Because of its infrastructure, Leipziger Verkehrsbetriebe plans over a horizon of up to 30 years. With value-driver-based scenario simulation, measures such as the purchase of electric buses can now be calculated transparently. Despite the high complexity, the project team implemented the solution independently in just two months.
The Challenge: Complex Data Resulting in Lack of Transparency
Leipziger Verkehrsbetriebe (LVB) lacked a deep understanding of cause-and-effect relationships within the company, because its data was too complex to represent transparently.
LVB shape public transportation in the city of Leipzig, Germany. The effects of digitization not only impact customer service or sales technology but also the finance department. With their strategic focus, LVB aims to respond to the changing mobility landscape and the increasing mobility needs of people.
Operating with a high level of value creation, the transport company faces complex data relationships, for example different areas of activity and vehicle types. This complexity makes it challenging to simulate scenarios, as the impacts of measures such as the purchase of electric buses cannot be transparently visualized. Additionally, incorporating assumptions, such as the development of passenger numbers, into a transparent system was not feasible.
Particularly concerning necessary changes in the strategic planning process, which extend over a time horizon of up to 30 years due to infrastructure considerations, this approach did not provide a flexible foundation. Previous attempts to consistently integrate driver logic into the business structures using Excel files resulted in significant efforts.
The Solution: Value Driver-Based Scenario Simulations
By implementing the Valsight cloud solution as financial planning software for value driver-based simulations, Leipziger Verkehrsbetriebe established a transparent decision-making basis within the organization. Thanks to the user-friendly interface of the software, end-users were able to independently create individual financial models and value driver trees and connect them with various internal and external data sources.
Based on base data, new scenarios can now be created within seconds. Assumptions about the development of value drivers can be flexibly inputted into different scenarios, allowing LVB to simulate various financial scenarios. This approach supports the traceability of actions across all hierarchy levels and enables fact-based discussions in management meetings.
The Result: Increased Efficiency in Strategic Planning
Thanks to Valsight, LVB has gained more transparency regarding the cause-and-effect relationships of influencing factors on planning, ensuring optimal resource allocation.
“As a user, I can quickly create driver trees in numerous dimensions and adjust them as needed to enable a targeted planning process.”
Uwe Pohlers, Head of Group Controlling, Leipziger Verkehrsbetriebe
The implementation of the value driver-based planning approach allowed the public transport company to make the strategic planning process more efficient. This was achieved by increasing transparency in the planning process and improving the speed of planning. With a unified driver logic across the entire organization, there is no longer a need for discussions about calculation logic, as the results of the methodology are unquestionable. Additionally, integrated visualizations enable discussions directly within the tool. Despite the high complexity and a vast number of different drivers, the project team was able to independently implement the solution in just two months.
About Leipziger Verkehrsbetriebe
Leipziger Verkehrsbetriebe has been part of Leipzig since 1872. Since then, the streetcar has been rolling through Saxony’s metropolis, helping over 100 million passengers a year to reach their personal destinations. The company sees itself as a comprehensive mobility service provider and offers customized digital services for all aspects of classic passenger transportation.