Celonis Celosphere 2025 | Iker Hernández, CIE Automotive

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Iker Hernandez

Deputy Chief Compliance Officer

CIE Automotive

play_circle_outline Navigating Compliance Challenges: Iker's Insights on Risk Management and CIE Automotive's Complex Global Operations

play_circle_outline Celonis' role in centralizing data from various ERP systems for better decision-making.

play_circle_outline Celonis helps identify inefficiencies and focus on areas for improvement.

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Iker Hernández, CIE Automotive

Iker Hernandez

Deputy Chief Compliance Officer CIE Automotive

In this Celosphere 2025 interview, Iker Hernandez, deputy chief compliance officer at CIE Automotive, joins theCUBE’s Rob Strechay and Savannah Peterson to discuss how a highly decentralized manufacturer uses Celonis to create a common business language across over 100 companies. Hernandez explains how having day-to-day visibility into purchasing, finance and other processes in one place helps leaders focus improvement efforts where they matter most. The discussion spotlights how process intelligence provides the foundation for AI outcomes that improve margin... Read more

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What is the role of the deputy chief compliance officer at CIE Automotive, and what does the company do? add

What improvements have been achieved in information visibility and process management across different divisions and locations following the implementation of Celonis? add

What role has Celonis played in improving processes outside of traditional manufacturing for the speaker's company? add

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Iker Hernández, CIE Automotive

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Savannah Peterson

>> Good afternoon process intelligence nerds and welcome back to Munich, Germany. We're here at day two of Celosphere. My name is Savannah Peterson, bringing you all the fantastic stories from the show floor here with my co-pilot in crazy, Rob Strechay.

Rob Strechay

>> Yeah. We're on that rocket ship going on.

Savannah Peterson

>> We are.

Rob Strechay

>> This is the second day.

Savannah Peterson

>> We're here with Celonauts, so yes, it is. Exactly. It's a rocket ship.

Rob Strechay

>> And so many great stories from customers about how they're bringing process intelligence together and it's not just about the technology, it's about how it works within the organizations to really add value.

Savannah Peterson

>> And entirely across the organizations.

Rob Strechay

>> Yes.

Savannah Peterson

>> We're moving from these mini case studies to a much broader conversation. Speaking of a broader conversation, Iker, welcome to the show. Thank you for being here.

Iker Hernandez

>> Thank you. Thank you.

Savannah Peterson

>> So very excited. This is your first time getting to come hang out with us.

Iker Hernandez

>> Yes.

Savannah Peterson

>> I promise we'll play nice, but can you tell us a little bit about CIE Automotive and your role there?

Iker Hernandez

>> Yeah. Well, my role there is deputy chief compliance officers, but I'm mainly focused on risk and internal control management. As I told you before, I'm not an IT guy. That's good, because here in Celonis most of them are IT guys. And then what is CIE Automotive? It's a manufacturing company of components for the automotive industry, either from crankshafts in the engine, maybe rooftops. We are 4 billion turnover company worldwide, more than 110 companies approximately.

Savannah Peterson

>> Wow.

Iker Hernandez

>> And we are located in roughly 17 countries. That means the US, Mexico, Brazil, China, India, up to 17.

Rob Strechay

>> Wow.

Savannah Peterson

>> Wow. So you're touching a lot of different things.

Iker Hernandez

>> And it's a Spanish based company.

Savannah Peterson

>> Lots of different moving pieces.

Iker Hernandez

>> Yeah, yeah, yeah. Many.

Savannah Peterson

>> Serving worldwide. When I think about products that include hardware as well as reach the entire world, and I think about the word compliance, the first word that comes to mind is complexity. You must have a pretty complex job.

Iker Hernandez

>> Yes, it is. Actually, we are a really decentralized company, which one of the reasons that we have Celonis is because we are a really decentralized company. It's our business core. And then talking about complexity, compliance. Compliance is complying with something, right?

Savannah Peterson

>> Right.

Iker Hernandez

>> And then it depends on you how much complex you want to make it. Your expectations, if you make them high, then it's complex. If you make it in simple like we do, then it's not that complex.

Savannah Peterson

>> Oh, I love that. I love that one answer. Okay, so how do you make compliance simple?

