NZ Dairy Group/Fonterra – 1990-1991 & 1995

The New Zealand Dairy Group of Companies was a farmer-owned co-operative organisation that processed more than 45% of all New Zealand's milk giving it more than $1.5 billion turnover. It had a major data processing operation, which had grown in an uncoordinated way prior to 1990. PA were asked to provide an Information Systems Strategic Plan (ISSP) which defined a high value forward path. This was fully implemented and was so successful that PA was asked to assist with the updating of the plan in 1995.

The 1995 review placed particular emphasis on identification of competitive advantage to be gained from looking at the entire supply chain and on the benefits and pitfalls of PCs on desktops. The review used Shareholder Value Analysis to focus on the key issues. Of particular importance was its identification of the need to develop an industry-wide approach based on increasing shareholder value. With the co-operative nature of the industry, this was slow to implement. The recent reorganisation into Fontera is fully in line with the recommended approach.

In the initial plan, particular emphasis was placed on supporting the business operation and the integration of Process Control and Management Information Systems with Business Systems. An unexpected by-product of the ISSP was insight into the operation of the organisation, which led to a change in its structure that proved successful.

PA continued to work for the Group particularly in project planning and management while local skills developed.

Mike was team leader for the development of ISSP and continued to be actively involved during the reorganisation and project management phases over the following two years. This included Mike being the project manager for the amalgamation of information systems when the Dairy Group and Waikato Valley Co-operative merged to form a $2 billion turnover group. In 1995, Mike was team leader for updating the 1990 strategic information systems plan.

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