Centida Newsletter (January 2025)

Welcome to the January 2025 edition of Centida’s newsletter. We hope the new year has started on a bright note for you. In this edition, we explore critical topics, such as attracting young talent in finance, building a more resilient supply chain, and diving into the latest Power BI features.

We also share a success story from Casco, one of our customers, highlight the importance of materiality in ESG reporting, and discuss how to bridge the gap between cutting-edge AI research and tangible business results.

As always, our goal is to provide you with practical insights and guidance to make informed, data-driven decisions in an ever-evolving marketplace.

Table of Contents

• Office of the CFO: Building the Finance Team of Tomorrow
• Office of the CPO: Building Supply Chain Resilience in a Volatile World
• Power BI Updates: Latest Features Review
• ESG Services: Understanding Materiality in ESG Reporting
• Customer Story: Casco's Road to Success with Centida
• Trendspotting: From Theory to ROI - Making AI Tangible

?? Office of the CFO: Building the Finance Team of Tomorrow

Demographic shifts and evolving employee expectations are changing the finance talent landscape. As birthrates decline in many developed countries, the competition for qualified finance professionals is intensifying. At the same time, younger workers seek a sense of purpose, not just a paycheck.

In this environment, the CFO’s role increasingly extends to attracting, mentoring, and retaining the people who drive the finance function forward.

Changing Talent Landscape

Today’s finance teams are not purely transactional - they’re expected to contribute strategic insights using advanced analytics and modern FP&A tools. With fewer qualified candidates entering the job market, companies must appeal to a generation that values flexibility, meaningful projects, and continuous learning.

The CFO's Evolving Role as Talent Developer

A CFO we spoke with recently shared that he now invests significant time in building up his teams. Beyond budgets and forecasts, he focuses on coaching and professional development, ensuring employees feel challenged and supported. This shift underscores the importance of human capital in sustaining a thriving finance organization.

Key Strategies for Attracting & Retaining Finance Talent

• Upskilling & Professional Development - provide structured training in advanced analytics and financial modeling. These opportunities keep skill sets current and bolster engagement. Additionally, consider implementing mentorship programs that pair junior analysts with seasoned professionals, fostering both knowledge transfer and a sense of community.
• Flexible Work Policies & Clear Career Paths - offer remote or hybrid arrangements, transparent promotion criteria, and ongoing feedback. While competitive salaries remain crucial, a strong culture of work-life balance and career advancement often seals the deal.

By providing these options, companies appeal to a broader candidate pool and reinforce their commitment to employee well-being.

Measuring the Impact

• Employee Satisfaction & Retention - monitor turnover rates and conduct regular pulse surveys to gauge engagement, identifying early warning signs of dissatisfaction. This data can guide leadership decisions to enhance the employee experience and keep top talent in-house.
• Productivity & Forecast Accuracy - track improvements in reporting speed and forecasting reliability after upskilling programs, comparing before-and-after metrics. These insights highlight how investments in training lead to more proactive and robust financial strategies.
• Financial ROI - compare training costs against reduced hiring expenses and gains in operational efficiency, quantifying the tangible benefits. By reducing the need for constant recruitment and onboarding, organizations can focus on nurturing an adept and unified team.

Conclusion and CFO Action Items

Investing in people has become integral to success in today’s finance environment. By fostering skill development, embracing flexible work models, and mapping out clear career paths, CFOs can future-proof their teams and ensure the finance function remains a strategic powerhouse. For organizations ready to take on the talent challenge, the time to act is now.

?? Office of the CPO: Building Supply Chain Resilience in a Volatile World

Unpredictable market conditions, climate-related disruptions, and shifting geopolitical landscapes are putting pressure on procurement teams worldwide. A single bottleneck can quickly escalate into lost revenue or reputational damage, highlighting the growing importance of supply chain resilience.

As volatility becomes the norm, CPOs are tasked not only with sourcing and cost control, but also with safeguarding the organization against disruptive events.

Understanding the Drivers of Volatility

Supply chain hiccups can originate from external triggers - such as extreme weather events, unexpected policy changes, or global health crises - and from the inside of a company, where siloed systems or a lack of real-time visibility create blind spots.

When procurement teams lack diverse sourcing options, a single point of failure can send ripple effects across the entire organization.

