Eniro accelerates group consolidation by three days per month

Reducing the cost and complexity of regulatory compliance with IBM and Addedo

Published on 19-Nov-2012

"Overall, we are extremely satisfied with the IBM solution. Cognos Controller has helped us to reduce the time and effort required to meet the strict regulatory standards for group consolidation." - Robert Luks, Financial Controller, Eniro

Customer:
Eniro

Industry:
Professional Services

Deployment country:
Sweden

Solution:
BA - Business Analytics, Business Integration, Business Performance Transformation, Enabling Business Flexibility, Information Integration, BA - Performance Management

IBM Business Partner:
Addedo

Overview

Headquartered in Stockholm, Sweden, Eniro is a leading internet search company and producer of telephone directories, with operations in Sweden, Norway, Denmark, Finland and Poland. Employing 3,500 people and generating an annual turnover of four billion SEK, the company is also listed on the NASDAQ Stock Market.

Business need:
Eniro wanted to cut the cost and complexity of its group financial consolidation process, and reduce its reliance on external consultants.

Solution:
Eniro migrated data from Hyperion Enterprise software to IBM® Cognos® Controller using a single set of business rules – supporting the generation of monthly, quarterly and yearly group consolidation reports.

Results:
Reduces the need for external consultants by 75 percent

Benefits:
Cuts the time required to prepare for a group consolidation by three days per month. Decreases the time required to complete a group consolidation by 80 percent.

Case Study

To read a Swedish version of this case study, please click here

Headquartered in Stockholm, Sweden, Eniro is a leading internet search company and producer of telephone directories, with operations in Sweden, Norway, Denmark, Finland and Poland. Employing 3,500 people and generating an annual turnover of four billion SEK, the company is also listed on the NASDAQ Stock Market.

Meeting regulatory challenges
Eniro wanted to reduce the cost and complexity of its group financial consolidation process. By doing this, the company also expected to simplify the onboarding of new acquisitions to facilitate compliance with intensifying regulatory demands.

As Robert Luks, Financial Controller at Eniro, explains: “Eniro has 20 operational companies spread over five countries, and a considerable number of holding companies on top of that. To comply with industry regulations, we need to ensure that our group financial consolidation reports for all of our companies are completely accurate.

“In the past, we relied on Hyperion Enterprise software to run our monthly consolidation processes. However, our particular Hyperion solution was a black box when it came to acquisition eliminations. In order to integrate newly acquired companies into the solution, we were reliant on external consultants. This meant that we were incurring significant costs and diminishing our flexibility for integrating acquisitions that were made shortly before the closing period.”

The legacy solution did not allow additional dimensions to be added to existing accounts, which meant that the Eniro finance team was forced to create new accounts or entity structures whenever regulators requested more information that was not already held in Hyperion Enterprise, or whenever group management made additions to the internal management model. The more accounts and structures added, the more time-consuming the consolidation and system maintenance processes became.

In addition to complicating the process of producing external reports for regulators, the configuration of Eniro’s previous solution made internal management reporting for the business a time-consuming, manual effort.

“Our Hyperion solution was not configured to easily handle the changes in the acquisition eliminations and the currency conversion tasks that are involved in performing a full statutory consolidation,” says Robert Luks. “In many cases, we were reliant on external spreadsheets and often also on Hyperion consultants to do last-minute system code changes – increasing the time required to create both management reports and external financial statements.

“Previously, it took a lot of time and effort to maintain the systems codes involved in running the consolidation and elimination process. The consolidation process was also very fragile. If we were in the middle of running a consolidation and one of our 20 companies entered or changed data, the consolidation process would terminate.

“Before we ran the consolidation again, we would have to telephone the people who were logged on to ask them to save their work and log off the system, which was very time-consuming. This meant that consolidation could only take place at dedicated times, and that late changes and group adjustments took even more time.”

Identifying requirements
To improve the cost- and time-efficiency of its group consolidation process, Eniro undertook a full review of its requirements.

Robert Luks comments: “First, we performed an internal pre-study. This was extremely helpful, as it allowed us to work out the additional financial data that we wanted our companies to provide, as well as the IT resources – such as servers and storage hardware – that we needed to support the requirements of a new software solution.

“Our financial team is always extremely busy, so we brought in external consultants to support us with the pre-study. This saved us a lot of time, and allowed us to quickly identify our key selection criteria for the new solution.”

Choosing IBM Cognos Controller
Eniro considered solutions from four different vendors before ultimately choosing IBM Cognos Controller.

“As well as presenting their solution, the IBM team offered us a plan with a timeframe for implementation,” says Robert Luks. “We met the implementation team at the initial Cognos Controller presentation, and they helped us to get a good understanding of the integration process straight away.

“We were very impressed with the IBM Cognos Controller software. We were already using IBM Cognos TM1 as a budgetary tool in our accounting department in Sweden, and we liked the fact that Controller was part of a suite of interconnected products.

Working together with IBM implementation consultants, Eniro deployed IBM Cognos Controller. Data from the company’s legacy Hyperion software was automatically migrated to IBM Cognos Controller using a single set of business rules.

“The migration of data from Hyperion to Cognos Controller went extremely smoothly,” says Robert Luks. “After working with Hyperion and IBM Cognos Controller simultaneously for one month to check that both were reporting the same figures, we switched off our legacy solution. The whole process was completed on time and within budget.”

Boosting performance of group consolidation
IBM Cognos Controller enables Eniro to reduce the cost and complexity of group consolidation. Using the dimensional modelling capabilities in IBM Cognos Controller, the company can gain the insights it needs to satisfy regulators and its own internal reporting requirements without creating multiple new accounts – resulting in a large boost in performance.

“In the past, it took a lot of time and effort to run a consolidation exercise,” says Robert Luks. “Thanks to IBM Cognos Controller, it now takes us just three minutes to run a group consolidation – an improvement of 80 percent. Once underway, the process cannot be interrupted by users who are still reporting or adjusting reported numbers.

“Furthermore, if one of our companies inputs inconsistent data into one of the submission forms, Cognos Controller will not allow the company to close the period in question and mark it as ‘ready’. Data validation from Cognos Controller has cut the time it takes to prepare for a group consolidation by three days per month.”

Cutting the need for external consultants by 75 percent
Since implementing IBM Cognos Controller, Eniro has performed several acquisitions using the new solution.

“Before the IBM solution, registering new acquisitions was an extremely complex process that required us to employ external consultants,” says Robert Luks. “Using Cognos Controller means our consolidation system is no longer a black box, and we’ve reduced the need to employ external consultants by 75 percent.”

Looking to the future
Following the success of its IBM Cognos Controller implementation, Eniro is looking into the possibility of increasing the functionality of its solution by harnessing the output reporting capabilities of IBM Cognos TM1 for Controller data.

“Working with our trusted IBM Business Partner, Addedo, we want to create a data cube for IBM Cognos Controller in IBM Cognos TM1 to deliver even deeper insights into our financial data,” concludes Robert Luks. “Overall, we are extremely satisfied with the IBM solution. Cognos Controller has helped us to reduce the time and effort required to meet the strict regulatory standards for group consolidation.”

About Addedo
Founded in 2007 and with more than 15 years of combined experience in group finance, Addedo is a fast-growing international consultancy and IBM Premier Business Partner, with offices in Sweden, Switzerland and the UK. The company’s 50 senior consultants work with CFOs, LOB Managers and group finance functions to help its customers gain better insight into their business performance.

To learn more about products, services and solutions from Addedo, please visit addedo.com

About IBM Business Analytics
IBM Business Analytics software delivers data-driven insights that help organisations work smarter and outperform their peers. This comprehensive portfolio includes solutions for business intelligence, predictive analytics and decision management, performance management, and risk management.

Business Analytics solutions enable companies to identify and visualise trends and patterns in areas, such as customer analytics, that can have a profound effect on business performance. They can compare scenarios, anticipate potential threats and opportunities, better plan, budget and forecast resources, balance risks against expected returns and work to meet regulatory requirements. By making analytics widely available, organisations can align tactical and strategic decision-making to achieve business goals.

For more information
For further information please visit ibm.com/business-analytics

Request a call
To request a call or to ask a question, go to ibm.com/business-analytics/contactus. An IBM representative will respond to your inquiry within two business days.

Products and services used

IBM products and services that were used in this case study.

Software:
Cognos Controller, Cognos TM1

Legal Information

© Copyright IBM Corporation 2012. IBM Svenska AB, 164 92 Stockholm, Sweden Produced in Sweden. November 2012. IBM, the IBM logo, ibm.com, Cognos and TM1 are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of other IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml. Other company, product or service names may be trademarks, or service marks of others. References in this publication to IBM products, programs or services do not imply that IBM intends to make these available in all countries in which IBM operates. Any reference to an IBM product, program or service is not intended to imply that only IBM products, programs or services may be used. Any functionally equivalent product, program or service may be used instead. IBM hardware products are manufactured from new parts, or new and used parts. In some cases, the hardware product may not be new and may have been previously installed. Regardless, IBM warranty terms apply. This publication is for general guidance only. Information is subject to change without notice. Please contact your local IBM sales office or reseller for latest information on IBM products and services. IBM does not provide legal, accounting or audit advice or represent or warrant that its products or services ensure compliance with laws. Clients are responsible for compliance with applicable securities laws and regulations, including national laws and regulations. Photographs may show design models.