Tag Archives: CFO

Enterprise Value

Management is striving to safeguard corporate value and, if the prevailing economic conditions permit, develop it significantly. Fundamental improvements can be achieved in terms of operational cash flow and the costs of capital. Management according to the principles of value-oriented management requires the integration and improvement of value-enhancing business processes with corresponding controlling parameters, for example, through management of the net current assets. This article examines the question of what measurement variables and business processes should be used for optimization.

Managers are under considerable pressure to succeed, safeguard and develop enterprise
value. But which strategy can be applied, what measurement indicators are suitable, and which processes have to be improved to achieve defined corporate goals? Continue reading

Vodafone Answers Call to Transformation

The “Evolution Vodafone” (EVO) Business Transformation Programme, started in 2006, transforms value chain back office processes. This, in turn, has enabled Vodafone’s local operating companies to focus on value creation. EVO is introducing one ‘Future State Operating Model’ (FSOM) that works across supply chain, human resources (HR) and finance functions to deliver a globally unified set of standardized business processes. Fundamental aspects of this program were the creation of a new Core Business Model, Vodafone Procurement Center, and Shared Service Organization, underpinned by a global SAP platform. EVO is due for completion by 2012.

Vodafone’s ongoing business transformation project “Evolution Vodafone” has given the global communications company a future-proof business model that saves money and invests in innovation. Continue reading

Who’s the Leader?

Financial IT Integration at a Global Insurance Company

In 1999, Lukas Financial Services, one of the world’s largest insurance companies, implemented SAP systems for most of their European business units as part of a major Finance IT upgrade. However, country business units were still responsible for their own data management, which led to inconsistent reporting and a low level of standardization.

In 2004, there was a push to improve the efficiency and effectiveness of European Finance, and the IT unit launched the EVA project. The goal of the project was to converge all European SAP systems into one system. As the project progressed, many unexpected challenges emerged for the IT leaders. There was little buy-in from the business unit leaders, resources were limited, and the project fell behind schedule. The pilot sites were dropped, and eventually, the entire project was stopped. The company continued with decentralized systems until 2009, when a new company focus on globalization and efficiency led to the OCTOPUS Plan, which was a business reorganization plan that called
for all of European General Insurance to be based in one country. The European Finance business leaders were in charge of OCTOPUS, and they made the decision to start another SAP convergence project, MASON, to support these changes.
The case ends with the questions that the IT and Finance leaders face as they create their project strategy for the new SAP integration (MASON) and the business reorganization (OCTOPUS). The Financeled project strategy addresses many of the problems revealed in the first project, although they still face project prioritization, pilot testing, and other challenges that they must account for in their plans.

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