Cementos Pacasmayo – Brochure 2021

TRANSFORMATION TO BENEFIT A NATION Project partners

TRANSFORMAT TO BENEFIT A NA

TION ATION

Nell Walker

Craig Daniels

Written by

Produced by

We sit down with Luis Miguel Soto Valenzuela, CIO of Cementos Pacasmayo, to discuss the company's digital and customer experience transformation, and its dedication to improving Peru 3

A

n intense focus on digital trans-

manufacturing, mining, automotive,” he

formation, hand-in-hand with

explains. “They all enriched my depth of

customer experience, might

knowledge of how you manage different

not be things one immediately considers

industries through IT solutions.” When he

when it comes to the cement industry –

joined the Cementos Pacasmayo team,

but for Cementos Pacasmayo, Peru’s top

his primary objective was also related to

player in the market, it’s absolutely vital in

SAP, because the business was planning

preparing for the future. Luis Miguel Soto

to migrate to the latest version. However,

Valenzuela has been CIO of Cementos

that objective evolved, and became just

Pacasmayo for around three-and-a-half

one element of a long-term digital trans-

years, after 13 years in SAP consulting,

formation journey, with the ultimate goal

and his varied career has allowed him to

being better customer experiences.

work in Bolivia, Colombia, Puerto Rico and the Dominican Republic – experi-

The new vision

ences he describes as “really enriching”.

Cementos Pacasmayo had, in fact,

“I gained a lot of experience in different industries – health, insurance,

already been planning its digital transformation before Soto stepped in. In 2017

– the year he joined – the business stated

also instated the practice of working in

its new vision, which was to provide solu-

agile teams,” Soto explains. “But until I

tions and experiences to customers, not

arrived, there were no digital products

simply products. “It was also stated that

being made. It was all an idea, a theory;

we were going to provide building solu-

now, we have several digital products

tions that differed from our main prod-

already on the market.”

uct – cement,” Soto says. “An innovation area was built in order to help establish

Seeing beyond cement

the mindset of our people in order to go

This innovative mindset of moving away

towards our digital transformation, but

from products and into experiences,

that was before I arrived.”

Soto joining the business saw the IT team becoming the digital transformation function, because its capabilities were required alongside the innovation team. “As I said, that was mainly focused on setting the mindset of our people, and

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which existed prior to Soto, is a fairly

sorry to say, cement is a primary contrib-

novel one for the traditional cement

utor to that problem. We want to drop our

industry. Fortunately, Cementos

emissions to 0% by 2050, so part of why

Pacasmayo has a forward-thinking CEO

we’re doing this investigation in this labo-

who knows even cement isn’t always

ratory is to reduce those emissions on

going to stay the same. “We’ve been

our traditional products and operational

doing this for 63 years,” says Soto,

processes.”

“we’re number one in the region – but it’s because we’re on top that we have

Digital solutions

to change in order to anticipate further

For all the changes Cementos

competitors that arrive in our geogra-

Pacasmayo is undergoing, and how it’s

phy and start offering something we

preparing for an as-yet-unknown future,

don’t. Our CEO isn’t worried about other

one thing it doesn’t have to worry about

cement competitors – he’s worried about

is customer loyalty. As previously stated,

the next building material that’s going to

the business is at the top of the game in

come and take over the cement indus-

Peru; its customers are, in Soto’s words,

try. That’s why he stated the new vision

“in love with our brand”. In fact, the digital

– to provide building solutions, not just

transformation it’s been going through

cement-based ones.”

has cemented (pun very much intended)

That kind of innovative future-thinking

this, as it has enabled bespoke services

is what keeps a business one step ahead,

for everyone – from huge construction

regardless of the changes happening

companies to individuals just wanting a

around it, and sets Cementos Pacasmayo

few bags of cement for a single project.

apart from other players in its industry.

“We have developed a digital ecosys-

In fact, the business is so serious about

tem, Mundo Experto, in order to

keeping a close eye on the future of build-

deliver tailored solutions for every-

ing materials, it has collaborated with a

one,” says Soto. Cementos Pacasmayo

university (UTEC) to fund research into

has Ferrexperto for hardware stores,

the topic. “They’re investigating different

Agentexperto for grocery and multi-pur-

materials in order to look towards what

pose stores, Tiendexperto for B2C

we’re going to make in the future,” says

customers, Aliado Pacasmayo for

Soto. “Connected to this is our pledge to

master builders and masons, Vecinas

reduce our CO2 emissions because, I’m

Pacasmayo for the brand consulting 9

Luis Miguel Soto Valenzuela CIO Cementos Pacasmayo Soto is a Systems Engineer; he attended Universidad de Lima, with specialisation in project management and part of MIT Sloan’s Organizational Design for Digital Transformation program. Soto has 13 years of experience in business and technology consulting in industries like manufacturing, mining, health, insurance and automotive in Peru, Bolivia, Colombia, Dominican Republic and Puerto Rico. He works as CIO of Cementos Pacasmayo, leading all the Digital Transformation Program framed within the company’s new vision.

