Challenge: Inter IKEA, a global leader in furniture and home goods, faced inefficiencies in its financial planning processes. The business navigators had long relied on yearly, year-to-date planning using outdated tools like SAP BPC (Business Planning and Consolidation) and Excel. The approach was limiting in providing timely insights, establishing new trends, and optimizing financial performance. Inter IKEA needed a shift towards more dynamic, periodic planning to better manage resources and track financial trends more accurately.
Solution: Inter IKEA collaborated with cpmview to implement SAP Analytics Cloud (SAC) for more efficient and accurate financial planning and analysis. The primary goal of this initiative was to enhance Inter IKEA’s insight into its financial performance and optimize planning processes by shifting from year-to-date to periodic planning. By selecting SAP Analytics Cloud, Inter IKEA aimed to leverage cloud-based tools to minimize IT dependency while integrating existing systems, like SAP BPC.
The solution was tailored to meet Inter IKEA needs:
- Granularity of Data: Focusing on the profit and loss statement and FTE (full-time equivalent) tracking, the SAC implementation provided Inter IKEA with valuable proof of concept for future scalability.
- User Experience: Given that many users were not technologically proficient, the solution involved customizing the interface for ease of use and integrating JavaScript for advanced data applications.
- Periodic Planning: Shifting from yearly to periodic planning enabled Inter IKEA to better forecast and manage cash flow, investment periods, and large expenditures.
- Seamless Integration: SAP Analytics Cloud was connected natively with SAP BPC to consolidate forecast data, ensuring continuity with Inter IKEA’s existing processes.
Implementation: The project followed an agile methodology, with multiple sprints and continuous user feedback loops. Cpmview worked closely with Inter IKEA to ensure alignment on business requirements, performance expectations, and user needs. Key users were regularly involved in demos and training sessions, contributing to a smooth change management process.
Results:
- Improved Insights: The periodic planning system revealed gaps in Inter IKEA’s existing financial processes, such as incorrect accounting entries and misaligned forecasts. SAC allowed Inter IKEA to address these issues in real time, providing clearer insights into business performance.
- Enhanced Accuracy: With actuals brought into the planning tool, Inter IKEA could better align forecasts and analyze business performance. This led to more accurate cash flow and expenditure tracking, improving decision-making for large-scale investments.
- Streamlined User Experience: The customized interface, combined with SAC’s cloud-based accessibility, ensured that non-technical users could easily work with the tool. Despite some performance concerns related to hardware and network speed, users adapted well to the system, particularly with SAC’s flexibility and power.
- Efficiency in Governance: Though Inter IKEA could not directly control the source system errors, the integration of SAC improved governance within their planning process by clarifying responsibilities and improving data management protocols.
Conclusion: By implementing SAP Analytics Cloud with the help of cpmview, Inter IKEA significantly enhanced its financial planning capabilities. The transition to periodic planning provided deeper insights into their financial operations, allowing for better forecasting and resource allocation. Through this strategic partnership and innovative technology, Inter IKEA is now better equipped to navigate its complex financial landscape and future-proof its operations.