ESTEVE (www.esteve.com) is a global pharmaceutical company with headquarters in Barcelona. Its mission is to advance in innovation to improve people’s lives and, since it was founded in 1929, its focus has been to provide solutions for unmet medical needs. The company is engaged in a transformation journey to become an international specialty pharmaceutical company.
ESTEVE currently has presence in Europe thanks to its pharma affiliates in Spain, Germany, France, Portugal, Italy and UK and its own production centers dedicated to the development and manufacture of active pharmaceutical ingredients in Spain, Mexico, and China, as well as a pharmaceutical plant in Germany.
ESTEVE, requires the evolution of its Budgeting, Forecasting and Strategic Planning model to adapt it to its new challenges and to an increasingly changing reality (uncertainty, inflation, increased competition, etc.) which requires a more agile way to provide insights to the business.
The current Budgeting, Forecasting and Strategic Planning model is highlighted by the following elements:
Transformation
From NTT DATA Digital Finance, we help CFOs and corporate controllers in the review of their business insights generation processes, with an E2E vision, from definition to implementation.
A new model has been designed based on the guidelines set by the company by a multidisciplinary team of experts from ESTEVE’s FP&A, IT and NTT DATA Digital Finance, resulting in three main blocks of initiatives.
A. CONNECTED:
• Homogenization: Unification of structures and granularity of insights of the Budget and Forecast management P&L, to facilitate their generation and comparison.
• Enrichment: Incorporation of new analytical dimensions, to meet business needs in relation to performance analysis.
• Middle-Up: Middle-up and automatic break-down approachfor forecast and strategic plan generation, resulting in the release of time and resources of the FP&A area.
• One Tool: Unification of all processes under a single tool, to facilitate the adoption by the business areas.
• Integration: Integration of operational KPIsfor process generation, to integrate operative planning with the budgeting and improve data quality and uniqueness.
• Monitoring: Homogenization of the process tracking workflow, to facilitate its monitoring and E2E vision.
B. AUTOMATED:
• Driver Allocation: Automatic cost distribution based on allocation drivers, to improve the accuracy of profitability analysis.
• Digitalization: Digitalization of the Capex Management and Workforce Planning processes, to centralize the information and enhance collaborative work.
- Automatic generation of unit costs and price lists by product, to streamline the process.
- Automation of the Forecasting process, Working Capital, and Cash Flow, to free up FP&A resources for analysis tasks.
C. SMART:
• Thresholds: Monitoring and management of deviations based on critical KPI thresholds, to proactively identify trendsand reduce reaction time.
• Analysis: Comparison of insights among all processes(Actual, Budget, Forecast and Strategic Planning), to facilitate deviation analysis.
• What-if: Simulation of multiple scenarios basedon deviations of critical variables, to improve predictive and prescriptive analytics.
• Self-service: Dynamic dashboards of operational KPIs and self-sufficiency in the generation of ad-hoc reports, to encourage autonomy.
• Predictive: Incorporation of advanced analytical capabilities for the automatic generation of Forecast, Strategic Plan and Cash-Flow, to increase accuracy.
Adoption
Key considerations to ease the adoption process:
• Definition of a global template to be adopted across the whole organization (geographies, business areas, etc.).
• Modular implementation and deployment prioritizing satellite solutions releases before complete budgeting process can be performed in the new tool.
• Progressive testing and training plan by key user groups.
