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SHIFTing the way
                                     we work

                                     Social Connections IV
                                      CEMEX Case Study




Luis Garza
Innovation Technology
CEMEX Research Group
luiscarlos.garza@cemex.com

             Amsterdam, Netherlands – November 30th, 2012
About Us


         CEMEX is a global building materials company that provides high quality products and
         reliable service to customers and communities around the world. We
         produce, distribute, and sell cement, ready-mix concrete, aggregates, and related
         building materials in more than 50 countries, and we maintain trade relationships in
         close to 100 nations.




Copyright © 2012 CEMEX Research Group, AG
                                                                                                2
Opportunities expressed
     by our CEO


                                            Encourage collaboration
                                            among all CEMEX business
                                            units and functions

                                            Build on the knowledge and
                                            experience of our people

                                            Mobilize initiatives to better
                                            serve customers, improve
                                            productivity and be better
                                            prepared for future challenges


Copyright © 2012 CEMEX Research Group, AG
                                                                             3
Becoming globally integrated

                         International                    Multinational                     Integrated




                Centralized                            Operational units                  Processes and
             operations, strong                        replicated in each             functions located in the
           corporate management                       country according to               best location and
                 and control                              market size                  available for everyone


                                            Innovation to drive successful transformation


Copyright © 2012 CEMEX Research Group, AG
                                                                                                                 4
Transforming the way we work



                                            • CEMEX internal social network
                                            • 35,000 memberships worldwide
                                            • Started with 6 global communities
                                              appointed by CEO around strategic topics
                                            • Open for everyone: more than 1,600
                                              communities grew organically




                                                     Profiles
                                                                                 Media
                                                                Communities



                                                     Blogs                     Ideas Jam

                                                                   Mobile



                                                                              Web Meetings
                                                      Wikis


Copyright © 2012 CEMEX Research Group, AG
                                                                                             5
Innovation Initiatives




                           Commercial                                                  Construction: 21st
                           Development              Government       Aggregates            Century
                                                     Relations



                                            Global transformation of collaboration practices



                         Promote
                      development &                    Improve
                    sales of new ready              clinker factor   Infrastructure    Alternative fuels &
                       mix products                   reduction         Projects            biomass




Copyright © 2012 CEMEX Research Group, AG
                                                                                                             6
A journey towards innovation




Copyright © 2012 CEMEX Research Group, AG
                                            7
The new CEMEX Intranet



                   Institutional
                 Communications


               Human Resources
                  Services
                                             CEMEX Intranet
                        Apps &
                     Transactional
                       Services

                                                                   Evolved platform integrating
                     Collaboration                                 the most relevant features
                       Platform                                    from Plaza with superior
                                                                   collaboration and innovation
                                                                   capabilities from previous
               Innovation System                Innovation &       Shift
                                            Collaboration System


Copyright © 2012 CEMEX Research Group, AG
                                                                                                  8
Key Features


                                     Toolbar       Embedded Media                Think N Build
                                                       • Self-service video         • Ideation platform
                                                         library                    • Enabled as a
               • Most common functions available       • Promoting use of             service
               • Key communities always visible          “video reporting”          • Challenges for new
               • Simple tools like translator or       • Webcast libraries            product
                 spell-check                             as regular practice          launches, strategic
                                                                                      topics, etc




                                     Awards              Tap                     Microblog App
                                                                                    • Share status with
                       • One-to-one recognition         • Send questions to
                                                                                      communities
                       • Community recognition            network experts
                                                                                    • Mobile app to send
                                                        • Receive answers
                                                                                      updates and photos
                                                          and rate their value
                                                                                    • Useful when on job
                                                                                      site or events




Copyright © 2012 CEMEX Research Group, AG
                                                                                                            9
Business Networks
     enabled by Shift

                                                                       1,700 unique participants in Global Initiatives
                   4                                     5


                                                                       11,000 other unique participants in +300
                                                    1                  active communities
                                                                        1   SAP Mexico Community (2,336)

                                                                        2   Legacy Process Community at Mexico (929)

                                                                        3   Security Process at Mexico (919)
                                            3   2
                                                                        4   SAP Support (216)

                                                                        5   CSS Budapest (196)

                                                                        A   Corporate Areas communities (+400)
                                                                 A
                                                                        B   Compensation & performance communities (+600)

                                                                            Communities for Commercial at Mexico (+300)

                                                                            Communities for Commercial at France (+200)

                                                                            SAP Users communities at USA (+600)
                                                             B




                                                        May 31, 2012
Copyright © 2012 CEMEX Research Group, AG
                                                                                                                            10
Business Sample Results:
     Alternative Fuels Substitution


