JTI brochure - July 2017

Modernising the tobacco industry Issues and challenges JTI is a leading international tobacco manufacturer with about 26,000 employees operating in over 120 countries worldwide.

The company has nine global flagship brands - Winston, Mevius, Camel, Benson & Hedges, Silk Cut, Sobranie, Glamour, LD and Natural American Spirit.

In such a large, highly-distributed organization, international collaboration is a major challenge. JTI had identified that communication was suffering due to legacy technology silos and a historic fragmented approach to collaboration tools. There was an urgent need to streamline operations by moving to a unified strategy and solution and, in the process, reduce costs and enhance the service to end users.

The objective

The Orange Business Services solution n

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Improve JTI’s global communication capabilities to increase collaboration among employees, partners and customers and lower operating costs.

The benefits The Orange Unified Communications solution has enabled JTI to increase global collaboration. n

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Mobile workers enjoy the same high-quality UC experience on any device at any location

Orange managed Unified Communications service in 40 countries on Microsoft Lync 2013 hosted in Orange data centers and migration to Skype for Business 20,000 users: IM, presence, Web Conference 12,000 users: Lync Enterprise Voice, desktop video services and videoconferencing 3,000 users: Lync-enabled mobile devices, tablets and smartphones Dedicated Lync audio conferencing service, including Call Collect network in 51 countries Orange Managed Contact Center solution based on Genesys technology

The results n

Reduced costs

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Simplified management via single global provider

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Increased security

Unified workspace enables easy collaboration between employees, partners and customers Unified communications supports better and faster decision making

Digital transformation is key for us. Our trusted partner Orange Business Services understands our needs and helps us to stay competitive. We believe in their expertise and knowledge.

PROJECT PARTNERS

For more information about Orange Business Services, visit www.orange-business.com For more information about JTI, visit www.jti.com

Copyright Š Orange Business Services 2016. All rights reserved. Orange Business Services is a trading name of the Orange Group and is a trademark of Orange Brand Services Limited.

Product information, including specifications, is subject to change without prior notice.

1216/CCS-JTI-075(1)

Modernising the tobacco industry Written by Nell Walker Produced by Andrew Lloyd 3

Diego De Coen, CIO of JTI, describes the ways in which the business has flown in the face of tobacco industry critics with high-level IT and a people-centred approach

A

s Chief Information Officer of JTI (Japan Tobacco International), Diego De Coen is extremely keen to achieve the perfect balance between technology and people. With his wealth of experience in the sector, he knows that one cannot be sacrificed for the other, and this approach is certainly paying off in a sector known for being, at times, challenging to attract top talent into.

Having previously led the company’s Centre of Excellence for seven years, De Coen has since been responsible for JTI’s entire IT function for eight more, heading up a team of nearly 800 across the globe. His role has obviously changed with the times, but remains focussed on

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the two aforementioned themes.

“My role is about delivering high quality added-value solutions for the company at an optimised cost, of course,” De Coen explains, “but I’m also what we call the Guardian of Talent. Part of my job is also as a relationship-builder, bridging together different segments of IT and their counterparts such as corporate functions, markets, and factories. We are a real people-caring company, so talent management has always been very important to us, but even more so now that we’re embarking on this digital adventure.”

In an age where technology is becoming smarter and people are increasingly seen as surplus, De Coen values staff and what

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JTI JTI chose Orange to unify its global collaboration tools, to enhance unified communications experience for 23,000 end users and reduce costs To ensure the success of this major initiative, we selected Orange because of their expertise and knowledge about the existing environment to create a long-term strategy and associated roadmap.

Their global capabilities support our geographical footprint, and they have the ability to deliver end-toend services, from transformation to operation, including management of all underlying service blocks.

