Gide AmCham presentation: Enough of complicated spreadsheets
0 likes686 views
The future of financial modelling is evolving to eliminate the use of spreadsheets in the decision making process. AmCham Business & Finance committee organized a seminar for CFOs/Finance Controller/GMs/Owners of companies providing information about two fast growing innovative alternatives to spreadsheets. The growth of errors in spreadsheets and the danger of misleading information delivered to decision makers is causing corporations significant problems. Spreadsheets, which are a single user tool, are not scaleable in collaborative corporate decision making. This workshop gave us an opportunity to see two fast growing innovative alternatives that elegantly address spreadsheet inefficiencies. For more on GIDE Financial Modelling, check out www,mygide.uk
More Related Content
What's hot (14)
Similar to Gide AmCham presentation: Enough of complicated spreadsheets (20)
Recently uploaded (20)
Gide AmCham presentation: Enough of complicated spreadsheets
- 1. Enough of Complicated Spreadsheets Client Story District & Industrial Heating TM
- 2. The Experience Based on a true story 息 2015
- 4. We knocked on the door of the energy division of former state owned coal mine mammoth suggesting they use advanced financial modelling software.
- 5. and we were not welcome.
- 6. Opposite us were 3 people. over 30, 40 and 50
- 7. We pulled out our presentation
- 8. Emphasizing how important it is for good companies to: 1. monitor their business drivers 2. optimize their performance 3. understand where their business is today 4. foresee where it will be tomorrow
- 9. All this in fast changing environment.
- 10. Some 80 % of our business comes from our mother company Pre-agreed pricing, pre-agreed deliveries and purchases more or less the same as have been for the many years.
- 11. Oops!
- 12. And how about budgeting? forecasting? strategic planning? capex? management reporting?
- 13. Then we showed how easy and quick it is to create models, import data from general ledger, produce reports, or change assumptions that would trigger the series of consequential calculations that would alter the future cash flow outlook.
- 14. all this in collaboration within the team.
- 15. Well, we prepare budgets, generate management reporting, run quite extensive capex programs but we have no real issues there
- 16. You cover P&L, Balance sheet, Cash flows, Working capital? Always delivered on time? No mistakes in calculations? Everything all right? Like no issues what-so-ever?
- 17. Well we are happy with what we have.
- 18. And that was the end of our first presentation.
- 19. I spoke about GIDE with our CFO, CEO and Chairwoman of the Board and I think we should meet again. Some weeks later, I got a call from the over 30 head of the Office of Finance. We have some issues
- 20. Our subsequent meetings revealed what was not said during our first presentation but should have
- 21. A few months prior to our first presentation, company finished a big project with consulting firm, changing the structure of their business units. The team was tired of listening to a bunch of consultants who constantly kept telling them what they should have been doing, and the team simply had no wish to prolong such agony.
- 22. Consultants suggested among other things...
- 23. That company splits its 10 plant production structure into 28 industrial business units reflecting the nature of their business in heat, pressured air and power supply and distribution. As the result...
- 24. New Wave of Intragroup Supplies Approx. 10 million in annual intragroup commodity supplies Heat, pressured air, water, and power, including power reserved capacity, power distribution services, power (UHV, HV) power losses.
- 25. In an Already Complex Commodity Mix of approx. value of 100 million. Intragroup supply coupled with Coal, Gas, utility water, waste water, rain water, third party heat, and power.
- 26. Painful Annual Cost Reconciliation Every year team went through tough reconciliation process of commodity supply with its mother company and negotiated the price for supply of its commodities for the following year based on the price of coal supplied by the mother company, and heat, gas and power purchased at the market prices. This for each offtake points and complicated with intragroup supplies and fixed costs originated in the respective business unit and level of distributed overhead expenses.
- 27. Calculated and maintained by one person in his spreadsheets.
- 28. Budgeting Proved More Problematic Than Presented Several stand alone spreadsheet calculations produced in various departments along with aggregated data from the commodity mix and intragroup supplies were copied into one spreadsheet, populating high level budget data only.
- 29. Taking almost 2 months, this painful process often ended in the first quarter of the year, by which time the budget was already prepared - simply because negotiations with the mother company simply were dragging on.
- 31. I personally prefer GIDE over the alternative systems Ive seen because in GIDE I can make everything by myself and do not need to call consultants any time I need to make a change Provided price for GIDE is right
- 32. Today, GIDE is used as financial modelling, budgeting and planning tool, covering...
- 33. 3 companies of which 1 company = 50 models
- 34. Data Structure in GIDE 50 Models 600 Accounts 30 000 Data per period which is an equivalent of approx. 2 million cells in spreadsheets
- 35. Models In GIDE Each business unit has its own financial model linked to other models as appropriate.
- 36. Statements In GIDE P&L, Balance sheet, Cash flows, CAPEX Intragroup supplies Summary and other statements and Pivotal Production Models
- 37. Accounts In GIDE Financial and operational data linked within one holistic consolidated model.
- 38. Periods In GIDE History 3-5 years Monthly Current year Monthly, Budget, Rolling Forecast Following year Monthly, Budget, Forecast Annual 5-15 years plan Adjustable at any time
- 39. Data In GIDE Data types Finance, Commodities, KPIs. Currencies Two currencies models. Efficiencies Commodities, Boilers. Systems MIS, Excel, GIDE.
- 40. Budgeting Process 1. Import data 2. Define indexes 3. Define efficiencies 4. Adjust values if needed
- 41. June Budget Strategic plan Monthly forecasts Available in 1 month
- 42. January Forecast F0 Available in 2 weeks
- 43. Reporting Process 1. Close GL on 3rd day 2. Data imported on 4th day 3. Report ready on 5th day 4. Deadline on 10th day
- 44. Key Events Change of ERP Change from SAP to EBS; no affect on GIDE. Changes in GL Complete changes in General Ledger were made within 14 days. Model Adjustments Routinely small changes in models were made in-house. GIDE vs. MIS Alea Comparison of systems.
- 45. Key Benefits Import & Export Export of data for other systems are done in minutes. Holistic Model Financial and operational data linked within one holistic consolidated model. Traceability Find the last element of the calculation and still see semi-results and final result. No IT admin needed Users, Projects, Models and Snapshots management.
- 47. Thank you for your attention. It would be our pleasure to give those interested a one-to-one demonstration that would address specific issues that you might face in your company.
- 48. Please contact us for more details on GIDE Financial Modelling Michael Stimson Sales Director GIDE International Limited TM mstimson at mygide.uk UK Landline: +44 203 397 9762 www.mygide.uk