On the surface, Coats could be mistaken for a traditional manufacturing company. It was founded during the Industrial Revolution and still has factories filled with large-scale thread-making, dyeing, and winding machinery. But you don’t survive for more than 260 years without keeping up with the times. And Coats has proved adept at looking beyond spinning spindles and seeing that its business is about far more than making thread. It’s about using information to solve customer problems.

How to stay relevant for more than 260 years

Coats makes thread. Lots of thread. Every week, 1 billion tea bags are brewed using Coats thread. Every month, Coats produces enough thread to stretch all the way to the sun. Each year, Coats makes enough thread to go into 8 billion pairs of jeans—a pair for every person on the planet. Making that much thread, from a diverse range of materials in every conceivable color, is a huge manufacturing challenge.

Coats can trace its origins back to the 1750s and is proud of its rich heritage, including, for example, the fact that in 1879, Thomas Edison used Coats thread in his experiments to invent the light bulb. The company has grown over the centuries and is today the world’s leading industrial thread manufacturer. It also provides complementary, value-added products and services to the apparel and footwear industries. In addition, it applies innovative techniques to develop high-tech performance-materials threads and yarns in areas such as automotive and fibre optics products.

When it comes to technology, Coats has traditionally focused on keeping its manufacturing equipment and processes up-to-date because, after all, manufacturing was its core business. About five years ago, however, with the rise of big data, a new reality began to set in: Coats was really in the information business. “We realized that our future lay in the smart use of data, to create more-intelligent manufacturing processes, to reduce manufacturing costs, and to provide more innovative ways to meet customer needs,” says Richard Cammish, Chief Information Officer at Coats. “We needed to transform our information intelligence to create customer solutions faster, cheaper, and better than ever.”

Adds Harold Groothedde, Technology Solutions Director at Coats, “We’ve always been very advanced in manufacturing technology but slower moving in IT operations. In 2013, we still used Lotus Notes for email and had a fragmented desktop environment. With 7,000 of our wired employees spread across multiple locations on six continents and some 60 manufacturing facilities, we sorely needed more empowering communications and collaboration technology. We wanted our employees to share ideas and improvements more frequently and very easily.”

The company’s information technology mantra became “invisible technology, visible performance,” meaning, technology that allows people to work more efficiently without getting in the way.

Coats had state-of-the-art factories around the world, but manufacturing was siloed geographically; products that were manufactured in one country were sold in that country. Coats wanted a more unified view and flexible use of its global manufacturing capacity. Although the company used SAP software to manage manufacturing across some 60 manufacturing sites, it could not easily produce reports across factories, which deprived management of a holistic view of the business. Plus, those SAP reports took hours to generate, which created delays of up to 48 hours in business decisions.

Additionally, the company’s datacenter infrastructure was not agile enough to serve the dynamics of modern markets. Coats needed to spin up customer demonstration environments in hours and to launch test environments so that software developers could play with a new application. But it took weeks to order and provision servers, and it was impossible to scale infrastructure selectively in various locations.

For example, the company was experiencing dynamic growth in China but couldn’t deliver enough web performance for web visitors in China to play online product demonstration videos. Expanding in China also meant offering secure e-commerce services, which was difficult to do.

Ally strategically with Microsoft

Coats made a strategic decision to embrace cloud computing so it could gain the infrastructure elasticity and resilience it needed to run a global business and minimize the time its staff spent on datacenter tasks. “Deploying servers and managing email are not our core competencies,” says Groothedde. “Let someone else take care of that.”

Coats evaluated all the major cloud providers—Amazon, Google, and Microsoft—and felt that Microsoft was the best partner to complement its existing service portfolio and strategic technology direction. “The breadth and scale of the Microsoft cloud was impressive,” says Cammish. “It had Office 365 on the desktop productivity side and Azure on the datacenter side. We could use Azure Active Directory Premium to provide single sign-on for all applications, from email to SAP, which would support our ‘invisible technology’ objective.”

On the datacenter side, Coats has a mixed environment, with applications based on both Windows and the Linux operating system. “We wanted a datacenter provider that could support all our systems,” Groothedde says.

