Apogee Enterprises enterprise systems modernization initiative is a multi-year project incorporating six independent subsidiaries using a common back-office business model. Apogee, a leading provider of distinctive value-added glass solutions for enclosing commercial buildings and framing art, is the parent company of six affiliates which engineer, fabricate, install and repair the walls of glass and windows that enclose buildings, drastically improving energy efficiency, as well as providing hurricane and blast protection. Apogees ongoing systems modernization initiative is part of a broad initiative called Project Best whose goal it is to transform Apogee into the best billion dollar company by implementing the best information systems, using Lean Six Sigma throughout company operations, developing the best employees, and selective use of shared services.

Key goals and objectives include:  
-	Enhancing scheduling capabilities to improve asset utilization and reduce raw material waste across the entire enterprise  
-	Streamlining intra-company and inter-company transactions across all business areas
-	Eliminating redundant or asynchronous processes and providing a common model for back office processes and IT tools 
-	Improving purchasing cost-control and spending with vendors at each business unit 
-	Reducing IT cost and achieving return on investment capital (ROIC) 

     In addition to making strides in achieving each of the objectives above, the project redefined many parameters of Apogees business. Aiming to change not only business processes, but the way processes and business units integrate with each other and with outside vendors, partners and customers  Apogee sought solutions based on the latest, most collaborative technologies available.  Encompassing the entire back office and manufacturing processes,  Apogee is successfully implementing an end-to-end, next-generation enterprise resource planning (ERP) solution from Epicor based on True SOATM. 
     Examples of the projects success can be seen in many areas of Apogees business. The company, which prides itself for significant contributions to environmental improvement, is a member of the U.S. Green Building Council and is in the midst of attaining silver-level Leadership in Energy and Environmental Design (LEED) certification for its new Wausau Window and Wall Systems facility.  The company is also active in implementing Building Information Modeling (BIM), and its Lean Six Sigma program is a cornerstone of the companys Project Best initiative. Apogees systems improvements have provided Six Sigma teams within the company access to accurate and timely data which has in turn been used to identify opportunities for further operations improvement opportunities. Furthermore, the systems scalability will provide opportunities for the company to address a broader portion of a construction industry constantly attempting to keep up with the green trend, extending benefit outside the company to society as a whole. 

Appropriate technology selection was of the utmost importance in Apogees systems modernization. As Al Sussman, chief information officer with Apogee explains, technology selection was a question of both culture and capability. Given that we deal with independent business units, managers and executives dont like to be told how to do their job.  They need a solution that works around their business, not one that makes them work around the software. Following demonstrations from tier one ERP providers including Oracle and SAP, questions of flexibility arose. 
      Epicor was simply a much better cultural fit, others were too rigid, Sussman continues. We searched for a common system that still remained unique and allowed for individual autonomy in different businesses.  Apogees next-generation implementation leverages Epicor True SOATM, a uniquely collaborative, flexible, service-oriented architecture. Architecture more than anything put Epicor over the top.  Our old systems eventually became quite labor-intensive and difficult to change. The ability to specify individual processes without modifying any underlying infrastructure is huge for us. On-demand access to timely, accurate data was also key, providing visibility to over 30 company locations and hundreds of job sites. In Apogees highly-decentralized midmarket environment, Epicor provided the ease of configuration and access to data Apogee required. 
      As an end-to-end ERP platform, Epicor will span Apogees entire enterprise. From back office processes including customer relationship management, sales, finance and service to intricate manufacturing tasks like supply chain management, planning/scheduling, product data management and manufacturing; Epicor provides a foundation for efficiency and waste reduction.  Speaking to the need for a common business model around back office processes, Sussman jokes, none of our vendors care how a check gets processed, just that it does. But when you have six companies each doing things differently, it quickly becomes a serious issue. Despite the humorous analogy, given Apogees rapid expansion, the need to establish these common processes was urgent. 
      Apogees business has continually grown over the course of the past decade, with the most substantial growth occurring in recent years (see attachment entitled revenue). The company had close to $1B in revenue earlier in the decade.  At that time, despite the companys revenue successes, Apogees company portfolio required changes, and it had to find a way for its business units to work more closely together.  This prompted an internal goal within Apogee.  We dont want to be just a $1B company, we want to be the best $1B company possible, says Sussman. 
In keeping with their motto  access to data is essential. Apogees ongoing Lean SixSigma initiatives are dependent on access to better and more timely information in order to reduce waste, and improve quality and customer service. At the most fundamental level, leveraging innovative technologies helps Apogee businesses to continually achieve their goals.