Highlights

Guilain Rogg Global Technical Center VP JTI

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JTI is a leading international tobacco manufacturer with over 26,000 employees operating in 120 countries There was an urgent need to streamline communications by moving to a unified strategy and solution, reduce costs and enhance service to end users Orange established a managed Unified Communications service in 40 countries on Microsoft Lync 2013 that includes IM, presence, web, video and audio conferencing across a mix of desktops and mobile devices Mobile workers now enjoy the same high-quality UC experience on any device at any location, and the unified workspace enables easy collaboration between employees, partners and customers – all with lower costs and improved security

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Global flagship brands

26,000 Employees

364

Offices worldwide

Issues and challenges JTI is a leading international tobacco manufacturer with about 26,000 employees operating in over 120 countries worldwide.

The company has nine global flagship brands - Winston, Mevius, Camel, Benson & Hedges, Silk Cut, Sobranie, Glamour, LD and Natural American Spirit.

In such a large, highly-distributed organization, international collaboration is a major challenge. JTI had identified that communication was suffering due to legacy technology silos and a historic fragmented approach to collaboration tools. There was an urgent need to streamline operations by moving to a unified strategy and solution and, in the process, reduce costs and enhance the service to end users.

The objective

The Orange Business Services solution n

n n

n

n

n

Improve JTI’s global communication capabilities to increase collaboration among employees, partners and customers and lower operating costs.

The benefits The Orange Unified Communications solution has enabled JTI to increase global collaboration. n

n

n

Mobile workers enjoy the same high-quality UC experience on any device at any location

Orange managed Unified Communications service in 40 countries on Microsoft Lync 2013 hosted in Orange data centers and migration to Skype for Business 20,000 users: IM, presence, Web Conference 12,000 users: Lync Enterprise Voice, desktop video services and videoconferencing 3,000 users: Lync-enabled mobile devices, tablets and smartphones Dedicated Lync audio conferencing service, including Call Collect network in 51 countries Orange Managed Contact Center solution based on Genesys technology

The results n

Reduced costs

n

Simplified management via single global provider

n

Increased security

Unified workspace enables easy collaboration between employees, partners and customers Unified communications supports better and faster decision making

Digital transformation is key for us. Our trusted partner Orange Business Services understands our needs and helps us to stay competitive. We believe in their expertise and knowledge.

For more information about Orange Business Services, visit www.orange-business.com For more information about JTI, visit www.jti.com

Copyright Š Orange Business Services 2016. All rights reserved. Orange Business Services is a trading name of the Orange Group and is a trademark of Orange Brand Services Limited.

Product information, including specifications, is subject to change without prior notice.

1216/CCS-JTI-075(1)

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they add to business: “IT is very demanding, and currently full of buzzwords: the cloud, big data, Internet of Things (IoT), software as a service – what differentiates us is business knowledge and good oldfashioned IT skills. You don’t need to mimic best practices; they’re already built into the cloud solution so you don’t need to develop that application yourself. You just need to understand the business and activate the right functionalities within that already-implemented solution.”

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“We are a real people-caring company, so talent management has always been very important to us, but even more so now that we’re embarking on this digital adventure”

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Insourcing knowledge In the early 2000s, JTI set about creating two programmes which embraced the two big application pillars of that age: an ERP system based on SAP technology, and a frontoffice CRM application for sales and analytics, based on Oracle technology which refreshed the entire company’s basic application environment. Once they were complete, JTI found itself with a lot of technology and business experts that were then split into dual factions: Business Technology Services, which contains three smaller

teams within itself and deals with every element of the business side of IT, and the IT Factory, which is filled with the infrastructure, development, systems management and data centre experts.

“So over the years, these departments have evolved and become kind of a business consulting arm of IT, while the other ones are still there to develop solutions,” De Coen explains. “Between them, the teams keep the lights on. As a company, when it comes to our IT functions that work directly with the business, we have decided to keep this within

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5 DATA-DRIVEN TECH TRENDS Shaping CuStomer experienCe in 2017

By 2018, more than 50% of companies will shift their investments to customer experience innovations.1 But, which technology trends should you pay most attention to?

