IT Controlling

IT Controlling Role

The Guardians are composed of seven members, one of them is Pranav Narang - IT Controler. 

At Syensqo, the IT controling plays a vital role in day-to-day business activities and project development at Syensqo. It covers the management of internal people, externals, vendors, and project allocations, ensuring alignment with our strategic goals and financial efficiency

Pranav is close with the IT LT stakeholders to meet current and future technology demands, maintaining cost efficiency. 

A. IT Controlling team

To facilitate this process, we use LeanIX, a powerful tool that helps us assess and manage our IT architecture effectively. LeanIX provides comprehensive insights and documentation, enabling us to make informed decisions and ensure that our initiatives are well-aligned with our strategic objectives. By leveraging this tool, the IT Enterprise Architecture team can maintain a clear and coherent architectural framework, optimizing resource utilization, reducing risks, and enhancing the overall efficiency and effectiveness of our IT operations.

B. IT Enterprise Architecture Team

C. The 3 Main Areas: Run, Build (Projects/Initiatives), Non Recurring

IT controlling has 3 main areas on which it puts most of it focus: 

(Slide 61 to 63 - RUN)
(Slide 64 to 68 - BUILD)

D. Build - Guardians process overview

 Budget creation:

• High-level budget included in the 2025 Portfolio file - built by Portfolio with the inputs of Leadership Team & IT Counterparts who are the eye's and ears of IT in the business. 

Initiative Evaluation & Cost Assessment:

• Controlling review is to review the detailed budget with the PM through the Workload & Costs template from Accolade

• Costs include internal resources, externals, services, equipment

• During the review the daily rates used are checked, split between OTC and Capex, check of the overall budget with the high-level budget in the Portfolio

• Involvement of DT ShS is to be done through a TSA build request. The costs would be including OH and Markup. These costs are included in the list of services.
  
  

Split of costs:

• • Capex (tangible): Physical equipment with a life cycle > 1 year (ex: PCs, servers)

  • Capex (intangible): Non-physical assets. Example: Software licenses. Can be internally built or purchased.

  • OTC (opex): Costs linked to the project which cannot be capitalized. Example: Costs related deployment of an existing solution, training costs, proof of concept / study

  • Run costs related to the project can be included in the Build during the first year of the project, year 2 onwards will be part of the Run.

• Only certain phases of the project can be capitalized - mostly preparation, design, delivery. Deployment and roll out is classified as OTC.
• WBS creation: WBS is the cost object of the project. Any cost to be allocated towards the build needs to be allocated on a WBS element. WBS creation is done only after the “Go” is received from all Guardians.
• WBS rules: A WBS is needed for every entity and nature of spend (capex tangible, capex intangible, OTC). Time booking is centralized on company 2002, except for Brazil and China resources. Vendor payments need to be made in the specific entity the invoice is booked.

E. OTC & Capex Allocation:

F. RUN - Cost management

Effective cost management at our organization involves several key processes to ensure financial efficiency and strategic alignment.

Internal People are tracked via Anaplan Workforce Planning, where managers review open positions and cost center allocations. For Externals, management is conducted through the FUP file, requiring accurate allocation of cost centers and confirmation of days worked for Goods Receipts.

Project Allocation is managed in Replicon, reallocating funds from the Run to Build projects to prevent overspending. Vendor interactions follow strict procurement processes, including contracts, POs, goods receipts, and invoices.

In SAP, each posting requires a Cost Center and Cost Element to define who is spending and the nature of the expenditure. Goods Receipts are necessary for costs to be recorded in the Profit & Loss statement, and Accruals ensure costs are matched with the correct period.

A Two-Way Matching process between Goods Receipts and invoices ensures accuracy, with automatic reversals for discrepancies. The Cost Center & Site List helps identify appropriate cost centers, while the Run Costs Cockpit tracks actuals versus budget and time allocation.

Adhering to the Procurement Workflow is crucial for maintaining effective cost management and financial tracking.