Foster's Group has seen $21 million dollars in benefits this year from an extensive IT transformation to simplify its disparate systems.
The global information technology project is a set of
initiatives, including the development of a common business
platform, which are expected to be mainly completed by 2011.
"We are developing common, integrated information technology
systems as a major enabler for greater efficiency, better
performance monitoring, accountability and transparency," said the
brewer's annual report, released this week.
Foster's CIO Andrew Leyden was not available for comment on the
project. According to the Australian IT, in addition to tinkering with its core systems, the company
is also moving globally to a common Oracle ERP system and has
cut down the number of vendors it deals with from 100 to 12.
The company's report said that Foster's was on target to deliver
savings of $100 million in annual cost savings by 2011. This comes
at a price. IT development costs, including purchased software and labour to
develop software, were $25.8 million this year compared to $2.1
million last year, while capital expenditure, which also included
costs from the IT project, has also been higher than the previous year.
The company recently signed a global deal with
Indian outsourcer Wipro which will see most of its internal IT
function being moved over to the outsourcer. Foster's has said
there will be job losses due to the move, but has yet been unable to name a figure.