Company-first CIO Krzysztof Soltan and his team helped transform the construction-aggregates giant with a focus on digitizing operations, modernizing infrastructure, and overhauling how IT goes about its business.
This article was originally published on CIO.com by Mike Bertha, Partner at Metis Strategy and Chris Boyd, Manager at Metis Strategy.
In a recent “all-hands” meeting, Krzysztof Soltan, CIO of Vulcan Materials, announced his IT organization would continue its “laser focus on digital transformation.”
Digital technology, he explained, would remain a central focus of the construction-aggregates industry and would underpin customer-grade experiences increasingly expected from industry leaders. Vulcan, based in Birmingham, Ala., is the nation’s largest construction aggregates company, producing materials such as crushed stone, sand, and gravel, with strategic downstream assets like asphalt and ready-mixed in select markets. Soltan, previously a tech leader at Johnson Controls, ABB, and GE, became the company’s first CIO just two years ago and is at the forefront of the company’s digital transformation efforts.
Soltan and his fellow leaders attribute Vulcan’s success to many things, but chief among them is the company’s attitude toward key activities like operating and selling — “The Vulcan Way,” as it is widely referred to within the company. This orienting force has become so strong that, to Soltan and his team, it seemed only right that they should rethink IT in terms of how it might amplify the approach. As Soltan explains: “If we were going to keep up with the pace of change in the industry, IT would have to be recalibrated.”
Here, Soltan and his IT leadership team share the story behind those efforts. They highlight the mindset and approach necessary to leverage new technologies to best compete in the digital age.
As Soltan’s IT leadership team explains, Vulcan’s digital transformation turned a corner with the advent of the Vulcan Way of Selling, an enterprise-wide initiative that, through technology, aimed to turn the company’s highly manual relationship-based sales model on its head. And so it did.
Since the initiative’s launch in 2017, Vulcan has deployed myriad proprietary technology solutions that serve up real-time market insights, thereby improving experiences for sales reps, customers, and the truckers responsible for transporting goods to job sites. For sales reps, these improvements show up as more time spent talking about solutions with customers, and less time on administrative work like quoting. For customers, real-time location-tracking of materials shipment translates to better labor planning. For truckers, a seamless, paperless experience when picking up materials at a Vulcan quarry means faster delivery.
As Vulcan SVP Jerry Perkins put it at the company’s 2022 investor day, “Time is money in the construction and trucking industry, and these tools make our truckers and customers much more efficient and productive.”
The success of the Vulcan Way of Selling brought the company to an inflection point. Enterprise-wide, tech-enabled transformation programs would no longer be one-off events; instead, they were destined to become fixtures in Vulcan’s pursuit for continuous improvement.
Enter Soltan. After learning the business and getting acclimated with the effort to integrate US Concrete, which the company had recently acquired, Soltan got to work charting IT’s path forward. “Between the US Concrete acquisition and other major initiatives, we hadn’t taken a step back in awhile to reflect on how we were managing our own shop,” Soltan says, noting this isn’t unusual for companies during periods of growth.
The path to cementing Vulcan IT’s value proposition, says Soltan, would be two-fold: Invest continuously in enabling business-driven initiatives, and modernize how they manage the business of IT.
As just one example, the company has commenced VulcanX, an initiative that extends the Vulcan Way of Selling by providing best-in-class tools to the company’s Sales teams to help them win more business and deliver better experiences to customers, in the form of seamless and secure interactions. These efficiencies, the company hopes, will drive more quotes and, subsequently, higher quote-to-order conversions, all while allowing the team to spend less time on administrative tasks.
Just as important is the technical foundation on which Vulcan operates its plants. And so the company has launched another initiative in partnership with its business units to modernize the organization’s technical infrastructure, including improving the speed, connectivity, and mobility of its networks in service of Vulcan’s 10,000+ employees — qualities that will become only more vital as the company multiplies its digital capabilities.
“One reality of our business is that we have to enable modern day technology in the rugged, remote locations that are home to our plants and quarries,” says Soltan. “VulcanX enables scale and mobility in the plant with cloud-based solutions, and our modernized networks will improve our ability to capture data and to quickly drive insights for the folks running our operations.”
Vulcan’s employees can leverage digital capabilities in the field only to the extent that the company’s IT and OT systems are integrated. This reality — understood by Vulcan’s business unit leaders as well as anyone — has ultimately stood to justify, incentivize, and propel the company’s transformation.
A great deal of Vulcan’s success in managing the business of IT can be traced back to the department’s operating model. “The capabilities you deliver within IT the roles and responsibilities, and the ways of working — getting these things right — creates a solid foundation for execution,” Soltan says. To Vulcan’s leaders, it made sense, then, that the operating model should be among the first things they strove to modernize.
First, there was talent strategy — how the company would recruit and train. Of particular concern was the department’s IT career paths, which stood to be refreshed. As Soltan recalls, “We needed our paths to be more indicative of the work we’re doing. This not only helps us attract new talent but allows our team to feel confident they are adding modern skills to their toolkits.”
To this end, Vulcan leaders did two things. First, they developed a new set of career paths, including specific tracks for product management, DevOps, Data Engineering, and other sets of skills that, as Vulcan advances, will become indispensable. Second, the leaders expanded its talent pool by opening a second hub in Dallas, home to Vulcan’s US Concrete acquisition, and the fourth largest metropolitan area in the United States.
