"With Farseer we have shortened the planning cycle dramatically and made it more collaborative"
- Martina Černi, Head of Controlling
About the Client
Controlling department at Croatian National Lottery. The company has over 1300 employees and over 300 retail locations. On this project we worked with the Controlling department on revenue planning.
Revenue planning at Croatian National Lottery was a highly complex and manual task. The company has 30 products, 6 regions in which they operate and 5 sales channels in each region.
The annual revenue plan is created in a top-down budgeting process, meaning that the management defines the plan values at product and region level.
Controlling department had the demanding task to break down the high-level numbers to all products, regions and sales channels. Final values had to match the input from the management, but also the historic data and trends.
The process started with extracting historic data from ERP to Excel. Based on the actuals the controlling department calculated allocation keys for each category. They would then go back and forth until between these constraints until the numbers checked out. The entire process took 3 weeks!
After implementing Farseer, the Croatian National Lottery gets their top-down annual revenue plans in one-click! Farseer uses optimization algorithms for distributing revenues based on historical data and top-level constraints.
Users can change the revenue plan for a single line item (e.g. game A revenue in region B at sales chanel C) and Farseer will calibrate the entire revenue plan to fit the initial high-level goals set by the management. Besides revenue planning, Farseer is also used for faster expense planning. Costs are mostly repetitive, with certain increase or decrease, which are defined for each expense category.
This way Farseer automatically generates P&L statement at company level, which can be adjusted by the user if needed. By eliminating manual spreadsheet work finance and controlling departments can focus on strategic planning and spend significantly less time on operational tasks.