Microsoft committed comprehensive support in getting critical Coats applications such as SAP running in Azure. “The support we’ve received from Microsoft has been phenomenal,” says Cammish. “When you move your technology to a third-party datacenter, it is absolutely critical that you have attentive support in the event that something goes wrong. We got that from Microsoft. For me, as the person accountable for all the technology at Coats, this was very reassuring. Microsoft really cared about our success; this is a fundamental ingredient in any effective partnership and something which the technology industry needs more of.”

Cammish and Groothedde also felt that Azure security was superior to anything they could set up themselves. “From the Office 365 perspective, we knew that Microsoft was best qualified to secure its own products,” Groothedde says. “But on the Azure side, we would be running e-commerce transactions in the cloud, and we had to have ironclad security. We felt that Azure had all the security bases covered.”

The company’s first step into the Microsoft cloud was its deployment of Microsoft Office 365 for all 7,000 wired employees. Coats gave these employees cloud-based email (Microsoft Exchange Online) and Internet-based telephony, instant messaging, and video conferencing through Skype for Business Online.

See the business in real time

The reporting speedup has been particularly impactful. Managers can push a button on a tablet computer and use Microsoft Power BI and SAP Business Objects to instantly see data from multiple sources as graphical dashboard-style reports. For example, at a glance they can see current sales order lead times and shipment status across all the company’s factories and deliver the service that customers expect.

Crunching data at Coats involves taking into account hundreds of thread materials, more than 150,000 colors, some 60 manufacturing sites, diverse customer requirements, and many other variables. “Being able to crunch massive amounts of data across dozens of variables requires monstrous processing power, and Azure gives us high-performance virtual machines customized for HANA,” Groothedde says.

Protect mobile data

To keep data safe as it travels from the Azure cloud to Office 365, SAP, and other applications on mobile devices, Coats uses the Microsoft Enterprise Mobility + Security Suite. The suite’s Azure Active Directory Premium service provides single sign-on for some of the company’s applications, to simplify and speed work throughout the day. And Microsoft Intune provides a cloud-based console that will ultimately be used to manage the company’s 7,000 desktop computers, 2,500 mobile devices, and the applications running on them.

“We wouldn’t feel good about displaying SAP data on mobile devices without Intune protecting our data,” Groothedde says. “Our users can access reports on Windows-based devices, iPads, iPhones, or any other device without complicated procedures for signing in to a virtual private network and with complete security. Intune opens up a whole new world in how we manage applications in diverse device environments.”

Coats has also created virtual desktops in Azure to give employees personalized desktops on tap from any device, which is especially useful in factory environments where PCs are shared by multiple employees. “Virtual desktops give us an easy, secure way to give factory floor workers, mobile employees, and contractors access to needed applications without deploying dedicated devices to each person,” says Groothedde.

Looking to the future

As it looks ahead, Coats is excited about the many new Microsoft cloud services it can use to transform its business. It’s experimenting with Microsoft Cortana Intelligence Suite to add predictive analytics. For example, based on past manufacturing histories, weather around the world, and other factors, Coats can predict inventory costs, demand for various types of thread, manufacturing volumes, and more.

“If we can better predict all these factors, we can better order the right inventory, manufacture the correct volumes, and deliver exactly what our customers want, even before they know they need it,” says Groothedde.

Coats is running a pilot project focused on operator and machine efficiency in the final winding thread production process. The company has applied sensors to the final winding equipment and made use of a control and feedback system to monitor and control this process. Coats pushes this data into the Azure IoT Hub for reporting with Power BI and then into the Azure SQL Data Warehouse and Azure Hadoop for processing by Azure Machine Learning.

“The potential for using data in smarter ways to operate more efficiently, save money, and satisfy customers is immense,” Groothedde says. “Azure gives us integrated tools that let us fully integrate and exploit our data.”

Adds Cammish, “By using the Microsoft cloud, we’re transforming for a digital age, where information is king. We are excited about using data to power our business into its next 260 years.”

Offering products that customers genuinely love is an old recipe for sweet success. But that’s only part of how MARS has turned iconic brands such as M&M’s, Snickers, Pedigree pet foods, and Wrigley’s into a global enterprise with USD35 billion in annual revenue. That is a lot of M&M’s, but MARS is a lot more than candy treats. Pet care products account for almost half of annual revenue at MARS.