network, and DINOexperto for direct-

on-site, and when concrete discharge

to-customer stores. This venture

starts and ends. This is a perfect exam-

has required Cementos Pacasmayo

ple of how our agile teams from busi-

to become very much a data-driven

ness, innovation and IT work together in

company. “It involves tons of data from

order to provide tailored solutions to our

which we’re going to develop our loyalty

customers. The app allows us to receive

strategies.”

enormous amounts of data, enabling

Cementos Pacasmayo even has an app solution – Pacasmayo Profesional –

further development of the solution.”

Additionally, Cementos’s three cement

which focuses on the specific pain points

plants are automated with its IIOT plat-

of construction companies. “They now

form, which is integrated with its ERP

have real-time tracking of our ready-mix

solution, making real-time tracking across

trucks, including notifications of when

the board possible – not just in terms of

they leave our facilities, when they arrive

the product journey for the customer, but 11

also things like material consumption and

have to be managed differently, on a more

indirect manufacturing costs (e.g. energy

personal level. Before this became the

and maintenance inspections). “We

focus thanks to the new vision, Cementos

receive millions of data tags that allow us

Pacasmayo was very much a tradi-

to monitor our key asset management in

tional B2B company; it has 300 custom-

real time and make decisions on the run,”

ers made up of big hardware stores

Soto explains. “All of this is part of our Big

or construction materials distribution

Data and analytics programme, which will

companies, as well as construction busi-

allow us to final delivery our Operational

nesses themselves.

Intelligence solutions.”

“When we changed our vision, we stated that we were going to look towards

All customers, big and small

every single one of our customers,

All these different types of custom-

because the construction companies are

ers have different requirements, which

not the final users,” Soto explains. “Our

is reflected in the various services

real customers are the families buying a

Pacasmayo now offers – but they also

few bags of cement to build their home,

“ We’re number one in the region – but it’s because we’re on top that we have to change in order to anticipate further competitors” — L u i s M i guel S oto Va lenzuela C I O, C em e ntos Pa c a smayo

so we opened ourselves up to knowing

mile delivery, and make sure it’s always on

these customers – and what we’ve found

time, which also creates a mutual support

is they’re more diverse than we thought;

network for local businesses.

they have different needs.”

The business was split in two, so that

And that – the wellbeing and future of Peru – is something that’s hugely impor-

part of the Cementos Pacasmayo team

tant to Cementos Pacasmayo. It is a busi-

could focus solely on consumer, and part

ness that feels responsible for the devel-

on industrial. That allowed the business to

opment of its country, because many

learn what each type of customer’s needs

areas of it are under-developed. “We feel

and wants were, before splitting the

a primary responsibility in developing the

groups further to create the new range

cities in order to unite them with roads or

of digital services. The challenge comes

highways or bridges, because they don’t

with the actual delivery of the products,

really have those capabilities,” Soto says.

but even that is an exciting opportunity

“With our knowledge, products, and solu-

for Cementos Pacasmayo; the business

tions, we know that we can make a differ-

doesn’t have its own fleet, and it knows

ence. Our vision is to push forward this

that its customers can’t wait for cement

development by 2030.”

– they have projects happening now. So, Cementos Pacasmayo partners with

Company culture

other services in Peru that do the last

None of this shift towards greater 13

customer understanding and service would be possible without the kind of company culture that supports it. Back in late 2019, Cementos Pacasmayo stated its purpose – it stated its vision in 2017, but it didn’t have a purpose. So, the company decided on a purpose and created six culture principles to support it

Cementos Pacasmayo purpose: ‘Build together the future you dream of’ Six cultural principles: • People come first • We are conscious and upright • Our diversity is our essence • We experiment and learn • United we’re unstoppable • Good vibes and energy for what we do

“ With our knowledge, products, and solutions, we know that we can make a difference” — Lui s Mi guel S oto Valen zu ela CIO, Cementos Pac as m ayo

“By acting by six principles, we fulfill our purpose as a company,” says Soto.

“We do also have a cultural transformation program that is going along with the digital transformation journey, because we know that one can’t happen without the other. So, we’re really focused on developing that mindset and developing that driver of purpose towards our transformation.”

As Cementos Pacasmayo transforms itself, it helps transform Peru – and, in that way, it is building a future the whole nation can dream of.

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