Strategies for Building Supply Chain Resilience

Supplier Diversification - consider spreading sourcing across multiple regions or vendors to reduce dependence on a single supplier. This approach, supported by data analytics and performance tracking, ensures procurement decisions are well-informed and guard against sudden supply shortages.

Digital Transformation & Real-Time Visibility - when possible, use advanced analytics, AI/ML, and Internet of Things (IoT) solutions to monitor supplier performance, inventory levels, and shipping timelines. By receiving real-time insights, procurement teams can spot disruptions early and respond proactively before they escalate.

Risk Management Frameworks & Scenario Planning - establish protocols for incident response, designate clear points of contact, and regularly run “what-if” simulations to assess vulnerabilities. Proactive scenario planning helps identify areas where you can bolster contingencies and safeguards, reducing downtime when disruptions occur.

Collaboration Across the Organization - maintaining open lines of communication with finance, operations, and logistics is crucial. When everyone works from the same data and forecasts, critical decisions (anything from recalibrating budgets to shifting supplier orders) can be made swiftly and collectively.

Measuring Resilience & ROI

Lead Times & Fill Rates - track any shifts in delivery times and the percentage of orders successfully fulfilled on time. Consistent improvements here signal that resilience strategies are working effectively.

Supplier Risk Scores - assign risk ratings to suppliers based on financial stability, geographic exposure, and historical performance. Monitor these ratings over time to identify trends and prioritize strategic partnerships.

Post-Incident Reviews - after any supply chain disruption, analyze response outcomes and compare them to baseline metrics. This helps clarify which resilience measures were effective—and where additional efforts may be necessary.

Next Steps

Building a resilient supply chain requires both tactical initiatives and long-term strategic planning. By diversifying supplier bases, leveraging real-time analytics, and fostering cross-functional cooperation, CPOs can mitigate risks that threaten organizational growth and stability. As global uncertainty continues, a proactive approach to supply chain resilience isn’t just a safeguard, but a competitive advantage.

For procurement leaders, the message is clear: invest in the tools, processes, and collaborative networks that keep you prepared for the unexpected. When disruptions arise, you’ll be ready to face them head-on, ensuring sustainable operations and stronger partnerships in the process.

?? Power BI Updates: Latest Features Review

The latest Power BI January 2025 update brings a bunch of new features designed to improve your analysis, simplify data exploration, and enhance model management. While there’s a lot to unpack, here are 3 most important updates from the perspective of a Power BI analyst.

1. “Explore this Data” Option in the Visual Menu

A fresh, direct way to deep-dive into visuals.

Why It Matters:

• Rapid Analysis: Instead of searching through multiple report pages or toggling between visuals, you can now right-click any chart and immediately explore its underlying data. It’s a game-changer for quick, ad-hoc analysis.
• Focused Exploration: This streamlined interface allows you to experiment with different chart types, filters, or measures - without the clutter of full report editing.
• Power BI Analyst’s Perspective: For anyone asking “Can we see more detail here?” requests, this feature is a time-saver. It offers a fast path to deeper insights, particularly when working with large, multi-page reports.

2. TMDL Scripting Experience (Preview)

Code-based modeling for enhanced flexibility and control.

Why It Matters:

• Advanced Development: TMDL (Tabular Model Definition Language) scripting opens the door to a more specialized approach, allowing you to edit all aspects of your semantic model right in Power BI Desktop.
• Improved Transparency: Unlike purely GUI-based modeling, TMDL shows every property, table, measure, or perspective under the hood. It’s invaluable for fine-tuning advanced features not always accessible via the standard interface.
• Power BI Analyst’s Perspective: If you’re juggling multiple measures, complex DAX, or intricate data relationships, TMDL provides a clear code-first viewpoint. Sharing or reusing standard model segments (like calendar tables) becomes easier too—just script them out and share with the team.

3. Semantic Model Version History (Preview)

Roll back changes with confidence.

Why It Matters:

• Safety: Data model changes can have big downstream impacts. Version history stores automatic snapshots of your model, so you can revert to a prior version if you stumble into errors.
• Collaboration Made Easier: Working in a premium workspace often means multiple contributors. With version history, you can avoid “stepping on each other’s toes” by rolling back any unintentional adjustments.
• Power BI Analyst’s Perspective: Anyone who’s ever lost a polished DAX measure or inadvertently broken a model will appreciate this. It’s akin to version control for your semantic model, which lowers the risk of critical mistakes.

