Grupo Sports World Automates and Reduces Budget Consolidation Time by 33% for 30 Fitness Centers
 
 

Grupo Sports World Automates and Reduces Budget Consolidation Time by 33% for 30 Fitness Centers

Grupo Sports World, S.A.B. de C.V. is one of Mexico’s leading operators of family-oriented sports clubs. It offers several plans designed to let all family members engage in sports activities at the same place.

Grupo Sports World has a wide range of sports activities and programs focused on its users’ needs and demands, as well as training, health, and nutrition services. It has approximately 42,000 active members in more than 30 locations and continues to expand throughout Mexico. It was the first physical-activity and sports company listed on the Latin American stock exchange.

The company needed to consolidate its 30 clubs’ budgets into a single system. Individual clubs used Excel spreadsheets, plus another spreadsheet for the general budget, to carry out business financial and inventory planning. After evaluating Oracle Hyperion Planning and SAP, Grupo Sports World selected Oracle because of flexibility, scalability, robustness, and ease of use.

With Oracle Hyperion Planning, Grupo Sports World consolidated financial planning and budgeting information for its 30 clubs—including membership information, costs for towels and other materials, and investments in sporting equipment. The system enabled authorized users from each club to access and share financial information, increase financial planning efficiency, decrease the time needed to prepare the consolidated budget by 33%, and improve the organization’s competitive advantage in the fitness industry by optimizing decision-making capabilities.

 
 

 
 

Challenges

A word from Grupo Sports World S.A.B. de C.V.

  • “With Oracle Hyperion Planning we automated budgeting processes to keep up with our expected growth for the next five years, and we increased planning efficiency.” – Marcel Alegria, Assistant Director of Corporate Financial Planning and BI, Grupo Sports World S.A.B. de C.V.

  • Create a collaborative environment for users in corporate finance and sports club management, and improve financial management to expand the business
  • Increase financial efficiency using a single budget with consolidated information, and improve middle- and long-term budgeting and financial planning to include clubs’ operating costs and investments in sports equipment and new locations
  • Integrate, consolidate, and report financial information from the various clubs to create business scenarios that improves decision-making for meeting growth goals

Solutions

Oracle Product and Services

  • Deployed Oracle Hyperion Planning to create a budget for each club—appropriate to its operational area and offerings—and consolidate various business units and clubs onto a single template that is aligned with the company’s growth strategy
  • Reduced time from 90 days to 45 days to prepare the  consolidated budget for all 30 clubs
  • Eliminated errors in the budget-consolidation process, even when the number of clubs doubled in one year
  • Monitored each sports center’s financial data, equipment inventory, and membership, consolidating information and producing reports that enabled better decision-making
  • Evolved from devoting 80% data management to consolidating club development information, with only 20% devoted to information analysis, to spending 80% on analysis and only 20% on data consolidation—facilitating timely decision-making and increasing financial department efficiency
  • Automated budget controls and enabled managing various actual, budgeted, and projected financial planning scenarios, with four levels of consolidation (including information on new location openings, as well as operational, financial, and other consolidated company information) on an annual, quarterly, and monthly basis
  • Achieved, through interfaces, communication between systems, eliminating the possibility of corrupting data
  • Simplified budget access for club managers, the financial department, and headquarters by creating a Web interface accessible from any device, enabling authorized users to make changes and view updated projections in real time
  • Worked with Oracle Gold Partner Intellego Consulting S.A.P.I. de C.V. to carry out planning, implementation, and training—completing an on-time deployment

Why Oracle

After a bidding process between Oracle and SAP, Grupo World Sports chose the Oracle solution, due to its affordability and return on investment.

“Oracle Hyperion Planning met all our parameters for fast and easy deployment, flexibility, scalability, robustness, and quick adoption and cultural change, learning processes and ambitious data mining,” said Marcel Alegria, assistant director of corporate financial planning and BI, Grupo Sports World S.A.B. de C.V.

Implementation Process

Grupo Sports World began deploying Oracle Hyperion Planning in July 2011 and put it into production in February 2012. “Working with Oracle Gold Partner Intellego, we carried out a staged implementation process,” said Alegria. “After creating our data warehouse, we deployed the Oracle solution, with participation from our users, including Sports World’s planning department and each sports club’s manager.

“We developed budgeting templates for each business unit in a language familiar to each system user, and, at the same time, we trained users on the solution use. We built business rules and formulations that the users validated, and we automatically connected accounts and routes for budget control—from fixed to variable expenses and inputs, ranging from electrical power to towels,” Alegria said.

Partner

Grupo Sports World worked with Oracle Gold Partner Intellego Consulting S.A.P.I. de C.V. to carry out the planning, implementation, training, and live rollout of Oracle Hyperion Planning.

“Intellego scheduled all implementation activities, based on the schedule that Grupo Sports World predefined in its processes for each user—across planning and club management—so users could develop their own budgets. It was a collaborative process between Sports World, Intellego, and Oracle. The solution enables us to optimize financial planning, as well as to maintain equipment supplies—from bicycles to pedals—with templates that we developed with Intellego. This was vitally important for the ability to manage our present and future business,” said Alegria.