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European newspaper group uses consolidation and outsourcing to improve competitiveness

IBM Global Business Services was chosen to support Berlingske IT in its consolidation of front office applications onto SAP IS-Media in order to offer newspaper advertising rates that their competitors will have difficulty meeting.
Case study
Company name: Berlingske IT

IBM Global Business Services was chosen to support Berlingske IT in its consolidation of front office applications onto SAP IS-Media in order to offer advertising rates that their competitors—particularly the smaller free papers that relay totally on advertising revenue—will have difficulty meeting. It will also help the company launch new services, such as a free version of the paper in larger metropolitan areas.
Business need
Solution
Results
Customer testimonial
Customer information
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Business need

After Berlingske Officin (BO) was acquired by Orkla Media, Berlingske IT - the IT services company for BO - faced two challenges. First, it needed find a way to help BO meet Orkla's larger organizational goals of consolidation of services and outsourcing of back office functions. Second, it needed to help improve BO's bottom line and help it better react to the competition by improving ad campaigns and circulation.

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Solution

Berlingske IT chose IBM Global Services to help meet its goals of improving the competitiveness of Berlingske Officin against new market forces while supporting a leaner back office business model. First, under an outsourcing agreement with IBM Global Services - Application Management Services, IBM will provide ongoing maintenance, user support, enhancements and new development for the Oracle eBusiness Suite. Second, IBM Global Business Services is helping Berlingske IT consolidate several front office applications onto SAP IS-Media, which will allow BO to develop more targeted, effective advertising campaigns and distribution strategies.

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Results

· The outsourcing of the Oracle eBusiness Suite organization will enable Berlingske IT to reduce its IT budget by 20% over a 3 year period, and generate cost savings of DKK2.8 million over four years

· SAP IS-Media will help Berlingske Officin to create more effective ad campaigns and develop new distribution models, such as free dailies

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Customer testimonial

“IBM is helping Berlingske IT prepare for its growing role in supporting Orkla Media's dual goals of expansion and consolidation. We can now focus better on our core competencies and ensure quick responses to changes in the marketplace.” Niels Vorum-Petersen, CEO, Berlingske IT

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Customer information
Berlingske IT
Berlingske IT is the provider of information technology services for Berlingske Officin, Denmark's leading newspapers group, and is a subsidiary of that group of companies. In 2001, Berlingske Officin became part of a larger entity, Orkla Media, which is headquartered in Norway.
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