Use Case
Introduction of a Group-Wide End-to-End Margin Calculation
The Company
The company is one of the international market leaders for connection technology.
The Initial Situation
The customer's reporting system focused almost exclusively on the legal financial statements. A uniform and centralized internal reporting system across all national companies, which discloses profitability (income - expenses) across various management-relevant dimensions, had not yet been introduced. Due to the lack of transparency, it was therefore not possible for the customer to manage resources across the entire company in a targeted, coordinated and efficient manner.
The Approach
- First, the business models and the underlying value creation were analyzed together with the customer and a group-wide analysis model for a contribution margin calculation and a product profitability report was developed. The concept was confirmed with a proof-of-concept for an individual company and a pilot was defined for the roll-out (8/36 companies).
- Fit-gap analyses were conducted with the individual companies to reveal and close gaps between central requirements and local accounting standards. In parallel, interfaces to the ERP systems of the pilot companies were implemented and transferred to a central data warehouse. In the central data warehouse, the logic of the new analysis model was built and extensively tested (including data transfer from local ERP systems).
- To control the new model, central reports were made available in Microsoft PowerBI and tested with various stakeholders before going live. In parallel, training sessions on the new analysis model and the reports (local/central) were designed and conducted.
- The final step was the handover to the responsible customer employees, the go-live and a hypercare phase to support the customer after the go-live.
4C Use Case: Integrated Reporting
Introduction of centralized, company-wide internal reporting for profitability analysis.
Your Benefits
Global analysis of profitability from the group to the individual product level via standardized, centralized reporting with harmonized KPIs across all individual companies. Business decisions can be made centrally with regard to the overarching corporate strategy through sustainable analyses in order to deploy resources in the most targeted and effective way.