Iker Hernandez

>> We try to put some targets, some objectives that we can reach, making some big efforts, but we are sure that we're going to reach. Otherwise, when you are frustrated with your expectation, then it's complication.

Savannah Peterson

>> Yeah.

Rob Strechay

>> When you look at risk and compliance again to just keep going with where Savannah was going here, there has to be almost, there's so much complexity to that point too, but there has to be a language across this.

Savannah Peterson

>> Oh, yeah. Sure does.

Rob Strechay

>> What are you doing to simplify this? Because you are so decentralized.

Iker Hernandez

>> Yeah, yeah.

Rob Strechay

>> How do you make everybody speak the same language from a risk and compliance perspective?

Iker Hernandez

>> That's a good point of view. For us, the most important thing, like in any other companies, is profitability. For that, for us-

Savannah Peterson

>> We've never heard that before. No, I'm kidding.

Iker Hernandez

>> And then all the ratings you have there, the contribution margin and EBITDA, all the things. So its company has its own P&L, and all the bonus of each employee is based on the P&L. That's our main language, business. Economy, profit and loss in English. Yes.

Rob Strechay

>> Yeah.

Savannah Peterson

>> In a gesture.

Iker Hernandez

>> Decentralized, that means that we have 110 approach, profit and loss by its companies. How can we somehow have the same language? Celonis.

Rob Strechay

>> Yeah. I was going to ask you, how does Celonis help you then translate that into something that can be, it's a process, but it's rolled out?

Iker Hernandez

>> Since we are so decentralized, we have so many different ERP systems, like SAP-based ones, but also not SAP-based ones. So before we were not able to see in one platform all the information. So we were not able to speak the same language beside the P&L, right? Celonis has brought this picture on. Now we have everything online. We have everything day by day in Celonis, all the processes. It doesn't matter if it's purchasing, if it's finance, everything in Celonis. That gives us full view, not only for me but also for all the directors of divisions. Being able to see in one place information from China, from Brazil, no matter the ERP, just we focus on the process.

Savannah Peterson

>> Given the amount of different factors that affect all of those different regions, that's pretty invaluable. You probably had different systems, different silos. Different little data jails, as we've been joking about this week, where this information was tucked away before. What kind of business value does it add for you and the team to have all of this in that same plane or in that same view?

Iker Hernandez

>> For us, it's the same language for either IT or other companies. Because Celonis, when you put it in the business process, you draw it. Then of course you have to do all the technical issues to connect all the different ERPs, but then you see in one place the same language for everybody. That's the biggest added value, the guiding language. Now, we'll talk about the ratios. That's another thing, but at least now we can see everything in one place and understand everybody because we use company language. Not IT language, not financial language, company language, so everybody can understand what we see in Celonis.

Savannah Peterson

>> How many different SKUs or how many different products are you making around around the world?

Iker Hernandez

>> Products, manufacturing?

Savannah Peterson

>> Yeah.

Iker Hernandez

>> Whoa, that's a tough question. Up to 700 probably or maybe more.

Savannah Peterson

>> Wow.

Iker Hernandez

>> Yeah. Yeah. When you talk about, for example, the engine of a car, we manufacture all types of parts of the engine.

Savannah Peterson

>> Well, this is what I'm thinking. I'm thinking about the individual supply chains and the complexity that each one of those little trails brings-

Iker Hernandez

>> It's super complex, the automotive industry... Here are guys from BMW and Mercedes, I'm not going to say anything. But it's really complicated. You have to deliver them on time, so many different kind of products that then you have to have all your processes really good to operate.

Rob Strechay

>> Yeah. And I think, to me, exactly. Building off of that, when you look at this, what are some of the things that you suggest out to others who are just starting down this process journey? Because it sounds like you've been on this for a bit and trying to get things better and now that everybody's going to using the process intelligence graph and the object-based types of pushing in on that process, how do you see this... Like advice to other people.

Iker Hernandez

>> I will talk about our example.

Rob Strechay

>> Yeah.

Iker Hernandez

>> For us, it's been key to have guys from business always within the project. As I told you before, my background is economist. I've been working in this company for many years. Also being a financial manager in different companies located either in Russia or Lithuania, or even in the US. So now I know the business. So now I have our team, it's a mix in between financial guys and also IT guys. That means that we know what's going on. We now have the skills of the technical issues and what we share is a language that people from business understand. That's our key. Let's say success step for us for deploying Celonis.

