This white paper is an IBM case study. To create a solid foundation that would support expansion into new markets such as beef production, Venezuelan poultry farming company Avicola La Guasima needed to gain a tighter control of its existing business processes.Working with IBM Business Partner Amazing Global and SAP Services Partner SofOS, the company built a new IT infrastructure based on IBM Power Systems and storage technologies, and deployed the SAP applications within just seven months. Visit http://on.fb.me/LT4gdu to 'Like' the official Facebook page of IBM India Smarter Computing.

1. we know
they know
Avicola La Guasima unites its business and
expands into new markets with IBM and SAP
Overview
 The Challenge features like geolocation and  Key Solution Components
To create a solid foundation that integration with Twitter enable the Industry: Consumer products,
would support expansion into new company to control its distribution Industrial products
markets such as beef production, network and protect traveling Applications: SAP® ERP 6.0, SAP
Venezuelan poultry farming salespeople and delivery trucks NetWeaver® Business Warehouse,
company Avicola La Guasima transferring food to farms and SAP NetWeaver Portal
needed to gain a tighter control of poultry to processing plants. Hardware: IBM ® Power® 520
its existing business processes. Express, IBM System Storage®
With no real integration between  The Benefits DS4700 Express, IBM System
IT systems within the different For the first time, all Avicola’s Storage DS3400 Express, IBM
business units, it was difficult business units have been united System Storage TS3100 tape library
to gain an accurate overview of with a single set of end-to-end Software: IBM AIX®, IBM Tivoli®
operations or enhance operational processes: SAP handles everything Storage Manager, Oracle database
efficiencies. from changing the recipe for the Services: IBM Business Partner
chicken-feed through to automatic Amazing Global, IBM Business
 The Solution alerts when a delivery truck is lost or Partner InfoStore, SAP Services
Avicola decided to create a stolen. IBM infrastructure provides a Partner SofOS
standardized set of finance, highly available, high-performance
production and logistics processes platform for the solution, using
managed by SAP ERP, with key advanced virtualization
performance indicators generated technologies to maximize energy-
by SAP NetWeaver Business efficiency and help the company
Warehouse and displayed in SAP achieve its environmental targets.
NetWeaver Portal. Working with With the IBM and SAP solution,
IBM Business Partner Amazing Avicola has seen its IT management
Global and SAP Services Partner costs decrease by 38 percent,
SofOS, the company built a new IT compared to its previous IT
infrastructure based on IBM Power landscape.
Systems and storage technologies,
and deployed the SAP applications
within just seven months. Innovative

2. “The maintenance Avicola La Guasima started out more The system offered insufficient
contract for the solution than 30 years ago as a small family-run monitoring and control of our
business, and has grown exponentially operations, so it was difficult to get a
is also very cost-
to become the largest poultry farming snapshot of a business process or a
effective, and the use of company in Venezuela. Its business sales trend at any given time.”
IBM Tivoli Storage now covers every aspect of the value
Manager for SAP chain, from genetics and reproduction Dealing with rapid business growth
backups makes it easy through incubation and farming to sales Although the company had prospered
and distribution. Headquartered in for many years without imposing strict
for us to protect our
Valencia, Venezuela, the company has control over its business processes,
data quickly and 2,000 employees, eight distributors, two the situation was becoming
reliably.” distribution centers and its own fleet of unsustainable. Rapid growth meant
delivery trucks, which cover 84 sales that Avicola needed to become more
Alexander Ryczko, IT Manager, Avicola
routes throughout the country. Its scalable, and the company was also
chickens produce 11 million eggs every planning to expand its operations into
month. related new markets. To make this
possible, Avicola required a more
“Two years ago, Avicola decided that it standardized approach to business
needed to modernize its IT process management, which could be
infrastructure, and I joined the company re-used to support new operational
to help with that process,” comments areas, such as beef production – and
Alexander Ryczko, the company’s IT in turn this required new, flexible, high-
Manager. “We had a situation where performance and scalable IT
different business units used different IT infrastructure.
systems, and there was no real
integration on a company-wide level. Avicola evaluated various options
before deciding to build a solution
The procurement, sales and distribution around SAP ERP applications.
chains were not integrated with the
production system, which led to “We didn’t just want a financial
situations where one part of the management solution – although of
business could accept an order to move course financial management was
some stock, without knowing whether important,” explains Ryczko. “We
the stock was actually available. wanted something that could manage
our entire business from end to end,
including procurement, poultry
production, quality management and
logistics processes as well. SAP ERP
was one of the only solutions we saw
that could offer the range and scale of
functionalities we needed.”
