In Finland, practically the whole population is familiar with L&T as trustworthy waste collectors, but in recent years the company has expanded its business into entirely new areas. At times these novel innovations can even cannibalise its traditional business.
”A great example of this is our Hävikkimestari waste management service that we offer to restaurants. The Hävikkimestari mobile application combined with expert consultation has already helped more than two hundred restaurants reduce their food waste by almost a third. So, in the short term we might have less waste to collect, but in the bigger picture we promote the idea of circular economy and are able to move up in the service hierarchy,” says Petri Salermo, Senior Vice President of L&T Envinronmental Services.
Developing non-traditional services such as Hävikkimestari requires an agile, experimental culture and leadership by data. Together with his team, Salermo realised that L&T’s existing ERP solution had become a hindrance to progress.
”The old ERP logic does not fit into the modern business world. What a company like us requires most of all is business leadership that is based on correct information. To access that information, interfaces need to function in an agile manner. We wanted to be certain that our next ERP would produce these benefits that our business demands. But because we know that an estimated seventy per cent of ERP projects do not reach their goals, we decided to conduct our project in a different way,” Salermo says.
CHANGE LEADERSHIP, NOT AN IT PROJECT
To begin the process of renewing its ERP and other core systems, L&T Environmental Services decided to employ the Business Technology Design method developed by Sofigate. The idea of the method is to keep a firm focus on business goals and map out the competences required by the company’s strategy. These competences in turn lead to the technology solutions that will enable the strategy to succeed.