According to a 2016 survey conducted by chief financial officers across top enterprises, it was observed that a majority of CFOs are struggling to establish a balance between modern-day financial methodology and traditional finance models. It was also observed that because of a lack in standard processes and automation in the function, people spend a considerable amount of time doing menial jobs instead of investing time in business partnerships, strategy development, and building value for the organization.
One of the most crucial applications that need a complete transformation is enterprise planning. CFOs accept the fact that a lot of time and money is spent in trying to streamline the process. According to the S&P 500, the topple rate is at an all-time high because of improper enterprise planning.
Take a look at the top four traits of enterprise planning in the modern age.
For improved business planning, technology plays a pivotal role. However, since organizations are moving into a more data-driven model with a lot of structured and unstructured data, enterprises need high-performance hardware and software systems to process, monitor and manage data on such a massive scale. Legacy systems might not be a viable option, and companies must let go of them in favor of robust, scalable, and high-performance systems.
What is even more challenging is the fact that the data comes from multiple sources. If you go by the definition of enterprise planning, it will connect all these data sources across various touch points and bring out a comprehensive view of the entire organization.
Modern-day organizations are very much into the cloud. It is because of the speed with which these applications can be deployed. According to a report published in Forbes, 39 percent of organizations prefer cloud applications because of the ease of configuration; hence, they are transitioning from their current on-premise systems.
Typical business planning takes care of functional aspects. However, business processes are not meant to be defined by functional boundaries. If we look at the process of “quote-to-cash” in a sales cycle, there are multiple functions involved from sales, finance, and logistics. Modern enterprise planning understands the importance of how these functions need to work in a collaborative manner by using technologies with workflow and other social tools.
Modern enterprise planning needs a totally different approach that takes care of cross-functional collaboration and connects the financial and operational data to give a holistic view of the organization.
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