Avvale | Best Practices | Circular Formula

We truly believe that digital innovation and circular economy represent the most effective means corporations have to achieve their end of being profitable and sustainable.

Availing themselves of the right technologies, they can bend the traditional linear economic model, based on consumption, into a circular ecosystem, where products and materials circulate at their highest value, as long as possible, and at scale.

Circular business models, based on lease, share, reuse, repair, recycle, can accomplish the mission of decoupling economic growth (revenue) from resource consumption (production) by leveraging smart, connected products and digitally hyper-automated processes across the entire value chain.

To build an adaptable technology landscape that remains competitive, businesses must review their finance area to ensure it’s modernized. Implementing an Enterprise Performance Management (EPM) solution, will inform future strategy, increase workflow efficiencies, and improve financial processes. An EPM solution is an enterprise planning platform that enables forecasting and uses analytics to strategically optimize the financial performance and efficiency of an organization. Key components of this solution include budgeting, forecasting, and financial reporting. This enables you to monitor and predict business performance, set goals, and ensure your company continues to grow. It’s one of the most powerful tools for creating a comprehensive method of financial and operational planning.

Key Features of an EPM

Forecasting within an EPM system

An EPM solution enables forecasting which gives companies the power to predict future trends and potential performance of different departments over a set period. These forecasts can then be used for financial planning, supply chain management, project management, and more. Because of the forecasts, actual activities in specific areas can be monitored more effectively and companies can minimize operational impacts resulting from such differences.

EPM system reporting

From the integration feature, there is no longer a need for multiple reporting systems. Within an EPM platform, a user can combine the data, metadata, and processes from various departments, supplying team members with a centralized data source. Users can view data dashboards and reports securely, as well as access self-service reporting. By leveraging Enterprise Performance Management, companies can connect business strategy with business execution. From the analytics provided, deeper insights influence future business drivers and optimize current processes. This allows companies to assess new revenue opportunities, increase existing profitability, and be agile to business trends.

Collaboration and integration in an EPM system

Within an EPM platform, users can integrate multiple sources of data into a single source of reporting that streamlines operations and eases user experience. There is also the option to have built-in cloud servers to host your company’s sensitive data allowing management to limit employees’ access to certain data. As a result, providing a secure and seamless integration and functionality of vital workflows and processes.

EPM system modeling and planning

Due to pre-built templates and predictive simulations, users can spend less time on processes and more on strategy. The pre-built templates allow you to leverage set finance frameworks that are still customizable to company standards. The pre-built scenarios enable users to create forecast models that plan for possible changes and needs for resource planning, cash flow projections, or material financial impacts. By linking financial and operational processes with financial plans and modeling users get valuable insights and can plan effectively.

The Avvale Commitment

We guide companies in any step of their journey to evolve into the next generation of digital leaders - profitable and sustainable.

Connecting innovative products and services to clients and end users
Hyper-automating business ecosystem collaboration
Leveraging exponential technologies

Mastering digital innovation and circular business practices, companies will structurally improve both the ESG and financial statements.

That’s how we think technology should be used.

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

We believe in the power of a simple equation

Where

Circular Business + Digital Innovation = Sustainable Growth