TDC use Jedox to ensure a more efficient planning and forecasting process
Customer Succes Story
How Jedox supported TDC with driver based budgeting and forecasting
Pic – landscape – high resolution
Customer
TDC Group
Region
Denmark, EMEA
Industry
Telecommunication
Department
Finance and Business operations
The solution
Jedox Enterprise Performance Management (EPM)
System Environment
SQL DataWarehouse, Jedox
Executive Summary
TDC wanted a new planning and forecasting system that dynamically could support the local business controllers and the group finance functions. The local business controllers used many large Excel spreadshets which are risky and time consuming. To be able to reduce risk and time when planning and forecasting a global Gross profit model was developed in Jedox.
The Organisation
TDC Group is the incumbent telecommunication provider in Denmark and is the merger of 4 regional telecommunication providers in 1990s.Today the company is split into the backbone provider TDC Net and the service provider Nuuday. TDC Group employs app. 6.500 people.
Business Challenge
TDC is in a very competitive and dynamic evolving business area with rapidly changing market conditions and at the same time the existing budget and forecasting system in TDC was more than 20 years old and not supporting the local preparation of the budget and forecast . TDC wanted a new planning and forecasting system that dynamically could support the local business controllers planning and forecast preparation and the group finance functions.
The local business controllers used large Excel spreadshets for planning and forecasting for each product area. The many spreadsheets contained in many different setups i.e historically subscription volumes, churn rates, new adds, ARPU calculations (average revenue per user) and COGS. Furthermore, in many different mathematical ways the business controllers made predictions and manual adjustments in the product area spreadsheets. The many handheld local spreadshets was a risk in itselves as they were very person dependend and made planning and forecasting very time consuming.
Driver based gross profit modelling replacing +120 local spreadsheets
To be able to reduce risk and time when planning and forecasting a group Gross profit model was developed in Jedox. As part of the standard model it is possible for each product area to configure i.e. mathematical calculations. The gross profit model automatically contain the relevant data from data integration with SQL datawarehouse. Furthermore, the model automatically calculate historical driver values and it possible to predict future driver values.
As part of the new planning and forecast model an OPEX, Salary and P&L model was prepared. The OPEX model enable both driver based forecasting and account budget and forecast specifications. The salary model enable budgeting and forecasting at employee level with a very detailed specification of employee cost drivers. The P&L model consolidate the Gross Profit model, OPEX model and the Salary model taking internal trade into account.
Internal invoicing engine supporting the split of the company
As part of splitting up TDC Group into TDC Net and Nuuday, TDC Group needed a system to ensure internal billing processes between the 2 companies. TDC already used Jedox for
Group planning and forecasting. TDC decided to built an internal invoicing engine in Jedox ensuring the monthly internal invoicing process. Furthermore, as part of the invoicing model an internal invoicing planning model was also implemented. The Jedox internal invoicing engine supported a rapid and dynamic way of implementing an internal billing process.
Providing a platform for further automated forecasting using advanced statistics
With Jedox already delivering budgeting and forecasting TDC Net and Nuuday respectively have the platform for preparing automated rolling forecast which regularly can be supported by manual work flow managed adjustment processes.
Why Jedox?
- Powerful Jedox toolset has enabled TDC to produce forecasts at bi-weekly intervals – up to 6x faster than its previous quarterly cycle
- Innovative, top-down forecasting model takes advantage of Jedox’s powerful rolling forecasting and scenario modelling capabilities
- With the Jedox engine receiving updates from across the TDC business, and presenting monthly forecasts via Power BI, the company’s Finance team now has more time to focus on higher value activities
With offices in Copenhagen and Riga, Qbit has over 15 years’ expertise in digitizing and optimizing enterprise performance management solutions for the Finance function. Qbit is an award-winning Jedox partner and holds Diamond Certified Partner status.
“Jedox has helped TDC to get a more efficient planning and forecasting process.”
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