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Statnett owns key sections of the Norwegian transmission system
for power and ensures that consumption and production are in
balance at all times. Government-owned Statnett, answering to the
Ministry of Petroleum and Energy in Norway, has more than 500
employees throughout Norway and is co-owner of the Nordic power
exchange, Nordpool. Quality, reliability and cost-efficiency are at
the heart of Statnett’s operations, and financial goals include a
minimum return on total assets of at least 8.3 percent. As part of its ongoing plan to streamline its operations
Statnett invested in IFS Applications with the specific aim of
enhancing resource utilisation and improving information and
material flows. After a well-planned and successful implementation,
Statnett is now in a position to reap the benefits provided by
modern component-based business applications. The challenge
Toward the end of the 1990s, Statnett initiated a program of improvements to streamline operations, which it called Resource Optimisation at Statnett (ROS). The goals of the ROS program included securing access to relevant, accurate data from a common source to allow it to be used by all; single entry of data; the automation of activities and the standardisation of activities and processes; and secure
transfer of processes throughout the organisation. Furthermore, the financials software was becoming obsolete, and the company lacked business applications for maintenance and project management. The way to meet these challenges, and facilitate cost-efficient operations, was to invest in integrated business software.
The solution
Statnett spent considerable time selecting its business applications vendor because it required a solution that would provide the optimal balance between the needs of the various areas of business within the company. IFS Applications provided this balance. Another factor was IFS’ experience of the industry. Arve Indrehus, project manager for ROS, comments, “IFS had proven its capability to supply business solutions to the utilities and telecom sector. There was
both depth and breadth of industry-specific competence within IFS, and its people had a clear understanding of the problems we face in the energy sector. What’s more, IFS owned the product, which is reassuring in respect of long-term support and access to
updates, etc.”
Implementation
One of the benefits of the long selection process was that Statnett was able to map along the way the difficulties associated with implementing business applications. As a result, the company was well prepared for the project. Sitting down with IFS,
Statnett drew up a detailed project schedule based on a well-specified agreement, with clearly defined milestones. Considering the size and complexity of the project, very little customisation was required. Sufficient resources and areas of responsibility were allocated. This, says Arve Indrehus, is a critical factor, “The different sub-projects must be given adequate resources, and those who are responsible have to own their part of the project. This
requires that you really understand the challenges involved in implementation. It also means that you retain the knowledge and competence within the company, which is invaluable from a life cycle perspective.” After a period of intensive training, the preliminary phases began, taking three months. The project was set up, the system and functions were checked and a gap analysis was performed. Each phase was approved before moving on to the next. When the
preliminary phases were complete, the main project was initiated, with detailed specifications, rollout and end-user training taking the implementation up to the agreed go live date. Equally important, the well-organised structure of the project played a
major part in keeping it within the agreed budget.
Benefits
Statnett now has the integrated solution it requires to streamline its processes and meet its commitments, financial and otherwise. Arve Indrehus can already see a major benefit, “The fact that the project was completed in time and to budget means we
get started on the right foot from the very beginning. It augurs well for the future use of the solution and shows that IFS could deliver what it promised.” One of the benefits of the integrated solution from IFS is that administration will be greatly reduced thanks to the use of electronic invoices. Costs can be charged directly to projects, which means less time will be spent on accounting procedures,
and cost follow-up will be much easier since costs can be traced via work orders. Savings also result from the fact that many administrative tasks that previously were duplicated now need to be done only once. The use of personal portals has simplified a large number of processes, such as approvals and time reporting, since these are now web-based. Availability has also improved, and the amount of training required to learn the system has been considerably
reduced. The maintenance solution will enhance the utilisation of personnel and materials and make maintenance planning much easier. Finally, Statnett has also invested in mobile solutions. Thanks to the flexibility and openness of IFS Applications, work orders can be downloaded onto handheld computers. This way, field operatives can access job histories, parts requirements and
other essential information, take it with them into the field, make their reports when the job is finished and simply download the information back into the system by docking into a computer at the office. The errors associated with transferring data are
eliminated, there is less administration, and the accuracy of the data in the system is greatly enhanced.
Software
IFS/Project Management
IFS Maintenance
IFS Financials
IFS Distribution
IFS Human Resources
IFS/Business Performance
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