Lack of visibility across stakeholders
For Konica Minolta's existing budget process, the finance team relied on a fifteen tab spreadsheet that was distributed only to department heads due to security challenges. As a result, the budget process had insufficient participation across stakeholders with no way to track progress on the budget by individual. In addition, because it was impossible to upload certain types of data into their ERP system, they could not produce reports that included disparate information sources such as individual capital expenditures, human resource, and payroll data. Finally, the finance team wanted to eliminate the user errors that were frequent in the current process, including overwritten formulas, errors in assumptions, and version control problems.
"Managers were unable to view their budget data 'rolled up,' until it was loaded to the ERP system, and that only contained account balance data, not support schedule information like personnel or capital expenditures," said Christopher Reale, Director of Corporate Planning & Analysis for Konica Minolta. "The spreadsheet based process did not allow any budget collaboration, as there was only one owner per file, and this really limited our ability to refine the information and come up with the best plan."
More users, more insights
After selecting Adaptive Insights in the summer, Konica Minolta rolled out the solution to 127 users for their annual budget process. They used a one hour web-based training session to showcase how to use the software. During the planning process, they augmented the training with helpful daily tips of the day and posted a user manual on the software’s shared collaboration tab. As a result of moving beyond the limited spreadsheet-based approach to this new cloud-based planning solution, the number of people contributing to the budget process increased substantially.
"After selecting Adaptive Insights in the summer, we were able to quickly get up and running on the software, roll out the solution to budget contributors, and develop an annual budget to submit to our parent company in Japan before the end of the year," said Reale.
33% decrease in budgeting process duration
Adaptive Insights provided Konica Minolta with a web-based tool that would allow more people to participate in the budget process. It also tightened control over the process by delivering a model with assumptions and key data already defined within the software. Errors have been reduced substantially and the finance team spends more time evaluating the budget from a strategic and operational standpoint, rather than spending their time on manual consolidation and error correction. The reports available within Adaptive Insights offer a sophisticated view of their business and once a template is created are available instantaneously. The duration of the budget process decreased significantly—by over 33%. In addition, they reduced 1.5 people within the Financial Analysis team due to the implementation of the system, so the ROI was immediate.
"The biggest benefit of using Adaptive Insights has been the ability to produce reports," said Reale. "It is much easier to create key management reports now because Adaptive Insights is the only place in the organization that houses data across all platforms, including headcount reporting, unit sales, and service revenues based on the number of machines in the field. Now, managers can view data in a roll up format and create their own reports, as well as collaborate across the organization."
The introduction of Adaptive Insights was the first major change in the budgeting and reporting process in six years and enabled Konica Minolta to address participant concerns and business needs that had been voiced over that period. It created buzz and excitement for the planning process. It also allowed a broader scope of users to have access to the budget and participate in the financial planning process, which created a greater sense of buy-in.
"Adaptive Insights is easier to use than spreadsheets and more accurate," said Reale. "We achieved an immediate ROI through the reduction in staff and time spent on the process. Adaptive Insights’ what-if scenario modeling capabilities are far superior to Excel and we now have a greater degree of visibility into budget items and the details behind those items throughout the organization."