Company 2000+ employees

Company profile

The company operates in IT&C domain, security, engineering, defense, constructions and intelligent transportation systems.

The Company is organized in 5 specialized business areas and has a corporate level.

Each business unit has its own management structure: Business Unit Director, Operations Director, Sales Director, Technical Director, Project Management Office and specialized teams (pre-sales, research and development, quality assurance, implementation, micro production, integration, maintenance and support).

The support structures are located at corporate level: Top Management and Business Development, IT, Legal, Financial, HR, Marketing, Purchasing, Facility Management, Security and Health Safety.

Ways of working

Business units are revenues and expenses centers.

Corporate level together with the support structures are cost centers.

There are sales targets and development objectives for each Business Unit.

The opportunities become signed contracts and are implemented as projects. The profit margin of each project is subject to group policy.

Each project is monitored so that to generate the profit estimated when signed. The profit is monitored at project (contract) and Business Unit level so that to be self-sustained, to cover the expenses of corporate level and to ensure the annual profit of the company.

Changes implemented by Discern

The timesheets were inserted bulk without a clear correlation between the effective time spent by an employee on a project and reality. More than that, the expenses were manipulated so that the profitable projects to sustain the projects with depleted budget. By doing so the real image on the performing and outperforming projects was deformed.

Discern solved this issue by allowing the timesheet to be completed individually by each employee so that a direct correlation between the work performed and cost center to be created. In this way the image of the performing and outperforming projects became harder to deform. A secondary effect was that the employees became more responsible and aware on their own work and the fact that poor quality and delays have a direct impact on project profit indicators and implicit on the Business Unit indicators.

There is no clear visibility on revenues versus expenses. The revenues and expenses were kept under control but using different applications without a clear image of both simultaneously.

Discern solved this issue by keeping both indicators (Revenues and Expenses) in the same application. Discern makes a real time comparison between the revenues and expenses at any time from the project lifecycle. More than that, the application allows in any moment a visual comparison between the initial business case and the actual level of project revenues and expenses.

Data aggregation for each project was made offline because the informatic system was reporting only the expenses to current date, revenues being tracked in a different application. This way of working required a considerable effort to manually process the data and was subject to increased probability that data to be wrong or outdated.

Discern solved this issue by keeping all data in the same application and allowing reporting in real time. The application monitors in real time the revenues and expenses at project, business unit and company level.

Forecasting the revenues and expenses on projects was made offline using Microsoft Excel. Once per week each project manager presented a forecast on revenues and expenses until the end of the project. Data processing was difficult because the data of each project was corroborated with the data of other projects from the Business Unit and then at company level. The workload was high, and the results came with a high degree of uncertainty because of manual methods to collect and display data.

Discern solved this issue by keeping in the same application together the revenues and expenses up to date and revenue and expenses forecasted to happen in the future until the project closure. The easy to use interface and real time comparison features with the initial business case significantly reduced the probability of human error. Reporting at business unit and company level is possible without being needed that someone to integrate data and prepare specific reports. More than that, the application is used by the sales and presales departments for sales forecasting offering a real time image on the forecasted level of touching the sales targets committed through business objectives.

Discern added value

Managers responsibility. Because the managers have a total visibility on revenues and expenses they become more responsible in delivering on time, efficiently allocate the resources and finding ways to optimize the expenses. This increased the rate of project success by 40%.

Clarity at business unit level. At business unit level there are dashboards that allow keeping under control the revenues and expenses so that the numbers committed through business objectives can be analyzed for being
able to take management decisions in time. This increased the business unit’s profitability by 36%.

Clarity at corporate level. At corporate level there are dashboards that allow keeping under control the revenues and expenses at business units level and support structures so that data to be analyzed to identify the slippery and to take remediation measure in time. This increased the company profitability with 27%.

Positive cashflow. There are dashboards that track in real time the cashflow at project, business unit and company level. A positive cashflow ensures good function of the company and is a wealth indicator. This increased the solvability of the company, increased the supplier’s satisfaction with 75% and implicit reduced the supplying costs by eliminating the financier risks. The interest rates of the partner banks decreased with 2-4%.

Company 400+ employees

Company profile

The company operates in IT&C domain, electronic archiving, document management, digitalization, data capture from documents, working flows with documents, conversion services for physical archives, data processing services, GIS services.

The company is organized as a group of companies having a mother company and other two satellite, one specialized in GIS services and the other for conversion of physical archives.

The mother company is organized in productive departments (Business Development, Archives Processing and Digitalization, Software Development, Project Management) and support departments (Accountability, HR, IT, Legal, Facility Management). Each department has a manager and specialized teams.

Both satellite companies have their own specialized teams and administrative teams but no support departments, this role being taken by the mother company.

Ways of working

All the companies from the group are revenues and expenses centers.

All the contracts are monitored as projects (revenues and expenses centers).

There are sales targets and objectives for each company.

The opportunities become signed contracts that are implemented as projects.

The profit margin of each project is subject to mother company policy. Mother company decides the sales policies for the two satellite companies.

The projects are closely monitored so that the estimated profit to be delivered. The profit is monitored at project (contract) level and at company level so that self-sustainment to be achieved and the annual profit of the company and of the group of companies to be ensured.

