Universal Music Group (UMG) is the world’s largest music entertainment content company and is owned by the large French conglomerate – Vivendi. The company operates through a network of subsidiaries, joint ventures and licensees in 77 countries, representing 98% of the music market. With the recent acquisition of EMI, Universal Music has consolidated its dominant position in the music market.
UMG has implemented a single global instance of SAP FICO (Finance and Controlling) solution for financial reporting and royalty payments. Physical and digital sales data is fed by various feeder systems in this central finance instance consisting of SAP ECC and BW. After further processing of this data, royalty payments get calculated, provisions made and financial statements generated. The numbers are finally fed into a Hyperion system used by the parent organisation Vivendi Group.
The Business Challenge
The data upload and processing is a time consuming process. With various safety intervals in the SAP ECC Finance, COPA and BW (Business Warehouse), it could take as much as 4 hours to reflect a manual posting in Finance to appear in HFM (Hyperion Financial Management). As a result of the above, the whole Month End Close process is very lengthy and resource intensive. Reports are very slow and basic.