1

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MOBILE CONTINUES TO INTENSIFy MICRO-MOMENTS

What starts as a micro-moment of ten leads to l arger Brand engagement, if the Brand gets it right.

THE INTERNET OF THINGS ENABLES BETTER AND FASTER CUSTOMER INSIGHTS

today, the information you’re aBle to collect aBout a customer over their entire Buyer journe y is more valuaBle than the actual sale.

82%

of smartphone users consult their phones while they’re standing in a store deciding which product to buy 2

52% 2

of customers are less likely to engage with brands after a bad mobile experience 3

ai has superhuman poWer that makes sense of millions of customer data points, getting smarter each time neW data is fed to it.

.5%

Only of all of the data in the world has been analyzed, or used 4

3

50 billion

ARTIFICIAL INTELLIGENCE CREATES AN ABSOLUTE 360-DEGREE CUSTOMER VIEw

1.7

megabytes

of new information will be created every second by 2020 4

CHATBOTS ACT AS A “SELF-SERVE” wAy TO CONNECT wITH CUSTOMERS IMMEDIATELy

the aBility to parse questions for actual meaning + intent is a very poWerful tool to deliver smarter experiences.

51%

of customers believe a business needs to be available 24 hours a day, 7 days a week 5

85%

of customers will manage their relationship with a brand without human interaction by 2020 6

connected devices will be in the world by 20207

47%

of devices will be set up to automatically request customer service support by 2020 8

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CUSTOMER EXPERIENCE CLOUD SUITES PREVAIL

providers of cloud suites Will outperform providers of fragmented, “plug-and-play” technology.

86%

of senior-level executives say it’s critical to create a cohesive customer journey 9

87%

Of all buyers, believe companies need to provide more consistent experiences10

LEARN moRE THE LEADING DATA-DRIVEN TRENDS SHAPING CUSTOMER EXPERIENCE IN 2017 IN OUR FREE EBOOK: ORACLE.COM/CXTRENDS

1) superoffice.com/blog/customer-experience-statistics 2) thinkwithgoogle.com/articles/how-micromomentsare-changing-rules.html 3) superoffice.com/blog/customer-experience-statistics 4) forbes.com/sites/ bernardmarr/2015/09/30/big-data-20-mind-boggling-facts-everyone-must-read/#404018c66c1d 5) hventurebeat.com/2016/08/26/3-stats-that-show-chatbots-are-here-to-stay 6) business2community.com/ infographics/customer-experience-statistics-know-infographic-01499626#ilB6CcpP3Q6e4Bte.97 7) info. csgi.com/m2m-internet-of-things 8) parature.com/internet-of-things 9) marketeer.kapost.com/customerexperience-marketing-stats 10) visioncritical.com/customer-experience-statistics Copyright © 2017, Oracle and/or its affiliates. All rights reserved. Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

Oracle cOnsumer GOOds custOmer experience

perfect stOre, every stOre

Bill Deakin, Oracle Vice President and Consumer Goods Customer Experience Evangelist, and Xavier Chabanne, Customer Experience Sales Director EMEA Region, discuss the emergence of Perfect Store for consumer goods and the need for consumer-centric business transformation.

Bill Deakin Vice President, Consumer Goods Customer Experience Evangelist

Xavier Chabanne Customer Experience Sales Director, EMEA Region

We are living in a fast-changing World, What are the most disruptive global forces? how, when and why consumers shop and buy is dramatically changing across the globe. as a result, both consumer goods companies and retailers are rapidly evolving their business models to meet the modern consumer where he or she is and deliver a personalized, seamless consumer journey across all of the brand’s owned and influenced touchpoints.

