TRANSFORMATION TO BENEFIT A NATION Project partners
TRANSFORMAT TO BENEFIT A NA
TION ATION
Nell Walker
Craig Daniels
Written by
Produced by
We sit down with Luis Miguel Soto Valenzuela, CIO of Cementos Pacasmayo, to discuss the company's digital and customer experience transformation, and its dedication to improving Peru 3
A
n intense focus on digital trans-
manufacturing, mining, automotive,” he
formation, hand-in-hand with
explains. “They all enriched my depth of
customer experience, might
knowledge of how you manage different
not be things one immediately considers
industries through IT solutions.” When he
when it comes to the cement industry –
joined the Cementos Pacasmayo team,
but for Cementos Pacasmayo, Peru’s top
his primary objective was also related to
player in the market, it’s absolutely vital in
SAP, because the business was planning
preparing for the future. Luis Miguel Soto
to migrate to the latest version. However,
Valenzuela has been CIO of Cementos
that objective evolved, and became just
Pacasmayo for around three-and-a-half
one element of a long-term digital trans-
years, after 13 years in SAP consulting,
formation journey, with the ultimate goal
and his varied career has allowed him to
being better customer experiences.
work in Bolivia, Colombia, Puerto Rico and the Dominican Republic – experi-
The new vision
ences he describes as “really enriching”.
Cementos Pacasmayo had, in fact,
“I gained a lot of experience in different industries – health, insurance,
already been planning its digital transformation before Soto stepped in. In 2017
– the year he joined – the business stated
also instated the practice of working in
its new vision, which was to provide solu-
agile teams,” Soto explains. “But until I
tions and experiences to customers, not
arrived, there were no digital products
simply products. “It was also stated that
being made. It was all an idea, a theory;
we were going to provide building solu-
now, we have several digital products
tions that differed from our main prod-
already on the market.”
uct – cement,” Soto says. “An innovation area was built in order to help establish
Seeing beyond cement
the mindset of our people in order to go
This innovative mindset of moving away
towards our digital transformation, but
from products and into experiences,
that was before I arrived.” Soto joining the business saw the IT team becoming the digital transformation function, because its capabilities were required alongside the innovation team. “As I said, that was mainly focused on setting the mindset of our people, and
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which existed prior to Soto, is a fairly
sorry to say, cement is a primary contrib-
novel one for the traditional cement
utor to that problem. We want to drop our
industry. Fortunately, Cementos
emissions to 0% by 2050, so part of why
Pacasmayo has a forward-thinking CEO
we’re doing this investigation in this labo-
who knows even cement isn’t always
ratory is to reduce those emissions on
going to stay the same. “We’ve been
our traditional products and operational
doing this for 63 years,” says Soto,
processes.”
“we’re number one in the region – but it’s because we’re on top that we have
Digital solutions
to change in order to anticipate further
For all the changes Cementos
competitors that arrive in our geogra-
Pacasmayo is undergoing, and how it’s
phy and start offering something we
preparing for an as-yet-unknown future,
don’t. Our CEO isn’t worried about other
one thing it doesn’t have to worry about
cement competitors – he’s worried about
is customer loyalty. As previously stated,
the next building material that’s going to
the business is at the top of the game in
come and take over the cement indus-
Peru; its customers are, in Soto’s words,
try. That’s why he stated the new vision
“in love with our brand”. In fact, the digital
– to provide building solutions, not just
transformation it’s been going through
cement-based ones.”
has cemented (pun very much intended)
That kind of innovative future-thinking
this, as it has enabled bespoke services
is what keeps a business one step ahead,
for everyone – from huge construction
regardless of the changes happening
companies to individuals just wanting a
around it, and sets Cementos Pacasmayo
few bags of cement for a single project.
apart from other players in its industry.
“We have developed a digital ecosys-
In fact, the business is so serious about
tem, Mundo Experto, in order to
keeping a close eye on the future of build-
deliver tailored solutions for every-
ing materials, it has collaborated with a
one,” says Soto. Cementos Pacasmayo
university (UTEC) to fund research into
has Ferrexperto for hardware stores,
the topic. “They’re investigating different
Agentexperto for grocery and multi-pur-
materials in order to look towards what
pose stores, Tiendexperto for B2C
we’re going to make in the future,” says
customers, Aliado Pacasmayo for
Soto. “Connected to this is our pledge to
master builders and masons, Vecinas
reduce our CO2 emissions because, I’m
Pacasmayo for the brand consulting 9
Luis Miguel Soto Valenzuela CIO Cementos Pacasmayo Soto is a Systems Engineer; he attended Universidad de Lima, with specialisation in project management and part of MIT Sloan’s Organizational Design for Digital Transformation program. Soto has 13 years of experience in business and technology consulting in industries like manufacturing, mining, health, insurance and automotive in Peru, Bolivia, Colombia, Dominican Republic and Puerto Rico. He works as CIO of Cementos Pacasmayo, leading all the Digital Transformation Program framed within the company’s new vision.
