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Many IT companies can provide solutions to increase
efficiency in reporting or budgeting or forecasting (but create information
islands in the process)…few can make the process both efficient and
effective.
We believe that an efficient and effective business performance management
system should have methodology at its core plus a tool that allows:
| 1. |
Writeback data to the centralised database to
allow "reporting & analysis" as well as "budgeting
and forecasting" for one version of the truth. |
| 2. |
True "bottom-up driver-based modeling"
of the business allows product/category level budgeting rather than
just summarised General Ledger values thus creating the setting for
fast efficient forecasting at the lowest level and avoiding information
islands. |
| 3. |
budgeting by initiatives, projects or deliverables
to translate tactics into both financial and non financial measures |
Writeback capable solutions allow users to create reports
with "drag and drop" ease for Actuals data and enter
forecast or budget numbers on the same screen.
True "bottom-up driver-based" modeling allows the sales organisation
to forecast sales units (or dollars) at whatever level is required (by customer/territory,
by Sales Representative) which will then generated complete budgets and
forecasts for Sales, Inventory, GST, Debtors and General Ledger. This allows
true integrated Balance Sheets, Income Statements and Cash Flows to be updated.
Surprisingly, very few business intelligence tools can
create “cross cube” formulae therefore so called “modeling”
tools only model the General Ledger. The most basic requirement would be
to multiply Sales Units from the “Sales” by Price from the “Price
Book” to create a dollars and units budget which can then feed other
models including the General Ledger.
Budgeting by Initiatives allows budgets and forecasts
to be created by initiatives, projects or deliverables.Click here to see
how we view strategic planning via the Balanced Scorecard methodology.
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