Yes

Yes

Apogees Enterprise System Modernization Initiative has resulted in benefits for the organization as a whole.  The companys initial objectives for the project have been met, in many cases changing the way the company does business while providing new avenues of opportunity for ongoing initiatives and projects. Since implementation, end users at each level of the business have been enabled to collaborate more freely, with greater access to accurate, timely information. 
     Apogees subsidiaries are under constant pressure from a demanding, deadline-oriented architecture, engineering and construction (AEC) industry. As Apogee practices Lean Six Sigma while helping customer properties (and its own) attain LEED certification, planning, collaboration and access to data ultimately leads to efficiency.  We do some pretty incredible things managing large projects in a demanding industry, says Sussman. The customer is saying this is when we need it on deadline. We have built a lot to manage that, which has resulted in Apogee having the strongest brands in the industry. 
      A significant opportunity provided by the solution is the ability to weather the ups and downs of a cyclical business. By nature, the architecture, engineering and construction (AEC) industry is resilient, although uniquely linked to economic cycles. Buildings arent going out of style, states Sussman, Our people know how to manage through the entire cycle, when to prepare for the long-term so as to take advantage of the upturn. Apogees systems modernization is a unique project affecting both the former and the latter, allowing the flexibility to withstand soft demand while planning for the future upturn. We want the ability to hit an average overall Return on Investment over the cycle, explains Sussman. Underscoring the demand for high performance green building materials and flexible back office technology to meet the demand, Apogees business remains steady during the worst economic downturn since the 1930s  achieving growth and delivering strong financial results in 2008.  

Several different groups within Apogee have benefitted from the change of technology within the company. The implementation of an end-to-end, on-demand ERP solution based on flexible architecture has benefits when replacing asynchronous, disconnected, hard-coded legacy systems. Apogees business units that have already converted to Epicor are already benefitting from increased collaboration and access to accurate, timely data across each department. Furthermore, Apogees Lean Six Sigma teams at those business units utilize a level of data, and data access tools that they had not previously enjoyed.  That combination presents exciting opportunities to Apogee. 
      Since 2001, Apogee has been practicing Six Sigma principles. Beginning with executives and extending to champions, black belts and green belts, the company has identified Six Sigma role players in nearly every department. We even have a couple green belts in IT, explains Sussman. Six sigma companies strive for the highest possible efficiency by employing DMAIC (define, measure, analyze, improve, control) methods. Primarily manufacturing-focused, Six Sigma initiatives require the ability to analyze existing processes. As such, a series of disconnected manufacturing systems with a lack of accurate visibility into cost, purchasing and scheduling is antithetical to achieving Six Sigma goals. 
      Six Sigma is data-oriented, states Sussman. One frustration with the old systems was that we needed accurate data and analysis tools. Without timely information and in-context analytics, companies are relegated to greater levels of waste and lower operating standards. Data is food for Six Sigma, Sussman continues, A capable ERP system is an enabler of Six Sigma, and Six Sigma is an enabler of ERP. Now, Apogees Six Sigma teams can access accurate and timely data, and can more easily modify processes to reduce waste and increase performance and efficiency.
      The relationship between ERP and Six Sigma is similar to the relationship between ERP and BIM the process of managing and generating building data during the project lifecycle is dependent on the ability to move data between groups, projects and job sites. BIM is still a budding trend, says Sussman. In order to position yourself as a major player in BIM you need to rely entirely on data. BIM typically involves three-dimensional, real-time, dynamic building modeling software to increase productivity in building design and construction.  Since Apogees enterprise systems modernization initiative, the company has begun positioning itself in the BIM space. 
       Apogees most important internal groups are experiencing benefits of the systems modernization.  As Sussman claims, Each business has a secret sauce, something they do better or differently from their competitors. Our businesses strength is typically that they execute projects that have both complex products and complex logistics, and they do it better than anyone else.  Over the years weve developed some really innovative processes and systems, but those systems didnt always talk to each other.  As a result, we often lacked the visibility to efficiently track a project from a Lead all the way through to field service.    The Epicor product configurator addresses this disconnect, We see an advantage and opportunity with the product configurator, says Sussman. This change is vital to collaboration between groups. For example, Sussman explains, The ability to be at a job site, on the manufacturing floor or in the back office and enter in a serial number of a single part and track everything related to the part from its origin to final delivery is crucial. In addition to this seemingly simple example, this access to information and visibility across departments, businesses and processes is key to Apogees future success. 

