersecurity turns into a path to larger effectivity inside IT. They’re additionally prerequisite to succeed with AI, because it requires us to ship the correct information on the proper time to the correct place or particular person. There are merely no shortcuts.”
Above all, preventive upkeep is a prerequisite for critical data-driven work.
“By harmonizing and preserving observe of issues, we will automate, which makes us safer and provides us extra environment friendly IT,” he provides.
