Tidemark Systems offers a suite of business planning applications that enable corporations to plan more effectively. The software facilitates rapid creation and frequent updating of integrated company plans by making it easy for individual business functions to create their own plans while allowing headquarters to connect them to create a unified view. I coined the term “integrated business planning” a decade ago to highlight the potential for technology to substantially improve the effectiveness of planning and budgeting in corporations, and it remains true that integrating business planning can produce superior results. Companies that maintain direct links between functional or departmental plans more often have a planning process that works well than others. Our next-generation business planning benchmark research shows that two-thirds (66%) of those that maintain such links have a planning process that works well or very well, compared to 40 percent that copy information from individual plans into an overall plan and just 25 percent in which plans have little or no connection.
Topics: Analytics, Budgeting, Business Analytics, Business Collaboration, Business Mobility, Business Planning, Cloud Computing, Customer Performance Management (CPM), Demand Planning, Financial Performance Management (FPM), Governance, Risk & Compliance (GRC), Human Capital, Integrated Business Planning, Planning, Project Planning, Reporting, Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Tidemark, Workforce Performance Management (WPM), Customer Experience, Marketing Planning, Predictive Analytics
Our benchmark research on next-generation business planning finds that a large majority of companies rely on spreadsheets to manage planning processes. For example, four out of five use them for supply chain planning, and about two-thirds for budgeting and sales forecasting. Spreadsheets are the default choice for modeling and planning because they are flexible. They adapt to the needs of different parts of any type of business. Unfortunately, they have inherent defects that make them problematic when used in collaborative, repetitive enterprise processes such as planning and budgeting. While it’s easy to create a model, it can quickly become a barrier to more integrated planning across the business units in an enterprise. As I’ve noted before, software vendors and IT departments have been trying – mainly in vain – to get users to switch from spreadsheets to a variety of dedicated applications. They’ve failed to make much of a dent because although these applications have substantial advantages over spreadsheets when used in repetitive, collaborative enterprise tasks, these advantages are mainly realized after the model, process or report is put to use in the “production” phase (to borrow an IT term).
Topics: Analytics, Budgeting, Business Analytics, Business Collaboration, Business Performance Management (BPM), Business Planning, Customer Performance Management (CPM), Demand Planning, Financial Performance Management (FPM), Integrated Business Planning, Operational Performance Management (OPM), Planning, Reporting, Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Marketing Planning