What does that mean When you go to market through retailers? at oracle, we believe that the point of sale is now at the moment of inspiration, well beyond the physical locations of traditional retail. this means brands and retailers have a bigger customer experience (cX) challenge than ever before, but it also provides unique opportunity for brands to be more involved in their consumer’s journey by being more aware and more prepared to engage and serve the consumer as they move through their day at home, online, and in-store. the challenge goes beyond engaging directly with the consumer, though. true and impactful consumer reach occurs at the intersection of digital and physical; which means that we need a simultaneous transformation in traditionally business-to-business oriented processes. We’re seeing leaders in this space orient these changes around the concept of “perfect store”: planning consumer-centrically to drive the right assortment and programs for the shoppers of the given stores, bringing forward the right insights to help drive the business at a store-level, and targeting sales resources wisely to deliver and respond to those insights. hoW do you maXimize retailer engagement in regulated markets?

We see increasing your value as a partner – providing better insights, more accurate planning, more effective execution – as the key to maximizing retailer engagement in all cases. this is most especially true in regulated markets, where your customer is the primary face to your consumers and your own consumer interactions are by necessity limited.

Oracle’s Perfect Store model focuses on flexibility to meet the driving needs of different channels, product categories, and markets. crafting these goals collaboratively with the retailer enhances commitment on both sides to achieve them. self-service is another key tool to increasing value, especially with smaller retailers. they’re often working round-the-clock, and need place orders, grab digital content, and approve promotions when they have the time – not when your sales representative is in front of them. We can help consumer goods companies provide these core services, as well as key insights and even customer loyalty awards and incentives to improve their standing as a valuable (and valued) business partner.

100 of the Top 100 Consumer Goods Companies Run Oracle

What innovations Will create the most value going forWard?

We’re delighted to have worked with the industry’s leading companies for decades, across a wide variety of critical industry issues, and we expect that continued partnership in innovation will be the fuel for sustainable success. it is no surprise that improved data and insights innovations are driving significant change in the industry. More interesting is that we see it driving not just unctional change but true business process change and significant business value: the evolution of consumercentric planning, the drive to connect digital and physical, the introduction of rich collaborative platforms, and the everincreasing targeting and intelligence of in-store execution actions. ultimately, this new age of consumer-centricity is only possible due to a vital pair of innovations: 1) the maturation of data aggregation and mining to harness the wealth of 1st, 2nd, and 3rd party data available to consumer goods companies plus 2) the new capabilities of machine learning to render meaning from massive data crunching. together these two innovations power oracle’s adaptive intelligence solutions, applying our massive computing power and rich intellectual capital to simply bring back to each user the right insights to drive optimal decision making.

What is oracle’s “secret sauce” in all this? enabling a “perfect store” standard in every store is a key innovation we are driving for consumer goods. driving real-time and adaptive insights in the hands of those that are in the best position to use them to their best advantage is a singular innovation that unlocks value for brands and their retailers. oracle cX for consumer goods transforms the end to end journeys for both customer and consumer. the breadth and depth of our cX offering is unmatched, and we’ve combined that portfolio with our deep industry expertise to deliver optimized process solutions specific to Consumer Goods. the future is still unfolding, and both technological and human innovations will continue to change its shape in ways we can’t even imagine today. building our industry solutions on our rich oracle cX cloud platform reduces it complexity while providing our customers with full flexibility to accelerate their own innovation into tomorrow. We continue to heavily invest in and create thought leading technologies to aid in their evolutions as well as our own - innovations like iot, big data, virtual assistance, and ai. and of course, we are looking at all of this through the lens of industry - industry needs, industry process, industry solutions. ultimately, there are many pieces and parts to each consumer goods company’s journey. the magic is in not just understanding the elements, but bringing them together to support that ultimate goal of perfect store at scale – perfect store, every store. for further information please visit oracle.com/cx

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IT. Some companies have these distributed inconsistently across their business functions, but this can create an ineffective delivery model. I believe our IT model is the most optimised to provide the best value and the tools and solutions for the business.”

He adds: “One of the basics of my IT strategy is to insource knowledge and outsource commodity. Over the years we’ve really focussed on that.”

The effort JTI puts in placing its staff in the best positions is reflected in its status as a Global Top Employer, which the company has been awarded for the past three years. Only 10 businesses have received this award worldwide. JTI takes part in employer certifications with the view to raise awareness as a business which cares about people, knowing full well that the tobacco industry could be a contentious issue for some.

