Will Your Finance Systems Be Obsolete in 2019?
“Implementing ERP like it’s 1999 didn’t work then — and it’s definitely not working now.”
Too many companies have jumped blindly into their ERP implementations without a clear plan or organization. Traditional ERP implementations will continue to fade in 2019. More forward-leaning organizations are finding success focusing on true digital transformations. Instead of assuming that a single software solution or single vendor can deliver the breakthrough capabilities required for the future, more companies are finding value in integrating multiple systems to gain stronger insights into their business. The key to effective implementations is starting out with a clear digital strategy to help navigate through the options and find a solution best fit for the organization’s needs.
Your Legacy Supply Chain Systems Are Costing Your Business More Than You Think
Companies still running on legacy, on-premises supply chain technologies are stuck in that linear model and losing their competitive edge faster than they realize. The supply chain model has transitioned from very supply-drive to an end-to-end process that starts with the customer. The focus is now what the customers want and being agile enough to quickly meet the demand. However, shifting to a new business model requires changes to not only the technology being used, but also to the business processes.
Finding a Place For Artificial Intelligence in FP&A
The term “artificial intelligence (AI)” is used so frequently in this day and age that it is often misconstrued because it is leveraged enterprise-wide by different departments for different things. For FP&A, AI is the automation of actions based on analysis of available data in order to mimic the way a person would make a decision. Human’s make decisions based on their data, but their decisions are always influenced by human nature (bias, experience, etc.). The whole purpose of AI is not to replace humans, but to be used as another tool that can help management teams clarify their thinking and make better-informed decisions.
How Effective is Your Costing?
Many companies are using a costing platform that is more of a “one-size-fits-all” system. What they don’t realize, is that the insights there are getting from these systems are inadequate for important decision making because they aren’t tailored to their specific business needs. Another barrier to effective costing is understanding the difference between the costing done for external financial reporting and managerial costing – costing done purely for an organization’s internal use. The goal of managerial costing is to ensure information for decisions reflects the characteristics of the organization’s resources and operations. Yet most companies have inadequate managerial costing systems, relying on systems designed primarily to meet external financial reporting standards.
Reduce Finance Risk by Reducing (or Eliminating) Use of Spreadsheets
“The trouble with spreadsheets is that they put a lot of responsibility in the hands of the user.”
Spreadsheets are everywhere, and it makes sense why- they are familiar and inexpensive. However, a problem arises when businesses start relying on spreadsheets for important decision making because they leave a lot of room for human error. Better alternatives are available- new analytics technologies enable businesses to have greater control over calculations and the movement of information, and many provide audit trails to document exactly what did, and did not, go into any given analysis. Most render it impossible for users to mess up the formulas.