In fact, MARS markets more than 60 brands across six business segments, from food products to biomedical research. Since the early 2000s, this privately held, century-old company has grown 100 percent, and it expects to continue to accelerate growth organically and through acquisition. MARS is justly proud of business practices that include zero waste to landfills, fair and sustainable cocoa production, and wind farms that generate enough electricity to offset all corporate operations in North America and the United Kingdom. In 2014, MARS launched an industry-leading labeling initiative that encourages portion control and other smart snacking decisions.

“We run MARS with an extremely long-term view,” says Joe Carlin, Technology Service Delivery Director at MARS. “We try to do business in a way that benefits our customers, our Associates, and the communities we work in.”

That long-term view includes a commitment to product, technology, and workplace innovation. MARS has audacious business goals and expects to meet them by using Windows 10, Microsoft Office 365, Microsoft Azure, and other key Microsoft services and devices to boost employee effectiveness, enhance mobility, streamline collaboration, promote data security, and reduce IT costs, ultimately transforming the way people work at MARS. “Through digital innovation, our business has the fantastic opportunity to get closer to our consumers and provide and even better value proposition,” says Vittorio Cretella, Chief Information Officer at MARS.

$4 million upgrades vs. an evergreen estate

As MARS accelerates its growth and adds new products, services, and business units to its existing operations, its Information Services (IS) department is committed to adopting new digital capabilities that will help the company continue to expand and diversify, organically and through acquisition. “We have to drive technology as a business enabler, but remain efficient,” says Carlin.

With 400 locations in 78 countries and more than 80,000 Associates, MARS wanted to avoid the cost and time of repeated operating system upgrades. Previous enterprise-wide upgrades had gaps of up to four years and had cost more than $4 million, plus the operational overhead of managing multiple systems during the long transition. “It made more sense to spend our time and money on optimizing our work environment, finding new ways to safeguard high-value corporate data, and delivering other strategic contributions to the business,” says David Boersma, Senior Manager for End User Technologies at MARS.

Yet MARS still needed an up-to-date operating system and productivity tools. In February 2016, it began to roll out the Windows 10 Enterprise operating system and Microsoft Office 365 across the global organization, to help give all its Associates the mobile, social, analytical, and cloud-based tools they need to perform effectively in today’s connected workplace. A small number of mobile Associates were given Microsoft Surface Pro 4 devices.

“We want to drive the right digital behaviors,” says Jonathan Chong, Digital Workplace and Corporate Systems Director at MARS. “So we’re using Windows 10 to build a technology environment that is comparable to or better than what our Associates use in their personal lives.”

To avoid the effort and expense of future upgrades to its very large Windows environment, MARS subscribed to the “Windows as a service” model from Microsoft and receives automatic web-based operating system updates. The incremental updates will help MARS improve platform stability, enhance security for thousands of devices, and introduce a constant flow of new tools and capabilities. “I told my team that I never want to do a big-bang operating system migration again,” says Paul L'Estrange, Chief Technology Officer and Vice President of Core Services at MARS. “Windows 10 will allow us to maintain a truly evergreen estate.”

Traditionally, MARS Associates often stay with the company for 25 years or more, but the company knows that to stay vibrant it must recruit millennials—and retain them. MARS invests significantly in recruiting and training new Associates. It wants value back, but it understands that young, digitally native talent expect easy access to knowledge, and that to retain new talent, MARS needs to deliver access to data with smart, simple, flexible tools. “To get and keep the best people, we want to offer the best work environment,” says Boersma. “With an advanced, nimble, easy-to-use, self-service, always-current technology environment, MARS IS will deliver a robust Windows 10 experience with Office 365 to empower and enable all our Associates.”

An enterprise digital workplace

The MARS IS team worked with Microsoft Services to help architect the solution and with VDX, a member of the Microsoft Partner Network, to help prepare the MARS infrastructure and roll out Windows 10. By September 2016, 5,000 MARS Associates were using Windows 10 and Office 365. More than 500 field Associates and high-level mobile executives had Surface Pro devices.

