Microsoft Dynamics NAV brought KRÁLOVOPOLSKÁ RIA efficient project management, cashflow and strategic planning
KRÁLOVOPOLSKÁ RIA stands among the most well-known engineering-supply companies in the field of energy. Within five years, the company has increased almost threefold, especially through participation in projects for the modernization of large thermal power plants in the Czech Republic and at units 3. and 4. at the Mochovce nuclear power plant in the Slovak Republic. Because of this the company had sought after an enterprise information system that would help it effectively manage large projects and related financial flows, and which would give the management a tool for effective strategic leading. Ultimately the company chose Microsoft Dynamics NAV business solution with BIZ4BuildIn from NAVISYS. Investments in the ERP system, will give the company returns within two years.
The problem of information sharing
KRÁLOVOPOLSKÁ RIA had previously managed projects with a combination of Microsoft Project (for managing overlapping work and time tables) and Excel (for managing and checking financial flows associated with individual projects). The files created in Excel were then sent to the finance department, where they manually created monthly cashflow plans and simple financial reports tracking the profitability of individual orders. However, it was necessary to manually check the execution of each payment and its consistency with the project and its sub-stage and then as a result they would have to even edit the central cashflow plan. The processing of this data was time consuming, while also rewriting the error that occurred and of course a significant dependence on the presence of the project manager to access information about projects. The records in Excel were not uniform and the substitutability of project managers was very difficult. In a society with a growing number of employees and contracts there has been an increase in the need for a single source of information and tools for immediate decisions, e.g. the announcement of a new tender for the supply of engineering units. These facts were the primary impetus for starting the process of selecting a satisfactory solution.
The solution was to implement an enterprise information system
The company soon began to deploy tools to ensure efficient document management and project management and applied elements of managerial accounting on Excel spreadsheets. Even with this manual data processing was occupying too much time for key workers and at the same time did not show sufficient accuracy and speed the company required. KRÁLOVOPOLSKÁ RIA, therefore, continued to seek a way out of this "information monopoly" that would allow flexible reporting, accurate controlling and meet the needs of risk management and strategic management. The company had considered a variety of options, including hiring staff for data processing, the unification of Excel spreadsheets or even creating paper forms and reports. Eventually, however, they concluded that the most effective way to deploy a comprehensive enterprise information system would be with a professional business solution for engineering companies.
Specific business needs covered by only one solution
This company's decision came in 2012, when as part of an extensive selection process, it reached out to all the world's leading manufacturers of enterprise information systems as well as some large scale local systems. The company gradually evaluated the individual systems, but none of them really stood out. The construction and engineering, in which KRÁLOVOPOLSKÁ RIA provides, required very specific needs that these systems were unable to adequately cover. Well, except for one - it was Microsoft Dynamics NAV extended by industry solution BIZ4BuildIn from NAVISYS. This professional solution is developed specifically for engineering, design, construction and project management companies. Everything in the system is adjusted to their processes, including using a classical view of the project as a Gantt chart with the possibility of an interactive display of its lowest level project tasks, related invoices and expenses.
BIZ4BuildIn offered exactly what the company needed
Industry solutions BIZ4BuildIn from NAVISYS offered exactly what the company needed. The Microsoft Dynamics NAV platform give users a familiar user interface, easy integration with Microsoft Project Server, Excel and Outlook, and even Document Management System (DMS) a third party program the company has been using since 2011. The actual industry solution then provided specialized modules specifically for project management and allows for planning and management of projects and the related workflow from the initial quotation stage, through its calculation to project management to customer acceptance. Moreover, the link between Microsoft Dynamics NAV and professional solution BIZ4BuildIn offered sufficient space for editing precisely according to individual company needs.
The implementation brought about radical changes in how the company operates
Upgrading to Microsoft Dynamics NAV solution with industry- BIZ4BuildIn provided the impetus for revising a number of business processes. The management at KRÁLOVOPOLSKÁ RIA in collaboration with consultants from NAVISYS during implementation made not only minor changes in the setup process within the system, but also within the company itself. Some existing processes were a bit complicated due to stabilizing setup competencies and workflow, but it ensured the full substitutability of employees and ensured a comprehensive overview of the resources, capacities, performance time and financial plans. All with direct interactive links to related documents and invoices in DMS. Thanks to the deployment of an enterprise information system the company has gained much greater details and more accuracy, especially regarding individual projects. It allows continuous (not only on a monthly basis as before) evaluation of overall project profitability and efficiency while implementing partial phases of the project. The management has been given the tools to detect potential risks and problems encountered during the project, and to identify and eliminate their causes.
The new system will help the company expand abroad
KRÁLOVPOLSKÁ RIA managed the acquisition of an enterprise information system by earning 50 % of the funds from the grant program Operational Enterprise and Innovation under the grant title ICT in enterprise-projects the "acquisition and implementation of an information system in KRÁLOVOPOLSKÁ RIA,". This grant will help the company in its planned expansion abroad. Nuclear and conventional power east of the Czech border is gaining new breath and KRÁLOVOPOLSKÁ RIA wants to be there. Microsoft Dynamics NAV can help in several directions. It offers a wide range of languages, including support for national legislation, which in the future will allow us to expand flexibly into Russia, Belarus and Ukraine, which has great potential to win new contracts in the energy sector. Another very important aspect is the newly acquired ability of effective risk management and cash flow, even in the medium and long term. With Microsoft Dynamics NAV the company can flexibly evaluate current demand and potential profitability as well as putting them into context with drawing credit facilities and bank guarantees for individual banks. The ability to model a variety of scenarios during the contract and implement long-term projects is the key as well as planning its strategic development and maintaining the desired profitability. Whereas in 2012, before the deployment of the enterprise information system, the management was forced to use more operational management tools, now they can afford to strategically plan participation in tenders for long-term thermal power desulphurization projects, expansion of nuclear power plants and even the construction of large wastewater treatment plants in the distant future. KRÁLOVOPOLSKÁ RIA indeed, thanks to Microsoft Dynamics NAV business solution with BIZ4BuildIn could move from the operational procedure in the period of months to management in the term of three to five years as the company plans to increase its current turnover of at least 20 %.
Investment returns within two years
Microsoft Dynamics NAV brought KRÁLOVOPOLSKÁ RIA the substitutability of employees, process standardization and immediate overview of all key financial indicators virtually in real time. At the same time it eliminates the disproportionate administrative burden for the key and time consuming technical staff, who can invest their capacity on new projects. Thanks to efficient financial management, the company also has the possibility to utilize access to cheaper sources of financing. Thanks to these changes and co-financing by the OPEI, investment in Microsoft Dynamics NAV business solution with BIZ4BuildIn from NAVISYS will return within two years. Not to mention the new tools and capabilities in risk management and strategic management that the company management have at their disposal as well a solid foundation on which to build the planned revenue growth of at least 20 % over the next 5 years.
For project implementation of enterprise information system Microsoft Dynamics NAV business solution with BIZ4BuildIn, NAVISYS was awarded the prestigious Microsoft Awards 2013 Finalist. The competition is open to certified partners who develop solutions based on Microsoft products. The winning solution gains a competitive advantage in the ERP market.