Changes implemented by Discern

The timesheets were prepared on weekly basis as number of worked hours on each project. There was no direct connection between the type of resource allocated and the registered hours. There was no connection between the total number of resources and the resources that were mention in the timesheets and resources that were skipped as being support.

Discern solve these issues by ensuring that the timesheet is completed individually by each employee so that a direct connection is created between the actual work and the respective revenues and expenses center. More of that, there is a direct connection between the type of resource and the cost center, this being true even for support structures that are only cost centers. A secondary effect is the fact that the employees became more responsible and aware on their own work and the fact that the delays and the poor quality have a direct effect on the project profit indicators and implicitly on the entire company.

There was no clear visibility on the revenues vs expenses. Revenues and expenses were kept under control by the financier department with no automatic mechanism to corelate them. More than that, the teams have no visibility on the financial indicators of the projects.

Discern solve this by keeping both indicators, revenues and expenses,
in the same application providing visibility on them to project management team, operational team and business development team. Discern provides a real time comparison between the revenues and expenses at any moment and offers an image of these indicators on the entire project life cycle. More than that the application allows at any time a visual comparison between the business plan (initial plan according to the contract) and actual level of project revenues and expenses.

Data aggregation for all projects was done manually because the used informatic system allowed counting the invoices but no the manpower expenses. More than that, the revenues and expenses were kept in different informatic systems that were no interconnected. There was no correlation between the manpower expenses and projects, these being kept under control by estimations that were made with a high level of approximation and with to respect of type of resources.

Discern solved this issue by keeping all the data in the same application and reporting being made in real time. Application monitors all revenues and expenses at project, company and group of companies level.

Forecasting of revenues and expenses was made offline by using Microsoft Excel. This activity was coordinated by the financial department, operational and project management structures being just consulted. The data processing was difficult because data of each project were corroborated with data of other projects from the company and then at group of companies level. The work load was high, and the results had a significand degree of uncertainty because of the manual data collecting and processing methods.

Discern solved this issue by keeping in the same application the revenues and expenses up to date and revenues and expenses forecasted to happen in the future until the end of the project. The easy to use interface and real time comparison features with business case significantly reduced human error probability and reporting to company or group of companies level is made in real time not being necessary that someone to aggregate data and prepare specific reports. More than that, the application is used also by Business Development Department (Sales, Pre-Sales, BID) for forecasting the sales providing a real time image at company and group of companies level on the probability to touch the sales quotas targeted by committed business objectives.

Counting the workload between the companies was difficult to track. Because both satellite companies no not have support structures, their role being taken by the mother company, became difficult to determine the real spent done by these companies during the projects implementation. More of that, there are situations when operational resources belonging of one company to work on projects (contracts) implemented by other company of the group. This particularity has a direct impact on the evaluation of each project, accurate determination of profitability and prevents collecting of real data necessary for developing the price strategies and prices policies.

Discern solved these issues by allowing the counting of worked hours on each project from any company creating the premises for correct tracking the real work on a specific company done by resources belonging of a different company. Having these data, the companies form the group made contracts between them for compensating these spending and the expenses evaluation was made with rigor on each project.

Discern added value

Employees responsibility. Because the employee has a clear image on his own work and especially on unallocated hours that could be used constructively, the work efficiency raised with 40%.

Managers responsibility. Because the managers have total visibility on revenues and expenses, they became more responsible on respecting the terms, efficiently allocate the resources and finding ways to optimize the expenses. This increased the project success rate with 35%.

Clarity at company level. At company level there are dashboards available allowing to keep under control the revenues and expenses so that the numbers committed in the business objectives are analyzed by the management and decisions can be taken in real time. This feature increased the profitability at company level with 32%.

Clarity at group of companies level. At group of companies level there are dashboards available allowing to keep under control the revenues and expenses in real time so that the slippery to be identified in time for measures to be taken. This feature raised the profitability of the group of companies with 26%.

Clarity at business strategy level. There are dashboards to analyze revenues and expenses on clients and suppliers so that the top management to be able to identify in real time some dangerous dependencies on specific clients and suppliers that if deteriorated can jeopardize the entire business. This feature increased the market share of the group of companies and reduced the dependencies on strategic suppliers.

Positive cashflow. There are dashboards to track in real time the cashflow at project, company or group of companies level. A positive cashflow ensures good function of the company and is an indicator of wealth. This feature increased the solvability of the companies and raised with 63% the degree of supplier satisfaction and implicit reduced the supplying costs by eliminating the financier risks. The financing banks dropped the interest rates with 2-4%.

Company 60+ employees

Company profile

The company operates in design, configuration, installation and maintenance services for industrial robots, automated production lines, complete production facilities, packaging systems, labeling systems and maintenance and support for these systems.

The company is organized like a group of companies having a satellite division specialized in electrical and mechanical design and automation.

The mother company is organized in main departments (Business Development, Micro production, Integration and Installation, Maintenance and support and Project Management) and support departments (Accounting, HR, IT, Legal, Purchasing, Facility Management). Each department has a manager and specialized teams.

