Executive Summary
For the majority of businesses, investment in an Enterprise Performance Management (EPM) solution will deliver almost immediate dividends: improved efficiencey and productivity, an increase in revenue and the ability to manage budgets more efficiently and effectively.
EPM and Business Intelligence (BI) software provides all the financial functions a business needs, including budgeting, forecasting and consolidation. Aligning and compiling data from disparate sources, an EPM and BI solution can also vastly improve the processes surrounding regulatory compliance and financial reporting.
In addition to the core financial functions, BI software should provide a predictive analysis or “what if?” function that uses historic and current data to predict future trends and provide essential information to the company’s decision-makers.
In this paper, Faisal Nadeem, CEO of CENTRIXE, discusses how EPM solutions have become more affordable and accessible, particularly when adopted incrementally, using existing general ledgers.
Today’s competitive environment
Every business is dealing with the challenge of having to do more with less. Financial operations are under increased pressure to identify cost-saving opportunities and streamline processes. In addition to providing the mission-critical aspects of the accounting function many finance departments are also trying to cope with changing and complex tax regimes, regulatory compliance and reporting, all amid the uncertainties of the future.
“To remain competitive, companies need access to reliable data in order to make informed and solid business decisions. However due to an over reliance on spreadsheets and the growing volume of data and data sources, users have too much information to work with. Frequently, information that could be useful in the decision-making process is lost in the process or buried in a data silo”.
How can business intelligence software benefit SMEs?
Integrated BI and planning solutions deliver a single source of information immediately providing SMEs with a clear picture of assets, expenditures, profitability and cash flow.
While this information is critical to the core accounting functions, BI and EPM can also provide key information about the company’s history, its current status and predictive analysis to address where the company is going. BI allows decision-makers to gain real insight into business activities. It also provides the ability to analyse trends and the consequences of business decisions by running unlimited “what if?” scenarios.
The goal of EPM is to provide key decision-makers in the company with a ‘real performance insight’ to reliable, accurate and timely information whilst BI provides the framework to streamline financial consolidation, regulatory reporting and disclosure management.
A gradual approach
Investing in BI software does not have to be an all or nothing proposition. Companies can see an almost immediate return on their investment by taking incremental steps to integrate information and build on existing ledger systems. This gradual approach means that businesses can reap the immediate benefits of BI, expanding and adapting its capabilities as the company grows.
Factors to consider
Before investing in BI software a number of factors must be considered in the decision-making and selection process.
First and foremost: The company’s key users and managers must be a part of the process right from the start. It is important to establish what information the users and decision-makers need to make better informed decisions such as what information they are using, what sources the information comes from and which information is relevant and timely.
Secondly: Define your business and technical requirements. For example, if you already have a general ledger system that works well for you, you may not want to replace it with brand new technology; so look for a solution that can be integrated into your existing systems. Similarly, if you know that consolidation is one of your most challenging tasks, be sure to look for software that meets your needs and is flexible enough to continue to do so as the company grows.
Thirdly: Consider how much implementation effort, training and administration are required with each product. Be sure you are clear about training requirements and costs and the actual time needed before full deployment.
Fourthly: Look for a provider that is committed to building a strong business relationship with your organisation. Reliable and exceptional after-sales service is critical to achieving the maximum benefit from your investment in EPM.
Finally, before making a final decision, it is a good idea to request a prototype of any solution. This provides the opportunity for everyone involved to gain a complete understanding of the solution and will lay the groundwork for a positive and profitable outcome.