This company was using over 20 applications to perform the external and internal financial reporting for its 300 subsidiaries. The process was slow, intensely manual and costly. Reconciliation of the activity between subsidiaries was difficult. The move from a regional management model to a global business line management model necessitated a deeper exchange of information on sales, margins, costs and other key measurements. The introduction of EVA (Economic Value Added) also called for a strengthening of the financial systems.

Our principal led the project as financial systems director of the company.

Mornington designed a data model and a systems architecture to support all financial reporting requirements out of 1 application. We also reviewed existing software products and selected the best solution. SAP R/3 FC was selected. The installation of a global wide area network covering 110 submission points for the 300 subsidiaries was started, building on a partial network used for e-mail. A worldwide new chart of accounts was implemented. All legacy general ledgers were linked to a shell automating data acquisition, control, error correction and feedback. New financial reports were designed.

The company installed the software and trained 400 users worldwide. The operation of the system was outsourced to a major hardware supplier.

The project being completed, access to worldwide financial data is now provided to all business units. Resources needed for financial closing were reduced by over 50%. Closing time was reduced by 3 – 7 business days. Inter-company reconciliation was automated. Accounting practices were simplified. The cost of information technology was reduced by over 60%.