Gav Yam Real Estate – SUCCESS STORY
Gav Yam Real Estate identity card:
Gav Yam was founded in 1928, it is one of the oldest real estate company in Israel, and today one of the largest. Gav Yam is also a public company, with shares traded on the Tel Aviv stock exchange, and therefore subject to strict rules of compliance and transparency.
The company is organized in different business units:
- Knowledge industries park,
- Industrial parks,
- Logistics facilities
- Residential areas.
The key concepts are:
- Innovative solutions, designed according to the customer’s needs;
- Comprehensive solutions for customers, meaning planning, design, construction and maintenance and the constructions,
Therefore, the operational reporting to monitor the efficiency of the organization needs to be organized on different axis, beyond legal entities that are numerous.
It also needs to support the monitoring of construction projects, as Yav
Besides, Gav Yam publishes full consolidated statements on a quarterly basis. These consolidated statements are aligned with the operational reporting per business unit.
The preparation and the validation was a long cycle (around 4 weeks) that could not meet the senior management expectations whose decisions need to be prepared in a few days. Manual work based on spreadsheets was no more possible: this triggered the Kontroller CPM project.joint CPA of all 15 subsidiaries faced two years ago.
Enough is enough: Kontroller CPM was selected to build a new corporate performance management system.
In 2018, seeking to rectify the situation and inject a sense of control and efficiency into the firm’s financial operations, Sagi Barazani decided to replace the group’s financial consolidation software system with Kontroller. This is his testimony. and to build a unique solution that would prepare the group financial statements and deliver all the management dashboards needed to operate the different activities without increasing the team in charge of these tasks.
Accountant Barazani explains: “prior to implementing the Kontroller system, all of the financial regulatory and management reports were produced on error-prone, work-hour intensive Excel sheets. The process of generating the Excel sheets from the ERP system was exhausting because we frequently had to repeat it several times and even then, there was no certainty that the cumulative data did not include duplication and/or lack. The managerial reports were produced from a separate series of sheets, which occasionally led to incompatibility with the other reports”.
Over the years the process required, says Sagi,The increasing demand forgreater and greater investments in of resources to meet the timetables and deadlines imposed to move to a single solution capable of resolvingdealing with the following challenges:
- Automatic extractionThe system must be capable of extracting, automatically, all of the data directly from SAP ERP. Such capabilities would put an end toNo more Excel sheet preparation, not for the financial reports and not for the management reports alike.
- Creation ofThe system must produce all of the consolidated regulatory financial reports (Balance, Profit and Loss, Cash Flow, etc. and so forth) – all within a single system.
- The financial and management reports would be produced in the same system.
- An option of producing the solo reports as well (per company)The ability to produce solo reports on a per-company basis, as each entity of the group was requiring more and more visibility on its activity.
Why Kontroller CPM?
The criteria that led to the selection of Kontroller were established by the end-users:
- Extremely user friendly, the system integrates embedded BI technology, that allows very flexible reporting.
- Field proven legal consolidation capabilities, such as intercompany transactions eliminations, flexible holding structure management…
- The native integration with SAP ERP and other ERPs was crucial, as it secured the upload of all required data from the operational systems.
- The need for deep analysis of all of the firm’s financial activities, while allowing for detail-oriented, ledger-line focus, and the presentation of reports in every conceivable cross dimension, was essential: Kontroller CPM relies on the integration at the lowest level of all postings of the different entities.After several options were examined, the Kontroller system, which met all of the initial requirements and more, was selected. The system was extremely user friendly, which was also very important to us, but what impressed us most of all was the embedded BI technology, which enabled us to deeper analyze our financial activity with the option to drill-down until the level of a ledger line, and present reports in every conceivable cross dimension.
- The capability to deliver a very fast project was also key.
Image of a report:
Implementation project and ongoing maintenance activities:
The project’s implementation of Kontroller was managed by a solution expert the product manager, and was performed by accountant, both from the Kontroller Company, which developsed and markets the product.
Gav Yam project team was led by the business team who learned the solution at the project start, within a first training session of one week with 3 persons. The overall project was achieved in 5 months.
At the end of the project, Kontroller CPM replaced in one integrated solution manual activities around 50 complex spreadsheets, covering 12 different legal entities.
The lead time to be ready to publish the financial statements of the group, according to Tel Aviv stock exchange regulations has been reduced of 80%.
The solution is operated in house by 2 business stake holders, with a technical support of Kontroller CPM. The customer is able manage on his own changes of the consolidation structure, thanks the flexibility of the solution.
Image of the consolidation structure
Customer’s quote on the Kontroller CPM quote:
“Prior to implementing the Kontroller system, all of the financial regulatory and management reports were produced on error-prone, work-hour intensive Excel sheets. The process of generating the Excel sheets from the ERP system was exhausting because we frequently had to repeat it several times and even then, there was no certainty that the cumulative data did not include duplication and/or lack. The managerial reports were produced from a separate series of sheets, which occasionally led to incompatibility with the other reports,” Sagi Barazani explains.
Accountant Sagi Barazani summarizes: “Thanks to Kontroller, we are now that we are producing the consolidated reports submitted to the Stock Exchange with thegreater speed and ease. Kontroller system, Iit is hard to believe that just two years ago we were still elbow- deep in endless Excel sheets and spending hundreds of work hours to close every quarter,” he adds. “This isn’t just a time saver, enabling us to perform our financial services with a fraction of the manpower. This is part of our image, part of who we are. When we present timely, easily accessible, accurate financial reports which are readily accessible to everyone and anyone, our partners and clients – both public sector and private sector – know we can be relied on.”.
Now Gav Yam Real Estate Ltd, one of Israel’s leading and longstanding real estate companies (founded 1928), can match the outstanding projects it oversees in initiating, planning, establishing and managing knowledge intensive industrial parks, logistical centers and residential neighborhoods with a truly first rate CPM – Corporate Performance Management system.
“This isn’t just a time saver, enabling us to perform our financial services with a fraction of the manpower” says Barazani. “This is part of our image, part of who we are. When we present timely, easily accessible, accurate financial reports which are readily accessible to everyone and anyone, our partners and clients, both public sector and private sector, know we can be relied on.”
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