How Alteryx Revolutionized Financial Data Management for an FMCG Giant: A PangaeaX Case Study
Table of content
Data Analytics in Finance
The Importance of Data Analytics in Finance
Alteryx: Game-Changing Tool for Streamlining Financial Processes
Overview of the Business Case
The Working Solution
Benefits Achieved
Conclusion
Data Analytics in Finance :
In today’s fast-paced business landscape, data analytics is becoming a cornerstone of success, especially in the finance sector. More organizations around the globe are tapping into the power of data analytics, not only to streamline their internal operations but also to gain a deeper understanding of their customers. This shift enables leaders to make informed decisions that lead to better business outcomes.
So, what is data analytics? In simple terms, it’s the practice of interpreting raw data to drive improvements within an organization. As Thor Olavsrud, a contributor to CIO, aptly states, “The chief aim of data analytics is to apply statistical analysis and technologies on data to find trends and solve problems.”
The impact of data analysis stretches across various industries, but it’s particularly transformative for financial institutions. These organizations often find themselves swimming in vast oceans of raw data. When used effectively, insights gleaned from financial data—like purchasing behavior and credit card transactions—can be incredibly valuable. They help companies navigate complex challenges, spot emerging trends, and make strategic decisions that resonate with their customers.
As we move forward in a data-driven world, it’s clear that embracing data analytics is not just an option for organizations but a necessity. By harnessing this powerful tool, businesses can not only thrive but also build stronger connections with their customers, ultimately leading to greater success.
The Importance of Data Analytics in Finance
The uncertainty brought on by the coronavirus pandemic has only heightened this need. As Bassem Hamdy, author of The Importance of Data Analytics in Finance, puts it, “The lighthouse in this uncertainty is the ability to use advanced data analytics to better manage financials.” When companies can effectively forecast cash flow and execute their strategic financial goals, they position themselves to serve their markets and clients for years to come.
Hamdy emphasizes that a solid financial strategy begins with a clear understanding of a company’s true financial position. This means being able to answer critical questions using operational and financial data—rather than relying solely on intuition. This is where financial data analytics professionals play a crucial role, helping organizations navigate complexities and make informed decisions that drive success.
Alteryx : game-changing tool for streamlining financial processes
Alteryx is transforming financial operations by automating complex data tasks and streamlining workflows. It allows finance teams to quickly gather, analyze, and visualize data from multiple sources without needing extensive coding knowledge. Key benefits include:
- Automation of Repetitive Tasks: Reduces manual effort by automating routine processes like reconciliations, forecasting, and reporting.
- Data Integration: Easily connects disparate data sources, allowing for seamless analysis.
- Advanced Analytics: Empowers users to perform predictive analytics, enabling better financial planning and decision-making.
- Time and Cost Efficiency: With automated processes and faster insights, finance teams can focus on strategy rather than manual tasks, resulting in cost savings.
Alteryx helps businesses optimize their financial processes, drive efficiency, and gain deeper insights, making it an essential tool for modern finance professionals.
Overview of the Business Case
Alteryx has truly been a game-changer for many of our clients, allowing them to streamline their processes and save valuable time.
In this instance, we partnered with one of the world’s leading international FMCG companies, which faced a complex challenge involving various financial datasets. These datasets included vital components like profit and loss (P&L) statements, balance sheets, regional expenses, and product-wise financial data. The main goal was to combine these diverse sources into a cohesive format that would allow for detailed analysis from multiple angles.
The challenge was significant: how do you merge data from over ten separate entities, each with its own P&L distributions across different products and regions? The task required us to drill down into the data to uncover insights that would help the company understand its financial health.
To make matters even more complex, the company needed to dynamically map key performance indicators (KPIs) based on historical data. This real-time mapping was crucial for generating accurate reports.
Our end goal was to create a comprehensive data mart that not only included in-depth financial analysis but also provided the foundation for profitability reports. This integration was essential for the company to gain clarity on its operations and make informed decisions moving forward.
business Challenges
The journey to effective financial analysis was fraught with significant challenges for our client, a leading international FMCG company. The complexity of their operations demanded a robust approach to data management, and several key issues arose:
- Managing Multiple Datasets: The company was dealing with over ten separate entities, each generating its own datasets. This fragmentation made it difficult to compile a unified view of financial performance, complicating the analysis process.