In summary

With each Power BI release, Microsoft continues to streamline data exploration while adding sophisticated modeling capabilities.

For more details on each of these features, check the official Power BI blog: https://powerbi.microsoft.com/en-us/blog/power-bi-january-2025-feature-summary/#post-28821-_Toc919367718

?? ESG Services: Understanding Materiality in ESG Reporting

Navigating the world of ESG reporting can feel overwhelming, especially with new terminology and frameworks to grasp.

Among these, materiality stands out as a key concept. Materiality helps organizations identify and prioritize the ESG factors most relevant to their business and stakeholders.

What Is Materiality in ESG Reporting?

Materiality in ESG reporting refers to determining which environmental, social, and governance issues are most significant to a company’s operations and stakeholders. These issues can influence business performance positively or negatively, making it crucial for organizations to assess what truly matters.

By identifying material factors, companies can focus their ESG efforts where they will have the greatest impact.

Why Is Materiality Important?

• Focus and Efficiency: Materiality ensures companies concentrate on the ESG issues that genuinely affect their performance, avoiding wasted time and resources on less impactful areas.
• Stakeholder Alignment: A clear materiality assessment helps organizations address the priorities of investors, regulators, and communities, building trust and credibility.
• Enhanced ESG Performance: By honing in on the most critical factors, companies improve their overall ESG outcomes and long-term sustainability.

Types of Materiality in ESG Reporting

1. Financial Materiality

Financial materiality focuses on ESG issues that directly affect a company’s financial performance, such as revenue, costs, or market value.

• Example: A beverage company in a water-scarce region identifies water usage as financially material due to rising costs and regulatory pressures. By investing in water-saving technologies, the company reduces expenses while mitigating operational risks.
• Strengths: Provides clear, investor-friendly insights and aligns with traditional financial reporting practices.
• Limitations: Overlooks broader environmental or social impacts that may not have immediate financial implications.

2. Double Materiality

Double materiality broadens the lens, considering both financial impacts on the company and the company’s environmental and societal impacts.

• Example: An energy company assesses carbon emissions for financial risks like fines, but also evaluates their environmental effects on local ecosystems. By investing in renewables, the company enhances its reputation and reduces long-term risks.
• Strengths: Delivers a holistic view of ESG impacts and aligns with emerging regulatory and stakeholder demands for comprehensive reporting.
• Limitations: Requires more extensive data collection and analysis, which can be resource-intensive.

How Does Materiality Shape ESG Reporting?

Materiality shapes the focus and content of ESG reports, ensuring that disclosures are relevant, credible, and impactful. A robust materiality assessment helps companies:

• Address stakeholder priorities.
• Allocate resources to high-impact ESG initiatives.
• Enhance transparency and reputation, attracting investors and reducing risks.

By understanding financial and double materiality and leveraging them strategically, companies can enhance their ESG performance, build trust, and secure long-term growth. Partner with Centida to turn ESG challenges into opportunities for meaningful impact.

?? Casco Success Story

Casco, a global automotive manufacturing leader, faced challenges with siloed data systems, cumbersome Excel-based reporting, and slow decision-making processes.

Under the vision of Group Director Finance, Controlling & IT, Ramon Vermin , Casco set out to modernize its financial planning and forecasting.

Below is Casco’s transformation story - highlighting the roadblocks they faced, the solutions Centida provided, and the results that followed.

Challenge

Casco was grappling with siloed SQL databases, heterogeneous ERP systems, and a cumbersome array of Excel spreadsheets that hampered its Financial Planning and Forecasting processes.

The company needed a faster, more user-friendly, and integrated way to manage business-critical data. Outdated reporting tools slowed decision-making, limiting the company’s ability to respond to changing market conditions.

I often have problems with other consultants who think only in terms of technology and not usability.

- Ramon Vermin, Group Director Finance, Controlling & IT, Casco Automotive

Solution

Casco’s initial move toward a Power BI-based writeback enabled planning solution was promising. However, it wasn’t until Centida joined the project that the full potential of a writeback solution emerged.

Ilya Fedorkov used a user-focused, rapid implementation strategy:

1. SQL Optimization & Load Times:

• Improved backend performance and reduced hardware costs.
• Enabled near-instant data processing, accelerating management’s ability to act.