The satellite company do not have support services, these being supported by the mother company. The satellite company has a compact structure specialized in electrical and mechanical design and industrial automation.

Ways of working

The mother company is a revenues and expenses center. The satellite company is expenses center working only for the mother company.

All the contacts are implemented and monitored like projects. Each project is a revenues and expenses center.

There are sales targets and developing objectives for the mother company. The satellite company follows the expansion trend of the mother company.

The opportunities are quantified in signed contracts which are managed as projects.

The profit margin of each project is subject to mother company policy. The mother company decides also the development policy for the satellite company.

The projects are monitored so that the estimated profit at the contact signing is accomplished. The profit is monitored at project (contract) level so that it can sustain itself and ensure the annual company profit.

Improvements implemented by Discern

The timesheet was made on a weekly basis counting the number of worked hours on each project. There was no direct connection between the type of resource and registered hours. There was no connection between the total number of resources from both companies and the number of resources that were counted and not counted.

Discern solved this by allowing the timesheet to be completed by each employee creating the premises for a direct connection between the counted hours and projects. More of that a direct connection between the type of resources and the project was made. This also covers the resources from satellite company. A secondary effect of this system was the fact that the employees became more responsible on the work and aware on the fact that delays and poor quality have a direct impact on profit indicators of the project and of the company.

The mother company has made efforts to have a clear visibility on revenues versus expenses on all the projects (contracts). Revenues and expenses, other than the manpower were counted by the financial department and the manpower was counted by project teams, data consolidation being made by the Sales Director together with project teams, him being interested in the profitability of each project. The process was slow, data being collected and analyzed manually.

Discern solved this by keeping both indicators (revenues and expenses) in the same application offering the project team, operations team and business development team visibility on data in real time. Discern makes a comparison between revenues and expenses in any moment from the project lifecycle and offers an image of the monthly expenses for all the project time frame. More than that, it allows a real time visual comparison between the initial business case and the actual level of the revenues and expenses.

Data aggregation was made manually because the informatic system doesn’t allow counting also the manpower expenses. More than that, the revenues and expenses invoices were registered and counted in two different systems not being available an automatic direct correlation. There was also unavailable the correlation between manpower expenses and projects, this being made by estimations which for most of the cases displayed a high level of approximation.

Discern solved this issue by the fact that all the data is kept in the same application and reporting is done in real time. Application monitors in real time the revenues and expenses at project, company and group of companies level.

Revenues and expenses forecasting were made offline using Microsoft Office Excel. This activity was coordinated by sales team with the help of operations, financial and project management team. Data processing was difficult because the data of each project was corroborated with data from other projects from the company and then at group level. The workload was high, and the results had a high level of uncertainty because of the manual ways of collecting and processing data.

Discern solved this problem by keeping in the same place revenues and expenses already registered and the forecasted ones until the end of the project. The easy to use interface and real time comparisons with the project business case significantly reduce the probability for human error and the reporting is made in real time without being necessary someone to integrate data and generate specific reports. More of that, the application is used by the sales department for forecasting sales offering a real time image at company and group of companies level on the probability of touching the objectives committed in the business strategy.

Counting the work load between the companies was difficult to do. The satellite company doesn’t have support structures, their role being taken by the mother company, and is complicated to evaluate the real costs registered on the projects by both companies. More than that there is the usual use case when operational resources registered on the satellite company are involved in activities on contracts that are registered on the mother company. This practice is an important factor for not being able to objectively evaluate each project for determining the profitability and prevents the collecting of real information for establishing the business strategies and price policies.

Discern solved this issue by allowing to register work hours on any project independent of the company creating the premises for correct collection of the manpower expenses on a certain company done by resources from a different company. Having this data, the companies made B2B contracts for compensating these expenses and the cost evaluation for each project was made rigorously.

Discern added value

Employees responsibility. Because the employee has a clear image on his own work and on the unallocated hours that have to be wisely spent, the work efficiency increased with 40%.

Managers responsibility. Because the manages have full visibility on revenues and expenses, they become more responsible in following the deadlines, wise resource allocation and optimization of the spending. All these increased the success rate of projects with 35%.

Clarity at company level. At company level, part of a greater group of companies, there are dashboards that facilitate keeping under control the revenues and expenses so that the committed business objectives are analyzed creating the premises that management decisions to be taken based on numbers and in real time. These increased the profitability to company level with 32%.

Clarity at group of companies level. At group of companies level there are dashboards that facilitate keeping under control the revenues and expenses so that the misalignment to be identified in time to be resolved. This increased the profitability of the group with 26%.

Clarity for business strategy. There are dashboards that allows the analysis of revenues and expenses on clients and suppliers so that the top management can identify in time some dangerous dependencies on certain clients or suppliers that if lost can jeopardize the entire business. This consolidated the market share and reduced the dependencies of the strategic suppliers.

Positive cashflow. There are dashboards available that track in real time the level of cashflow at project, company or group of companies level. A positive cashflow ensures a good function of the company and is an indicator of wealth. This raised the solvability of the company, increased with 45% the degree of suppliers satisfaction, decreased the suppling costs by eliminating the associated financier risks and lowered the interest rates with 2-4%.