“This is a wonderful place to work, with many opportunities for staff to develop and grow, but in this industry it’s sometimes more difficult to entice new employees,” says De Coen. “As such we must make more effort to get skilled people – the best

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RIGHT NOW, YOUR BUSINESS CAN GO IN A MILLION DIFFERENT DIRECTIONS. AND ONE OF THEM IS RIGHT.

©2017 SAP SE or an SAP affiliate company.

All rights reserved.

GROWTH IS LIVE. SAP S/4HANA® gives your company constant control over your business. Live and in the moment. On premise or in the cloud. So you can make the right decision – right now. sap.com/growth

IMMEDIATE, INTELLIGENT, INTEGRATED – SAP S/4HANA HELPS CUSTOMER CREATE A TRULY LIVE BUSINESS Transforming your digital business is a journey that requires strategic planning and solid, forward-looking innovative insight. Taking the next steps to grow your company can be a tedious game of hit or miss, but with the right solution partner, you can take control and start your journey with confidence today.

Japan Tobacco International (JTI), a leading tobacco manufacturer based in Switzerland, with operations in more than 120 countries and 26’000 employees worldwide, has chosen to implement SAP S/4HANA to help streamline and accelerate their digital business transformation strategy on one single platform.

The innovative power of S/4 HANA gives customers control over their business data to make informed

choices based on all available data – whether historical or extrapolated, predictive trends. After all, companies that are still running lastcentury IT have no hope of keeping pace now that transactions and analytics are ideally expected to run in real time.

As a modern digital core, SAP S/4HANA enables organizations of all sizes and industries to benefit from an intelligent and connected IT landscape, so they can act in the moment on a global scale, enabling embedded analytical and machine learning capabilities. Available in the cloud, on premise, or for hybrid scenarios, SAP S/4HANA unravels organizational complexity empowering companies to create new business models and users to simplify their

day-to-day tasks through the award-winning SAP Fiori user experience. It is designed to integrate with and utilize IoT, Big Data, Mobile, Business Networks, third party systems, and more.

SAP S/4HANA helps customers create a truly Live Business: It is immediate – empowering business users with insights to act in the moment It is intelligent – beyond automation to predictive suggestion It is integrated – not only between your departments, but connected to the world Let SAP be your digital compass. Always make the right business decisions. Any time. Any place. Choose the right direction now.

Choose SAP and watch your business grow.

For more information please contact SAP Switzerland: info.switzerland@sap.com

SAP AWARD FOR THE HIGHEST GROWTH IN TOTAL NEW LICENSE VOLUME IN 2016 Since 2001 undertaking international projects for information technology (IT) for business management, specializing in SAP and in line with the main market trends: HANA, Cloud, Mobility, Social Business, Internet of Things, etc

www.scl-consulting.com

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26,000 Number of employees at JT International

in class – to join our ranks. We focus on investing in employee development and helping them grow their careers, as well as offering good compensation and benefits. Not only do we then give them a positive working environment and care for them, but we gain a reputation as an employer of choice, and we see in the staff surveys that our employees are really happy.”

In De Coen’s words, “Above and beyond the working conditions we

offer, the values we stand by are key for our customers, suppliers, and current and prospective employees alike.

This is notably reflected in our engagement with communities where we are established.

In close collaboration with partners, JTI regularly supports a wide range of initiatives across the world, from working with farmers and their communities in order to tackle child labour, to planting trees in tobacco

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growing areas where deforestation is a challenge. In addition, the JTI Foundation, a charitable organisation endowed by JTI, brings its support to less privileged people and victims of natural or man-made disasters through partnerships with reputable organisations.

Outsourcing commodity While JTI’s entire digital scope has changed a great deal in recent years, one of the biggest, most dramatic changes has been adopting IoT. JTI is a traditional company in many ways – producing high-quality tobacco products in a cost-effective way – which used to require a simpler business model. However, due to the highly-regulated nature of the industry restricting how it could reach out to consumers, JTI had to expand its technological capabilities and modernise to implement something new.

