Novel Twists On The Tried And True - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Software // Enterprise Applications
News
9/15/2005
04:55 PM
50%
50%

Novel Twists On The Tried And True

Mining and natural-resource companies find ways to make proven technologies meet their needs.

InformationWeek 500 - Metals & Natural ResourcesSuccessful companies in metals and natural resources aren't likely to experiment with emerging technologies, but they're good at finding smart, novel ways to exploit proven ones.

That's what newsprint maker and lumber supplier Bowater Inc. did when it automated a trading-floor application to sell lumber. VP and CIO Steve Lanzl first talked to IT consultants about creating such a system, but they wanted more than $1 million. Instead, he turned to Jacques Berger, IT manager for Bowater's Canadian forest-products division, who with a few other IT employees worked with sales, marketing, and trading folks to create the trading system in six months for less than $70,000. "This is an example where the IT guy in Montreal knows the business process so well that he can develop a system quickly," Lanzl says.



INSIDE METALS & NATURAL RESOURCES

Average portion of 2005 revenue spent on IT
1.0%

Companies spending more on IT this year than last
80%

Buying directly from foreign suppliers
80%

Centralizing control of IT operations in past 12 months
80%

Bringing outsourced functions in-house in past 12 months
30%




Bowater's Quebec team used PowerHouse, a fourth-generation programming language from Cognos, running on an HP3000 server to create the app and Visual Basic for the interface. "By integrating this application on the same platform as the transactional system, it makes the support and maintenance easier," Berger says.

Louisiana-Pacific Corp., a $2.8 billion-a-year maker of building materials, is adapting cell phones with global positioning satellite features to push its business forward. It's testing Motorola cell phones with a Java operating system and XML capabilities to help track its truck fleet. Truck drivers are given GPS-ready cell phones connected to Louisiana-Pacific's transactional systems. Data transmitted from the phones makes scheduling deliveries more efficient and lets the company measure shipments in terms of the time goods are delivered versus the current metric of when they're sent. Using GPS will create a system that will cost 10% of what Louisiana-Pacific's competitors spend to collect similar information, VP and CIO Jeff Duncan estimates.

Martin Marietta Materials Inc., a $1.8 billion-a-year maker of road materials such as asphalt and gravel, is enhancing its eRocks customer self-service Web site, which lets customers help manage their accounts by retrieving statements and invoices and doing research on materials needed to get jobs done. The company added an online enrollment process promoted through a public-relations campaign that more than doubled the number of customers using the site in the first half of 2005.

Security wasn't a problem when shop-floor process-control systems relied on proprietary technology and equipment wasn't networked. But systems in processing plants have moved to PC-based technology, and VPNs link them with business systems. "We probably have 10,000 devices across a dozen facilities that have to be protected on the shop floor because viruses can flow from the business network to shop-floor network," Bowater's Lanzl says.

Among the dozens of technologies and processes Bowater has deployed to secure its factory systems is two-factor authentication. If a factory-floor system hiccups at 2 a.m., Lanzl says, a process-control engineer can access it from his home PC with an RSA Security Inc. SecurID authenticator, a credit-card-size device that generates a random number and is used in conjunction with passwords. It's swiped through a reader attached to a PC or keyed in.

While none of these technologies pushes the edge of IT innovation, they're solving critical problems for metals and natural-resources companies.



I.T. BUDGET BREAKDOWN

Hardware purchases


IT services or outsourcing


Research and development
20%

24%

2%



Salaries and benefits




Applications




Everything else
25% 17% 12%

Data: InformationWeek Research


Illustration By Paul Watson

Return to the 2005 InformationWeek 500 homepage























METAL & NATURAL RESOURCES

  Alcan Inc.
  Alcoa Inc.
  Alliance One International Inc.
  Boise Cascade Holdings LLC
  Bowater Inc.
  Georgia-Pacific Corp.
  International Paper Co.
* Louisiana-Pacific Corp.
  Martin Marietta Materials Inc
  Olin Corp.
  Teck Cominco American Inc.

* denotes a top 100 company






We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
Commentary
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
News
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
Slideshows
Flash Poll