North Media: Digital transformation in the finance function

Just three years ago, the digital landscape looked markedly different in North Media's finance function. Back then, they had two separate departments with a number of manual processes that kept the photocopier busy. Today, they are 100% digitised in one unified department and have freed up a lot of resources for more value-adding tasks. This resulted in a long conversation when we visited North Media's finance function on a sunny spring day. 

Perhaps you know the digital platforms BoligPortal, Ofir, Bekey or FK Distribution.  

But did you know that they are owned by North Media, which operates the companies as a digital and innovative link facilitating connections between businesses and consumers? 

On a sunny spring day, we visited their company FK Distribution in Høje-Taastrup, and from the start we sensed the vibrant atmosphere that reflects a group constantly seeking new, scalable business opportunities. This mindset is also reflected in the agility of their finance function, which handles all of North Media's companies and therefore operates as a shared service.  

In the foyer, we are welcomed by Chief Accountant Torben Nielsen and Project Manager Per Larsen, two of the driving forces behind North Media's digital transformation in the finance function, which is the focal point of our interview. They lead us down to a meeting room scented with fresh printer's ink and with a panoramic view over FK Distribution, which is busy preparing the week's promotional flyers for distribution. 

Per begins the conversation by telling us about North Media's portfolio of companies. His passion for and interest in streamlining the processes in the finance functions across locations is palpable. 

”Back in 2020, I took over responsibility for the finance function in our department in Søborg. It was a very manually driven department, and there wasn't really any integration between our systems. The takeover marked the starting point for the development of more digitised, optimised solutions that would enhance our internal controls and ease the workflows in the group's finance functions,” he explains.  

Both Per and Torben have always shared a common goal of delivering accurate reporting to the group's management, but they didn't actually work closely together before they began the digital transformation. Previously, the two finance functions had operated independently of each other, but with the introduction of the new digital systems and processes, led by Per, a merger began to take shape. 

”At North Media, there has been an extreme focus on lean and processes that create scalability in the distribution business itself. This has then spilled over into the finance department. When we began this transformation, we were two separate functions. One finance function under Per's leadership in Søborg and one under mine in Høje-Taastrup", Torben explains. 

Per adds: ”Digitalisation and automation have long been our focus areas, which has brought us to a point where it made sense to merge the two departments. We were operating so similarly in both departments that it no longer made sense to have two, but just one across the entire group. Then I could, in a new project manager role, continue my focus on further optimisation of the business area and Torben as head of accounting for all the companies.”

With North Media's broad portfolio, spanning five business legs and a number of associated companies, they navigate a complex financial structure. Each company has its own reporting, budgets and financial targets, and the finance processes must therefore balance agility with established accounting standards. This is why it is also important for North Media that newly purchased systems bring value to the finance function through the possibility of clear and precise communication, overview and structure. 

For this reason, Per wanted to integrate a new system that could accommodate the complexity and that made sense in their day-to-day operations. He researched a number of systems and attended one of Basico's after-work meetings. Here he was introduced to the Adra by Trintech suite, which ended up being integrated as their new system to streamline and digitalise the closing process.

”If we take balance sheet reconciliations as an example, we had a self-built solution that actually worked fine in the finance function. But ... there were many challenges when we needed to share data across our companies at different locations and domains. When we did balance sheet reconciliations, we reconciled one account at a time in separate Excel sheets, and we couldn't document who did what and when. So it made sense to take the next step and implement a cloud solution and move away from using local files. With Adra, we moved up to the premier league with those processes,” explains Per, nodding with a satisfied smile.

Change processes and integration of new systems can be challenging and don't always go smoothly. But Torben and Per had created a solid foundation before implementation and had a clear vision: they wanted to cover a broader range of balance sheet reconciliations, the closing process and internal controls.   

And the transition to the Adra system was surprisingly frictionless.  

"It only took one month to implement Adra Balancer, and our employees went from manual Excel processes to working directly in Adra without major problems," explains Torben enthusiastically. "We already had a strong structure and well-reconciled balances, which made Adra an obvious and easy solution. The transition was intuitive, and we could benefit from real-time data without waiting time."

Per nods with a smile and takes over: "The thing with Adra is that they have a Balancer module. Not many competing systems have that when we're talking about internal control systems. There's also an auto-approval of balances that don't change from month to month, and that has also eased some of the work with implementing Balancer."

Both emphasise how they can feel a difference in their employees and their digital mindset after the implementation. Today, their employees have a strong interest in automating processes; an interest that didn't exist at the same level three years ago.  

"I find that our employees have developed an appetite for finding new, smart solutions, even though it also takes some getting used to. They've acquired a taste for not spending so much time on keyboard work, but instead using their time more intelligently. We have therefore freed up our employees' resources for more value-creating tasks, and that's brilliant," says Per.  

Torben agrees and emphasises how the department's engagement has been significant for the implementation's success:  

"There was no resistance in the department regarding the implementation of Adra. We had prepared Adra Balancer so it was clear to them who should handle which tasks in which companies. Both Per and I have been incredibly impressed by how quickly everyone has embraced it."

Whilst the efficiency of their new systems has already made a noticeable difference, Torben and Per are already ready to take the next step. 

”We're not finished at all,” says Torben with a twinkle in his eye.

Per highlights how the Adra system has significantly eased the workload for Torben's team, especially in connection with month-end and year-end closing. They have now embarked on the implementation of Task Manager; a tool that is still new to them, but which has a wealth of possibilities. 

Torben is particularly excited about the 'low-hanging fruit' that can soon be harvested – improvements that will not only optimise their work processes, but also strengthen the relationship with the auditors. With Task Manager, the auditors will be able to see that all work tasks are carefully described and documented, and they can retrieve the necessary documentation directly, which eliminates the need to enter manual data more than absolutely necessary. This improvement will not only streamline the process, but also free up valuable time for the team. 

”We've taken the implementation of Adra in two stages. First Balancer and then now Task Manager. When we started the project, we had a great need to ease our own workflows and internal finance functions. We could do that with Balancer. Task Manager will probably be more of a 1:1 solution with what we have today, but with a focus on increasing the documentation of the tasks we do," explains Per. 

Before we round off the interview, Torben gives a very concrete example of how digitalisation has manifested itself physically in the departments: 

”If we take a walk over to our archive, for example, in the old days there would have been shelves in long rows full of folders and paper. Today, we have virtually nothing. And these are visible proof of a time when reconciliations and reports were bound in physical folders month after month.”

Torben admits with a laugh: ”In my department, I was probably the one who visited the photocopier most often.”

Torben, Per and their teams have welcomed the digital transformation with open arms. 

And it's a journey they are strongly motivated to continue on. 

When we help digitalise and automate a finance function, we make a point of assembling the applications and tools that meet your specific needs. And this article is about how we have helped North Media's finance function. To become 100% digitalised in one unified department and have freed up a great deal of resources for more value-creating tasks.