OGK-4 automates budgeting based on IBM Cognos TM 1

OGK-4 within increase in efficiency of business planning implements a new budgeting system based on IBM Cognos TM 1. In a new system processes of operational and three years' planning according to requirements of E.ON AG concern will be automated. The project is executed by the business partner of IBM, GMCS company.

From the moment of integration into concern of one of the major strategic tasks for OGK-4 there was implementation of processes of three years' budget planning for the purpose of more exact forecasting of financial and economic activity and quality improvement of the reporting before shareholders and E.ON AG. Process of drawing up the three-year plan is connected with considerable labor input of collecting of auxiliary budget forms from all branches, consolidation, drawing up the summary reporting and input of adjustments according to IFRS. For the solution of this task specialists of GMCS it was offered to implement a new budgeting system based on the solution IBM Cognos TM 1 which meets the performance requirements imposed by the power company, scalability and opportunities of further development.

Project Steps

Project implementation on creation of a new budgeting system is enabled step by step. The purpose of the first stage is automation in IBM Cognos TM of 1 processes of drawing up the three-year plan. At the general duration of this stage – six months – for the first four months specialists of GMCS created new methodology of budgeting and developed a prototype of a system of three years' budget planning which included 10 unique key budget forms. Based on successful pilot start of a prototype at the moment GMCS performs works on its replication on branches. In total in IBM Cognos TM 1 more than 60 budget forms will be developed for all centers of the financial responsibility of OGK-4. Formation of consolidated income statement (P&L) of OGK-4 according to standards of E.ON AG concern, for a period of three years will become result of the first stage of the project.

At the second stage of the project which starts in November, 2010 GMCS automates processes of operational planning according to the constructed budget model. Implementation of this stage will allow OGK-4 to make the detailed budget for year with detailing to agreements both for operational management of payments, and for cost control.

Setup of automatic unloading of actual data from the accounting system of OGK-4 in IBM Cognos TM1 for the full-function plan-fact analysis according to the income and expenditure budget will become a final stage on the way of creation of a new budgeting system.

Comments

"The project which implementation there began specialists of GMCS company integrated advantages of software tools of IBM and examination of a project team for accomplishment of our tasks, of which automation in the system of a full stroke of budget planning is final", – Matsidovski Mario, the director of economy of OGK-4 noted.

"This project is for GMCS not just continuation of partnership with OGK-4, but also an opportunity to make use of the experience which is available for us and practices on automation of budgeting of the large distributed companies for the implementing solutions IBM Cognos, largest in Russia, in power", – Erofeyev Evgeny, the director of the department of BPM systems, GMCS company comments.

"One of important advantages of the software tools IBM Cognos – ability to integrate the industry applications necessary for implementation of business challenges, taking into account industrial specifics of the customer, – Likharev Sergey, the head of solutions on information management, IBM in Russia and the CIS noted. – The project implemented in OGK-4 clearly demonstrates these advantages of Cognos TM1".