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Digital reporting
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One fundamental impact of digitalization on reporting can be summed up quite simply: The sheer volume of data is increasing exponentially - and with it the demands on IT and controllers. The variety of options in reporting is also growing. This article presents some of the possibilities. You will also find three tips to help you successfully introduce mobile reporting.
Reporting 4.0: How digitalization is changing reporting
Big data is the driver of change in Reporting 4.0. Report content is changing because the number of data sources is growing. At the same time, the quantity and quality of information is increasing. For example, data is provided by apps that are used to monitor purchasing, logistics and production processes. At the same time, companies are not only collecting their own data, but also have access to data from suppliers and customers. Digitalization makes reporting more resource-efficient and faster because it is possible to largely automate routine reporting activities.
Digital reporting: User expectations continue to rise
As technical possibilities increase, so do user expectations in terms of the quality and customization of reports. In this respect, it will be important to make practical use of the expanded potential in future. User orientation in reporting also means avoiding information overload and adapting reports to user requirements. The goal is user-driven reporting (pull distribution) - all the way to self-reporting, when users generate their own reports via a suitable interface.
Important features of Reporting 4.0
Functioning reporting in the digital age delivers data:
- up-to-date and efficient,
- according to uniform company-wide standards for comparability and
- in high quality and reliability.
A powerful reporting system goes beyond mere analysis. It develops forecasts for possible future scenarios, i.e. predictive analysis through the evaluation of big data. In its digitally optimized form, reporting links existing data. It establishes continuous governance through guidelines, standards and tools for the company's financial and value creation processes and provides recommendations for decision-making.
In Reporting 4.0, automated IT processes perform the main work of data collection and preparation: data aggregation and data matching, data visualization and data sharing are automated. Controllers intervene in the analysis and assume the leading role in communication and collaboration with management. Managers in controlling remain responsible for the rules of governance and the definition of decision-making paths. Reporting 4.0 stands for business intelligence that utilizes the potential of big data for effective and high-quality corporate management.
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Three tips for mobile reporting: all information always and everywhere
One of the new requirements for digital reporting is that information should be available always and everywhere. With mobile cloud applications, the display automatically adapts to the respective end device. Ideally, mobile reporting speeds up decision-making processes if, for example, the CFO can conveniently access important company data when closing the quarterly accounts while on the move. The be-all and end-all of such successful mobile reporting lies in usability, i.e. user-friendliness.
Tip 1: Always put the user's priorities first
When it comes to usability, the wishes of private users can be transferred to the professional environment. Why should the frustration-free use of mobile devices be less important to us at work than in our free time? Mobile business applications must therefore be measured against this criterion. A study by the German Digital Industry Association (BVDW) identifies the following user priorities for mobile applications:
- The content must be available quickly.
- The design and handling must be clear and easy to understand.
- Apps must have error-free functionality.
- The content provided must be relevant.
- The security of data and digital identity must be guaranteed.
If employees are disappointed with an app, they won't want to work with it. If you want to make mobile reporting attractive, you can only be successful if you transfer the user's priorities into the specifications for the app development and also take into account the special features of professional use.
Tip 2: Don't overload mobile reporting with useless functions
Fastness, comprehensibility, relevance and security are essential requirements for mobile reporting apps. In addition, the range of functions of such an application must match the reality of work. On the one hand, people want more than just figures and graphics; on the other hand, the applications must not be overloaded with useless functions.
For example, it makes sense to gradually increase the level of detail of the application through a modular structure. It would be conceivable, for example, for the first pages to serve as an overview for the management. From a clearly designed dashboard, users can then jump to further pages with more detailed information for the operational management of the individual areas. The central question when developing dashboard pages must be: Who is the recipient of the respective page? And what core information is useful for this user group?
Involve users as early as the planning stage of mobile reporting
In order to successfully implement mobile applications, it is advisable to involve all responsible decision-makers in the development process at an early stage. If you want to fulfill user wishes, you have to talk to the users. Important questions include:
- How do users in the target group perform their reporting tasks today?
- In which situations do they want to access reporting data on the move in future?
- What data is involved?
- Where do problems arise, where do wishes remain unfulfilled?
The following groups of people can benefit from the answers to these questions and the development of user scenarios:
- Assistants who enter minutes into the reporting system for reference after meetings
- Employees, who retreat to the coffee corner to prepare a presentation together
- controllers, who are working on a report from home and want to pull live data from the business warehouse
- Executives who want to refer to reporting data at a customer meeting
In practice, it has been shown time and again that management must first be convinced of a solution. Otherwise, its sustainability would fall by the wayside. Ultimately, the acceptance of mobile reporting depends on a positive user experience. This is why the principle of all good design applies: the focus must be on people.
In digital reporting, the demands on controllers are becoming greater and more diverse
The change in production and value creation processes in Industry 4.0 also poses a number of key challenges for controlling:
- The aim is to evaluate an exponentially larger volume of data in real time.
- In line with the value creation processes, the processes in controlling must also be more flexible.
- The number of control variables is increasing considerably.
- Controllers no longer just have to analyze data from the past. They must also use data to look into the future and make valid predictions (predictive analytics).
These developments mean that the role of the controller in the company is becoming more complex and demanding. By anticipating market developments, controlling increases the company's competitiveness. Insights gained in digital controlling are being incorporated into product development and all value creation processes to a greater extent than before.
Digital controlling 4.0 requires new controlling skills
These changes in the area of responsibility are also changing the skills required of controllers: at IT level, it is no longer primarily about data acquisition and data provision. Data analysis is an integral part of all IT processes, which means that the boundary between operational and analytical data management is becoming blurred.
In the world of big data and the Internet of Things (IoT), engineering skills are indispensable for controllers. In addition to IT knowledge and business know-how, an even deeper understanding of the connections between production, value creation and business models is required.
ICG competence model for digital controlling
In this context, the International Group of Controlling (ICG) has developed a competence model for controllers. The ICG defines the three core controlling processes - namely "operational planning/budgeting", "forecasting" and "cost/performance/income accounting" - as the most important competencies:
- Consulting, organizational, Cooperation and integration skills
- Market understanding
- Holistic thinking and openness to change
- Conceptual strength
Under the conditions of Industry 4.0, the ICG sees the controller at the strategic level as a change agent and advisory business partner for managers. Operationally, the controller becomes a data scientist, analyst and information specialist. In addition to the skills mentioned above, there is therefore a strong emphasis on competencies such as
- Business-Wissen
- Fachwissen über Produktionsprozesse
- Fachübergreifende Kenntnisse
- Kommunikationsfähigkeit
- Project management
Successfully realigning reporting with the help of interim management
In addition to the integration of artificial intelligence principles, people and their role as qualified decision-makers remain a key factor in reporting. The controlling experts at Deutsche Interim AG will be happy to support you in preparing your reporting for the future in the best possible way and digitizing processes to add value.
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