Problem Definition :
A large listed Indian infrastructure company was facing a crisis with time delay in Performance Report generation. Instant Performance Report generation was essential for the Senior Management to assess the company’s performance on a real time basis, which they were unable to do. The client approached Align Associate to come up with a solution to overcome the problem.
Team members of Align Associate had to spend sufficient time to assess the problem in detail. It was found out that the accounting entries were extracted to Excel from SAP. MIS reports were generated based on these accounting entries and presented in powerpoint to the Regional Managers. The procedure followed by the Client to generate the Company Performance Report was complex in nature and was also often time consuming resulting in more than a month delay in submission of the performance reports to the Management.
Also, it was observed that the accounting entries were not accurate when data was extracted to excel. As a result, hasty decisions were taken by the Senior Management based on the previous month’s erroneous data leading to problems for the client. Once identified Align Associate worked towards putting in a comprehensive solution.
To address this issue, Align Associate had recommended the client, to utilize its proprietary tool – “Analyst” to generate company performance reports from SAP on a real time basis in the following scenarios :
• It was found difficult to predict the key performance metrics of the client such as net profit for the current month, without taking into account the indirect expenses such as employees’ salary which is credited towards the end of the month. Analyst tool was used to accurately predict these expenses based on slight assumptions and adjustments made in previous month overall salary expenses. Hence, based on the above, company performance reports could be generated on a real time basis during the month and interpreted by the senior management with ease.
• Senior Management required Monthly Company Performance reports with duly closed accounting entries for Monthly Review Meetings (MRM) to take constructive decisions. Actual Monthly company performance reports were available by the 4th of following month for evaluation by the senior management using Analyst tool.
Adoption of the Analyst tool by the Client to generate company performance reports took only six months due to its accuracy and efficiency. The client was able to closely monitor company performance reports with ease during this period and take action.
Challenges Faced :
• In the initial stages of the project, the client had provided enormous chunks of data to Align Associate consisting of 10000 tables with 200 fields in each table. This was one of the reason causing time delay in company performance report generation. Team members at Align Associate had to use their extensive knowledge of Analyst tool and Oracle to reduce the number of tables from 10000 to only 15 required tables.
• In depth knowledge of finance and accounting was required to assess the problem and generate company performance reports on a real time basis in contrast to the time delay in report generation previously.
The client, after initial reluctance and hesitation, realized the importance of performance report automation using Analyst tool. Business derived the following significant benefits with the help of Analyst tool :
• Easy to generate, temporary, accurate company performance reports at any point of time
• Time reduction in generation of actual monthly company performance reports from 1 .1/2 months to just 4 days
• Constructive and proactive decision making based on latest reports
• Eradication of Accounting errors during report generation
Please contact Align Associate for exploring possibilities of providing your organization similar support.
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