Project Description

Automation frees up time
and builds smarter budgets

– Erhvervsstyrelsen is impressed by their new
planning and analytics solution IBM Cognos TM1.

Learn more here

As a government agency, Erhvervsstyrelsen (the Danish Business Authority) is always under pressure to deliver the greatest possible value within their budget. Erhvervsstyrelsen supports businesses across Denmark, manages 450 projects across 27 offices, employs 600 people, and is responsible for an annual budget of DKK 600 million (USD 89.8 million), as well as a number of national and EU grants.

Managing Hundreds of Budgets

Implementing a more collaborative process between Erhvervsstyrelsen and the many projects they manage is extremely valuable for all parties. Each of the 450 project manages has their own budget, but Erhvervsstyrelsen maintains control of overall expenditure and has to report to the Danish parliament to demonstrate “value for tax money”. Needless to say, Erhvervsstyrelsen has to have a robust, reliable budgeting process for all projects.

Time-Consuming Spreadsheets

However, until recently their budgeting process was based on spreadsheets that were drawn up and sent to each project manager. The bulk of data that came back to Erhvervsstyrelsen was then manually collected and consolidated by their finance team.

This process was both time-consuming and prone to mistakes: It would take four days to produce each version of the budget and the total budget cycle would last for more than two weeks.

Another downside to the old spreadsheet solution was lack of time to go through the numbers with each project manager and make sure that the budget in question would meet everyone’s needs.

Choosing the Right Solution

The many drawbacks from the spreadsheet budget planning solution made Erhvervsstyrelsen examine the possibilities of a more intelligent and efficient solution, and together with IBM Business Partner Kapacity, they chose to implement the enterprise-class financial planning and analytics solution IBM® Cognos® TM1®.

They were especially impressed by the solution’s ability to map their existing budget process into the system, rather than having to introduce a completely new process. Furthermore, project managers now log into a secure web portal and input their figures directly into the IBM solution. This means that the finance team is always up to date on missing entries and do not have to be concerned about lost spreadsheets or outdated versions.

Freeing Time for Each Budget

Each budget iteration now takes half a day, thanks to the combination of faster data collection and automated consolidation. Furthermore, once the data is collected, the finance team can consolidate it and create a new version of the budget with just a few clicks – a process that used to take an additional two days. As a result, Erhvervsstyrelsen now has more time to discuss and revise the specific budgets with each project manager as well as making sure that the organisation’s top-level objectives are being met.

Partnering with Kapacity

The Erhvervsstyrelsen team was very impressed with the Kapacity consultants’ skills and knowledge, especially in the business analytics and business intelligence domain. Today, their finance team has successfully completed several quarterly budget cycles with their new and much more efficient budgeting process solution.

About Erhvervsstyrelsen

Erhvervsstyrelsen’s (the Danish Business Authority) task is to make it easier and more attractive to start and run a business in Denmark.

The goal is to remove the administrative hassle and make resources available for those who have ambition, determination and courage to create growth, but lack the knowledge, network and capital to reach the market.

Målet er at fjerne administrativt bøvl og stille ressourcer til rådighed for dem, der har ambitioner, vilje og mod til at skabe vækst, men mangler viden, netværk eller kapital for at komme ud på markedet.

Erhvervsstyrelsen also works for sustainable growth by promoting good governance and reliable financial information, for example by making it easier to comply with the law by simpler regulation.

Erhvervsstyrelsen is part of the Danish Business and Growth Ministry and has approximately 600 employees, most of which are located on Erhvervsstyrelsen’s office in Copenhagen.

Read more at Erhvervsstyrelsens website.