Project - Data-Driven Margin Improvement
Using a data-driven approach to locate hidden value in reconciliation and improve margins.
We want to better utilise our systems and data to improve our margins
Introduction
In just 6 weeks, Mudano identified a £6.8m revenue improvement for Lloyd’s Register by using a data-driven approach to margin improvement.
Mudano worked with Lloyd’s Register, one of the world’s leading Business Assurance and Inspection services providers at the beginning of their digital transformation to bring a data-informed approach to margin improvement.
Summary
Lloyd’s Register had recently implemented several new systems including a suite of accounting tools. These systems were implemented through large multi-year programmes which rolled out functionality globally to more than 100 business units in waves.
The business wanted to capitalise on these enhancements and look to better utilise these systems to improve their margins.
They saw data as the asset with which to improve their financials and act as a springboard to launch a wider data strategy initiative and asked Mudano to be their strategic partner in delivering this vital first stage.
Impact
The Mudano team on the ground documented and proved there were significant opportunities in their operating model that would improve margin, identifying a gap between sales and delivery of £6.8m a year globally.
Mudano was able to demonstrate to the board in 6 weeks the significant opportunities and immediate revenue recovery. The board has now been able to define improvement initiatives and have a deeper insight into margin improvement.
Our approach
Mudano instigated an iterative and agile deep-dive into Lloyd’s Register’s internal data landscape. In just six weeks, the team identified significant improvement opportunities and generated immediate revenue recovery.
Unique delivery & talent
Mudano delivered by using deep data know-how, audit & accounting acumen and rapid Agile delivery. Our unique combination of skills in data analysis, accounting, data engineering and design thinking proved a winning formula.
Data led approach
The team performed a rapid assessment over three weeks to understand the operating model. We fixed the scope on defined scenarios and used a data-led approach to trace the data flow through business process, technical landscape, MI and reconciliation.
Prototype
Over the following three weeks the team further developed a rapid prototype which performed reconciliations between systems to identify where there was revenue leakage. Results were analysed with SMEs and reason codes defined. The prototype was then used by operational teams.
About Lloyd’s Register Group Limited (LR)
LR started out in 1760 as a marine classification society. Today, it’s one of the world’s leading providers of professional services for engineering and technology – improving safety and increasing the performance of critical infrastructures for clients in over 75 countries worldwide. The profits generated fund the Lloyd’s Register Foundation, a charity which supports science and engineering-related research, education and public engagement. All of this helps LR stand by its purpose – working together for a safer world.