IBM > Case Studies > A European manufacturer Saving nearly USD19 million through improved workplace management

A European manufacturer Saving nearly USD19 million through improved workplace management

Customer Company Size

Large Corporate

Region

Europe

Product

IBM TRIRIGA®

Tech Stack

Integrated Workplace Management System

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Productivity Improvements
Environmental Impact Reduction

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Functions

Facility Management

Use Cases

Building Automation & Control

Services

System Integration

About The Customer

The customer is a European manufacturer with a significant workplace portfolio, comprising several hundred locations and more than 15 million square feet. In 1999, the company was essentially an ad hoc workplace organization with workplace services totally decentralized to the operating regions. Each region utilized its own systems, with little or no consistency in operating processes, standards, or performance metrics. Real estate management operated separately from facilities management with little coordination between the two functions. The company deployed 65 different point solutions with virtually no interoperability between the tools or corporate enterprise systems.

The Challenge

The European manufacturer was under pressure to grow while also meeting aggressive cost reduction targets. The company's workplace services were decentralized, with each region using its own systems and little consistency in operating processes, standards, or performance metrics. Real estate management operated separately from facilities management with little coordination between the two functions. The company deployed 65 different point solutions with virtually no interoperability between the tools or corporate enterprise systems. There was a critical need to change course in workplace management.

The Solution

The company moved from a decentralized group of regional facilities and real estate organizations to a fully-centralized and matrixed organization. This enabled close coordination and alignment with the regional business units. The company implemented IBM's Integrated Workplace Management System (IWMS), IBM TRIRIGA®, which helped the organization efficiently manage its real estate portfolio and optimize space utilization. The IWMS system from IBM tracks space utilization, including employees who work from home, and thus can systematically track and scale workplace resources to meet organizational growth. The company also utilized the IWMS system to track four dimensions of performance: financial, customer, people, and workplace processes.

Operational Impact

The company shifted to a centralized global workplace organization with functional capabilities that included real estate management, workplace solutions, facilities management, financial management, and process and tools management.
The global workplace organization reduced staff from more than 600 to less than 150 employees and utilized outsourcing to support a broad array of tactical services such as real estate transaction services, project management and facility management.
The company standardized on IBM’s IWMS solution, IBM TRIRIGA®, which helped automate time-consuming activities and advanced capabilities.
The company also made significant progress in driving sustainable energy conservation throughout its workplace portfolio.

Quantitative Benefit

In 2009, the company performed a detailed cost savings analysis that showed USD19 million savings for the year along with a 400 percent return on investment over five years (from 2004 - 2009).
The company reduced its overall portfolio by approximately three million square feet, which represents nearly USD6.2 million in savings.
The company also realized additional savings in facilities energy consumption.