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%.