IBM > Case Studies > Digital Transformation of China Steel Corp. through IoT

Digital Transformation of China Steel Corp. through IoT

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Technology Category
  • Processors & Edge Intelligence - Embedded Operating Systems
Applicable Industries
  • Metals
  • System Integration
The Challenge
China Steel Corp. (CSC), Taiwan's largest steel company, faced a significant challenge in upgrading its IT environment. The company saw the generational shift as an opportunity to transform its corporate structure and better utilize its extensive historical data. However, the task was enormous, involving the rewriting of nearly 200 applications. The challenge was further complicated by the need to ensure that the transition from COBOL to Java did not disrupt the company's daily operations. The company needed a solution that would allow it to carry out real-time analytics, optimize pricing, better manage its supply chain, and increase revenue.
About The Customer
China Steel Corp. (CSC) is the largest steel company in Taiwan, controlling more than 50 percent of the domestic market. The company produces around 10 million tons of crude steel annually, with a product range that includes plates, bars, wire rods, and hot and cold rolled coils. CSC is a significant player in the steel industry, and its operations and production processes generate a wealth of data. The company's commitment to digital transformation and the effective use of this data is a testament to its forward-thinking approach and its drive to maintain its market-leading position.
The Solution
CSC addressed its challenge by deploying an open systems platform on the Linux operating system. This allowed the company to carry out real-time analytics. For instance, the company could use its decades of production and transaction data to simulate steel prices. The solution could then create a pricing model for production based on fuzzy analytics. By comparing current and historical conditions, CSC could optimize pricing, better manage its supply chain, and grow revenue. The solution components included IBM® DB2® Analytics Accelerator, IBM Global Technology Services® – Systems Services, IBM Integrated Facility for Linux, and IBM zEnterprise® BC12.
Operational Impact
  • The transformation of CSC's IT environment has brought about significant operational benefits. The company can now carry out real-time analytics, which has enabled it to create a pricing model based on decades of production and transaction data. This has allowed CSC to optimize pricing and better manage its supply chain, leading to increased revenue. Furthermore, the transition from COBOL to Java was carried out without disrupting the company's daily operations, demonstrating the effectiveness of the solution. The increased system speed and efficiency have also improved the company's overall operational performance.
Quantitative Benefit
  • 15% reduction in expenses by limiting software licensing costs, which helps reduce the company’s total cost of ownership (TCO)
  • 60x increase in system speed, reducing to 10 seconds operations that previously took as long as 10 minutes to complete
  • 40% increase in efficiency of hardware through increased data size, allowing the solution to process five million records daily

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