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Celonis Product Documentation

Setting up value tracking

You need to set up value tracking so that Transformation Hub understands how to quantify the value realized from your value opportunities. For common types of value opportunities, Transformation Hub provides recommended value tracking formulas to help you quantify value based on KPI improvements (such as in the first approach below).

Common approaches to quantifying value are:

  1. Tracking how a KPI improved from its baseline, then converting that improvement into actual value realized.

    1. For example, if you wish to realize more cash discounts offered by vendors from paying invoices earlier, you can change the payment policy to pay invoices with cash discounts earlier. Then implement a Celonis app that highlights invoices with cash discounts that should be paid earlier.

    2. You can record your current baseline of 15% cash discounts realized from the last fiscal year and start tracking the improved cash discounts realization rate after the change.

    3. If you improve this rate to 60% in the current fiscal year, that’s a 45% improvement.

    4. To understand how much actual value this represents, multiply this improvement by the available cash discounts in this fiscal year, which in this example is $10,000.

    5. This means that you have realized (45% * $10,000) = $4,500 of P&L value due to the solutions implemented to improve cash discounts realization.

  2. Track usage of implemented solutions and their associated value.

    1. For example, if you want to prevent duplicate invoice payments, see: Installation Guide.

    2. In the app, review invoices marked as duplicate, verify if they are real duplicates, and then prevent payments for any invoices verified as duplicates.

    3. You can quantify how much working capital value this frees up by aggregating the total value of the duplicate payments prevented.

    4. You can also understand how many hours of productivity are saved by multiplying the number of prevented duplicate payments by the estimated effort required to retrieve each duplicate payment.