Tomago's IT specialist breaks silence on the intricate web of cloud computing and digitalisation

In the heart of the Asia-Pacific region, Tomago Aluminium stands tall as an industry giant, shaping the aluminium landscape. Dennis Moncrieff, the company's IT superintendent, guides us through their digital transformation journey, a saga of challenges, lessons, and strategic decisions.

Moncrieff highlights the crucial nature of digital transformation in today's business landscape. While in conversation with the CIO, in simple words, he illustrated: "Sure, digital transformation is a buzzword that's been bouncing around for a long time, but digitising your processes remains important because no modern business can afford to run an old, unpatched, and unsupported version of something. It's just too risky."

Tomago faced a pivotal decision in 2015, which led to transforming its ERP system to the cloud. The ageing SAP instance pushed them towards embracing the cloud, marking a turning point in their operational paradigm.

Early adopter challenges of Digitalisation

As pioneers in cloud adoption, Tomago faced the uncertainties of a nascent technology. Moncrieff reflects on the initial positive experiences with improved speed and resilience. However, connectivity issues surfaced, impacting a 24/7 smelting operation heavily reliant on ERP data. Identifying and resolving problems amidst the myriad breakpoints became a formidable challenge.

"Every few months, something would go wrong, and we had to diagnose exactly where it was on the path before we could get the right support from the appropriate resource," he asserted.

Reassessment and cloud market maturation

Five years post-migration, Tomago reassessed its cloud environment. With the maturation of the cloud market, they explored on-premises solutions, continued with a managed environment, or embraced an ERP-as-a-service model. Moncrieff highlights the need for ownership, transparency, and cost considerations in this re-evaluation.

Lack of insight and control

Managing a colossal ERP system posed challenges in tracking usage and costs. Moncrieff draws attention to the lack of insight, control, and visibility across their systems. The metaphorical "swarm of big black boxes" symbolises the complexity of managing operations without a clear understanding of every component.

Return to on-premises

In 2020, Tomago made a strategic decision to bring back its ERP system on-premises. Moncrieff underscores the benefits - enhanced cyber security, predictable costs, and better control over compliance and due diligence. The move, he believes, freed them from constraints imposed by the cloud, enabling more innovative approaches to drive efficiency.

Moncrieff acknowledges that while on-premises is currently the right fit for Tomago's daily operations, the future may see a different approach. He stresses the importance of placing the right workload in the right spot, suggesting that not all data needs to be constantly accessible, especially historical data.

"For a facility like ours, which runs and operates as an aluminium smelter day-to-day, there's a certain amount of data we need to keep close to the machines. But when it comes to some of our historical data, it's probably not as important for us to have access to that information all the time," he concluded.

In a cautionary note, Moncrieff advises readiness before venturing into the cloud. Excitement about the possibilities in the cloud is tempered by the need for solid foundations. He emphasises the importance of being prepared to take full advantage of cloud capabilities and aligning them with specific problem-solving goals.

Tomago's journey epitomises the dynamic landscape of the aluminium industry's digital transformation. The return to on-premises signifies a strategic shift towards control and efficiency. As they stride into the future, the industry watches, poised for potential innovations and advancements in a world where the right technology can redefine the very essence of aluminium production. If you wish to know more about digitalisation in the global aluminium industry, go ahead and book AL Circle's special report, Digital Transformation in the Aluminium Industry.