Digital Transformation Use Cases
Here are two stories that illustrate how digital transformation can be applied effectively to improve Planning and Analysis processes. View our use cases below for Expense Planning and Demand Planning.
A $500M in revenue law firm uses 3 separate General Ledger (GL) systems, and 9 separate cost centers. Each cost center manager is asked to submit an annual expense budget which includes personnel employment costs, travel and entertainment expenses and professional development expenses. Each of these expense categories has underlying detail. The process begins in early September each year when the Finance team extracts 8 months of actual data from the 3 GLs in US Dollars, maps the expense data to a shared global chart of accounts, and combines it with the latest Forecast for September thru December to get a full year estimate for the current year. This data is provided to each of the 9 Cost Center managers to use as the starting point for the next year’s budget. After the Cost Center managers complete their submissions in US Dollars, the Finance team works to consolidate all the submissions to arrive at a consolidated US Dollars expense budget which is reviewed by Senior Management in October, which may lead to another round of submissions and review.
Prior to digital transformation, which included the purchase of a planning software platform, all the data manipulation, collection and aggregation took place in Excel spreadsheets. Check out these case studies: Stein Mart, Credit Suisse.
Some highlights from the digital transformation process are illustrated below:
A $300M revenue distribution company is a purveyor of office supplies and office furniture to retailers. They manage an inventory that includes up to 5,000 product items (Stock Keeping Units, or SKUs), that are distributed from 3 warehouses spread around the United States. The SKUs roll up into about 100 Product Categories, which is the level at which the weekly sales forecast is created at.
The process involves extracting historical SKU level unit and price data for the past 52 weeks from their ERP system. These data are then summarized to the 100 product categories, for planning to begin.
Prior to digital transformation, which included the purchase of a planning software platform, this was a laborious spreadsheet-intensive process, that always seemed to fall short on accuracy. Check out these case studies: Safelite, JLG.
Here are highlights from the first iteration of the digital transformation process in this case: