"Thanks to Tagetik, we can now quickly respond to the growing ad hoc requests for rich, highly detailed and timely information. The solution is extremely scalable and flexible enough to fit our individual requirements. From a technical standpoint, the solution easily integrated into our group IT architecture and all levels of the group can access the new functionality.” Paolo Arienta, Head of Financial Planning, Telecom

Telecom Italia wanted to manage its financial planning process for various levels of the group’s companies – all within a single solution.

Situation analysis and specific requirements

In order to track the structures and level of its financial debt, Telecom Italia quickly realized that it needed to plan in more detail and build a forecast model for cash flows and financial debt structures. In order to eliminate the manual processes of its former Excel-based system, the company wanted to unite these features in a more efficient solution with common rules and parameters.

Objectives

Telecom Italia wanted a single solution that could meet the following requirements:

• Develop and implement short-, mid- and long-term financial plans.
• Assess financial debt levels, debt structures, charges and expenses and related financial flows.
• Simulate alternative scenarios that pool report data sets, rules and parameters (i.e. to transform forecast plans in detail for financial planning).
• Determine the average cost of forecasted debt reports.
• Calculate mid- and long-term financial debt including the effects of derivative hedging instruments and debt composition (fixed/floating rate).
• Enable monitoring and forecasting.
• Make daily cash flow forecasts and statements for the banking systems of individual group companies.
• Analyze variances (e.g. financial budget, forecast parameters, management of working capital)
• Ensure self-sufficiency, integration and consistency of the financial planning tools

Results

Telecom Italia chose Tagetik CPM, because it covered the various requirements throughout the group including corporate finance, business units and supplementary financial companies. The company can now conduct treasury planning as well as create ‘what if’ analysis according to rules set by individual users. Since the solution is flexible and fully customizable, the group can easily manage information from multiple companies with different currencies and aggregate this data from multiple organizational and informational levels (i.e. holding and subholdings).

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