How MYGIDE brought predictability to the busy life at the airport
Implementation Man-days
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Interconnected Models
0Models
Business Acc. Units
0Units
General Ledger Accounts
0Accounts
Operating Accounts
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Data records available online
0Thousands
GIDE helped us tremendously not only during budgeting, planning, and new set up for management reporting, but also in capital raising. We raised some ’50 million from a consortium of banks and MYGIDE was the tool we used to prepare all the numbers (P&L, BS, CF, KPIs) which the banks requested, during pre- as well as post-raising periods. After leaving the airport I took MYGIDE with me to my next assignment, the CFO of a media house. In the middle of the budgeting period we acquired a new business, we were also in the process of changing our accounting to IFRS, and closing some other business units. If it were not for the flexibility and agility of MYGIDE I do not know how we could have coped with all that in the very short period of time that we had.
Iveta Griac – CFO
Project Highlights
During implementation of MYGIDE, the company started the process of replacing their existing accounting system with SAP.
The budgeting process was shortened from 8 weeks to 2 weeks, with budget to actual accuracy of over 95%.
MYGIDE models assisted in the raising of capital from a consortium of banks.
Pain Points & Operational Challenges Solved
Irresponsive spreadsheets
Manual data input from different systems and data structures with zero modelling capacity
The company manage a midsize airport operating both international and domestic flights, serving airlines, general aviation as well as cargo operators. It also provides airport and passenger handling and associated services as well as renting retail units in the terminals.
The airport was in the middle of constructing a brand new terminal for which it was seeking debt funding in tens of millions of euro. At the same time, the old accounting software was being replaced with SAP.
A small team of 5 people were in charge of producing weekly and monthly reports on airport movements, airport business performance, supplying of data for negotiations of long term airport charge agreements, preparing documentation for the consortium of financing banks and supervising spending on construction of the terminal.
Data was coming from different systems, in various data structures and formats and were manually copied into spreadsheets.
Irresponsive spreadsheets
Manual data input from different systems and data structures with zero modelling capacity
The budgeting process took over 8 weeks, often completed in the second month of the year it covered. Management reports were published monthly involving a 7 day period updating some 15 partially linked spreadsheet files. Effectively, they included one month old data from accounting at the time of the management meetings. Rolling forecast or strategic planning was done irregularly on an ad hoc basis.
Reports, budgets and long term plans were not connected. Change in one was not reflected in others, and was often ignored. Spreadsheets for airline charges were produced in the sales department while the office of finance served as a data supply point.
Airport operational data was reconciled to accounting data at a summary aggregate level, only covering PL items and not reflecting the airport business model. Operational drivers (e.g. ATM, MTOW, PAX, seat utilisation, handling services, etc.) were included in budgeting and planning processes manually as best guesses, not reflecting history. Company spreadsheets were static with little or no modelling capability.
Key Benefits
95%
The increase in accuracy of actual vs. budget data
A bespoke modelling and planning environment split into three key airport operational segments (aviation handling, terminals, non-aviation services) and SGA, with individual financial models created for key airlines, enabling active modelling of the bottom line driven by airlines and passenger activities.
A consolidated view of business units into 20 comprehensive operational models (handling, terminals, SGA, etc…), each having its own bespoke financial and airport operations model, with automated intra group trading calculations.
Detailed split of accounting and operations accounts as per regulatory and environmental requirements.
Airport business drivers imported automatically from the airport movement monitoring system into MYGIDE along with accounting data from SAP into one holistic performance analysis, rolling forecast, and strategic analysis and planning environment, available for concurrent work.
95%
The increase in accuracy of actual vs. budget data
Up-to-date forecast with complete operational and accounting data (PL, BS, CF, capex, HR, etc.) was used as a data platform for successful debt raising to refinance construction of the airport terminal.
With active forecasting and instant performance analysis, the budgeting process was shortened to 2 weeks.
Data in the management report are now only between 1-2 weeks old.
Project Milestones
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7th Day
Airport operations data analysis and conversion of company’s existing spreadsheets to MYGIDE.
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11th Day
Airline data linked to accounting, serving as the basis for airlines models made available for the first client experience.
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29th Day
Complete set of models with 3 year historical monthly data and current year budgeted imported to MYGIDE.
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36th Day
Review of company’s current performance, variance to budget based on historical trends and current performance. Rolling forecasting and year end forecast revision.
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45th Day
First top management meeting using MYGIDE reports.
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50th Day
Company’s employees began adjusting the models and modelling functions with assistance of the implementation team.
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80th Day
MYGIDE was routinely used.
