Software AG Case Studies Cargolux Takes Off into A Successful Future

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	Cargolux Takes Off into A Successful Future Software AG

Cargolux Takes Off into A Successful Future

Software AG

Technology Category	Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Industries	Transportation
Applicable Functions	Logistics & Transportation Business Operation
Use Cases	Process Control & Optimization Supply Chain Visibility
Services	System Integration Software Design & Engineering Services
Challenge	Cargolux Airlines S.A. was in a strong market position with impressive sales and constant profit figures when the top management decided to run a “health check” on the company’s processes. Management perceived inefficiencies with the organization and IT spending was not optimized to support it. “In addition, management felt that internal groups sometimes had different versions of the truth and decision makers were having trouble gathering the information they needed in a timely manner. Finally, over time each business unit had started to run their own systems and created databases that sometimes competed with each other. The risk of duplicated and unclear ownership of tasks had become too high.” Cargolux started to look for a way to streamline its processes and provide the foundation for creating a service-oriented systems architecture. Read More
About Customer	Founded in 1970, Luxembourg-based Cargolux Airlines International S.A. is now one of the largest scheduled all-cargo airlines in Europe with a global network. With estimated annual sales of $1.4 billion and more than 1,400 employees worldwide, Cargolux operates a fleet of 15 Boeing 747-400 cargo airplanes. The company was in a strong market position with impressive sales and constant profit figures when the top management decided to run a “health check” on the company’s processes. Management perceived inefficiencies with the organization and IT spending was not optimized to support it. In addition, management felt that internal groups sometimes had different versions of the truth and decision makers were having trouble gathering the information they needed in a timely manner. Read More
Solution	Cargolux set up a three-phase Business Process Management (BPM) project: Process mapping with ARIS to fully understand the as-is processes and create an improvement proposal list, Design of a data management library to improve data management, Setup of a future system architecture based on the process mapping and data management results. In the second phase called "master data management," ARIS products were used to design a central master data library as a subset of the processes with the focus on data used by more than one system. The third project phase titled “systems architecture” used the results of the two previous phases to provide an “objective” decision base for the future architecture planning. This phase created general guidelines for platform and application use, development and future application process coverage under an efficient enterprise architecture. Read More Log in to view content
Contents

Technology Category

Application Infrastructure & Middleware - Data Exchange & Integration

Applicable Industries

Transportation

Applicable Functions

Logistics & Transportation

Business Operation

Use Cases

Process Control & Optimization

Supply Chain Visibility

Services

System Integration

Software Design & Engineering Services

Challenge

Cargolux Airlines S.A. was in a strong market position with impressive sales and constant profit figures when the top management decided to run a “health check” on the company’s processes. Management perceived inefficiencies with the organization and IT spending was not optimized to support it. “In addition, management felt that internal groups sometimes had different versions of the truth and decision makers were having trouble gathering the information they needed in a timely manner. Finally, over time each business unit had started to run their own systems and created databases that sometimes competed with each other. The risk of duplicated and unclear ownership of tasks had become too high.” Cargolux started to look for a way to streamline its processes and provide the foundation for creating a service-oriented systems architecture.

About Customer

Founded in 1970, Luxembourg-based Cargolux Airlines International S.A. is now one of the largest scheduled all-cargo airlines in Europe with a global network. With estimated annual sales of $1.4 billion and more than 1,400 employees worldwide, Cargolux operates a fleet of 15 Boeing 747-400 cargo airplanes. The company was in a strong market position with impressive sales and constant profit figures when the top management decided to run a “health check” on the company’s processes. Management perceived inefficiencies with the organization and IT spending was not optimized to support it. In addition, management felt that internal groups sometimes had different versions of the truth and decision makers were having trouble gathering the information they needed in a timely manner.

Solution

Cargolux set up a three-phase Business Process Management (BPM) project: Process mapping with ARIS to fully understand the as-is processes and create an improvement proposal list, Design of a data management library to improve data management, Setup of a future system architecture based on the process mapping and data management results. In the second phase called "master data management," ARIS products were used to design a central master data library as a subset of the processes with the focus on data used by more than one system. The third project phase titled “systems architecture” used the results of the two previous phases to provide an “objective” decision base for the future architecture planning. This phase created general guidelines for platform and application use, development and future application process coverage under an efficient enterprise architecture.

Impact #1	Process integration opportunities materialized in the form of 180+ improvement proposals
Impact #2	Improved process and IT system transparency formed a foundation for IT strategy moving forward
Impact #3	The BPM project at Cargolux finished with all objectives reached. It was able to streamline data management and improve process and IT system transparency, setting the path to strengthen its position in a highly competitive market.

Impact #1

Process integration opportunities materialized in the form of 180+ improvement proposals

Impact #2

Improved process and IT system transparency formed a foundation for IT strategy moving forward

Impact #3

The BPM project at Cargolux finished with all objectives reached. It was able to streamline data management and improve process and IT system transparency, setting the path to strengthen its position in a highly competitive market.

Benefit #1	Total BPM project investment represented less than 20 percent of the savings potential identified and validated during the project.

Benefit #1

Total BPM project investment represented less than 20 percent of the savings potential identified and validated during the project.

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Overview

Cargolux Takes Off into A Successful Future

Operational Impact

Quantitative Benefit