About Microchip
Microchip Technology Incorporated is a leading provider of microcontroller, mixed-signal, analog, and Flash-IP integrated circuits. Headquartered in Chandler, Arizona, the company reported revenue around $8.5 billion.
Situation
Microchip Technology encountered significant hurdles in modernizing its financial systems to keep pace with a rapidly evolving business landscape. The company needed to adjust its Chart of Accounts and enhance cost center-focused analysis. Additionally, the manual maintenance of master data across disparate ERPs and the reliance on outdated applications for Account Reconciliations (AR) and Financial Consolidations (FCC) further complicated the financial update process.
Action
To tackle these issues, Microchip partnered with Centroid, leveraging their expertise in Oracle Cloud solutions and financial management. The 5.5-month project focused on transforming financial systems through Oracle Cloud EPM. Key initiatives included enhancing consolidation applications for detailed insights, replacing IBM Cognos with Oracle EPM Free-Form Reporting to enable transparent drill-through to source data, implementing Oracle Narrative Reporting for collaborative and agile reporting, streamlining Business Unit forecasting for real-time variance analysis, introducing new KPIs, and migrating legacy SKUs to the Enterprise bundle to enhance EPM capabilities for more than 200 users.
Impact
The collaboration with Centroid significantly enhanced Microchip’s financial management capabilities by establishing a platform for global currency analysis and transaction-level support, ensuring data integrity, and facilitating faster responses to management needs and market demands through self-service reporting. Modernizing ERP integration improved the accuracy of global cost center and functional area analysis, while building a scalable enterprise data governance foundation prepared Microchip for future reporting requirements. These advancements modernized Microchip’s financial systems, boosting operational efficiency, compliance, and decision-making agility through Oracle Cloud EPM in partnership with Centroid.