Cemex: a Digital Firm in the Making

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Case Study 1 Cemex: A DIGITAL FIRM IN THE MAKING 1. How did digital technology transform the way Cemex ran its business? In previous years when Cemex began, the business’ operations ran without the use of digital technology, they used telephones as a communication medium between customers and employees. However, this proved to be futile because it was very time consuming and costly to Cemex. Phone lines were jammed as customers, truckers and dispatchers tried to get orders correct causing orders to be lost. The grandson of the founder of Cemex, Lorenzo Zambrano, introduced information technology to Cemex with a system that would enable them to manage unforecastable demand better than their competitors. It was a…show more content…
The system gathers information which assists Cemex to send the right truck to deliver a specific grade of cement or redirect deliveries when prompted by last-minute changes. Zambrano and his managers now have access to almost every detail about Cemex operations within 24hours. A sophisticated executive information system was built to enable Zambrano to monitor closely from his laptop computer operations in the 35 countries where Cemex operates. A software was also designed for executives and plant managers to keep tabs on power use, which they analyzed to plan each month’s energy consumption, ensuring that conveyors, electric grinders and other equipment run mainly during hours of off-peak electricity rates as a result they benefited with a cut in their energy bills. They did in fact switch from focusing on managing assets to managing information which was effective and efficient. 3. To what extent is Cemex a digital firm? Cemex was not always considered a digital firm because they lacked the use of technology in their operations. They became a digital firm when they were introduced to the use of technology into its business’ operations that led to a gain in efficiency and effectiveness. Strategic management decided to apply information technology which led to the development of a series of systems to manage unforecastable demand better than its competitors, to link their delivery trucks to a Global Positioning System satellite to help dispatchers monitor the

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