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To further enhance its financial performance management and get a more robust and modern group planning system, Kinnarps contacted IBM Cognos and Addedo for assistance.

Addedo and IBM Cognos today announced that Kinnarps has gone live with its IBM Cognos TM1 solution for corporate financial planning. A world leading supplier of interior workspace solutions, Kinnarps is now using IBM Cognos TM1 for financial planning across its organization. Sales operations are conducted in about 40 countries and Kinnarps has sales subsidiaries in 15 countries in addition to seven different production plants.

TM1 was chosen because it met Kinnarp’s tough requirements. In addition, the company has had a long standing, trusted relationship with IBM. The company has been using IBM Cognos Business Intelligence as a vital component in an enterprise data warehouse solution to support operational and financial performance management across all functions at Kinnarps.

In the late summer of 2009, Kinnarps embarked upon a mission to implement a planning system across their organisation. When Kinnarps now is live with TM1, the project was completed on time and according to plan.

The need for a robust, consistent and transparent planning system had become apparent after a long period of growth, achieved both through acquisitions and organic growth. As a Premier IBM Cognos Partner with market leading project experience in TM1, Addedo was selected to lead the implementation.

The old annual planning and forecasting process at Kinnarps involved many Excel spreadsheets. These Excel files, sheets and models were distributed to the subsidiaries which filled them out and mailed them back. Thereafter, a series of calculations, consolidations, currency conversions and manual adjustments needed to be performed. There was little consistency in data. Focus had to be on resolving these inconsistencies rather than analysis and understanding the implication of the budget or forecast.

The three major areas of business improvement, Kinnarps Group Management hoped to achieve with this project were: productivity, accountability and control.

To improve productivity, they would need to improve the speed of planning cycles, and decrease the number of emails being exchanged. “We wanted to be able to perform more analysis and less Excel consolidation and manipulation.” said Annelie Hedegård, Accounting Manager, Kinnarps.

“We now have a solution that provides common data and definitions, a standardized data repository and analysis that is driven from the system, not from spreadsheets,” said Jan Kronblad, CFO, at Kinnarps and continues. “One of our goals is to increase financial performance insight and transparency across our organization. This means providing easy and quick access to detailed and summary information when people need it, along with timely updates that will help them make better decisions.”

It is now possible to follow up a complete profit and loss by company as well as operative items such as down to every product category. Furthermore actuals, and budget figures are now available in the same system for reporting and analysis. “Group executive management is very pleased with the new consistent source for financial performance insight”, Annelie Hedegård fills in.

The benefits are significant in terms of control and speed of process. Data entry is in zero latency. In other words, when a user commits for a figure it is rolled up directly into the organisational structure. At Group Finance they can sit and watch the figures come in real time. All previously tedious calculations and manipulations are now performed automatically with much improved security. A small currency conversion cube takes care of currency rates and related things, which facilitates for a what-if analysis capability on fluctuating currencies.

“Some say that the strength of TM1 is the memory technique providing unparalleled performance, but I think the real strength is about flexibility. A budget planning process looks different from company to company and even from one year to another. Therefore you need a flexible planning tool. If not, you will most certainly need a shoe horn. In TM1 you can adapt as you go along!” claims David Pretorius Senior Consultant Addedo, and continues.

“Last but not least, I would say that the key to success in this project has been the dedication and enthusiasm of the Kinnarps people. I’d like give highest grade to this customer!”

Contact:
David Pretorius, Senior Consultant, Addedo Sweden
Mobile +46 706678646
david.pretorius@addedo.com

Johan Berggårdh, Managing Director, Addedo Sweden
Mobile +46 70 3217732
johan.berggardh@addedo.com

Annelie Hedegård, Group Accountant, Kinnarps
Mobile +46 70 638 52 99

About Addedo
Addedo is a fast growing international consultancy. Our consultants work primarily for the CFO and Group Finance function, but also for LOB Managers. Through our management, application and interim consultancy we help our customers gain better insight into their business performance. Specifically we help our customers improve on their reporting, consolidation, planning, budget and analysis processes and systems.

Addedo has offices in London, Malmö, Stockholm and Zug. Many of our consultants are however engaged in projects across the world serving a large client base ranging from emerging business to the largest Fortune 3500. Addedo is partner owned, and all share holders are operative in the company. We strive to be the pan European consultancy partner to Group Finance.

About Kinnarps
Kinnarps provide interior workspace solutions for offices and public environments and is currently Europe’s second largest provider within the field. Kinnarps acquired Samas’ German operations in March 2010. With the acquisition, annual turnover is estimated to approx 520 MEUR (09/10).

Sales operations are conducted in about 40 countries and Kinnarps has sales subsidiaries in 15 countries. Kinnarps has a total of seven different production plants, five in Sweden and two in Germany. Group management and group functions are located in Sweden and there are about 2500 people in total working for the group.