Skip to main content Skip to Footer

CLIENT CASE STUDY


Outokumpu: Teaming with Accenture to plan IT integration

Outokumpu partnered with Accenture and Avanade to maximize potential merger synergies.

Overview

Outokumpu, a key player in the development of the stainless steel business, acquired German stainless steel producer Inoxum and partnered with Accenture and Avanade to maximize potential merger synergies.

To prepare for the combined company, the team transitioned infrastructure components and business applications, including Microsoft and Oracle software, and created a plan for the post-merger evolution of IT.

The company now has a clear route forward for its IT integration—and a strong IT foundation for moving toward its goal of being a global leader in its industry.

With a century-long tradition in metals, Outokumpu has around 16,900 employees, revenues of approximately US$12.7 billion (€9.6 billion) in 2012, and an estimated cold-rolling capacity of 2.8 million tons annually.

In 2012, Outokumpu acquired German stainless steel producer Inoxum from ThyssenKrupp. Together, Outokumpu and Inoxum form the world’s largest stainless steel company, with approximately 40 percent market share in Europe and 12 percent globally.

Opportunity

To maximize the potential synergies offered by the merger, Outokumpu wanted to harmonize the IT operations of the two organizations, with minimal disruption to its business, in the relatively short run-up period to the start of the new, combined company.

Because the two companies remained separate legal entities until day one of the combined business, there were restrictions on information sharing throughout the planning period.

To prepare its IT for the merger, Outokumpu chose to partner with Accenture and our affiliate, Avanade.

Outokumpu teams with Accenture to develop an IT master plan and post-merger IT vision.

Solution

To prepare for day one readiness, the team transitioned infrastructure components and business applications, including Microsoft Exchange, SharePoint, Lync and WebEx communication tools.

In addition, the team integrated two Oracle Hyperion Financial Management systems solutions to enable a consolidated financial system for the new combined business, and provided comprehensive communications to users.

The team also created a plan for the post-merger evolution of IT, as well as a plan for an optimum heterogeneous IT organization in three years’ time.

The team also created a plan for the post-merger evolution of IT, as well as a plan for an optimum heterogeneous IT organization in three years’ time.

Accenture took responsibility for strategy, program/project management and business applications.

Avanade concentrated on the technical and infrastructure issues involving Microsoft and a variety of other technologies, and created a collaboration toolset and an identity management tool for Outokumpu.

Results

The initiatives were completed on time and under budget, with just one small interruption when email delivery was delayed by three hours.

Together, these initiatives provided a complete IT master plan that spanned the initial transition and first round of integration at the closing of the merger, along with a long-term, post-merger IT vision and detailed road map for pursuing that vision.

The initiatives were completed on time and under budget. Outokumpu’s combined IT applications and infrastructure were in place and ready to support the business on day one. 

At the same time, the company now has a clear route forward for its IT integration—and a solid IT foundation for moving toward its goal of being a global leader in its industry.