Several aspects of Apogees enterprise systems modernization initiative are truly exceptional. The project was the first end-to-end ERP implementation at Apogee, incorporating six formerly autonomous companies onto a single ERP system of record across the organization. In addition to replacing an outdated, hard-coded legacy system hindering workflow, the project sought to change the way that Apogee businesses used packaged software, and to work with the ERP vendor to best position Apogee for future growth. 
	We consider Epicor a strategic partner. There is a fine line between vendor and partner. Neither Apogee or Epicor takes that lightly, says Sussman. There is a very thoughtful relationship between the companies. We work with a dedicated core group of Epicor consultants in addition to our in-house staff. 
	While forging an important partnership between the vendor and customer, Apogees highest priority was raised to a level above technology. We wanted to create a fundamental change in the way we relate to one another, states Sussman. Technology is meant to enable an operating shift within Apogee. Rather than operating as six independent business units, each is expected to remain autonomous while collaborating via technology in ways they had never done before. Combining and consolidating back office processes, streamlining collaboration and access to information is simply the underlying means to achieve an end. As Sussman explains, the shift has already occurred, noting, This project has gained the highest level of visibility in the company. Our board of directors receives regular teleconferences and updates to keep them informed. 

With the exception of replacing an outdated system, technical problems were not the most significant obstacles to overcome during Apogees enterprise systems modernization. Likewise, expertise is not a serious detriment to achieving Apogees goals. Though the implementations have been conducted in a smooth, non-disruptive fashion, there were some barriers to break down within the organization. Aside from the workflow challenges presented by an outdated computer system, there were cultural and organizational obstacles which may have derailed the implementation of a new ERP system of record. 
	A primary obstacle in implementing the new systems has been each business units fierce pride in their business process, and their independence.  This manifested itself in the fact that even though three of the business units were using the same legacy ERP software, the three implementations were very different, and very independent of each other.  As such, individual managers, employees and process owners were naturally reluctant to change  citing the typical rigidity of most ERP solutions and the inability to modify software to meet their needs. Likewise, resources for new technology investment were scrutinized as the company strictly demands ROIC. 
	Nevertheless, Apogees implementation of Epicor at each business completed to-date has been successful. The biggest challenge, as Sussman states, was allowing our companies independence and autonomy  letting them run their business while taking advantage of synergies that the new system enabled.  

As mentioned above, initial hesitance within separate business units arose as managers and process owners did not want to sacrifice their unique workflow to fit new software. Many of these concerns were solved following initial demonstrations of user-interface modification. Also mentioned above, resources for new IT expenses were also scrutinized to prove long-term ROIC.  
	Prior to the enterprise systems modernization initiative, Sussman explains that If anything, at the time we were under-spending in IT.  Because of this, it was hard to explain an increase in spending without proven methods to reduce costs in the long term. Proving ROIC is often easier said than done. However, given Apogees goal of continued growth while simultaneously increasing asset utilization, simple explanations of the softwares ability to support this goal remedied resistance.  For us, scheduling in and of itself paid for the software.

Achieved

Apogees enterprise systems modernization initiative will affect many other applications organizations and global communities. Buildings are the primary consumer of energy around the world. Whether in developed countries or emerging markets around the globe, heating and powering the worlds cities presents an enormous challenge in modernizing todays energy grids. Sustainable design in the AEC industry has become the standard in long-term benefit to society. Apogees unique value-added glass solutions will continue to provide benefit to customers and the global community as a whole by greatly reducing energy expense, waste and excess  a theme shared in the enterprise systems modernization initiative itself. 
	By remaining true to this theme  Apogee has successfully bridged organizational gaps within the company to extend benefits to themselves, their customers and the global community. Buildings enclosed in Apogees value-added glass are achieving LEED certifications and other recognitions as leaders in energy efficiency. Meanwhile, Viracon, the Apogee subsidiary dealing specifically in value added glass in the AEC industry, continues to win approximately 70% of high-profile targeted projects including the new 7 World Trade Center and the upcoming Freedom Tower in New York. Apogee has thrived due to its ability to focus their product on the future, and that quality is reflected in the companys technology due to the enterprise systems modernization initiative.

Apogees targeted audience spanning six different subsidiaries is reacting very well to the initiative. Despite some initial hesitance from process holders within formerly disconnected, completely autonomous entities  the understanding that leveraging innovative new technologies would allow independence and autonomy while taking advantage of synergies  prevailed. Any reluctance was outweighed by the greater understanding that achieving a common model around business processes would provide value across the entire organization. This understanding extends to the companys executive leadership, as the board of directors remains involved with regular updates to track the enterprise systems modernization initiative.