The second facet concerned projects, which experienced high demand. As Soltan explains, when digitally transforming at the pace Vulcan has, “priorities change daily, and without rigorous governance processes, it’s nearly impossible to have visibility into your IT investment portfolio.”
To rein in demand, and ensure resources were allocated impactfully, Vulcan formalized its IT Project Management Office (PMO). “The goal is to manage IT like a business,” says Soltan. “That means being clear about investment criteria for IT projects and establishing expectations for project execution that allow us to monitor value capture.”
For Vulcan, each new project introduces new applications and integration patterns into the technical estate. To ensure these can be properly absorbed, Vulcan also invested in maturing its enterprise architecture muscle. “Standards around technologies, integration patterns, and security are becoming more important,” says Soltan.
“Architecture ensures that new solutions do not render old ones redundant and that we construct things in a manner conducive to easily capturing and integrating data,” he explains, noting this will only become more important as IT/OT convergence accelerates to enable capabilities such as predictive maintenance in the plants.
For CIOs in similar sectors just starting out on digital journeys, the prospect can be unsettling, especially in light of recent technological changes — the AI craze, the pace at which IT and OT are converging — not to mention the list of demands from the business. And still, as Soltan says, one thing is certain: Technology will increasingly enable you to compete and differentiate yourself.
So if your company is like Vulcan Materials, if it has climbed to great heights despite preceding the dawn of digital, Soltan suggests you get started: “Your business leaders are smart. They know the importance of technology and of modernizing IT to compete. They have your back. So look honestly at where you are, rip off the band-aid, and start moving, piece by piece, towards your future state.”
899: Digital transformation goes beyond technology, requiring robust enterprise change management and the implementation of secure, responsible guardrails to drive sustainable innovation. In this episode of Technovation, Peter High interviews Dolores Mears, Chief Information Officer at Hensel Phelps. They discuss the company’s comprehensive modernization journey, focusing on digitization, data strategy, and the integration of advanced technologies like AI. Dolores shares her approach to leading enterprise change management, fostering innovation through the AI Council, and evaluating investments in emerging technologies. They also explore how augmented reality is transforming the construction industry. Join us for an insightful conversation on the future of technology in complex project management.
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752: Our broadcast today comes from our February Metis Strategy Digital Symposium on the topic of establishing a data strategy in complex organizations featuring Krzysztof Soltan, CIO of Vulcan Materials Company, and Anupam Khare, CIO of Oshkosh Corporation. Anupam shares his thoughts on creating a data strategy at Oshkosh and forming an organizational structure that fosters a data-rich decision-making culture at the company. Krzysztof talks about how he helps communicates data across the organization and how he measures the success of its data strategy.
624: Warren discusses the transformation of Turner Construction and the expansion of his CIO responsibilities. Warren begins with his purview as CIO, gives details around the expanded responsibilities in his role surrounding marketing and communications, and how the impact of IT inside and outside of the company creates a rationale for the combined responsibilities. He also discusses the change management in standardizing tech within an industry that is a traditionally late-stage adopter of IT. Warren tells how this standardization builds a better foundation for data strategy at the company and how leveraging that technology and data can have positive impacts on large-scale projects like the company’s joint project constructing the SoFi Stadium in Los Angeles. Finally, Warren shares lessons from the partial return-to-office, how his unique perspective has driven the expansion of the CIO role, and trends in technology that he is focused on for the future.
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This episode is sponsored by Transmit Security.
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Among the topics we discuss are
Randy is VP and CIO of Caterpillar Inc. He has responsibility for Caterpillar’s Global Information Services division, which includes the corporation’s IT systems and global security.
Prior to his time at Caterpillar, Randy worked at Chevron Corporation where he was CIO for Chevron’s worldwide exploration and production business. He was responsible for the company’s global IT strategy and IT operations in 23 countries. During his 29-year tenure with Chevron, Randy held engineering, marketing and IT management positions in the U.S. and Canada. Prior to being named CIO, his career at Chevron included IT positions with responsibilities for Chevron subsidiaries in Canada, Latin America and global strategic planning for Chevron Corporation.
Randy is a native of Toronto, Canada, and he graduated from the University of Toronto with a bachelor’s degree in chemical engineering. He earned his MBA from Golden Gate University in San Francisco.
Horace is the Head of Information Management Services at Gammon Construction Limited, a leading construction company based in Hong Kong which has been building a wide range of construction projects for over 50 years. Horace is responsible for defining and executing the company’s IT strategy.
Prior to joining Gammon Construction, Horace was a Senior Manager in JOS Synergy, a joint-venture between Jardine Matheson and Canadian TELUS focusing on IT outsourcing services in Asia. Horace focused on IT operations and implementation of large scale ERP and IT infrastructure projects. Horace possesses a broad spectrum of experiences including information security, business process re-engineering, managing regional IT operation, and IT architectural services. With strong skills in communication and aligning IT with the rest of the organization, Horace is also experienced in pre-sales solutioning and large scale application systems development.
Horace has a Bachelor degree in Computer Systems Engineering from the University of Warwick in the UK and an MBA from the University of Hong Kong.
