Magasin du Nord, the largest department store in Denmark, used to draw on spreadsheets to support its annual budgeting process, but switched to IBM Cognos Planning in order to streamline the process. A further switch to IBM Cognos TM1 increased the efficiency of the company’s financial planning by another 20 percent.
As Peter Fabricius, Finance Director at Magasin du Nord, explains: “True business value comes from understanding the details, and spreadsheets are not designed to offer businesses the necessary level of visibility. By implementing IBM Cognos Planning, we were able to complete our budgeting processes 50 percent faster, and we gained insights that added real value to our business.”
Adding Greater Value
However, due to the enormous complexity of modelling the huge quantities of operational data that Magasin du Nord generates every day, these analyses needed to be performed via lengthy batch processes – making it difficult to get real-time insight or perform what-if analyses.
Magasin du Nord wanted to augment the efficiency of its forecasting and budgeting in order free up more time for data analyses – adding additional value to the planning process.
Magasin du Nord’s IBM Advanced level Business Partner and external IT support provider, Kapacity, introduced Magasin du Nord to IBM Cognos TM1, realizing the potential business value it would create for the department store. Together with a local IBM team, Kapacity integrated IBM Cognos TM1 with Magasin du Nord’s existing business intelligence software.
“We’d worked with Kapacity on a previous upgrade project, so we knew that they were an excellent partner. The Kapacity team really took ownership of the process and invested the time and effort required to ensure that the implementation was completed successfully,” says Peter Fabricius.
Boosting Planning Efficiency by 20 percent
Using IBM Cognos TM1, Magasin du Nord has achieved its goal of increasing the efficiency of its planning process. Today, the company is able to collect and consolidate data, not only from its transactional and financial systems, but also from other sources, such as spreadsheets, and analyse it on multiple dimensions in IBM Cognos TM1. The final output is transferred to the company’s business intelligence systems, packaging the data into daily reports.
“Owing to Kapacity’s excellent work, we’ve simplified the planning process even more,” says Peter Fabricius. “Financial data are available for processing almost in real-time. Thanks to the new solution, we estimate that we’ve increased the efficiency of our financial planning by another 20 percent – freeing our analysts to find ways of getting more business value out of our analytics data.”
Total Clarity with TM1
“TM1 takes the stress out of all aspects of the budgeting process,” concludes Peter Fabricius. “With the new solution, we’ve achieved our aim of building a simpler, more secure planning process. TM1 has streamlined the planning workflow, helping us to increase the business value of the process and spend more time on quality control. For us, planning isn’t an annual chore – it’s a daily effort to add value to the business. With TM1, there are no surprises and there’s no getting lost in the numbers – we have total clarity on our position at all times.”