Building a high-performance
infrastructure
“First, however, we needed to
establish a technological infrastructure
capable of meeting the resource
demands of the SAP applications. We
asked for proposals from IBM and HP,
and IBM’s Business Partner Amazing
Global showed that they could really
adapt to our needs and build a solution

3. that was customized for our business. process management solution for “The IBM and SAP
We also had good previous experience Avicola, supporting production and solution gives us much
of IBM hardware and support, so we logistics processes such as transport
better control over our
were confident that they were the right and warehousing as well as monitoring
partner for this project.” clients’ credit limits using the usual
business processes, and
financial accounting and cost this enables us to adapt
Amazing Global helped Avicola controlling functionalities. in a much more agile
purchase the hardware for its new SAP way to challenges and
ERP 6.0 and SAP NetWeaver Business “Looking at our business processes
opportunities. As a result,
Warehouse solutions. The new from end to end, we used to have five,
infrastructure is based on four IBM six or seven different systems handling
we are not only running
Power 520 Express servers, each built different stages in the process,” our poultry business more
on the IBM POWER6 processor explains Ryczko. “Now we just have efficiently – we have also
architecture. The SAP applications and SAP. To take just one example, let’s been able to move into
Oracle database were implemented in look at chicken feed: our nutritionists
the beef, pork and
IBM AIX 6.1 LPARs with help from load recipes into the SAP system,
SofOS, an SAP Services Partner and which delivers them to the feed plants,
processed food production
one of the largest IT consultancies in where the ingredients are weighed sector, opening up a
Venezuela. and mixed and delivered to the farms. whole new world of
The nutritionists can then monitor how possibilities for Avicola.”
IBM System Storage DS3400 and much the chickens actually eat, and
DS4700 disk systems support the SAP communicates the data across Alexander Ryczko, IT Manager, Avicola
production and development the entire system. So instead of having
environments, and backup and different parts of the process take
recovery processes are handled by place in completely separate
IBM Tivoli Storage Manager. With operational units with no
optimized functionality for SAP communication, we actually have
environments, Tivoli Storage Manager visibility across the whole business.”
addresses SAP business continuity
issues by helping to shorten backup Innovative integration
and recovery times and to reduce Looking at logistics processes,
operational costs and administrative Avicola has taken a truly innovative
efforts. approach by integrating SAP with
technologies such as virtual
Meeting environmental objectives odometers, geolocation and even
“We were able to use the advanced Twitter.
virtualization capabilities of the IBM
Power 520 servers to minimize the “Our sales teams travel across the
number of servers we needed – cutting country in trucks, delivering our
electricity and air-conditioning costs in products to customers,” comments
TECHNICAL LANDSCAPE
our data center, and making a Ryczko. “The SAP solution can track
Servers: IBM Power 520 Express, IBM
significant contribution to the the trucks and uses a virtual odometer
System Storage DS4700 Express,
company’s environmental objectives,” to record how far they have been
IBM System Storage DS3400 Express,
comments Ryczko. “Moreover, with the driven since their last service, which
IBM System Storage TS3100 tape
IBM infrastructure in place, we now had helps us to schedule maintenance
library
a highly available, high-performance effectively.”
