High scalability and granularity in Bittnet Group through
To support the development of an increasingly complex business and promptly meet the reporting requirements of the Bucharest Stock Exchange, Bittnet initiated a comprehensive modernization process of its management system. Since 2013, the company has opted for a Microsoft ERP solution implemented by ELIAN Solutions. The granularity of the data and the visibility of transactions have provided a solid decision-making foundation for Bittnet’s top management, which has now become one of the leading technology companies in Romania.
Bittnet is a group of companies active in the Romanian IT market for over 25 years, positioning itself as a provider of IT training and a systems integrator. In 2015, Bittnet became the first Romanian technology company listed on the Bucharest Stock Exchange (BVB). In recent years, the company has pursued an intensive mergers and acquisitions strategy. Currently, the Bittnet Group operates two major business lines: education and technology, integrating no fewer than 15 companies, with 400 employees and 10 branches nationwide. According to financial reports, in 2022, the Bittnet Group generated consolidated revenues of over 400 million lei, an increase of 25%.
Initial situation
After being listed on the BVB in 2015 and its main listing in 2020, the Bittnet Group experienced rapid growth, further catalyzed by numerous local and international acquisitions. The company reached a high level of operational complexity, compounded by the strict reporting requirements of the BVB. In the early years of its activity, Bittnet used an internally developed ERP system, but as the business grew, a change was necessary. Consequently, the company decided to invest in a more advanced ERP system, both in terms of technology and functionality.
“Initially, we internally built a mini ERP to meet our business objectives. However, over time we realized that we did not have the necessary skills to develop and innovate this product, even though we are an IT company. Thus, we concluded that we needed to turn to a dedicated provider if we wanted a professional ERP system to streamline operations and manage the entire group uniformly,” states Mihai Logofătu, CEO of Bittnet Group.
To select the appropriate solution, Bittnet conducted an evaluation of the specific market, aiming to acquire an ERP system from a major provider that integrated multiple technological innovations. A secondary objective was to identify an implementation partner capable of understanding Bittnet’s specific activities and providing prompt support and maintenance services.
After analyzing multiple solutions and having numerous meetings for presentations and demos, Bittnet chose Microsoft Dynamics 365 Business Central, a cloud-delivered ERP system capable of supporting the management of all business processes, from financial and operational to sales and customer support. At the same time, Bittnet evaluated several Microsoft partners specializing in business solutions and decided to implement the ERP system alongside ELIAN Solutions.
“We chose a Microsoft ERP solution because all the analyses showed it was the best decision. An ERP solution developed on new technology, delivered from the cloud, and with the necessary scalability to support our long-term growth. The references we analyzed indicated costs and implementation time below the market average, and our relationship with Microsoft was a quality one, being partners in the IT infrastructure area. Since we had no expertise in business solutions, we looked for partners recommended by Microsoft for implementing Dynamics 365 Business Central and chose to work with ELIAN Solutions based on their experience and the references presented. In the long run, both decisions have proven to be more than inspired,” adds Mihai Logofătu, CEO of Bittnet Group.
Delivered solution
The implementation of the new ERP system and the modernization of the workflow involved close collaboration between the two companies and the involvement of Bittnet’s Chief Financial Officer. The initial phase of analysis and requirements gathering was essential for building a solution that would provide better transactional visibility and a solid decision-making foundation for top management.
“The objective of the implementation project was to achieve high data granularity, to have access to details, and to better understand the story behind the numbers. This way, we could provide the top management with a basis for decision-making and also obtain the necessary fiscal reports for our relationship with the BVB,” says Adrian Stănescu, CFO of Bittnet Group.
Currently, the ERP solution has over 70 users and covers:
- Multi-company financial management
- Sales and marketing
- Procurement
- Operations
- Inventory
- Project management
- Supply chain
- Stock management
- Internal and regulatory reporting (ANAF, BVB)
“We are an IT company, and we know how important the involvement of the beneficiary is. Therefore, we paid maximum attention to the ERP implementation project right from the start. It was a strategic decision to make Microsoft Business Central the foundation for the company’s development. In this regard, we mobilized to gather requirements from users, identify processes that could be automated, and determine the data sets we wanted to obtain,” says Mihai Logofătu, CEO of Bittnet Group.
To achieve increased efficiency, Bittnet integrated the ERP system with Microsoft 365 Dynamics for Sales (customer relationship management) and Power BI for generating dynamic, self-service reports.
Results
In recent years, the Bittnet Group has experienced rapid growth on all fronts, integrating 15 companies, over 400 employees, and generating a turnover of approximately 400 million lei. The ERP system has become the nervous system of the entire organization, collecting data and providing feedback at both operational and strategic levels.
“Microsoft Business Central now supports the entire financial and operational coordination of the Bittnet Group, from placing orders with suppliers, treasury, and accounting to quarterly financial reporting for the BVB. We have full visibility and control over a huge volume of transactions in a unified and centralized manner,” says Adrian Stănescu, CFO of Bittnet Group.
The business volume doesn’t tell the whole story; Bittnet’s business lines are very diverse, ranging from training, where we train 5-6,000 trainees annually, to IT systems integration with multiple components, solutions, and licenses. The company handles over 10,000 projects annually, each requiring efforts in order placement, equipment and license delivery, preparation of acceptance documents, and invoice issuance, among other tasks.
“We generate a huge volume of transactions, which would consume all our time if we didn’t have the ERP system. However, Microsoft Business Central has allowed us to automate many of the business processes, such as order placement, invoice issuance, and payment monitoring, enabling us to scale our operations without a proportional increase in the Finance Department team. The transaction volume has increased 40 times, while the Finance team has only grown five times,” says Adrian Stănescu.
- Supporting the company’s long-term development through the easy addition of new modules, functionalities, users, and integration with other business solutions.
- Unified financial management across the entire group of companies.
- Granular visibility and control over activities, down to the project, transaction, or even product/service level, to enable relevant business decisions.
- Supporting the quarterly reporting process to the BVB, ensuring compliance with data consolidation requirements and delivery deadlines.
- Time and efficiency gains within the finance department through the automation of multiple workflows and specific processes.
- Flexibility in adding new functionalities and users.
“For me, the main gain is visibility into the depth of the organization. It’s especially important for companies with multiple lines of business and a large geographic spread. Real-time visibility allows us to know where we are at any given moment and to have a deep understanding of what is happening in the company”, Mihai Logofatu, CEO Bittnet Group.
Four years after starting the collaboration and implementing the first version of Microsoft 365 Dynamics Business Central, Bittnet Group went beyond being a customer of ELIAN Solutions and became one of the investors.