Today, finance departments are continually finding themselves victimised by corporate one-size-fits-all business intelligence and excel-based tools that are not specifically designed with agile financial reporting in mind. As a result, their capabilities are drastically limited in terms of strategic decision-making, budgeting, planning, and analysing data for both their department and the wider organisation. To overcome this, leading organisations are adopting corporate performance management (CPM) tools to help drive sustainable performance whilst weathering the constant influx of market changes. We explore how traditional BI is failing and how CPM solutions have become a strategic asset for finance and a competitive advantage for your organisation:
How Generic BI Can Limit Organisational Performance
BI tools are often standardised across different business functions as they must serve the entire organisation; therefore failing to meet the specific needs of both the CFO and their finance department. These generic BI tools are often extremely disconnected from real world decisions and corporate actions; inhibiting CFOs abilities to understand how well the organisation is performing.
Transforming Financial Reporting; How to Address the Specific Needs of the Finance Function
This whitepaper explores the gap between BI and financial reporting and how organisations can address this gap to meet the specific needs of the finance team.
With today’s rapidly evolving business landscape, financial management tools must be able to quickly adapt to market, competitive and regulatory changes; increasing pressure on CFOs to produce real-time intelligence and forward-looking analysis to support the wider organisation. Common BI does not provide CFOs with the capabilities to consider external market factors and this lack of visibility delays their response time to mitigate any emerging risks that threaten the organisation.
Additionally, CFOs often have zero control over their financial data, with the power lying in the hands of the IT department who effectively control the financial reporting and the source of the financial data they contain. Thus, IT must be extensively involved in any change requests for new financial reports or insights which can take up to 3 months to implement. This time-consuming task results in the organisation being slow to change and puts them at risk of failing to comply with regulatory changes and standards.
Corporate Performance Management Software
Today, finance functions are committed to seeing both their department and their organisations thrive, meet compliance and achieve their goals. Due to this, they are highly involved in making informed strategic decisions to drive organisational growth, whilst managing the stability of the organisation- without CPM solutions they cannot do this. CPM software helps finance functions, and CFOs in particular, to execute strategies based on available resources and current organisational performance, reacting to changes in real time.
CPM promises the integration and automation of processes and technologies to allow the finance function to effectively participate in the strategic direction of the organisation and improve agility for both the short-term and long-term. CPM software equips them with an enterprise-wide view, providing 100% transparency across the board and helping to nurture a culture of accountability. By unlocking this data and connecting processes, finance can undertake detailed business analysis, address resource scarcity and monitor market changes; all the while improving their forecasting abilities to anticipate results and identify any potential future issues. Capturing this information in a single tool ensures one version of the truth from data.
With corporate performance management, minimal dependence and support from IT is required, allowing finance to take back ownership over data to create, manage and distribute reports for themselves. This guarantees the financial reporting tool is specifically designed for their needs and any regulatory changes can be met at a much faster pace.
Above all, CPM solutions are the backbone of an agile, flexible and sustainable organisation. They give finance the ability to make decisions based on real-time information; analysing, reporting and driving sustainable growth. CPM software finds the right balance of standardisation and flexibility to make it an invaluable asset in any finance department. Learn more about your transforming financial reporting in your organisation by downloading the below whitepaper today.