Case study
Atlas Copco: unifying financial consolidation across a global enterprise
Faster collection of information, a higher quality of data and better analyses. These are some examples of what Atlas Copco has experienced following the implementation of a new common system for operational and group consolidation. As part of the same project, the processes for legal and operational financial reporting have also been improved and combined.
Overview
The Challenge
The legacy consolidation system was outdated, unstable, and unable to support modern financial demands. Multi-dimensional analysis was nearly impossible, and reporting processes were fragmented. Legal and operational reporting relied on separate tools, with many units building their own local applications. Manual tasks added to the complexity, making group-wide consolidation slow and error-prone.
The Solution
Atlas Copco partnered with Otisco to implement a centralized consolidation system for both operational and legal reporting. We helped streamline core processes and standardized the chart of accounts across entities. The result was a unified platform that reduced redundancies and simplified workflows for finance teams globally.
The Result
Faster collection of information, a higher quality of data and better analyses. Operational reporting is consolidated in four days instead of five and a half, and currency conversion takes 30 minutes instead of seven or eight hours. Finance teams now operate on a common platform with consistent standards and better insights.
A global group with a long list of requirements
Atlas Copco is a multi-national industrial group with over 30,000 employees worldwide. With three business areas, 19 divisions, independent sales offices in 80 countries and a countless number of operational units, financial consolidation and reporting is a challenge at the best of times. Atlas Copco had deliberately not upgraded the previous system as a decision had been taken to go for a different solution. Time was running out as the support for the old system became obsolete.
When the decision was made to invest in a new system, the list of requirements and improvements was considerable. Keeping the list of requirements down was one of the prerequisites for the Belgian–Swedish project group who took on the project.
“It wasn’t just about changing systems. The project also largely consisted of implementing process changes. By using ‘work status’ connected to validation of the account, we have been able to move down the responsibility for data quality to the reporting unit itself.”
Sofie Luyten, Systems Manager, Atlas Copco
Legal and operational reporting together
In addition to having access to a modern system with the future mapped out, one of the main goals of the project was to unite the legal and operational reporting.
“Our aim was to be able to report everything correctly, on one single occasion, and that the operational reporting would then sum up to the legal reporting.”
Sofie Luyten, Systems Manager, Atlas Copco
A set of reporting codes and a single combined operational and legal structure were introduced to consolidate these “two worlds”. Atlas Copco’s expectations were that a new system and new processes would result in better opportunities for multi-dimensional analysis, which would eventually lead to better decisions. In addition, the company was anticipating a faster and more stable system.
A user-friendly system, and Otisco's specialists
Following a comprehensive evaluation of systems from various suppliers, Atlas Copco chose a system with Excel as its user interface.
“The advantages of choosing a system with Excel as its user interface, is that it reflects the daily operations within the finance departments. Our over 800 users are, quite simply, used to working this way; they think the system is user-friendly and it’s easy to get an overview of it all.”
Sofie Luyten, Systems Manager, Atlas Copco
In addition to an internal project group with representation from all business areas within the Group, Atlas Copco asked Otisco for help implementing the new system and the new processes. Otisco’s consultants contributed their specialist competence in fields such as system design, training, logic calculation and data integration as well as their significant experience of working closely with both group accounting departments and other financial departments.
During the project, seven reporting applications were developed in the system, in order to support the requirements from both group accounting and the operational side:
- Sales & Gross Profit
- Finance
- Specifications (legal)
- Specifications (operational)
- Intercompany Matching
- People Management
- Hire Fleet
Training as a success factor
Once the difficult job of developing the specific functionality and the sophisticated calculation models which Atlas Copco required was completed, one aspect, which was perhaps the most important of them all, still remained.
“In significant process changes, the most important success factor is to get everyone on board. Therefore, we decided to put a lot of effort in to training and support.”
Sofie Luyten, Systems Manager, Atlas Copco
Before the system went live in the summer of 2009, there was an ambitious training program with 850 users from 80 countries around the world. In order to effectively reach as many users as possible, the “train-the-trainer” principle was applied, where members of the original project group spread their knowledge onwards to others. At the same time, a support function was established which was spread over three continents, to support users in 22 time zones.
Following a long and arduous implementation process and rigorous tests, the system was finally put into operation in July 2009 – with no fanfare or any significant issues.
The effort was worth it
The operational and legal reporting is now done in the same system. Atlas Copco can reflect on a successful system implementation that has enabled better, quicker and simpler business follow-ups.
“Now we can consolidate the operational reporting in four days, instead of the five and a half days or so that it used to take. This enables us to better analyse and quality assure the information, and to simply do a better job. The new system has allowed us to reduce the manual element. Perhaps the most noticeable factor is when it comes to currency conversion. The process used to take up to seven or eight hours. Now we can complete it in 30 minutes.”
Jon Johnsson, Group Controlling, Atlas Copco
“We have improved both validation and reports. This makes it easier to find any errors in the figures. The quality of the data is better, as the various companies themselves can reconcile their own figures in the system directly. At the same time, we in Group Controlling & Accounting have better control of the work flow.”
Kerstin Thyr, Group Accounting, Atlas Copco
“Group management is satisfied. They are happy that we now have a platform that will last for the future. They have also discovered that they can get quicker and better responses to their questions. This will finally lead to better decisions. It was a tough project, but it paid its benefits.”
Anders Pehrsson, System Owner and Group Controller, Atlas Copco
About Atlas Copco
Atlas Copco is a world-leading supplier of productivity solutions for industry, with products and services such as air and gas compressors, generators and construction equipment, industrial tools and installation systems. At the time of the project, the Group had a total of 30,000 employees and income of SEK 64 billion (2009). Atlas Copco was founded in 1873 and is listed on the Stockholm stock exchange.
Prefer to download? Get the full Atlas Copco case study in English. Photos: Atlas Copco.
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