Put Business Intelligence to work for you, a guide from TCM Infosys

For the majority of businesses, an investment in a financial performance management (FPM) solution will deliver almost immediate dividends, helping to increase revenue, improve efficiency and productivity, and manage budgets more efficiently and effectively.

FPM software provides all the financial functions a business needs, including budgeting, forecasting and consolidation. Aligning and compiling data from multiple sources, an FPM solution can also vastly improve the processes surrounding regulatory compliance and financial reporting.

In addition to the core financial functions, FPM 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.

Every business today is challenged to do more with less. Financial operations are under increased pressure to identify cost-savings 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.

To remain competitive, companies need access to reliable data to make informed and solid business decisions. But because of an over reliance on spreadsheets and a growing volume of data and data sources, users grapple with too much information. Frequently, information that could be useful in the decision-making process is lost in the process or buried in a data silo.

Integrated Business Intelligence (BI) and planning solutions - (FPM) - deliver a single source of information, immediately providing a clear picture of assets, expenditures, profitability and cash flow.

While this information is critical to the core accounting functions, FPM can also provide key information about the company’s history, its current status and predictive analysis to address where the company is going. FPM 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 FPM is to provide reliable, accurate and timely information and real performance insight to key decision-makers in the company.

FPM also provides a framework to streamline financial consolidation, regulatory reporting and disclosure management.

Investing in FPM 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 FPM, expanding and adapting its capabilities as the company grows.

But before investing in FPM 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’s important to establish the needs of the users and decision-makers, such as what information they are using, what information they think is relevant and timely and what information they would like to have to make better informed decisions.

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, you need to 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 FPM.

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.