IT Convergence in Sonoco

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IT Convergence in Sonoco
By Robert S. Goldstein Michael
Sambolin February 16, 2000 MG305 - Professor
Carl Nelson
(L-R) Peter Browning, Sonoco President/CEO
Charlie Coker, Sonoco Chairman
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IT Convergence in Sonoco

• Who is Sonoco?
• What caused their IT convergence?
• How did it take place?
• How has IT improved the management and corporate
  growth at Sonoco?
• How can other corporations take advantage of the
  lessons learned by Sonoco?

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Who is Sonoco?

• Not the Oil Company!
• Packaging Manufacturing Company
• Make Industrial Tubes, Cones, Cartons, Drums,
  Wrappers.

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Who is Sonoco?
Some Clients

• Starburst
• Wrappers for Candies
• Pillsbury
• Cans for Dough
• Gillette
• Cardboard containers for Razors and Blades

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What caused their IT convergence?

• Existing Technology bringing Diminishing Returns
• Large Maintenance and Support Overhead

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How did it take place?

• Over the course of two decades (1980-2000)
• DOS System (1980s)
• Mainframe System (1987)
• VAX System (1989)
• Outsource Mainframe System (1994)
• Client/Server System (1995)
• Distributed UNIX/NT System (late-1990s)

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IT BUDGET / TIME (1987-1993)
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IT BUDGET / TIME (1994-2000)
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ITs affect on Management and Corporate Growth

• Attitude changed towards IT.
• Increased annual sales growth.
• Supporting Player

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Learning from Sonoco

• Simplicity in IT
• Have a IT needs to Organizational Growth Strategy
• Upgrade Carefully
• Upgrade Slowly
• Keep IT Budget in Check!