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Case
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Reference no. 9-608-053
Published by: Harvard Business Publishing
Originally published in: 2007
Version: 08 August 2007

Abstract

Codelco was a Chilean copper-mining company, widely considered to be one of the most professionally managed firms in South America in spite of the fact that it was 100% government-owned. A $10.5 billion company in 2005, Codelco faced the challenge of incorporating information technology into its production processes, which had historically been very manual in nature. Chief Executive Officer Juan Villarzu''s initial turnaround attempts introduced a customer-centric corporate culture to his ranks, but he was still challenged by how to create an outsourcing strategy given his location and the traditionally low IT-to-total-spending ratio in the mining industry. Villarzu envisioned moving to a robust IT architecture, enhancing the solutions that were available, identifying further needs in the company and deciding how to fix them, and working together with Codelco''s business processes to assess, plan, and build new IT projects.
Location:
Size:
17,000 employees, USD10.5 billion revenues
Other setting(s):
2006

About

Abstract

Codelco was a Chilean copper-mining company, widely considered to be one of the most professionally managed firms in South America in spite of the fact that it was 100% government-owned. A $10.5 billion company in 2005, Codelco faced the challenge of incorporating information technology into its production processes, which had historically been very manual in nature. Chief Executive Officer Juan Villarzu''s initial turnaround attempts introduced a customer-centric corporate culture to his ranks, but he was still challenged by how to create an outsourcing strategy given his location and the traditionally low IT-to-total-spending ratio in the mining industry. Villarzu envisioned moving to a robust IT architecture, enhancing the solutions that were available, identifying further needs in the company and deciding how to fix them, and working together with Codelco''s business processes to assess, plan, and build new IT projects.

Settings

Location:
Size:
17,000 employees, USD10.5 billion revenues
Other setting(s):
2006

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