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Seamless Management of 40,000 Contracts: How Oi Revolutionized Financial Operations
While they expertly deliver innovation and quality to their customers, Callaway Golf’s previous planning and reporting tool wasn’t making the cut. To evolve their enterprise, the sports giant decided to replace their outdated planning software with SAP Analytics Cloud for planning.
Together with Avvale, Callaway Golf successfully implemented SAP Analytics Cloud across their global enterprise in just 6 months. Now, Callaway Golf has a single, consolidated planning solution that has enabled streamlined expense and asset plans so they can focus on what they do best– revolutionizing the sporting world with cutting edge equipment.
Oi, one of Brazil's leading telecommunications companies, has grown from a local operator to one of the country's largest providers. Its portfolio includes fixed telephony, broadband, and pay-TV, with a focus on innovation and high-quality connectivity. Oi uses advanced technology to ensure efficient, secure services and has a nationwide infrastructure. The company is also committed to sustainability and social responsibility. Oi’s evolution highlights its significant role in Brazil’s telecommunications sector.
The Challenge
Oi urgently needed to migrate its Hyperion Financial Management (HFM) system from Oracle, which was out of date, had expired licenses, and was no longer supported by the vendor. In addition, there was a critical demand to optimize the loading and optimization of processes without significantly altering the established workflows familiar to users.
A significant challenge was also to comply with the accounting standard CPC 06, which regulates the management of leases and rentals. To address this, Oi decided to expand the scope of the work by implementing the IFRS 16 solution, which aligns with international accounting standards for leases.
The Approach
Avvale began by conducting an in-depth assessment of Oi’s existing financial processes to fully map out the migration path. This analysis guided the development of a comprehensive work plan, ensuring minimal disruption to established operations.
In close collaboration with Oi’s financial and security teams, Avvale facilitated the migration to Oracle EPM Cloud, with special attention to enhancing process efficiency while maintaining familiarity for the users. Throughout the project, Avvale provided best practice recommendations, streamlining financial operations and aligning them with market-leading governance standards.
The implementation of Oracle’s IFRS-16 solution was also crucial in managing Oi’s vast portfolio. In partnership with Oi’s security team, Avvale ensured compliance with SOX requirements, addressing any concerns related to security, access control, and interface usability.
The Challenge
Before integrating SAP Analytics Cloud, Callaway Golf's planning landscape centered around SAP's legacy planning solution, Business Planning and Simulation (BPS). While BPS met Callaway Golf's planning needs for many years, the enterprise began to experience limitations with their old solution:
- Disconnected plans across the board: As Callaway Golf expanded and acquired new brands, planning processes greatly differed across the enterprise with some business units using Excel spreadsheets and others using legacy solutions for planning.
- Outdated planning functionalities: The existing legacy planning solution lacked many modern functionalities. Among them, salary calculations and asset depreciation automation needed improvement. As a result, it became difficult to create detailed and accurate forecasts across the globe.
- Significant IT support: The legacy solution required continuous management from IT to maintain runtime. IT had to carve out a full day every week to manually maintain the solution.
- No single source of truth: Various departments and brands used different data sources, which led to data silos across the organization, making it difficult to gain a clear picture of the enterprise's planned expenses.
- Rigid user interface: Legacy forecasting system was difficult to navigate and lacked working functions and calculations across the board, such as planning on depreciation and existing assets, adding vendors or members on the fly, and breaking down their cost center expense planning forecasts.
The Approach
With Avvale experts on their side, Callaway Golf laid out the following goals for their new planning landscape with SAP Analytics Cloud:
- Crowdsource and consolidate plans across the enterprise to gain a global overview of their planned expenses and expand the input capabilities to each responsible owner.
- Leverage elevated planning functionalities to create faster and more accurate forecast cost center expense and asset reports. The ability to customize calculations enhances and automates the reporting metrics.
- Harness the power of self-service analytics to alleviate IT from the burden of simple maintenance and data entry requests, so they can focus on high-ROI tasks.
- Maximize user-driven admin capabilities to control the management of calculations and forms.
- Create new KPls driven by the business needs.
When SEM-BPS was the center of Callaway Golf's planning landscape, flexibility was a huge factor that was missing. SAP Analytics Cloud contains powerful scenario planning capabilities that help organizations quickly uncover actionable insights to make data-driven decisions. For Callaway Golf, SAP Analytics Cloud's modern planning functionalities provided users with the ability to:
- Add members on the fly
- Plan on existing as well as planned assets and automatically calculate the depreciation of values
- Test "what-if" scenarios for deeper analysis by creating private versions of plans
- Customize the solution based on their current business process
- Perform driver-based calculations
- Empower users to execute end-to-end planning scenarios, without the help of IT
The Impact
After Avvale's implementation, Oi improved the speed and accuracy of its closing process by reducing manual errors and simplifying operations. The automation of IFRS-16 processes enhanced governance for managing over 40,000 rental and leasing contracts using a robust market-leading tool. Oracle Financial Consolidation and Close significantly modernized corporate consolidation, reducing database update time from 40 minutes to just 2 minutes, and streamlining financial reporting for faster, more secure decision-making. Reports are now directly sourced from the application, minimizing errors. The cloud version is increasing process maturity, with further improvements expected. Additionally, infrastructure costs were optimized by shutting down five physical servers.