                                                                      % Substitution to Alternative Fuels
                                                                 32

                                                                                                                     29.2
                                                                 24
                                                                                                          24.4
                                                                                                20.4
                                                                 16
                                                                                     16.4

                                                                  8       10.3


                                                                  0
                                                                          2008       2009       2010      2011    2012 Budget



               •      Company wide effort around the                  •      Alternative Fuels Substitution Rate is the
                      sustainable energy topic                               main indicator of this initiative’s progress
               •      Community allowed people from any               •      Avoided 1.8 million metric tons of CO2
                      location to evaluate the potential                     per year
                      benefits of any alternative fuel project
                                                                      •      Savings of over $140M USD and over
               •      Actions focused on reducing CO2                        $80M USD were booked from sales of
                      emissions by reducing the amount of                    CO2 credits
                      fossil based fuels


Copyright © 2012 CEMEX Research Group, AG
                                                                                                                                11
Business Sample Results:
     Special Ready-Mix Products




         •       Streamlined process of developing and
                 industrializing special ready-mix products
         •       Introduced the first three ready-mix global
                 brands
         •       Gathered worldiwde portfolio of special
                 ready-mix products catalog
         •       Virtual tours on laboratory centers and
                 frequent interaction amongst countries
Copyright © 2012 CEMEX Research Group, AG
                                                               12
Business Sample Results:
     Aggregates Expert Network




         •       Aggregates business unit as an opportunity to
                 grow, instead of just a necessary step in the supply
                 chain
         •       Built a network of 70 experts from 7 countries
         •       Commitment to answer any question in less then 48
                 hours
         •       Address specific questions as a community problem
         •       First Global Aggregates Conference, UK as a host
Copyright © 2012 CEMEX Research Group, AG
                                                                        13
What is coming…
     Shift 2.0 and 3.0

                                                                                                            Mobile Theme
                                                                                                            • Responsive web design
                                               Interactive Workspace                                        • Portal + Connections
                                               • Act on most frequent status                                • Internal App Store
                                                 updates without leaving the
                                                 workspace
                                               • Include catalog of external feeds
                                               • Personalized services


                                                                                     External Access
                                                                                     • Secure sharing of communities
                                                                                     • Access to external partners and
                                                                                       collaborator networks



                                            Technology Universe
                                            • Visualization tool for
                                              community content                                                          Frequent
                                            • Best practice for monitoring                                               transactions
                                              R&D portfolio and graphical                                                integration
                                              representation                                                             • Integrated access for
                                                                                                                           corporate users
                                                                                                                         • Reinforce single
                                                                                                                           workspace

Copyright © 2012 CEMEX Research Group, AG
                                                                                                                                                   14
Key Learnings




                   • Executive sponsorship is key

                   • “Seed” collaboration efforts around strategic topics

                   • Technology should be transparent to the process

                   • Dedicate a team to “mobilize” efforts and follow-up on collaboration

                   • Continuous measurement of business impact




Copyright © 2012 CEMEX Research Group, AG
                                                                                            15
QUESTIONS?




                         For further reference,

                         Twitter:           @lc_garza
                         e-mail:            luiscarlos.garza@cemex.com
                         visit:             http://www.cemex.com/whatisshift/




                                                    THANK YOU


Copyright © 2012 CEMEX Research Group, AG
                                                                                16

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SHIFTing the way we work at CEMEX

