Caspian Pipeline Consortium automated formation of the management reporting

The Caspian Pipeline Consortium is the largest international petrotransport project integrating Russia, Kazakhstan and also a number of the leading international mining companies for work on development and operation of the trunk pipeline connecting fields of the western Kazakhstan with the Russian seaport Novorossiysk.

2018: Automation of the management reporting

On March 29, 2018 the Navicon company announced product introduction of IBM Cognos BI within development of a budgeting system based on the products IBM Cognos in the Caspian Pipeline Consortium (CPC). Within the project the concept of the common information space allowing to consolidate quicker and more precisely planned and actual data, to optimize processes of formation of the regular management reporting as for the Russian, and foreign top management is implemented.

Prerequisites of the Project

For KTK, the international petrotransport company, formation of large volumes of the reporting in the manual mode meant huge labor costs. Besides, process of data collection, used in reports, was long and difficult and also involved emergence of the risks connected with a human factor. For the purpose of reduction of time for reporting, consolidation of data within a common information space and creation of the integrated budgeting system and the reporting, the decision on implementation of IBM Cognos BI was made. This platform integrates in itself functions of a reporting preparation, visualization and information analysis.

Project Progress

The project was performed less, than in 6 months, and consisted of three stages. Within "pilot" start of the IBM Cognos BI system the workplace of the chief financial officer which helps it to control financial activities, including achievement of KPI of financial department and all company is developed. At the second and third stages the system of the management reporting is created: at first on the basis of data from IBM Cognos TM1, and then special forms are developed for input of indicators, earlier not contained information systems of the company. Works at all stages were conducted with involvement of experts from the customer that allowed to consider features of the business processes characteristic of business and an organization structure of KTK.

Project Results

In a project deliverable it was succeeded to reduce a set-up time of the management reporting, to consolidate information on different functional areas in "a uniform workplace of the chief financial officer", to organize operational reporting in the Russian and English languages on five functional units: current costs, capital costs, report forms of the business plan, key performance indicators and managerial report.

"Using IBM Cognos BI we not only created a common information space, but also systematized processes of formation and decision making. Preparation of financial statements takes much less time, releasing time for carrying out analytical researches. At the same time it is important to note that the speed of report generation of any complexity is not contrary to quality". Svetlana Bratishcheva, head of group on budgeting and reporting under MSFO, KTK

A system includes 27 preconfigured report forms containing data of an automated system of budgeting and also a possibility of introduction of the additional information for enrichment of the data used when reporting. By means of instruments of data visualization in IBM Cognos BI information which is necessary for users for identification of critical factors on data bulks is presented in the convenient form. For March, 2018 work of 50 users is provided in a system. In plans development of the reporting of other departments of the company and also automation of preparation of additional types of the reporting of financial department.

2016: Creation of a budgeting system

The Navicon system integrator completed in the fall of 2016 the project on creation of a budgeting system based on IBM Cognos TM1 for Caspian Pipeline Consortium. A system will allow to develop scenarios and forecasts of budget implementation depending on changes in a current economic environment.

A system automated processes of creation of the budget and forecasting of its execution depending on different micro and macroeconomic factors. The step-by-step methodology of implementation which assumes obtaining specific value for business at the end of each stage became feature of the project.

"For KTK it was important to receive the finished result in the shortest possible time and at once to apply it in work. Thanks to the implementation methodology adapted by us, we at each stage carried out strictly limited circle of tasks and in short terms received ready new functionality which specialists of KTK could already use", - Maria Bogdanova, the Head of Department FPM&BI comments on Navicon companies.

The project consisted of three stages. On the first the conceptual design of all blocks of a system was developed and will unroll the first of them – the consolidation module for financial directorate of Consortium. It allowed to build all project according to the business processes accepted at the enterprise and to implement several macro-scenarios considering factors, significant for KTK, and allowing to work only with up-to-date data.

At the second stage automation of process of budgeting of KTK was finished - detailed forms of functional units of a system are automated. Key users of divisions had an opportunity for work with the budget directly in a system.

At the final stage integration of a budgeting system with the accounting systems for loading of actual data and creation of model of the reporting for heads of KTK was implemented.

"Thanks to the approach of step-by-step implementation offered Navicon we could begin use of schedule system in a month after approval of the general functional design of a system. Extremely important the fact that we received, first of all, the instrument of budgetary forecasting. It allows us to work in the conditions of quickly changing economic environment, to consider key external indicators, such, for example, as current exchange rates", - Svetlana Bratishcheva, the project manager on budgeting system implementation from KTK notes.

2015

In September, 2015 the leading financial analyst of Caspian Pipeline Consortium Svetlana Bratishcheva told about a budgeting system design based on IBM Cognos TM1. The developed budgeting system of KTK based on IBM Cognos TM1 will allow the customer to solve several important problems. The consortium will be able much quicker, than still, to collect information for budgeting, to increase flexibility of budgeting, including using instruments of scenario planning, to receive interpretations with the sufficient detail level which will allow to control costs effectively.

June 01, 2015. The Navicon company announced project completion on transfer of an enterprise management system of Caspian Pipeline Consortium to the modern version of Microsoft Dynamics NAV 2009. The international operator of pipeline transport switched to the modules ERP systems automating management of finance of the enterprise and also the personnel and the salary.

Before recent time as the ERP system of KTK used Microsoft Navision 3.1. In business organization of KTK enduring a stage of rapid growth there were high-quality changes. With respect thereto the management of KTK made the decision on step-by-step transfer of the existing ERP system to the new version, Microsoft Dynamics NAV 2009 R2. As the contractor of the project the Navicon company – one of the leading integrators was selected from Russia which specialize in implementation of business solutions based on technologies of Microsoft. The task to transfer system modules, crucial for management of consortium, to the version of NAV 2009 was set for Navicon.

The project of transition was performed in two years. During this time in IT infrastructure of Caspian Pipeline Consortium modules of financial accounting according to RAS/IFRS and personnel records "Salary and the personnel" were consistently deployed.

The integrator solved also a number of the specific auxiliary tasks connected with features of business of the customer. The Caspian Pipeline Consortium is the international company and one of the few which uses for financial accounting in the Kazakhstan branch US dollar as a functional currency (instead of national currency of Kazakhstan - tenge). Due to this feature of business of the customer, Navicon methodologically worked and implemented a set of the solutions for communication of financial accounting with procedural and tax statements provided in tenge. Besides, requirements in the field of the labor law of the Republic of Kazakhstan were implemented.

"From the moment of system implementation of Microsoft Navision 3.1 passed many years for which the solution became technology outdated, and our business — qualitatively changed. Besides, there were considerable changes and in legislations of Russia and Kazakhstan, - Bert Hazelaar, the chief financial officer of Caspian Pipeline Consortium notes. - Therefore for us transition to the modern version of the ERP platform with which positive experience, along with expansion of its functionality was accumulated became the logical solution".

"The project turned out difficult, but very interesting, including in terms of international law, financial and labor regulations of the different countries into which we needed to plunge, - Vladimir Sharov, the managing partner of Navicon comments. - The big role in the successful solution was played by management of KTK and harmonious work of all command. Eight of our specialists and also representatives of management and IT service KTK who constantly advised us during the course of performance the project were a part of project office".