At a Glance
Name: Electrica Banat
URL: http://www.electrica.ro/default.asp?lang=en
Region: Eastern Europe
Industry: Utilities
Technology: SAP R/3 4.6C, SAP Portal 5.0
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 Summary
Romania’s state-owned electricity company Electrica SA selected Ness Romania to serve as prime contractor for implementing a SAP ERP system at one of its eight subsidiaries - Electrica Banat. When Electrica S.A. decided to privatize Electrica Banat, Ness had to upgrade the subsidiary's related legacy systems, as well as accelerate implementation of the SAP system prior to the sale. Within 12 months, Ness implemented SAP R/3 4.6C, marking the IT company’s first implementation of that version in Romania. The quick and successful implementation of the SAP system not only lowered Electrica Banat’s operating expenses, but also increased the company’s value before its sale to the Italian utility giant Enel in 2004.

 Client
Electrica Banat is a supplier and distributor of electricity in the western Romanian region of Banat. The Company operates via four power distribution and supply branches throughout the area – Arad, Deva, Resita and Timisoara, where its headquarters are located. Electrica Banat was founded in 2002 as one of eight subsidiaries of Electrica SA, Romania’s state-owned electricity company. Electrica Banat and a second Electrica SA subsidiary, Electrica Dobrogea, were acquired in 2004 by the utilities giant Enel, Italy’s largest power company and Europe’s second-largest listed utility. Today, Electrica Banat supplies electricity to 900,000 customers, representing 12 percent of the Romanian market.

 Challenge
Electrica S.A. chose Ness Romania as prime contractor for implementing a SAP ERP system at one of its eight subsidiaries in 2003, Electrica Banat, in 2003. When Electrica S.A. decided soon thereafter to privatize Electrica Banat, implementation of the SAP system at the subsidiary had to be accelerated so that it could be completed prior to the sale. Ness also had to quickly upgrade Electrica Banat's related legacy systems, since their level of performance lowered the company’s value heading into the privatization.

 Solution
Ness and Electrica Banat worked closely together from the outset in order to meet all of the power company’s needs regarding the purchase, distribution, accounting and sale of utilities.

Implementation was carried out over 12 months according to the Accelerated SAP (ASAP) methodology, and was based on the following phases:
• Project Preparation
• Business Blueprint (needs analysis, solution proposal)
• Realization (system set-up)
• Final Preparation (testing)
• Go-Live & Support

Ness implemented SAP R/3 4.6C, marking the company’s first implementation of that version in Romania. The project included:
• Implementation of FI, AA, CO, MM, SD, PMCS
• Development of interfaces with payroll and billing systems
• Hardware delivery and installation, OS setup/tuning
• Lotus installation (mail, document management)
• Portal development (partially based on SAP EP 5.0)

After the project was completed, Ness also developed several post-implementation solutions for Electrica Banat.

 Benefits
• Lower operating expenses
• Standardized business processes and document workflow
• Unified billing and CRM procedures
• Improved reporting and data analysis
• Reduced data transfer risk, errors, time and manpower
• Increased system robustness and reliability
• Higher company value

 Testimonial
“By successfully implementing the SAP system and upgrading several of Electrica Banat’s legacy systems within a short period, Ness helped us receive far greater value for the subsidiary when it was sold.”
Dan Crisfalusi, IT Manager, Electrica Banat