Financial analysis as the basis for long-term forecasts for a market leader on the real estate development market
IBM Planning Analytics (TM1) is a tailor-made solution
As a base, we consider a data warehouse that contains information on the number of: apartments, garages, stores, storage units - along with key descriptive information including, among other things, dates of sales and bookings. Such an Investment Base is used for further analysis. The current model created in IBM Planning Analytics has three input points from which external data flows in. The first is information on costs, both those incurred and those planned for the entire investment. The second is revenue. Those of performance, i.e. payments from customers, and future ones, depending on the selected schedule. The third point is investment information. So we have all the data: how many apartments there are, what size they are, what standard they are, how many garages there are, what type, how many storage units there are, whether there are stores, what their prices are, prices per meter, sales value, booking dates, sale dates, handover dates, etc. An important difference between this model and the previous one is that we get more information from outside, and the data is more integrated. As a result, employees can efficiently navigate the analytical model created in TM1 within the limits of their assigned rights.
Sound financial analysis requires homogeneous data
As Ewa Kaczmarczyk, Team Leader at Incube CPM, who is leading the project, explains, we aimed to make the data verifiable and controllable on an ongoing basis. And it worked.
– We have all the sales information. We get information from wholesalers on how many apartments have been sold and we calculate the average price per square meter, discounts and other information that must be reported to managers or owners. Then, from this information, the system creates overheads, company-wide costs on investments, fed from the data warehouse. And then generate from them per company: financial reports like cashflow, balance sheet, income statement, which will be accessed immediately, the expert enumerates.