Adding more agility to financial efficiency

Case Study

© Copyright 2011 Efima Oy

Case Alko Inc.Alko is Finland’s state-owned company for the retail sale of alcohol beverages. As well as ensuring the responsible sale of alcohol, the company aims to deliver both excellent customer service and financial efficiency. Alko has set itself the objective of being the best retail store chain in Finland in 2012, to be measured by its standards of corporate integrity and customer service. Given its particular status, Alko is focused on improving operational efficiency rather than delivering financial growth. Minna Alitalo, CFO at Alko, commissioned Efima to make financial efficiency recommendations, the results of which included specifying the requirements for a new finance system and the identification of areas where quick-win efficiencies could be achieved. Further to these recommendations, Alko has now started a project to renew its finance system.

Setting system renewal parametersThe systems that Alko was using in financial management and order-to-delivery process had already been identified as out-of-date and no longer fit-for-purpose. An IT project had been initiated to outline the system architecture of a new solution. As a continuation of this activity, Alko chose Efima as a consultant to:

1. Draft the requirement specifications for the financial management system.

2. Set the goals for financial process improvement.

Whilst the legacy processes were working and electronically handled, in Alitalo’s words, Alko suffered from ”a jungle of point solutions.” Support for the bookkeeping system had expired and too much time was being spent on inefficient processes such as checking the accuracy of figures because the systems were incompatible. Clearly, it was time to invest in a new solution.

Improving efficiency with clear recommendationsAs project leaders, Efima ensured that Alko’s finance team actively participated in the consultation process. By achieving stakeholder participation in the setting of the new system requirements, personnel

buy-in was firmly established at an early stage. As well as equipping Alko with clear system requirements and new financial process descriptions, Efima identified 50 development areas. All system-independent points were implemented immediately, with the rest being introduced alongside the system replacement. Process development recommendations that have already been implemented include increasing the number of e-invoices and ensuring wider usage of automated posting.

More than happy with the results, Alitalo describes Efima as a high-quality, straight-forward finance expert: ”We received immediate benefits. I especially value the quality of the reporting. We got concrete suggestions, well-documented, not just the big picture, as so often happens in projects like this. And the recommendations were true recommendations.”

Upgrading from bookkeeping to analyticsWith the new systems having now been chosen and implementation taking place during 2011, Alko is set to start 2012 with its new finance solutions in place. Having chosen Microsoft Dynamics AX as its financial management system, Minna Alitalo believes that the nature of finance work in Alko will change during the process. She is

Alko is an independent, fully state-owned company that belongs to the jurisdiction

and administration of the Ministry for Social Affairs and Health in Finland. Alko has

sole rights to the retail sales of alcohol in Finland. It has 343 stores in 207 towns.

Alko’s strategy is to become the best retail chain in Finland by 2012, measured by

its standards of corporate integrity and customer service.

Efima improves the financial management and business management processes of

large and mid-sized companies. Efima delivers expertise across financial management,

processes and systems, and has over 10 years’ experience in cloud services and

digital financial management. This unique combination ensures fit-for-purpose

solutions, based on clients’ business goals. Efima’s services include consulting,

outsourcing and cloud-based software.

Minna Alitalo, CFO, Alko

”We received immediate benefits – concrete recommendations, well-documented.”

© Copyright 2011 Efima Oy info@efima.com Tel. +358 10 470 5450 www.efima.com

particularly looking forward to improvements in the quality of reporting. With job descriptions in the finance department changing, its capability will upgrade from basic bookkeeping to a more analytical approach. The team expects to deliver far better support to the retail stores and improve operational efficiency across the board.

At a glance The challenges• Renew an out-of-date financial

management system.• Identify process improvement goals.• Make reporting easier and quicker.• Ensure more time for store support.

The solutions• Efima 360° analysis.• Efima Consulting: project managing new

system implementation.

The rewards• Well-documented project report.• Identification of implementable quick-

wins.• Clear recommendations for ongoing

operations development.