network, and DINOexperto for direct-
on-site, and when concrete discharge
to-customer stores. This venture
starts and ends. This is a perfect exam-
has required Cementos Pacasmayo
ple of how our agile teams from busi-
to become very much a data-driven
ness, innovation and IT work together in
company. “It involves tons of data from
order to provide tailored solutions to our
which we’re going to develop our loyalty
customers. The app allows us to receive
strategies.”
enormous amounts of data, enabling
Cementos Pacasmayo even has an app solution – Pacasmayo Profesional –
further development of the solution.” Additionally, Cementos’s three cement
which focuses on the specific pain points
plants are automated with its IIOT plat-
of construction companies. “They now
form, which is integrated with its ERP
have real-time tracking of our ready-mix
solution, making real-time tracking across
trucks, including notifications of when
the board possible – not just in terms of
they leave our facilities, when they arrive
the product journey for the customer, but 11
also things like material consumption and
have to be managed differently, on a more
indirect manufacturing costs (e.g. energy
personal level. Before this became the
and maintenance inspections). “We
focus thanks to the new vision, Cementos
receive millions of data tags that allow us
Pacasmayo was very much a tradi-
to monitor our key asset management in
tional B2B company; it has 300 custom-
real time and make decisions on the run,”
ers made up of big hardware stores
Soto explains. “All of this is part of our Big
or construction materials distribution
Data and analytics programme, which will
companies, as well as construction busi-
allow us to final delivery our Operational
nesses themselves.
Intelligence solutions.”
“When we changed our vision, we stated that we were going to look towards
All customers, big and small
every single one of our customers,
All these different types of custom-
because the construction companies are
ers have different requirements, which
not the final users,” Soto explains. “Our
is reflected in the various services
real customers are the families buying a
Pacasmayo now offers – but they also
few bags of cement to build their home,
“ We’re number one in the region – but it’s because we’re on top that we have to change in order to anticipate further competitors” — L u i s M i guel S oto Va lenzuela C I O, C em e ntos Pa c a smayo
so we opened ourselves up to knowing
mile delivery, and make sure it’s always on
these customers – and what we’ve found
time, which also creates a mutual support
is they’re more diverse than we thought;
network for local businesses.
they have different needs.” The business was split in two, so that
And that – the wellbeing and future of Peru – is something that’s hugely impor-
part of the Cementos Pacasmayo team
tant to Cementos Pacasmayo. It is a busi-
could focus solely on consumer, and part
ness that feels responsible for the devel-
on industrial. That allowed the business to
opment of its country, because many
learn what each type of customer’s needs
areas of it are under-developed. “We feel
and wants were, before splitting the
a primary responsibility in developing the
groups further to create the new range
cities in order to unite them with roads or
of digital services. The challenge comes
highways or bridges, because they don’t
with the actual delivery of the products,
really have those capabilities,” Soto says.
but even that is an exciting opportunity
“With our knowledge, products, and solu-
for Cementos Pacasmayo; the business
tions, we know that we can make a differ-
doesn’t have its own fleet, and it knows
ence. Our vision is to push forward this
that its customers can’t wait for cement
development by 2030.”
– they have projects happening now. So, Cementos Pacasmayo partners with
Company culture
other services in Peru that do the last
None of this shift towards greater 13
customer understanding and service would be possible without the kind of company culture that supports it. Back in late 2019, Cementos Pacasmayo stated its purpose – it stated its vision in 2017, but it didn’t have a purpose. So, the company decided on a purpose and created six culture principles to support it
Cementos Pacasmayo purpose: ‘Build together the future you dream of’ Six cultural principles: • People come first • We are conscious and upright • Our diversity is our essence • We experiment and learn • United we’re unstoppable • Good vibes and energy for what we do
“ With our knowledge, products, and solutions, we know that we can make a difference” — Lui s Mi guel S oto Valen zu ela CIO, Cementos Pac as m ayo
“By acting by six principles, we fulfill our purpose as a company,” says Soto. “We do also have a cultural transformation program that is going along with the digital transformation journey, because we know that one can’t happen without the other. So, we’re really focused on developing that mindset and developing that driver of purpose towards our transformation.” As Cementos Pacasmayo transforms itself, it helps transform Peru – and, in that way, it is building a future the whole nation can dream of. 15