2 page Case Study
Posted: 7/25/2012
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OJSC Bashkirenergo Energy Giant Uses Enterprise Strategy Program to Develop IT Strategy, Reduce Costs

OJSC Bashkirenergo, a major energy company in Russia, wanted to provide better quality and more cost-efficient IT services. To help with developing its IT strategy, it engaged Microsoft Services Enterprise Strategy. With a comprehensive plan of its IT architecture and data about how its IT relates to business initiatives, it can avoid unnecessary risks while expanding, lower costs, and stay ahead of its competitors.

Business Needs
OJSC Bashkirenergo is a large energy company, one of the five biggest for power generation and one of the seven biggest for heat generation among Russia’s heat-generating companies. By heat supply volumes, Bashkirenergo is in the world’s top 10 heat-generating companies.

For energy companies like Bashkirenergo, the role of IT is essential. Companies in the energy sector need to ensure reliable and efficient operation of complex process equipment and extended electric and heat networks. Their IT departments are expected to provide active and comprehensive support to new business initiatives (including implementation of solutions that enhance business efficiency) and to provide high-quality and cost-efficient IT services.

Because the energy sector is one of the most socially important sectors in Russia, tariffs for services in this field are government-regulated. This means that energy sector companies can increase business profitability by making it a priority to reduce operational costs. In its own efforts to reduce costs, Bashkirenergo decided to prioritize the development of a new IT strategy. To help create the plan for its IT strategy project, Bashkirenergo sought the support of a strategic expert.

Solution
The company decided to choose Microsoft, whose software OJSC Bashkirenergo had used for a long time. In November 2011, it engaged Microsoft Services Enterprise Strategy. The goal of an Enterprise Strategy engagement is to align a customer’s IT environment to its business strategies, in addition to optimizing business processes.

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* Thanks to the professionalism of the Microsoft Enterprise Architect and his efficient methodology, we built a set of clearly evident and transparent indicators for the functional roles of our IT employees. *

Yuri Gorbachev
CIO, OJSC Bashkirenergo

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Microsoft provided an Enterprise Architect who worked onsite, supported by a network of Microsoft specialists that he could talk to about specific needs and requirements. Equipped with deep and up-to-date knowledge of the life cycle of Microsoft products and of the functionality that would appear in later product versions, he began a thorough study of the company’s IT infrastructure and the specifics of its business.

The first step was to conduct a comprehensive analysis of the IT infrastructure and the Microsoft solutions already deployed at the company. After completing the analysis, the Enterprise Architect wrote a description of the current condition of IT assets and services at Bashkirenergo, which covered main business processes (including the ones specific for the energy sector), data architecture, applications architecture, and basic services and hardware. He analyzed all these components by using the Microsoft Value Realization Framework, a three-part process that includes evaluating, planning, and analyzing the business value of IT building blocks, with the goal of creating an IT infrastructure improvement plan that supports the company’s business strategy.

For the next stage, Bashkirenergo defined its target model of IT development and outlined a set of required programs and projects. Finally, it formed a strategic IT development plan, a road map that included the approved portfolio of projects for the next three years and detailed scenarios for their implementation. The overall process took only four months.

“You can only manage what you can measure,” says Yuri Gorbachev, CIO at OJSC Bashkirenergo. “Thanks to the professionalism of the Microsoft Enterprise Architect and his efficient methodology, we built a set of clearly evident and transparent indicators for the functional roles of our IT employees. We monitored key performance indicators to help us identify the strengths and weaknesses in our work and ensure supervision of operations.”

The company decided to develop the new IT strategy in three directions: better quality of IT services, reduction of operational costs, and increased efficiency of investments in IT.

Benefits
With the assistance of Microsoft Services Enterprise Strategy, OJSC Bashkirenergo very quickly built an integrated IT improvement strategy for the next three to five years. It reflects the interests of the business, the development prospects for specific Microsoft products and technologies, and best practices for organizing IT department work processes.

Provided Comprehensive Plan
The Enterprise Architect assigned for Bashkirenergo used his understanding of the company’s existing opportunities and current needs to build an optimum plan for upgrading existing IT systems and implementing new solutions.

Viacheslav Agashkov, IT Department Manager at OJSC Bashkirenergo, is pleased with the results. “A fresh view from outside is always useful, especially when the assessment comes directly from specialists employed by a world IT leader,” says Agashkov. “I was particularly interested to learn the Microsoft methodology in the area of IT process management. By using a fusion of COBIT [a framework for good IT practices] and the Microsoft Value Realization Framework, we integrated all aspects of development for both the business and IT infrastructure.” Now Bashkirenergo can make good decisions for IT investment and minimize the risks associated with expansion.

Reduced Costs
An important task for Bashkirenergo was to implement an enterprise resource planning (ERP) system. With the help of Microsoft Services, it built a matrix to assess the efficiency of various ERP software, where many criteria were taken into account. As a result, the energy company was able to make a reasonable and objective decision before choosing an ERP solution. According to its estimates, Bashkirenergo will save up to RUB300 million (US$9.22 million) per year.

With the implementation of just one of the planned strategic initiatives—for the construction of a dynamic data processing center—the company will be able to save up to RUB65 million (US$2 million) annually and ensure a 550 percent return on investments within three years.

Increased Competitiveness
By studying and analyzing many similar projects, the Enterprise Architect selected appropriate ready-to-use solutions, already tested and well regarded at other companies, and then adapted them for the specific conditions and requirements at Bashkirenergo. This means that the energy company can avoid unnecessary expenses and risks while remaining competitive.

“By using Microsoft Services Enterprise Strategy, we formed a clear picture of what needs to be done to use the potential of the Microsoft technologies and to eliminate the gap between the business and the IT infrastructure,” says Gorbachev.

Microsoft Services
Microsoft Services is a global team of professionals who are dedicated to helping customers maximize the value of their investment in Microsoft software. Microsoft Services touches customers more than 715 million times a year, helping them plan, deploy, support, and optimize our technologies. They also work closely with Microsoft Partners by sharing their technological expertise and product knowledge on a regular basis.

For more information about
Microsoft Services, go to:

www.microsoft.com/services

For more information about other Microsoft customer successes, please visit:
www.microsoft.com/casestudies


Solution Overview



Organization Size: 12000 employees

Organization Profile

Based in Ufa, OJSC Bashkirenergo is a large energy company in Russia. It also owns companies involved in power and heat generation, transmission, and distribution.


Software and Services
  • Microsoft Enterprise Strategy Services
  • Microsoft Services
  • Enterprise Strategy Program

Vertical Industries
Power & Utilities

Country/Region
Russia

Languages
English

Partner(s)
Microsoft Services

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