Software: IBM AIX 6.1, IBM Tivoli
platform that would enable us to
Storage Manager, SAP ERP, SAP
innovate and really push the SAP Tweeting with SAP
Netweaver Business Warehouse, SAP
environment to its full potential.” “In some areas of the country, there
Netweaver Portal, Oracle database
are problems with vehicle theft – so we
The new SAP ERP environment use geolocation to notify us
provides a truly end-to-end business automatically if one of the trucks

4. leaves its proper territory, or if the truck “Our statistics reflect an
and its driver have been separated. increase in the
The drivers can also use Twitter on
availability of critical
their mobile phones to give information
about their whereabouts and status,
applications by 6.02
and the information goes directly into percent. This is quite a
SAP. We call this solution ‘SAP Habla’ high figure, considering
[‘SAP Talks’], and it’s really a useful that we are comparing
tool for keeping our drivers, vehicles
critical platforms which
and cargo safe.”
operate across the
Rapid implementation whole business group.”
IBM Deutschland GmbH
Even though Avicola has spent time
D-70548 Stuttgart
Alexander Ryczko, IT Manager, Avicola
developing these advanced features ibm.com/solutions/sap
within the SAP environment, the initial IBM, the IBM logo, and ibm.com are trademarks
of International Business Machines Corporation,
implementation itself was completed
registered in many jurisdictions worldwide. A
within just seven months. The combination of SAP applications current list of other IBM trademarks is available
on the Web at “Copyright and trademark
and IBM hardware is also much more
information” at http://www.ibm.com/legal/
“Amazing Global did an excellent job reliable than the previous solution, and copytrade.shtml
with the infrastructure side of the overall system availability for critical Intel, the Intel logo, Intel Xeon and the Intel Xeon
logo are trademarks or registered trademarks of
project, helping us deliver a rapid applications has increased
Intel Corporation or its subsidiaries in the United
implementation at a low cost,” says significantly. States and other countries. UNIX is a registered
trademark of The Open Group in the United
Ryczko. “The maintenance contract for
States and other countries. Linux is a trademark
the solution is also very cost-effective, “Our statistics reflect an increase in the of Linus Torvalds in the United States, other
countries, or both. Microsoft, Windows, Windows
and the use of IBM Tivoli Storage availability of critical applications by
NT, and the Windows logo are trademarks of
Manager for SAP backups makes it 6.02 percent,” says Ryczko. “This is Microsoft Corporation in the United States, other
countries, or both.
easy for us to protect our data quickly quite a high figure, considering that we
Other company, product or service names may
and reliably.” are comparing critical platforms which
be trademarks, or service marks of others.
operate across the whole business
This case study illustrates how one IBM
With the IBM and SAP solution, Avicola group.” customer uses IBM and/or IBM Business Partner
technologies/services. Many factors have
has seen its IT management costs
contributed to the results and benefits
decrease by 38 percent, compared to He concludes: “The IBM and SAP described. IBM does not guarantee comparable
results. All information contained herein was
its previous IT landscape. This is solution gives us much better control
provided by the featured customer and/or IBM
mainly due to the fact that support for over our business processes, and this Business Partner. IBM does not attest to its
accuracy. All customer examples cited represent
the IBM and SAP technologies is enables us to adapt in a much more
how some customers have used IBM products
available from local IT companies in agile way to challenges and and the results they may have achieved. Actual
environmental costs and performance
Valencia, so Avicola no longer needs opportunities,” concludes Ryczko. “As
characteristics will vary depending on individual
to hire expensive consultants from a result, we are not only running our customer configurations and conditions.
other countries. poultry business more efficiently – we This publication is for general guidance only.
Photographs may show design models.
have also been able to move into the
© Copyright IBM Corp. 2010. All rights reserved.
Moving into new markets beef, pork and processed food
Above all, the new IBM server and production sector, opening up a whole
storage solutions provide a high- new world of possibilities for Avicola.”
performance platform for Avicola’s
SAP environment that enables users
across the company to collaborate
with each other and gain insight from © Copyright 2010 SAP AG
SAP AG
enterprise-wide information – creating Dietmar-Hopp-Allee 16
a truly ‘joined-up’ business for the first D-69190 Walldorf
time. SAP, the SAP logo, SAP and all other SAP
products and services mentioned herein are
trademarks or registered trademarks of SAP AG in
Germany and several other countries.
SPC03294-VEEN-00 (December 2010)