“Our traditional model has changed since we entered the market of emerging products, or e-cigarettes,” says De Coen. “Suddenly we have the ability to trade in some markets

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We help brands and businesses succeed in the digital economy

40,000 experts.

145 countries.

One passion.

Visit blue-inďŹ nity.com #PassionatelyDigital

TECHNOLOGY

with our consumers via e-commerce platforms. We are allowed to perform digital marketing and connect with social sites. It’s an environment that did not exist before because regulations dictated that we cannot sell tobacco products online.”

JTI is also utilising IoT on the shop floor, enabling it to gather and process data in a much more streamlined fashion. For example, predictive maintenance for continuously monitoring machinery is vital for any manufacturing company, because something can happen to the component being worked on at any moment. IoT is helping JTI to diminish any issues and remove downtime of the machines, easing the way for the business to become ever-more digital.

Partnerships These advances in technology have been made possible by the businesses with which JTI has aligned itself, and part of De Coen’s strategy is to keep partnerships minimal and strong.

“The fewer strategic partners you have the better it is for the company,” he says. “If you have

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too many, the word ‘strategic’ becomes meaningless.”

Thus, JTI concentrates on a select few, including Orange Business Services (OBS), SAP, Microsoft, Oracle, Accenture, blue-infinity, SCL-consulting and HCL. For example, the entire spectrum of communications is outsourced to OBS, which is JTI’s longest-serving partner; amazingly; they have worked together since the mid-90s.

The other partners all contribute additional – and vital – elements to the business and are encouraged to work as equals with JTI. “It’s not only about them providing a service and us paying a certain amount of money for that service,” De Coen explains. “I want these partners to understand our business inside and out, and when they do that, they’re able and encouraged to come up with new ideas and solutions with added value for the company in a proactive way, so that we don’t always have to run after them and ask if they can do this or what. They can come up with ideas themselves.”

These stable and trusted

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Diego De Coen CIO

Diego De Coen is an experienced manager whose management experience covers several business functions as well as different industries. He managed complete business entities as well as large service organizations including support desks, competence centers, pre- and post-sales consultancy structures and training departments.

Today, De Coen is the Chief Information Officer at JTI and is based at the Company’s Headquarters in Geneva, Switzerland. He joined JTI from Deloitte Consulting in 2002, and was ‘on deck’ for Partner/Director at the time of his move.

Prior to joining Deloitte Consulting, De Coen was Managing Director of Cubic (member of the Exact Group), the market leader for ERP software in Belgium, focussing on small and medium sized companies.

Before this, he was Technical Director at Selligent, a Belgium CRM (Customer Relationship Management) company.

Six years prior to joining Selligent, he worked in several EMEA wide management positions at EDS (Electronic Data Systems).

De Coen has a degree in Psychology and several military degrees.

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partnerships are more important than ever at a time when JTI is entering emerging markets, which bring several new challenges including, at times, less reliable IT infrastructures.

The close relationships between businesses are vital for ensuring the agility and flexibility JTI strives towards when so much change and expansion is occurring.

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“The company is moving so fast. We enter between three and five markets each year,” De Coen states. “Recently we’ve entered the Philippines, Indonesia, Dominican Republic and Colombia. In these emerging regions, we’re constantly moving. When you enter a new market, it’s only investment, there’s no return – you don’t make money

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“One of the basics of my IT strategy is to insource knowledge and outsource commodity.

Over the years we’ve really focused on that” on day one. But thanks to our CRM and ERP solutions, which we’ve created lighter versions of, we have a toolset that we can use immediately in a new market and start doing business at a very low cost. Then, we bring in our partners.”

JTI’s insistence on the best adoption of technology and its passion for people has cemented its relevance within a traditional industry, and will enable its alreadysignificant footprint to grow and grow.

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www.jti.com