Savannah Peterson

>> So what do you hope to be able to apply a similar process to moving forward? As you scale up, I would imagine you're talking about growing profit. So how is Celonis helping you design the strategy for getting bigger and doing more?

Iker Hernandez

>> Well, in that case, Celonis up to now has not helped us on the strategy, but it has helped us on detecting not efficiency process. So for example, since we are a really industrial manufacturing company, our logo says, "Okay, we are a specialist on managing high added value processes, value manufacturing." Now, we are doing the same in processes that are not manufacturing processes. That means finance, purchasing, whatever. So in that case, Celonis is helping me to understand where do I have to put my focus on. Before I thought it was, I had some ratios. I was thinking, for example, "Yes, I have to focus on subcontracts." Now Celonis has given me exactly where in which country, in which plants, with which suppliers, and on a real data, on a daily day data. So if it is not pointing me what a strategy to follow, it's helping me in order to not spend so much time on collecting data, but spend them on deciding.

Savannah Peterson

>> Yeah. Yeah. And I like that, where to allocate your focus. Go ahead, Rob.

Rob Strechay

>> Yeah. No, sorry. I think again, just playing off of that, I think that it would seem that would help you lower your GNA costs. As well as, when you're talking about the manufacturing and supply chain help from a margin perspective. Is that how you're measuring your KPIs? I'm not asking for specific numbers, but how do you look at the value that it's actually...

Iker Hernandez

>> You said it correctly, the margin. If I am much more efficient and I'm not talking about cutting jobs, right, I'm not talking about it, right. I'm talking about being more efficient, then you will reduce always the time you spend, so the margin will improve. If you sell to the same price. But if you take less time to do it the same? It's simple, it's mathematics.

Rob Strechay

>> Yeah.

Savannah Peterson

>> And it lets you spend time doing other things. Which is exciting, whatever that might be.

Iker Hernandez

>> Now AI, because it's the trending topic of this whole Celosphere.

Savannah Peterson

>> We haven't talked about AI at all, I don't know what you're talking about. What excites you the most about AI in your industry, in manufacturing?

Iker Hernandez

>> In the manufacturing? I like the generative AI. It's not only becoming much more efficient that it helps you, but for sure, like treating or manipulating so many data. But for us, the AI will help us for prediction, like where do I have to put my focus on next year? Because I have a lot of data. I have a lot of data. My current historical data regarding internal controls, risk analysis, whatever, the EBITDA, I do have it. But now mix it with what is coming on in the sector, mix it with a risk report from Brazil, mix it with a risk report from some suppliers. Putting everything in the same, let's say in the hotpot and then AI, please tell me where to focus next year. That's key, spending not so much time. Let's see if we can do that. Besides the agents and all these things, that's a core project for us.

Savannah Peterson

>> Yeah. And it makes sense, especially as you're thinking about expanding or meeting customer demands, or a lot of different things. But all of your customers want different things most of the time too, so that adds a lot.

Iker Hernandez

>> If I'm able to know where I will have some risk to focus on next year, then I will put all my efforts on mitigating them before they happen.

Savannah Peterson

>> What's the biggest risk you want to avoid?

Iker Hernandez

>> For us? Well, I cannot say here right now.

Savannah Peterson

>> I couldn't help but... You can't fault a girl for trying.

Iker Hernandez

>> Yeah. You know all these trending topics, with the tariffs.

Savannah Peterson

>> Yeah. I wasn't going to make you dig into it.

Iker Hernandez

>> The geopolitical things. Yeah, for sure. Those are the main generic ones. But if you go into Intel now, the automotive industry... You also have the Chinese impact. Well, yesterday the guys from Mercedes said, somebody mentioned it before, but a finance story. But that's a big risk for us. We have to somehow accomplish what is the world, what is coming, new tendencies. That's why I was saying the AI will help me, where to put the focus on.

Savannah Peterson

>> Yeah.

Iker Hernandez

>> Well, that's what I expect.

Rob Strechay

>> I was going to say, as you've moved into process intelligence, what have been some of the challenges you faced and how did you overcome them?

Iker Hernandez

>> Well, I say in the beginning, we are a really decentralized company. That's good for the business. It's really good for fast-making decisions. But from the technical point of view, IT point of view, I will not say chaos.