  • 1. SHIFTing the way we work Social Connections IV CEMEX Case Study Luis Garza Innovation Technology CEMEX Research Group luiscarlos.garza@cemex.com Amsterdam, Netherlands – November 30th, 2012
  • 2. About Us CEMEX is a global building materials company that provides high quality products and reliable service to customers and communities around the world. We produce, distribute, and sell cement, ready-mix concrete, aggregates, and related building materials in more than 50 countries, and we maintain trade relationships in close to 100 nations. Copyright © 2012 CEMEX Research Group, AG 2
  • 3. Opportunities expressed by our CEO Encourage collaboration among all CEMEX business units and functions Build on the knowledge and experience of our people Mobilize initiatives to better serve customers, improve productivity and be better prepared for future challenges Copyright © 2012 CEMEX Research Group, AG 3
  • 4. Becoming globally integrated International Multinational Integrated Centralized Operational units Processes and operations, strong replicated in each functions located in the corporate management country according to best location and and control market size available for everyone Innovation to drive successful transformation Copyright © 2012 CEMEX Research Group, AG 4
  • 5. Transforming the way we work • CEMEX internal social network • 35,000 memberships worldwide • Started with 6 global communities appointed by CEO around strategic topics • Open for everyone: more than 1,600 communities grew organically Profiles Media Communities Blogs Ideas Jam Mobile Web Meetings Wikis Copyright © 2012 CEMEX Research Group, AG 5
  • 6. Innovation Initiatives Commercial Construction: 21st Development Government Aggregates Century Relations Global transformation of collaboration practices Promote development & Improve sales of new ready clinker factor Infrastructure Alternative fuels & mix products reduction Projects biomass Copyright © 2012 CEMEX Research Group, AG 6
  • 7. A journey towards innovation Copyright © 2012 CEMEX Research Group, AG 7
  • 8. The new CEMEX Intranet Institutional Communications Human Resources Services CEMEX Intranet Apps & Transactional Services Evolved platform integrating Collaboration the most relevant features Platform from Plaza with superior collaboration and innovation capabilities from previous Innovation System Innovation & Shift Collaboration System Copyright © 2012 CEMEX Research Group, AG 8
  • 9. Key Features Toolbar Embedded Media Think N Build • Self-service video • Ideation platform library • Enabled as a • Most common functions available • Promoting use of service • Key communities always visible “video reporting” • Challenges for new • Simple tools like translator or • Webcast libraries product spell-check as regular practice launches, strategic topics, etc Awards Tap Microblog App • Share status with • One-to-one recognition • Send questions to communities • Community recognition network experts • Mobile app to send • Receive answers updates and photos and rate their value • Useful when on job site or events Copyright © 2012 CEMEX Research Group, AG 9
  • 10. Business Networks enabled by Shift 1,700 unique participants in Global Initiatives 4 5 11,000 other unique participants in +300 1 active communities 1 SAP Mexico Community (2,336) 2 Legacy Process Community at Mexico (929) 3 Security Process at Mexico (919) 3 2 4 SAP Support (216) 5 CSS Budapest (196) A Corporate Areas communities (+400) A B Compensation & performance communities (+600) Communities for Commercial at Mexico (+300) Communities for Commercial at France (+200) SAP Users communities at USA (+600) B May 31, 2012 Copyright © 2012 CEMEX Research Group, AG 10
  • 11. Business Sample Results: Alternative Fuels Substitution % Substitution to Alternative Fuels 32 29.2 24 24.4 20.4 16 16.4 8 10.3 0 2008 2009 2010 2011 2012 Budget • Company wide effort around the • Alternative Fuels Substitution Rate is the sustainable energy topic main indicator of this initiative’s progress • Community allowed people from any • Avoided 1.8 million metric tons of CO2 location to evaluate the potential per year benefits of any alternative fuel project • Savings of over $140M USD and over • Actions focused on reducing CO2 $80M USD were booked from sales of emissions by reducing the amount of CO2 credits fossil based fuels Copyright © 2012 CEMEX Research Group, AG 11
  • 12. Business Sample Results: Special Ready-Mix Products • Streamlined process of developing and industrializing special ready-mix products • Introduced the first three ready-mix global brands • Gathered worldiwde portfolio of special ready-mix products catalog • Virtual tours on laboratory centers and frequent interaction amongst countries Copyright © 2012 CEMEX Research Group, AG 12
  • 13. Business Sample Results: Aggregates Expert Network • Aggregates business unit as an opportunity to grow, instead of just a necessary step in the supply chain • Built a network of 70 experts from 7 countries • Commitment to answer any question in less then 48 hours • Address specific questions as a community problem • First Global Aggregates Conference, UK as a host Copyright © 2012 CEMEX Research Group, AG 13
  • 14. What is coming… Shift 2.0 and 3.0 Mobile Theme • Responsive web design Interactive Workspace • Portal + Connections • Act on most frequent status • Internal App Store updates without leaving the workspace • Include catalog of external feeds • Personalized services External Access • Secure sharing of communities • Access to external partners and collaborator networks Technology Universe • Visualization tool for community content Frequent • Best practice for monitoring transactions R&D portfolio and graphical integration representation • Integrated access for corporate users • Reinforce single workspace Copyright © 2012 CEMEX Research Group, AG 14
  • 15. Key Learnings • Executive sponsorship is key • “Seed” collaboration efforts around strategic topics • Technology should be transparent to the process • Dedicate a team to “mobilize” efforts and follow-up on collaboration • Continuous measurement of business impact Copyright © 2012 CEMEX Research Group, AG 15
  • 16. QUESTIONS? For further reference, Twitter: @lc_garza e-mail: luiscarlos.garza@cemex.com visit: http://www.cemex.com/whatisshift/ THANK YOU Copyright © 2012 CEMEX Research Group, AG 16