2. Unified Data Approach:

• Integrated multiple ERP and SQL systems under a single source of truth in Power BI.
• Ensured consistent, up-to-date data for operational and financial planning worldwide.

3. Real-Time Forecasting & Reporting:

• Leveraged a powerful writeback vendor’s technology for immediate data edits and collaboration.
• Embraced AI-driven forecasting to anticipate market trends, giving Casco a proactive edge.

Centida’s ability to translate business requirements into technology is unique. Sometimes I am in a call with other colleagues or consultants, and I’d just think: I need Centida in the call now.

- Ramon Vermin, Group Director Finance, Controlling & IT, Casco Automotive

Results

By modernizing its planning and reporting infrastructure, Casco achieved:

1. Integrated Sales & Financial Planning:

• Merged forecasts with budget constraints to optimize profitability.
• Reduced manual reconciliation between spreadsheets and enabled data consistency.

2. Proactive Accounts Receivables Management:

• Gained the ability to comment on and mitigate credit risks in real time through writeback features.
• Strengthened cash flow visibility, enabling informed, timely interventions.

3. Master Data Overhaul:

• Eliminated duplicate records across systems, ensuring uniform definitions for customers and cost centers.
• Increased confidence in strategic decisions thanks to cleaner, more reliable data.

4. AI-Enhanced Forecasts:

• Moved beyond reactive responses to market shifts, leveraging predictive models for inventory and resource planning.
• Improved competitiveness in a fast-evolving automotive sector.

5. Intercompany Planning:

• Provided plants with instant visibility into each other’s production and inventory.
• Streamlined supply chains and enhanced collaboration across the globe.

Next Steps

Backed by Centida’s guidance and a well-integrated planning environment, Casco plans to further refine its digital transformation efforts. By gradually expanding analytics and AI capabilities, the company aims to strengthen data-driven decision-making and maintain a user-friendly approach across its global operations.

?? Trendspotting: From Theory to ROI - Making AI Tangible

Artificial intelligence is evolving at a breathtaking pace, boasting breakthroughs in generative models, multimodal data processing, and more. Yet despite these technical leaps, many organizations struggle to convert AI-driven innovations into tangible business value. According to Gartner, 30% of generative AI projects may be abandoned by 2025 due to misalignment with business objectives and insufficient operational readiness. The result? Potentially game-changing ideas often stall before they can deliver meaningful returns.

Why the Gap Exists

AI research labs frequently focus on pushing technological boundaries—model accuracy, multimodal integrations, and advanced features—while real-world business challenges get overshadowed. Meanwhile, organizations encounter obstacles like inadequate data quality, fragmented infrastructures, and teams that lack the skills or frameworks to operationalize AI. Without clear alignment between AI goals and commercial strategy, these ambitious projects risk becoming expensive experiments rather than productivity-boosting solutions.

Real Consequences for Business

• Lost ROI: AI investments that don’t address immediate pain points can drain resources without producing significant returns.
• Opportunity Cost: Funds funneled into poorly integrated AI could be better used on growth initiatives with clear, measurable benefits.
• Operational Friction: Teams might feel disillusioned when flashy pilots fail to integrate seamlessly into daily workflows.

Bridging the Gap

• Start Small, Scale Fast: Pilot AI use cases that address specific issues—like inventory optimization or fraud detection—before rolling them out more broadly.
• Align AI Initiatives with Business Goals: Every AI project should begin with a clear objective tied to concrete metrics (e.g., cost savings, revenue growth, or customer satisfaction).
• Invest in Change Management: Upskill employees, embed AI into day-to-day processes, and foster a culture that encourages experimentation. Real value emerges when end-users trust and adopt the technology.

Conclusion

While breakthroughs in AI research are essential for future innovations, organizations must ensure that these advances translate into real-world, bottom-line improvements. By targeting immediate business needs, engaging end-users, and steadily scaling proven solutions, leaders can close the gap between AI’s theoretical promise and its operational reality. Ultimately, a balanced approach—one that unites cutting-edge research with practical application—sets the stage for AI initiatives that truly move the needle.

?? Stay Connected with Us

Thank you for taking the time to read our newsletter. We hope you found the insights and updates valuable for your business.

We encourage you to share your thoughts and ask any questions you might have. If you'd like to learn more about how Centida can support your organization, please feel free to reach out to Nik Pavlov or contact us at [email protected].