Efficient data management in controlling
A case study on indicator harmonization
In the modern business world, precise and consistent data lays the foundation for sound decisions and successful strategies. It plays a key role in controlling, because the indicators calculated in this context are vital for managing and evaluating a company’s performance. But what happens when the figures for a given indicator vary in different reports, despite being based on the same data? Confusion, inefficient processes and, in the worst case scenario, wrong decisions. AMAG’s Controlling department engaged with the topic of efficient data management at an early stage. In 2012, it introduced LucaNet: a system that facilitates centralized access to indicators.
Same indicator, different figures
In the past, different companies in the AMAG Group produced reports by conducting their own calculations and making their own interpretations of the same indicators.
The need for standardization
It became clear that data and reporting required standardization to eliminate inefficient processes. While this meant introducing a standardized calculation method for relevant indicators, it also required the creation of a central system to make sure that all departments have access to the same data pool. The aim is to ensure consistent and transparent reporting, thereby supplying decision-makers with reliable information and increasing the efficiency of reporting processes.
Introducing the new data management process
A standardized data recording system has been implemented to solve this problem. Revising the data collection process proved particularly important, particularly the question of what data different departments would provide and, above all, when. The first step was drawing up a register of source data. In the “new” data management process, specialist departments calculate indicators and send them to Controlling. The Controlling departments record all of this data in a central system (LucaNet). Standardized templates with links to LucaNet prevent copy-and-paste errors in Controlling. LucaNet is a software solution specifically developed for financial planning, consolidation and controlling activities with the aim of ensuring a consistent, robust data pool. It facilitates the centralized storage, consolidation and preparation of all relevant data for reporting purposes. In many cases, effective data harmonization relies on precise definitions. Definitions, standardized templates and precise procedures (regarding which data is supplied and when) were developed in close collaboration with specialist departments and documented in the Controlling Manual. Moving from manual calculations to automated processes has increased efficiency and reduced resource consumption. The data pool now ensures consistent and transparent indicators, which can be centrally sourced from LucaNet for use in publications. With this in mind, the structure of centralized monthly data recording is primarily oriented towards the financial report and the non-financial statement (i.e. ESG).
Main benefits of the improved data management process
Storing data centrally in LucaNet facilitates seamless traceability of data sources and calculations, which represents a real benefit for auditing purposes. The company’s annual reports demonstrate the importance of standardized definitions and indicators. Another software solution, firesys, makes it possible to integrate centrally stored data (in LucaNet) in Excel and Word. This means that high volumes of data tables, diagrams and figures can be updated efficiently and precisely within documents - at the touch of a button. In a nutshell, the main advantages of implementing a data management process lie in eliminating manual calculations and avoiding duplicated data recording.
LucaNet interfaces make it possible to upload, filter, sort and evaluate data. In addition, the central platform allows multiple users to access the same data simultaneously and process it efficiently. Introducing standardized processes and using modern systems like LucaNet and firesys has significantly improved the quality of reporting at AMAG.
The success of this project demonstrates the importance of consistent, well-organized data management in our Controlling department - an essential part of successful business management.