Rob Strechay

>> It's complex.

Iker Hernandez

>> It's complex. Let's say complex.

Rob Strechay

>> Yes. Yeah, yeah.

Iker Hernandez

>> So that has been for us a huge challenge. Stabilize, normalize all the information coming from so many different ERPs with so many different charge-off accounts. All that information, it's really tricky and it has taken time for us. That's a big challenge, but it has already been done.

Rob Strechay

>> Yeah.

Iker Hernandez

>> Successfully done.

Savannah Peterson

>> Yeah. Yeah. No, I love it. I want to ask you a personal question.

Iker Hernandez

>> Oh, personal ones? Okay.

Savannah Peterson

>> Yeah. I know. Well, none of this matters if we're not making the world a slightly better place for everybody that we love. We talked a lot about the business applications of AI and process intelligence. What do you hope this current technological revolution does for you and your personal life, your wonderful Basque Country life there in northern Spain?

Iker Hernandez

>> From my personal life? That's a great question. Well, it's a great question. It's really difficult to reply. Because if I'm honest, I use AI for basic things on my day-by-day.

Savannah Peterson

>> Like what?

Iker Hernandez

>> With my kids, making plans for the weekend. And I ask to the AI, "Excuse me, just can you list me some restaurant? I have to rush. A nice, let's say overground playground for the kids with nice food and with barbecue." And it gives me a list. "And I can go by taxi or by train, or not by long distance in my car." These kind of stupid things. It's my day by day using my personal life, not professional. In the personal.

Savannah Peterson

>> Right. How old are the kids?

Iker Hernandez

>> Four and two and a half.

Savannah Peterson

>> You want say hello to them? You can give them a little wave.

Iker Hernandez

>> And they will see me too.

Savannah Peterson

>> Yeah. Dad's doing good at work today, fam, don't worry about it. I think it matters. But you say silly little things like that. It's not actually silly. What it's doing is it's optimizing your day so that you have more time to go enjoy that-

Iker Hernandez

>> It really optimized my day....

Savannah Peterson

>> Playground, than going and fumbling around and trying to find the right place, and then being hungry in the afternoon after everyone complains.

Iker Hernandez

>> Even my wife is surprised. Like, "Can't you stop making me so many plans, alternatives, and contingency plans?" Like, "Okay, this plan is okay. Don't put any more on the table."

Savannah Peterson

>> Yeah. You don't need to add complexity when we've decreased it. There is a bit of a pedal and a lever there, isn't there? No, no.

Iker Hernandez

>> Okay? Yeah. The same in the industry. The same.

Rob Strechay

>> Yeah.

Savannah Peterson

>> Yeah. No, it is absolutely the same. Yeah. It is. What a tool. What a fun use case. All right, I've got one final question for you, because you've been a fabulous guest so far today.

Iker Hernandez

>> Thank you.

Savannah Peterson

>> When we're hanging out at Celosphere in 2026, what do you hope to be able to say then that we can't say now?

Iker Hernandez

>> I'm sure we're going to be not a game changer, because we see companies here really performing really good. But regarding AI, we're going to bring something really good one. Really good one. So AI and operate on AI, I'm sure going to be somebody that the others will look into.

Rob Strechay

>> Awesome.

Savannah Peterson

>> I like this. Okay. That was very spoken like someone who manages risk. Because it was a little opaque, but it was also a nice good charismatic little breadcrumbs to follow into a Celosphere-

Iker Hernandez

>> We have to ourselves here.

Rob Strechay

>> Yeah. Absolutely. Absolutely.

Savannah Peterson

>> I love it. Well, thank you so much for taking the time.

Iker Hernandez

>> Thanks to you.

Savannah Peterson

>> You have made this seem like this process is simple when I know it is a million pieces. And it sounds like you and the team are doing a great job, so congratulations. And thank you, Rob.

Rob Strechay

>> Thank you. Thank you.

Iker Hernandez

>> Thanks a lot. Thank you.

Savannah Peterson

>> Yeah. And thank all of you for tuning in wherever you might be on this beautiful day. We're here in Munich, Germany at Celosphere. My name's Savannah Peterson. You're watching theCUBE, the leading source for enterprise tech news.