Business Value Case Study - Posted 12/12/2006
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Komatsu Australia Reduces Risk, Improves Compliance with Reliable Internet and Intranet
As the Internet becomes the preferred method of communicating and doing business, consumers increasingly judge companies on the quality and reliability of their Web sites. Mining, forestry and construction equipment distributor, Komatsu Australia, was struggling with an underperforming Internet and intranet management system. The application was increasingly unstable and difficult to support, made it hard to change Web site design, stifled staff collaboration and did not support online marketing campaigns. Microsoft partner Unique World worked with Komatsu to build a promotional Web site for a new Komatsu product on Microsoft® Office SharePoint® Server 2007. Independent analyst BearingPoint found that, by migrating its entire online environment to the Microsoft product, Komatsu could reduce its risk profile, improve compliance, increase the availability of its Web site and improve its look and feel. This would enable the company to improve customer service, increase market penetration and ensure the availability of online collaboration tools.
Situation
Komatsu Australia offers the country’s largest range of construction, mining and forestry equipment, from two-ton skidsteers to dump trucks and wheel loaders that can exceed 200 tons. A significant proportion of its business comes from supplying spare parts for its own and competitors’ equipment. However, the same competitors are ready to pounce on any disillusioned customers, meaning each part of Komatsu’s operations needs to be first class – including its online image and service. Komatsu had increasing difficulty finding support for the application it used to manage content for its external Web site and staff intranet. This concern was intensified because it was using an older version of the application that had been customized to meet its requirements. “Lack of support was a genuine risk,” says Ian Harvison, General Manager of Information Technology at Komatsu. “At one point, our solo support person had an accident which put him out of action, so we saw that risk become a reality.” Komatsu maintains an A$200 million parts inventory, with online ordering a small but growing source of revenue. If its e-commerce site went offline and help was late to arrive, Komatsu stood to lose up to A$75,000 for each outage. This would affect Komatsu’s bottom line and tarnish its reputation with customers who needed parts quickly to maintain their own operations. A Web site upgrade was long overdue. Komatsu Australia felt its local site did not reflect its market-leading position. In addition, the company’s existing content management solution had limited design flexibility, making it difficult to improve Web site navigation and usability. “It wasn’t enough to provide customers with reliable access to online ordering,” says Harvison. “We wanted the site to work smoothly and efficiently to make the user experience simple and trouble free.” In addition, Komatsu’s marketing team was unable to carry out Web-based marketing campaigns or gather online usage metrics. This reduced the effectiveness and profitability of the company’s marketing efforts. With no insight into its customer base, it was difficult to target promotions to the most appropriate audience. “We wanted to understand site users more deeply and plan our Web marketing strategy accordingly,” says Harvison. “We must communicate with our customers in a way that resonates with them and provide promotions that interest them.” Another limitation was that users needed the IT department to help them publish content, causing bottlenecks. The intranet was not fulfilling its potential as a lively central site for teamwork and had stalled as a one-way news portal. “It was difficult for business stakeholders to chip in,” says Harvison. “We wanted to create a more collaborative environment where business divisions could populate the site with their own content.” Finally, the legacy application made it difficult to review and approve content prior to publication. Komatsu wanted a way to ensure all content published was accurate and had passed through the appropriate approval channels.
Solution
With the help of Microsoft partner Unique World, Komatsu selected Microsoft Office SharePoint Server 2007 to manage content for its Internet and intranet sites. Komatsu was already using Microsoft SharePoint Server 2003 as its document repository. By exploiting the new functionality of the 2007 version, it hoped to offer a richer experience to its customers. Komatsu and Unique World conducted workshops to define clear objectives for the pilot project, which involved launching a promotional Web site for a new Komatsu product and running the environment on Microsoft Office SharePoint Server 2007. “We were releasing a new Komatsu excavator model into the market called the Dash 8 series,” says Harvison. “We underpinned its launch with a pilot Dash 8 Web site based on Office SharePoint Server 2007.” Before the launch, Unique World and Komatsu set targets of what level of page hits on the Dash 8 Web site would indicate success. “The company is planning a desktop refresh so its hardware will soon be ready to support a more modern application set,” says Elon Aizenstros, Director of Sales and Marketing at Unique World. “Microsoft Office SharePoint Server 2007 will allow Komatsu to leverage its investment in the Microsoft Office System.” Microsoft Office SharePoint Server 2007 gives organizations better ways to manage their electronic content, speed up their business processes and make better decisions. Unique World helped train Komatsu staff to use the solution based on Office SharePoint Server 2007, which Komatsu wanted to support in-house. “We felt confident using our internal skill set with the 2007 release of Office SharePoint Server,” says Harvison. “We know the scalability and reliability of the solution is guaranteed and we always have access to skilled resources at Microsoft and Unique World.” The pilot Web site for the Dash 8 delivered significant improvements over the design, navigation and usability of the existing site. It also added new marketing features so Komatsu’s marketing team could reach out to customers with special deals or promotions.