- Distribution of P&L Data: The profit and loss (P&L) data was not only extensive but also spread across various products and regions. This distribution created hurdles in understanding overall profitability and required a sophisticated approach to consolidate and analyze the information
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- Real-Time Mapping of KPIs: The need to dynamically map key performance indicators (KPIs) based on historical data added another layer of complexity. The ability to generate real-time insights from past performance was crucial for informed decision-making, but it required meticulous data handling.
- Monthly Reconciliation and Report Generation: Each month, new accounts were created, necessitating the export of data and reconciliation efforts. This process was labor-intensive and time-consuming, demanding significant resources to ensure accuracy across product-wise and P&L KPI reports.
- Utilizing the P&L Statement for Analysis: The most daunting challenge was effectively leveraging the P&L statement to distribute data among regions, profits, and distributors. This task was critical for generating accurate financial analyses and profitability reports. Without a streamlined approach, the company struggled to gain meaningful insights from their financial data.
The Working Solution
In tackling the financial data challenges of the FMCG company, the consultant’s role was essential. By delivering tailored data analysis solutions, we transformed their reporting processes and boosted efficiency.
Role of the Consultant
Our primary focus was to understand the client’s specific needs and design effective solutions. Collaborating closely with their teams, we identified key datasets and streamlined data processing, leading to more accurate and timely reports.
Implementation of Alteryx Workflows
Central to our solution was the implementation of Alteryx workflows. We created repeatable workflows for data transformation and aggregation, automating many manual processes that had previously consumed valuable time.
Monthly Scheduling for Consistent Reporting
We established monthly schedules for these workflows to ensure timely processing of financial data. This allowed stakeholders to receive up-to-date information regularly, freeing resources for analysis rather than data collection.
Development of Databases (yxdb)
To support comprehensive analysis, we developed two databases (yxdb):
- High-Level Summaries: This database offered an overview of financial performance, enabling quick assessments of the company’s health.
- Detailed Metrics: The second database contained granular data for deeper insights into regional performance and product profitability.
These databases enhanced the ability to calculate KPIs from P&L statements, enriching financial reporting and profitability analyses. By leveraging Alteryx, we provided the FMCG company with a robust solution that significantly improved their financial reporting capabilities.
Benefits Achieved
The implementation of Alteryx brought remarkable outcomes for the FMCG company, transforming their financial reporting processes in significant ways.
Significant Outcomes
- Process Transformation: What used to be a cumbersome three-week process was streamlined to just 10 minutes. This drastic reduction allowed the team to focus on more strategic tasks rather than getting bogged down by data processing.
- Annual Time Savings: Overall, the company achieved an impressive annual time savings of 2,016 hours. This newfound efficiency means resources can now be allocated to other critical areas of the business.
- Reduction in FTE Needs: The need for full-time equivalents (FTE) was dramatically reduced from 10 employees to just 1. This shift not only cut costs but also allowed the remaining team member to engage in higher-value work.
Key Benefits
- Data Process Automation: Alteryx enabled the automation of data processes, minimizing manual intervention and reducing the risk of errors.
- Enhanced Time Savings: The time saved in reporting allowed for quicker insights and better decision-making across the organization.
- Timely and Accurate Report Analysis: With streamlined workflows, the company could generate timely and accurate reports, essential for informed strategic planning.
These achievements were made possible in part due to the freelancers hired from PangaeaX, whose expertise contributed significantly to the project’s success. Their skills in implementing Alteryx workflows and optimizing data processes were instrumental in delivering the desired results. Overall, the integration of Alteryx, supported by a dedicated team, has significantly enhanced the company’s operational efficiency and reporting capabilities.
Conclusion :
The integration of Alteryx proved to be a game-changer for the FMCG company, revolutionizing their financial data management and reporting processes. By automating complex workflows and drastically reducing manual tasks, the company not only achieved significant time savings and operational efficiency but also empowered their finance team to focus on strategic decision-making. This case study highlights how Alteryx can transform financial operations, making it an invaluable tool for organizations seeking to optimize their data processes and drive better business outcomes.
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