“Our Associates appreciate the familiarity, reliability, and ease of use of the Windows 10 experience,” says Boersma. “The Surface Pro users love the flexibility to switch from desktop to tablet mode and enhanced mobility features such as the touchscreen and Surface Pen.”

As a global enterprise, MARS has always valued human interaction and high-touch collaboration. With tools like Yammer social networking and Skype for Business messaging and video conferencing, MARS Associates can bridge geographies and time zones to take down barriers, engage in real time, and connect with people, knowledge, and resources. Almost 4,000 MARS Associates are already using Yammer to post subjects, canvas for feedback, and collaborate live every day. Global teams use Skype for Business to meet and communicate meaningfully without flying halfway around the planet, reducing costs and helping people spend more time at home—and still do what needs to get done.

With Windows 10, cloud-based Office 365, and an early evaluation of Windows Intune, MARS intends to expand its on-premises capability for mobile device management in the Microsoft Enterprise Mobility Suite to manage mobile devices and applications. MARS Associates can choose between using Surface Pro devices, PCs, tablets, and smartphones, or easily move between devices, locations, and even regions across the whole company. Field teams can connect with each other to be more productive and improve customer engagement. “With Windows 10, MARS Associates finish things on the road instead of waiting until they get back,” says Carlin. “For example, field associates use their Surface Pro devices in store walk-throughs, and if necessary, use Office 365 to connect with other team members and resolve display issues in one day instead of a week.”

New safeguards and a cloud transformation

After MARS IS prepared every device for a 64-bit version of Windows 10, the MARS security team recommended replacing an existing legacy security solution with Windows Defender endpoint protection. This will save the cost of a third-party solution and avoided the hassle of moving the legacy technology to the upgraded operating system. Windows Defender has since passed two MARS security audits, and to help further safeguard all the company’s devices and reduce risk to its corporate data, MARS intends to combine existing BitLocker Drive Encryption with other Windows security features such as Windows Information Protection, Credential Guard, Device Guard, and Windows Hello biometric multifactor authentication on its Window 10 devices.

As part of its transformation to a new digital workplace, MARS is also aggressively expanding many line-of-business and other workloads to the cloud. The company manages two datacenters, one that is almost 25 years old. To reduce the associated capital and maintenance costs, promote efficiency, and increase reliability, MARS has moved more than 100 workloads to the Microsoft Azure enterprise cloud platform, including a critical SAP retail application solution. The company expects to transfer up to 500 workloads to Azure over the next year.

By early 2017, the company had deployed Windows 10 to 12,500 seats, adding Associates through device attrition. Boersma estimates enterprise-wide adoption before the end of 2018.

Sweet business value

By eliminating future full-scale upgrades, MARS will save millions of dollars that it can spend to transform MARS IS into a strategic center of innovation and business value. It will save $250,000 on third-party licensing and maintenance each year. As MARS continues to build its digital workplace and offer professional tools such as Office 365 and advanced devices such as the Surface Pro, it will attract a new generation of Associates, help them serve customers more effectively, make their careers at MARS more rewarding, and preserve the human, employee-centric culture that MARS is so proud of—and that it is convinced has contributed to its long success.

“Initiatives like Windows 10 and our new digital workplace help MARS direct IT investment dollars toward unlocking greater potential across our organization,” says Chong. “Rather than tying up investment and time to just get through the next product release, we can focus on enhancing key aspects of our culture at a digital level, across divisions, borders, and time zones—so we can preserve what is special about MARS and help all our Associates be more productive and agile.”

When it adopted Windows 10, Office 365, and Azure, MARS streamlined IT management, made it easier to safeguard all its devices and data, and took some of the guesswork out of its IT spending. As MARS expands its cloud environments and decreases its on-premises IT footprint, it can focus on solving business challenges and using data to generate insight—and value. It can support ongoing innovation, streamline processes and access to information, empower MARS Associates, and meet its ambitious business-growth objectives.

“At MARS, we meet our goals,” says Boersma. “This company will continue to accelerate growth organically and through acquisition , and we’re using Windows 10 to build the flexibility and capabilities we need to get there.”