Benefits
Microsoft engaged independent business analyst BearingPoint to measure the impact of the Office SharePoint Server 2007 solution. BearingPoint reported that the pilot project demonstrated a number of financial and strategic benefits.
Success of Pilot Results in Full Rollout
The Dash 8 Web site was well received by customers and met Komatsu’s page hits target. “We didn’t even need to send a notice to our customers,” says Harvison. “They clicked straight through and navigated around the site.” Such was the success of the pilot that Komatsu decided to migrate its entire Internet platform to Microsoft Office SharePoint Server 2007, including its online parts ordering portal. In 2007, Komatsu will also migrate its existing intranet platform onto Office SharePoint Server 2007, providing a single collaboration platform for staff across the country. “Microsoft Office SharePoint Server 2007 will allow us to increase our competitive advantage and market share through more effective and targeted online communications,” says Harvison.
Increased Availability and Reliability
The smooth migration of Komatsu’s Internet onto the stable Office SharePoint Server 2007 platform will greatly improve the availability and reliability of the Web site. “Everyone was very impressed with the pilot program and we’re looking forward to seeing what Office SharePoint Server 2007 can do to improve the availability of our online sales channel,” says Harvison. “Once we move to the new system, we won’t have to worry about losing revenue because of the site going down unexpectedly.” Within two weeks of the Dash 8 site going live, Komatsu cancelled its support contract for the old content management system. BearingPoint estimated eliminating this support would save Komatsu A$62,400 per year.
Eliminating Bottlenecks
Office SharePoint Server 2007 allows business users to create content using familiar Microsoft Office Professional tools and submit it for approval and publication. As part of the pilot project, Unique World helped Komatsu define its Web content publishing processes to encourage maximum collaboration. By using the advanced workflow and document management tools in Office SharePoint Server 2007, the IT department plans to return Internet content management to the rest of the business. “Office SharePoint Server 2007 will also reduce bottlenecks, allow collaboration to flourish and speed up our ability to post new Internet and future intranet content,” says Harvison. “It will ensure the scalability and reliability of our online presence but the detail and documentation will move back to the business, which is where they should be.” By migrating the company’s intranet to Office SharePoint Server 2007 in 2007, Komatsu will be able to take advantage of new knowledge management tools that empower employees to connect and share knowledge quickly and efficiently. Staff can use the platform to store, present, view and manage content, information and applications. “Office SharePoint Server 2007 is becoming a strategic platform for many organizations like Komatsu,” says Aizenstros. “It has the potential to be the main interface information workers use to engage with systems, staff and customers.”
Improved Compliance Gives Peace of Mind
The new solution will also allow Komatsu to increase control over its sensitive business information. With Office SharePoint Server 2007, Komatsu can implement content management review procedures and auditing policies to mitigate its risk of privacy breaches. “Although it’s a less tangible business driver, compliance is always a concern for enterprises,” says Harvison. “Now we have a solution to further control the company’s proprietary and confidential information.”
Microsoft Office System
The Microsoft Office System is the business world’s chosen environment for information work, providing the programs, servers, and services that help you succeed by transforming information into impact. For more information about the Microsoft Office System, go to: www.microsoft.com/office
For More Information
For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers who are deaf or hard-of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: www.microsoft.com For more information about Unique World products and services, call (+612) 8001 7777 or visit the Web site at: www.uniqueworld.net For more information about Komatsu products and services, call (612) 9795 8280 or visit the Web site at: www.komatsu.com.au
