Challenges

• Develop a comprehensive budget management system for 44 second-level production and operational units to make financial data more transparent and easier to share, and manage funds for raw materials, mining equipment, and staff
• Compare budgets with actual spending to better forecast where to allocate resources, such as equipment and materials used to mine coal, in the future
• Improve budget planning by automatically calculating data, such as the cost of materials, water, and electricity usage during mine construction

Solutions

• Enabled 44 business units to create a unified budget by eliminating multiple layers of budget processes and data
• Reduced from three months to one month the time it takes to prepare budget plans, such as a the resources budget for coal mining for the entire group, by improving the efficiency of budget preparation, summaries, and adjustments
• Planned budgets 100 times more accurately, by enabling staff to enter parameters, such as production and operational procedures, applying parameters to standard output and costs to automatically determine expenses related to mine construction
• Applied a unified budget management process to specific operations, such as mine exploitation or real estate development, and matched it with a budget management model for each business unit
• Improved budget management for each subsidiary by creating a closer relationship between budgets and the group’s business development strategy
• Deployed Oracle Business Intelligence Enterprise Edition to complete comparative analysis of trends—such as underspending or overspending on budgets—across each business unit and department
• Provided more spending controls for mining projects by analyzing budget data against actual spending to ensure timely and corrective action is taken if overspending occurs
• Enabled managers to make informed decisions by easily analyzing multidimensional budget data in column, pie, and/or line charts

Why Oracle

Shenning Group chose Oracle Hyperion due to its Web interface, which made it easy for the organization to create flexible and scalable budgets and financial plans.

“Oracle Hyperion Planning enabled us to complete multidimensional data analysis, which is most useful when we need to run budget forecasts using older financial data,” said Xiangyu Jiang, ERP comprehensive budget program executive manager, Shenhua Xingxia Coal Industry Group Co., Ltd.

“We chose Oracle Business Intelligence Enterprise Edition as it is a comprehensive business intelligence application that provides us with high-level enterprise financial reporting and strategy management capabilities,” he added.

Implementation Process

Shenning Group engaged Oracle Diamond Partner IBM Global Business Services to start implementing Oracle Hyperion Planning and Oracle Business Intelligence Enterprise Edition in June 2011 as the second phase of a large ERP application suite implementation.

The applications went live at Shenning Group’s head office and second-level business units in November 2011.

Partner

  IBM Global Business Services worked closely with Shenning Group’s IT team to design budget management processes and models that were suitable for the organization.

“IBM Global Business Services worked hard to understand how our subsidiaries and departments work to ensure we deployed a solution that best suited our requirements,” said Jiang.

Resources

• 神华宁夏煤业集团公司构建全面预算管理系统，显著提升预算管理的效率与效果, 预算编制精确度提高百倍以上