Danish Crown Customer Case

Investment in security has to be managed by the business - not by the market

Danish Crown highlights that there has to be good business acumen behind the investment in IT and system security. For a number of years Aggrit has been safety consultants for Danish Crown, and as a result of this they have got a practical business approach to security investments and policies.

Proper handling includes risk assessment and -management that only addresses the risks which are most important for the actual company. Unfortunately, it is far from all companies that take account of this basic 'formula'. The result is that the company makes its investments according to themes which are made by suppliers. This often causes the companies to invest too much in security. For six years Aggrit has provided consultancy services to Danish Crown, including the ongoing process documentation, safety advice and the latest risk assessment. This has provided Danish Crown with a solid basis for a focused and practical-oriented investment in security.

IT systems is a living organism

"IT systems is a living size and develops continuously as business processes and production systems are made more efficient and further developed," explains Elo Bromer, CIO at Danish Crown. "In the summer 2008 we had to realize that the previous risk assessment needed to be updated as a result of e.g. the addition of mobile units in our production system. For example, we have - since the previous assessment was made - enhanced with 250 wireless handheld terminals to scan products where data is recorded and managed in SAP."

Danish Crown has two IT systems: The administrative IT system, which primarily affects the economy, sales, warehouse and logistics circuit, and the production systems, which primarily affect the slaughterhouses with a high degree of automation, for example, in Horsens.

Both the administrative systems and production systems are obviously important for the operation of Danish Crown. For example, the IT systems manages the entire production in Horsens, and if there are errors on these systems, the production will stand still and about 900 employees have to wait while the number of pigs will increase dramatically in the stables.

Food production makes very tough demands

"As all food suppliers Danish Crown has to live up to very strict requirements of the consumers," says Elo Bromer. "If the products are not delivered on time, there will be big fines. And deadline is short before delays means that the goods will be rejected and must be returned for destruction.

"So regardless of where in the production related IT systems a problem arise, it will soon have far reaching economic implications for us." It does not mean that Danish Crown plunges themselves headlong into security investment - rather the contrary. Of course, the fundamental business acumen in the company of course also applies to the IT systems. And it functions well with Aggrit’s practical approach to risk and security, ensuring that Danish Crown will unravel all the necessary elements. Aggrit also ensures that there is progress in the projects and tasks are carried out within the agreed time.

Pragmatism is an important quality

“Aggrit is characterized by good theoretical foundation, which is important. But in addition, they are pragmatists. So instead of cycling around in frame works and a theoretical approach, the basis is best practice and the reality and business procedures of Danish Crown. In this way they can provide consultancy that makes sense and meeting our people at eye level,”says Elo Bromer. Risk assessment is central to the safety of Danish Crown and a 'roadmap' that is essential to carry forward investment in security. However, although structured analysis is important to provide an adequate basis for decision making, the methodological framework has to be followed by a practical understanding of the business in which the systems is a part.

"Since the risk is assessed by the relationship between probability and impact, it is extremely important with this understanding of our business, which Aggrit shows when working on risk assessment," continues Elo Bromer. "Risk assessment and subsequent security policies have to fit into our business reality and every day. The result must ultimately be a level of security that is consistent with our status as a manufacturing company. Although our production is critical, we should not in all areas have the same level of security as e.g. a bank. It is therefore an important quality that the consultants in Aggrit previously have been employed as IT managers and -directors," concludes Elo Bromer.

About Danish Crown

Danish Crown is Europe's largest and the second-largest slaughterhouse in the world. It is an international food company with production and sale of fresh pork and beef - primarily in the mother company. Furthermore there is production and sale of a number of other food products in the subsidiary companies. Danish Crown is also Europe's largest beef processing company and a significant player in the European marked for beef. Total speaking Danish Crown is the world's largest exporter of beef. The mother company consists of 16 pig slaughterhouses and cutting companies, eight slaughterhouses for cattle and cutting companies as well as two branches of retail packaged meat and two fresh food terminals. Annually the whole group turns over for more than 47 billion and employs approximately 25,000 employees worldwide.