How do you stay focused on business growth…

When every acquisition requires more IT support to manage an increasingly complex environment?

Fostering rapid growth by remodeling operations and outsourcing infrastructure management

As told by Ivan Samarin, Head of Group Plant IT, MM Group

In partnership with Klaus Greimel, Customer Partner, Kyndryl

Watch MM Group's story

Watch MM Group's story

The Mayr-Melnhof Group (MM Group) is a global leader in cartonboard, packaging and paper products, all made from fiber-based raw materials. In a world now more focused than ever on the environmental impact of industrial activities, MM places sustainability at the core of its business strategy with emphasis on the reduction of carbon footprint and preventing plastic waste.

MM Group operates in a highly competitive marketplace, with international customers in multiple industry sectors. Constant attention to quality and value drives organic growth, while the company also pursues strategic acquisitions to grow its business and realize economies of scale.

To run core business applications, the company previously relied on its own on-premises IT infrastructure. However, as MM Group expanded organically, and acquired or divested companies, these original and inherited in-house systems were gradually becoming more complex and more costly to support. As a result, the IT team was constantly busy with daily maintenance tasks, leaving little room to deliver longer-term strategic projects.

In addition, MM Group was gradually accumulating technical debt, relying on older systems that were no longer current with modern technology and security standards. The anticipated costs and disruption of renewing hardware and updating systems and software had made it easy to keep putting off modernization.

 



Every time we acquire a new business, we need additional resources, and finding the right people can be difficult. We wanted to concentrate on building up our packaging and paper expertise, not the IT department.”

Ivan Samarin,
Head of Group Plant IT, MM Group
Employee of Kwidzyn MillWaldemar Bodnar, Finishing / Winder/Sheeter Operator

Solving the challenges of scalable business growth

MM Group’s executive management agreed on a change of technical strategy to match the business acquisition strategy: The company would move from on-premises IT systems to fully managed operations. The result would be a new way of working, running IT infrastructure as a service and enabling the internal IT team to focus on value-added information analysis undertakings.
 

Outsourcing the management of infrastructure would also remove support-ticket workload from the IT department, freeing up personnel resources. Employees who were familiar with emailing questions and requests directly to IT staff would in the future switch to a centralized support service, which would use automation to improve response times and increase resolution success.
 

To manage the impact of corporate acquisitions, MM Group’s new technology partner would be tasked with building, scaling and deploying additional capacity as required, leaving the newly re-named Information Management department free to devote time to business integration. With global operations running 24/7, MM Group needed a partner capable of mitigating business risk during the transition and into the future.
 

MM Group considered offers from multiple vendors, including proposals to offshore both the data center and support services, and move immediately to an all-cloud solution. Understanding the criticality of MM Group’s infrastructure, Kyndryl Consult proposed to minimize project risk by starting with an initial like-for-like migration, followed by structured programs for hybrid-cloud, all-cloud and offshore transformations.

Kyndryl offered a very good cultural fit with MM Group. As soon as we agreed on a memorandum of understanding, Kyndryl started migrating each system without disrupting operations, giving us great confidence.”

Ivan Samarin,
Head of Group Plant IT, MM Group
Laboratory of Frohnleiten Mill

Deploying all-new systems and services for a global business that runs 24/7

With the business growth strategy in full swing, MM Group acquired 21 new manufacturing sites, plus two sales offices, to expand into the pharmaceuticals packaging sector. Each acquisition came with a Transition of Services Agreement (TSA), that in some cases specified timescales as short as 12 months.
 

Faced with this dramatic growth and very short transition times, MM Group’s in-house team would not have been able to scale up sufficiently. To manage the initial migration and new work generated by ongoing acquisitions, MM Group and Kyndryl planned for extensive knowledge transfer for servers, databases, applications, interfaces and networks. The original MM Group IT infrastructure included more than 2,000 physical and virtual servers, and the new purchase of the pharmaceutical packaging company added a further 400 servers, including solutioning with Microsoft Azure at the U.S. sites for central services.

Production of Kolicevo mill

Working with Kyndryl to bring business strategy to fruition

Together, MM Group and Kyndryl migrated more than 1,500 physical and virtual servers, including VMware virtual machines and Kubernetes containers. Where the landscape included specialist and proprietary solutions, Kyndryl engaged with the relevant third-party vendors and alliance partners for assistance, all covered within the single services arrangement, which reduced administration for MM Group and ensured integrated management and governance.
 

As the MM Group IT department remodeled its operations, Kyndryl introduced a central support center, using ServiceNow to manage incidents, and offering services in English, French, German and Polish. By managing all support requests centrally, Kyndryl is able to offer faster, standardized and rationalized support throughout MM Group.
 

Although originally outside the project scope, Kyndryl also deployed its Application Workbench solution to help MM Group manage legacy applications and resolve issues as speedily as possible.
 

MM group plans to continue the rollout of SAP into their production sites. Their SAP S/4 HANA landscape is managed by Kyndryl Managed Services to seamlessly integrate any new SAP workloads into their infrastructure services.

Employees of Follacell Mill

What progress looks like

50 %

Managed company growth of more than 50% in 3 years

23

Handled onboarding of 23 manufacturing sites in 12 months

50

Increased Kyndryl project support with more than 50 technical experts at short notice



Enabling business expansion through infrastructure outsourcing

MM Group now benefits from integrated, unified IT service delivery, with infrastructure and support managed and delivered by Kyndryl, based on modern, security-rich systems. The Kyndryl and MM Group teams work closely, fully aligned with the corporate acquisition strategy, so they can scale rapidly as required.

As MM Group migrates the management of servers and applications to Kyndryl, the company continues to reduce the business risks of technical debt, enhance its cybersecurity posture, and unlock new flexibility and scalability to power its global acquisition strategy.



 

By entrusting our critical IT infrastructure to Kyndryl, we are now able to introduce new packaging solutions more quickly and efficiently, and at the same time enable completely remote and mobile relationships with our clients and partners.”  

Jacqueline Wild
Head of Group Information Management, MM Group
Pictures of Frohnleiten Mill

About MM Group

MM Group is a global leader in consumer packaging, employing approximately 15,000 people across 71 locations in 33 countries. MM Board & Paper produces 3.1 million tonnes of cartonboard, paper, and pulp annually, while MM Packaging manufactures 4.0 billion cubic meters of folding cartons each year for customers in the FMCG, pharmaceutical, and luxury industries.

Meet the team

Ivan Samarin

Head of Group Plant IT
MM Group
Ivan Samarin LinkedIn

Jacqueline Wild

Head of Group Information Management
MM Group
Jacqueline Wild LinkedIn

Klaus Greimel

Customer Partner
Kyndryl
Klaus Greimel LinkedIn

Manfred Strych

Delivery Partner Executive
Kyndryl
Manfred Strych LinkedIn

Maria Kirschner

Vice President and Country General Manager
Kyndryl
Maria Kirschner LinkedIn

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