Exploring Controlling Dynamics in Digital Finance Transformation Program - A Study on EPM Transformation Journey and Controlling Process Enhancement within Volvo Cars

Abstract

This study aims to empirically investigate the controlling dynamics within Volvo Cars digital finance transformation program. Using a qualitative case study approach, this study identifies the main challenges that Volvo Cars is experiencing, and important factors influencing success of the transformation. It also investigates the improvements and resulting implications of the EPM program that emerged from Volvo Cars' finance transformation program aiming to improve controlling processes across the organization. Data for the study were primarily gathered through 16 interview sessions conducted with managers and non-managers of Volvo Cars with some insights from an external consultant working with the company’s case. The research questions focused on the challenges, success factors, and controlling function enhancements is the roadmap for the study and helps in guiding the direction and focus of this study. The findings reveal the significant challenges associated with the continuing finance transformation, including technological, system, and project management concerns, where critical success factors identified as sufficient training accessible at any time, mutual consensus for the change, strong management team and communication helps the project to develop successfully. The EPM transformation leads to streamline control tasks such as planning, forecasting, management reporting, FP&A resulting in improved decision-making, efficiency and effectiveness of the control function. The study highlights the findings collected through interview sessions, compares them to academic literature and previous case studies, and concludes the study providing the summary and recommendations for the company. Although the findings are based on the Volvo Cars case, this study provides valuable insights into companies who are currently transforming their business or are willing to do so in the near future. It contributes to the knowledge by providing real-world application of digital finance transformation and its impact on controlling processes. The limitations of this study are acknowledged, and areas for future research are suggested to further explore the areas found in this research.