IBM > Case Studies > IBM Cognos TM1: Streamlining Enterprise Planning for Bugaboo

IBM Cognos TM1: Streamlining Enterprise Planning for Bugaboo

Technology Category

Analytics & Modeling - Real Time Analytics
Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

Buildings

Applicable Functions

Product Research & Development
Sales & Marketing

Use Cases

Demand Planning & Forecasting
Inventory Management

About The Customer

Bugaboo is a Dutch company that has experienced dramatic growth since its inception in 1999. Known for its trendy pushchairs, Bugaboo has become a global hit, with 15 branches worldwide and a factory in China. The company's head office is located in Amsterdam. The rapid growth of the company led to changes in planning and forecasting requirements, with a need for more financial flexibility, speed, and ease of management. The company also wanted to broaden its planning and forecasting capabilities. The implementation of IBM Cognos TM1 was a major step forward in Bugaboo's planning and forecasting activities.

The Challenge

Bugaboo, a Dutch company known for its trendy pushchairs, was facing challenges in generating accurate financial and sales forecasts in a timely manner. The company's rapid growth had led to changes in planning and forecasting requirements, and the existing system, IBM Cognos Planning, was reaching its limits. Performance-related issues were causing disruptions, and any changes to the planning model required the entire system to be halted. The model was split into four geographic regions to facilitate management outside office hours, but this meant that each change had to be implemented four times. Furthermore, Bugaboo wanted to broaden its planning and forecasting to include more than just financial and sales forecasts. For instance, the Innovation Department wanted to monitor costs at every stage of a project, from development through to production.

The Solution

Bugaboo implemented IBM Cognos TM1, an easy-to-manage platform for enterprise planning. This solution provided a more efficient and flexible approach to planning and forecasting, with extensive options for 'what if' scenarios and insights into planning history for future forecast fine-tuning. The implementation of IBM Cognos TM1 was quick, going live within three months after extensive user testing. The new system consolidated all planning information in one place, including profit and loss data, investments, exchange rates, and employee data. It also allowed for the easy and quick implementation of changes in models without affecting users. The solution was scalable and could handle large amounts of data without performance or management issues. Additionally, it enabled various departments to generate detailed reports on estimated and actual costs.

Operational Impact

The implementation of IBM Cognos TM1 has resulted in significant operational improvements for Bugaboo. The company now spends less time on management activities, and changes to the planning model can be made in real-time without affecting users. The system's scalability and ability to handle large amounts of data have eliminated previous performance and management issues. The development of new models for various departments is also quicker, allowing the company to respond proactively to information needs. The software's 'what if' scenario capabilities have provided valuable insights into planning history, improving the accuracy of future planning. Looking ahead, IBM Cognos TM1 is set to play an increasingly central role in Bugaboo's information provision, ensuring the consistency of important data throughout the organisation.

Quantitative Benefit

Implementation of IBM Cognos TM1 was completed within three months.
Functional changes to the planning model are now implemented just once, saving significant time.
Updates to the system now take minutes, not hours.