Overview of Use Case
PASHA Holding is a leading company of Azerbaijan with 10+ subsidiaries in Azerbaijan, Georgia and Turkey operating in banking, insurance, construction, technology, property development and tourism sectors.
Each month subsidiaries submit management reports to PASHA Holding through MS Excel based Single Reporting Package (SRP). PASHA Holding through MS Excel functionality consolidates, analysis and makes certain dashboards / reports to management. Also subsidiaries submit their financial reports in “.csv” format through advance consolidation software where PASHA Holding prepares its validated, reviewed / approved MS Excel extract based consolidated financial statements subject to external auditors' audit and review procedures.
Describe the business challenge or problem you needed to solve
PASHA Holding had 2 different data channels as described below:
Both of the above processes had its own pain points:
Financial Reporting pain points:
- High costs on consolidation software: Annual 250,000 USD (incl. 73,000 USD amortization and excl. FTE resources)
- Complicated maintenance: Difficulties in change / update of financial statements format, dependence on external software consultants, not able to add new columns, new standards’ requirements internally
- Time inefficiency: Due to software complexity and VPN connection to the system each step took significant time to be processed
- Long learning curve: As consolidation software was very complex system and used unique infrastructure, data base, language it took time to fully understand and start working on it and it created risk of dependence on staff due to difficult transfer process
- Low user satisfaction: The system did not meet PASHA Holding’s financial reporting needs both from time and quality aspects
Management Reporting pain points:
- File size: MS Excel files were overloaded so it was difficult to open (in average 5 minutes to open each file) and work (some calculations took up to 10 minutes to process) with the files
- Time-consuming manual data blending: All submitted management reports were transformed and consolidated in one separate MS Excel file manually which was very time-consuming process
- Reporting accuracy & quality risks: Manual transformation and consolidation process created risk of reporting accuracy and quality
- Limited functionality: MS Excel had limited functionality in terms of reports / dashboards and analysis
- Inefficient data analysis: All these time-consuming manual processes and limited capacity of MS Excel resulted in inefficient data analysis
Describe your working solution
In order to eliminate above pain points and optimize both Management and Financial reporting processes we decided to create a single MIS infrastructure on Alteryx with certain governance and consolidation rules and data visualization capabilities as described below:
So, we started to build our workflows in Alteryx to automate both Management and Financial Reporting:
As a result of workflows built in Alteryx during 2 months we fully automated Management and Financial Reporting processes.
Now with just one click on the "Run" button we can get our consolidated financial statements in Word, PDF and Excel formats. Also, we created validations which cross check all figures across the report and inform in case of failure:
On the other side to visualize our management reports we connected Alteryx to Tableau. Outputs of Alteryx are automatically transferred to Tableau where we have built our dashboards / reports:
Describe the benefits you have achieved
We can describe benefits of applying Alteryx in our company from 3 aspects:
Financial Reporting: We will save 720 working hours each year in preparation of consolidated financial statements.
Management Reporting: Each year we will save 480 working hours in preparation of monthly management reports.
We used consolidation software which had an annual cost of 250,000 USD. We replaced this cost with cost of 2 Alteryx licenses which resulted in significant savings each year.
There were significant processes performed manually in MS Excel. This created risk of accuracy and quality of data due to manual errors (human factor). Now all these processes are automated in Alteryx. So it means we will have more qualitative data to make our analysis and decisions.
PASHA Holding has a strategic vision to become a data driven organization in upcoming 3 years and Alteryx will definitely play a leading role in this direction. We have already started to extend use cases across other functions of our company and subsidiaries as well.