Cemex Case

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1. Refer to the 2X2 framework. In which quadrant would you place Cemex? Why? I will place Cemex in the middle of the upper quadrants (see picture below) as its chain value has an important level of information intensity, due to the different information technology components it has applied to its processes, activities and operations.

Even though cement and concrete production is still a physical processing intensive product, and therefore, it would be expected to have relatively low information content in the product dimension, in the case of Cemex this is not completely true. And the reason is that, apart from offering a stand-alone product, the company also provides added-value tools to its customers which look to enhance their performance through IT components such as CX Networks.

2. How has Cemex built its information capabilities (including its e-business initiatives) at each stage of its growth in the last 20 years?

First off, Cemex decided to develop the managerial culture of information technology. It convinced its executives about the value of IT by implementing several actions that lead to an improvement of their internal efficiency. Cemex developed the ‘real-time information’ concept in their operations and realized that by applying it to their processes they could increase their efficiency in different ways. After that, Cemex implemented its new IT standards and technologies alongside its geographical expansion to other markets. The next step was to create its in-house IT provider so they could leverage this competence to offer consulting services to other companies in the future. Once Cemex developed and applied its own IT platform to its internal operations, the next milestone was to grow in the virtual world by deploying a network of businesses that extended its reach into areas that complemented and added value to its core business. Among other things, Cemex created portals in key construction markets, built e-procurement exchange...
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