Hitting two birds with a single arrow………. Integrating financial planning to operation reporting
If your organization is relying on spreadsheets to produce the information for forward looking guidance, it might be time to consider a more-robust solution, which provides more control. What more if these information systems can supplement the operational reporting needs?
Just as companies are seeking ways to better utilize their ERP investments, they are also seeking ways to maximize their ROI in business processes through integration and standardization. Industry is grappling with multiple challenges today, but there's no turning back – yes, the financial planners now need sophisticated measurement tools to churn out accurate estimates.
Need for sound financial planning has never been as profound as it is shaping up in wake of recent financial crisis. Businesses are fast recognizing a need to tighten integration of financial reporting; EPM; and governance, risk, and compliance. A greater integration in information delivery systems is being witnessed for serving dual objective of compliance and decision support systems.
Companies need big capabilities when it comes to financial planning
Growing complexity in business arena is fast changing the paradigm of financial planning. Superior computation capabilities have come in handy and are helping planners scale up forecast process to conceptualize greater number of variables in financial planning process. Improvements in computation methodologies and integration of EPM systems has helped percolate Activity Based Costing analysis down to business users rather than being reserved as a niche area for technology. This has proved to be a great launch-pad for technology to perform as a true enabler.
Integration technologies have gathered critical mass whereby it is now feasible to create a common platform for delivering unified performance management solutions. Web based technologies facilitate rapid dispersal of information systems that in turn ensures close tracking of operations and speedier introduction of ameliorative measures to address economic adversities.
Image of finance department which hitherto has been regarded as a cost center is being reburbished. CFOs are exhibiting greater say role in driving technology decisions. Justification of ROI for financial systems is now being visualized with a broader mindset. With an objective of complementing these growing aspirations, technology is adapting fast and is delivering information in ‘the way business thinks’.
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posted on behalf of Navpreet Singh(Navpreet_Singh@infosys.com)
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Comments
Hi
To add to the information. Greater computing capabilities have transformed the existence of the concept Activity Based Costing from a PC based solution to an integrated BI solution.
The calculation of profitability at the subscription level in telecom, account level in banking etc. is possible today because of this. These results can also be integrated back to the Customer Intelligence (CI) solutions for segmentation, cross sell up sell and marketing campaign solution. The results can also be fed to the KPIs of the scorecarding solution.
Rajen Patil
Posted by: Rajendra Patil | March 10, 2010 2:30 AM
Very rightly said Rajen, some of the concepts like zero based budgeting that was earlier being brushed aside is gaining wide prominence. Superior computation power is also translating into greater end user involvement whereby enhancing probability of success for such initiatives.
Posted by: Navpreet Singh | March 10, 2010 8:08 AM