[Case Study] Pixie Dust Technologies, Inc. | Eliminating Dependency on Individuals and Operational Costs in Budget-vs-Actual Management for Real-Time Decision Making
In this article, we introduce the case study of Pixie Dust Technologies, Inc.
Pixie Dust Technologies, Inc. is a company that develops products and services utilizing technologies such as sound, light, and waves, based on research and development originating from universities.
As the business and organization grew, it became crucial to establish a state where budget and actual results could be grasped accurately and in a timely manner for management and business administration.
This article is a case study for companies that rely on spreadsheets and manual work for budget-vs-actual management and feel challenged in grasping the latest figures and making management decisions.
By organizing budget and actual data and building an environment where it can be checked in near real-time, we created a state where the figures necessary for management and business decisions can be checked quickly.
These were the challenges faced
At Pixie Dust Technologies, with the growth of the business and organization, it became important to accurately grasp budget and actual results and utilize them for management decisions.
On the other hand, part of the budget-vs-actual management relied on manual work and operations dependent on specific individuals, making the aggregation, updating, and checking of data time-consuming.
In addition, to check the latest figures, it was necessary to collect multiple sets of data and process them on spreadsheets, which increased the operational burden of management.
Specifically, there were the following challenges:
Manual work was required for the aggregation and updating of budget and actual data
Reliance on spreadsheet operations made management prone to becoming dependent on specific individuals
It took time to check the latest budget-vs-actual status
It was difficult to grasp figures across departments and business units
It was difficult to check data necessary for management decisions in a timely manner
The operational cost of budget-vs-actual management was high
How INVOX provided support
At INVOX, we organized the data necessary for budget-vs-actual management and prepared it in a form that is easy to utilize for management and business administration.
Specifically, we organized budget data, actual data, and management units for each department and business, and built an analysis environment where the latest budget-vs-actual status can be checked.
As a result, we reduced the aggregation and update work that relied on spreadsheets and manual labor, and created a state where necessary figures can be checked quickly.
The key point was not just visualizing the numbers, but organizing them in a way that makes it easy to check the variance between budget and actuals, as well as the status by department, in alignment with the management accounting workflow.
What became possible after the support
After the support, we were able to organize budget and actual data, allowing for the confirmation of the latest budget-vs-actual status.
This enabled the realization of the following states:
Budget and actual data organized into an easy-to-manage format
Reduction in manual aggregation and update tasks
Ability to quickly check the latest budget-vs-actual status
Easier to grasp figures across departments and business units
Easier to check budget-vs-actual variances and grasp the situation early
Built an environment where data necessary for management accounting and business decisions is easy to check
By reducing the reliance on individuals and manual work in budget-vs-actual management, we have created a state that facilitates more timely decision-making while curbing the operational burden of management accounting.
From spreadsheet-centric budget-vs-actual management to management accounting that can be viewed in a timely manner
Budget-vs-actual management is centered around spreadsheets in many companies.
While spreadsheets are flexible and convenient, as businesses and organizations expand, the operations for input, aggregation, verification, and updating tend to become complex.
For example, if management sheets are separated by department or business unit, or if manual monthly updates are required, it takes time to confirm the latest status.
Furthermore, when only specific personnel understand how to perform updates, budget-vs-actual management itself easily becomes reliant on individuals.
In this support project, we organized budget and actual data and built an environment where necessary metrics are easy to check, thereby establishing a data environment usable for management accounting and business management.
What is important is not simply creating a dashboard.
It is important to make data usable in accordance with which figures, at what granularity, and at what timing you want to check them during management meetings and business decision-making scenarios.
Things to consider for companies with similar challenges
The challenge of budget-vs-actual management is not simply a matter of tools.
In many cases, the lack of organization regarding budget data, actual data, management units for departments and businesses, account items, and aggregation rules leads to operational burdens and reliance on specific individuals.
Therefore, it is important to first organize 'at what level you want to view budget and actual results.'
Do you want to view by department, by business, or by project? Do you want to view monthly or weekly? Are the figures the management team wants to see the same as the figures the frontline wants to see?
After organizing these premises, it is necessary to integrate budget and actual data and create a state where they can be checked using the same definitions.
There is no need to introduce a sophisticated management accounting system from the start.
Even just creating a state where you can check basic indicators necessary for management, such as budget, actual results, variances, and progress rates, in a timely manner will significantly change the speed of decision-making.
For companies with challenges in data utilization
When budget-vs-actual management relies on manual work or spreadsheets, it takes time to grasp the latest situation, which can easily lead to delayed management decisions.
INVOX provides support for organizing budget and actual data, building management dashboards, developing data infrastructure, and designing operations.
For example, please feel free to consult with us if you have the following challenges:
Budget-vs-actual management relies on spreadsheets or manual work
Want to be able to check the latest budget and actual status immediately
Want to grasp figures across departments and businesses
Want to identify budget-vs-actual variances at an early stage
Want to reduce the aggregation work for figures used in management meetings
Want to establish a data environment that can be used for management and business administration
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Other case studies
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