REVIEWER: Ton (A.G.C.) van den Dungen, manager business intelligence and control, division retail, manager business intelligence center, ENECO Energie.
BACKGROUND: ENECO Holding N.V., trading under the name ENECO Energie, is one of the largest suppliers of gas, electricity and heat in the Netherlands, serving more than 2 million business and residential customers and generating revenues of more than 3.5 billion EUR. Based in Rotterdam, ENECO Energie is one of Holland's top-three energy suppliers in terms of sales and market share, operating five autonomous divisions, each serving separate market sectors.
PLATFORMS: The solution runs alongside Microsoft SQL Server 2003, Oracle data warehouse builder and tailor-made ETL functionality.
PROBLEM SOLVED: We wanted to create more cohesion in our organization. To achieve this, we set up a predetermined planning and monitoring cycle and one version of the truth. In 2004, we opted for the implementation of a Cognos performance management solution, which included scorecarding, analysis, and query and reporting to work toward a complete customer picture. We decided to implement balanced scorecards in order to manage our business using agreed-upon rules and responsibilities, to base decision-making on facts as much as possible and to define targets from cohesive objectives. Scorecards constituted the channels of communication between the three pillars we used for setting up the planning and monitoring cycle (financial, performance and risk management) and various KPIs that indicate how performance compared with objectives. To set up the scorecards, we asked managers throughout the entire organization what information they needed to manage in order for the solution to be truly generated from within the business. This collaborative cross-organizational input became an important success factor.
PRODUCT FUNCTIONALITY: Using Cognos business intelligence and query and reporting as well as a solid data warehouse, we created an integral BI portal and a BI intelligence center to generate customized information in a variety of formats - from scorecards via standard prepared reports to views on OLAP cubes and ad hoc queries. The Cognos performance management solution has helped us achieve a more comprehensive profile of our customers and gain competitive advantage.
STRENGTHS: Cognos' solution allows us to take input from every aspect of our business and use it to determine each customer's energy needs. We now have a comprehensive view of customer behavior and can focus on how our customers use ENECO Energie products (both high and low margin) and track the customer's call and payment behavior trends, which is extremely important. The ability to link all of our customer information to defined metrics gives us an early-warning system to alert us to the potential loss of good customers, giving us time to take positive action.
WEAKNESSES: It is important that management has a heavy involvement steering the product deliverables because use of the product is not required.
SELECTION CRITERIA: The products enable us to drive performance across the organization on a daily basis. Cognos understands BI reporting and analysis better than any other company we've seen.
DELIVERABLES: The outputs have been data cubes, which allow the reader to easily access the information they need, provide an integral view of the customer and allow for the creation of customer value segmentation, scorecards and customer profiles. We have also been able to gain market share, to decrease accounts receivable balance by approximately 10 million EUR, to raise conversion rates on marketing campaigns, to use the insights gained on customers to segment direct mailings for a savings of approximately 1 million EUR, to gain higher process efficiencies in our customer contact center and billing department, resulting in a savings of approximately 2.5 million EUR, and to segment customers according to their value for improved decision-making.
VENDOR SUPPORT: Cognos has given us tremendous help in solving any issues during the pre- and post-implementation process. The best part of working with Cognos has been their high level of expertise and talent in delivering and supporting complex business value.
DOCUMENTATION: The documentation is complete and easy to understand.
Cognos Performance Management Solution
3755 Riverside Drive
Ottawa, ON Canada K1G 4K9
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