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Cabot Microelectronics Relies on Oracle On Demand to Focus IT on Core Competencies
At a much-anticipated presentation at Oracle OpenWorld 2006, Cabot Microelectronics CIO James DeHoniesto spelled out the ways Oracle On Demand has freed his IT team from day-to-day maintenance of enterprise applications so they can add direct, measurable value to Cabot's bottom line.
Cabot manufactures high-performance polishing slurries used in the manufacturing of advanced semiconductor devices. To remain profitable, it must run carefully synchronized, 24-hour manufacturing operations spread across three geographies. Downtime is not an option.
Cabot turned to Oracle On Demand for 24/7 system monitoring and availability plus strong security and backup services. "We couldn't run Oracle better than Oracle," DeHoniesto explained, adding jokingly that there is only "one throat to choke."
Generating Business Value from IT
Oracle On Demand is already providing Cabot with both more-predictable IT costs and significant savings in annual IT staffing. However, DeHoniesto reserved his greatest enthusiasm for the new ways in which his IT team is now free to add direct value to the business.
When the marketing department lost a key forecasting resource, members of DeHoniesto's IT team stepped in, ran the process for three months, and even trained a replacement. The group was also instrumental in reducing touch points in Cabot's order-to-cash process by 25 percent. And when there was a gap in the Global Logistics team, IT once again intervened, running the MRP program for eight months.
In the wake of these successes, the entire organization started to look at IT in a new light. "The team has had time to focus on stronger project management skills, which have been adopted as 'best practices' throughout our organization," said DeHoniesto.
And how do team members feel about their new role? Great, according to DeHoniesto, who cited increased job satisfaction as a key benefit of Oracle On Demand.
Oracle Listened
An Oracle outsourcing customer since 2001, Cabot has been impressed with the way the relationship has evolved over the years.
DeHoniesto said that Oracle streamlined management structures for faster accountability, became increasingly proactive in resolving production issues, and enabled minimal interaction from his team during technology stack upgrades. "They actually listened!" DeHoniesto said.
Lesson Learned
DeHoniesto outlined a number of ways that other companies can best approach a partnership with Oracle On Demand.
First, he emphasized the importance of focusing on core competencies by asking three questions: What do you excel in? Where can you add the most value? Does your current staff have the skills they need for the next step? He then listed a host of recommendations, including:
- Set realistic expectations, both with your own team and with the organization at large.
- Ensure executive commitment throughout the project.
- Create more structure in change management systems.
- Establish metrics and hold department heads accountable.
- Complete thorough integration testing during Conference Room Pilot (CRP).
- Minimize customizations.
Download the Oracle OpenWorld presentation Business Results Case Study: Oracle E-Business Suite On Demand
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