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[Webinar] 7 Reasons to Change Your Budgeting & Forecasting Process
The document outlines seven reasons why organizations should modernize their budgeting and forecasting processes, emphasizing that reliance on outdated methods, particularly spreadsheets, leads to inefficiencies and errors. It highlights how solutions like Jedox can streamline operations by automating data collection, providing real-time insights, and integrating financial planning with business strategy. Real-life examples of companies like Fiat and Canon demonstrate the tangible benefits of adopting modern solutions in improving financial management and decision-making.
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Similar to [Webinar] 7 Reasons to Change Your Budgeting & Forecasting Process
[Webinar] 7 Reasons to Change Your Budgeting & Forecasting Process
- 1. 7Reasons why The Office shouldchange their Budgeting & Forecasting of Finance Process 543216546465$ 5985 68 $8654565 65656845621 789$6546554$78 6965656532 6
- 2. Let‘s start withsome alarming figures: 83% of CFOs and finance leaders say their organization’s approach to annual budgeting needs to be optimized (Grant Thornton LLP) 89% of business leaders estimate they use less than 1/3 of their corporate data for informed business decisions (Gleanster)
- 3. Night shifts forthe quarterly forecasts had become the rule rather than the exception. (Richard S., Fiat’s Head of Controlling) Two real-life examples: Fiat’s central financial controlling relied on legacy reporting and Excel-sheets to report and plan quarterly forecasts for the European headquarters Unable to model complex calculation logic Cumbersome spreadsheet processes System crashes caused by large Excel files Challenges:
- 4. Two real-life examples: Duringa merger with Océ, both organizations discovered that their budgeting processes were completely different Existing BI & CPM systems neither flexible nor fast enough High amount of data and complexity High pressure on IT to create reports Challenges: Very short timeframe and limited budget for implementing a new, unified CPM solution
- 5. Does that soundfamiliar to you?
- 6. 7 Reasons to Change Wouldn'tit be easier and faster if you could just get the data and run reports yourself in one source of truth? Maybe it’s time to stop relying on IT and to start replacing antiquated business intelligence tools… …here is why:
- 7. 1. You arerelying on obsolete data “Nothing is older than yesterday‘s data“
- 8. Budgets & forecastsare often based on a snapshot in time based on old data – the consequences: How can you achieve “One-version of the truth“? Consolidation becomes increasingly difficult Excruciating to audit when discrepancies arise No comparison of plan and actuals = Unable to align operations to strategy Manual exports of data with high likelihood of human error
- 9. Jedox offers aflexible self-service platform for Finance professionals which… … automates the data collection process … compares planning and forecast data with actuals … provides “one version of the truth” through a central in-memory database … gives a true 360° view of the business
- 10. 90% of all organizationsstill use spreadsheets for their budgeting & forecasting (BARC) 2. You are still using spreadsheets
- 11. BUT: Excel was notdesigned to be an enterprise forecasting tool Budgeting with Excel: Manually collect data from disparate places Rekey the data Endless columns and rows Pass around workbooks for editing and updating Multiple versions of the budgeting spreadsheet = Auditing nightmare
- 12. What Finance leadersthink about their spreadsheet solutions… = with MS Excel = with professional planning software
- 13. Jedox removes Excel’sdrawbacks while retaining its advantages… … Jedox has a deep integration with spreadsheets and an Excel- like user interface …Jedox adds an enterprise- ready database, data storage, web and mobile capabilities …Jedox allows Finance professionals to use their Excel know-how while using a professional surface
- 14. That‘s almost3 full working days you could spent with less frustrating tasks 3. You are wasting time On average, financial managers waste as much as 18 hours per month manually updating, revising, consolidating, modifying and correcting spreadsheets. Robert Kugel, Ventana Research
- 15. …you work withdifferent versions of the same reports …there is a lack of collaboration between executives This is slowing you down... …your data resides in disconnected silos (ERP, financial accounting system, Salesforce, …) …collecting data is not only time-consuming – but also error-prone
- 16. Jedox offers aflexible self-service platform for Finance professional which… … gives you the ability to drill down and roll up numbers … automates data collection … speeds up reporting processes
- 17. 4. Your annualbudget is not tied to your strategy PWC, Budgeting and Forecasting study Nearly 44% see linking budget & strategy as needing the most improvement Only 17% of executives are “very satisfied” with their current budgeting process 17% 44%
- 18. Group Finance hasthe challenge of consolidating regional budgets from multiple entities, often from different ERPs and different chart of accounts Group Entity 2 ERP Chart of Accounts Entity 3 ERP Chart of Accounts Entity 4 ERP Chart of Accounts Entity 1 ERP Chart of Accounts Budget not tied to business drivers Business units strike out of their own Incoherent planning systems, standards, detail, frequency… Challenges of enterprise budgeting processes
- 19. Jedox ties operationaland strategic planning closer together… … provides a rolling forecast, integrated with strategy development … is more timely, relevant, and efficient
- 20. 5. You areworking with a disparate data warehouse Fewer than 30% of data warehouses and business intelligence projects meet the objectives of the business. Gartner research
- 21. In reality, datawarehouses often don‘t simplify data access Costly IT constructed data warehouses take months or years to build + can cost upwards of $2 million Low adoption from business user – IT tools don’t fit their needs
- 22. Jedox embeds planningwith the existing IT landscape… … no need of data warehouses as a central repository … includes analytic processes and is easy to use … saves time and money
- 23. 6. You relyon IT Assistance The costs to build a single report, fully loaded, are estimated at $20,000. Forrester Imagine 20 subsidiaries, needing 20 different reports every quarter
- 24. Consequence: Budgeting hasa bad reputation Financial managers still rely on IT to produce reports OLAP technology to slide & dice data is falsely attributed to IT or data scientists Business users add formulas and macros to their Excel spreadsheets, instead of using sophisticated OLAP technology
- 25. Jedox offers aflexible self-service platform for Finance professionals that… allows you to slice and dice data independent from IT helps you to drill down using a familiar interface, that doesn't require OLAP or coding skills has built in reports and also allows building your own reports easily
- 26. 7. Your budgetingdata resides on your machine only Instead, spreadsheets are passed along through email Budgeting and forecasting tools are tied to legacy systems that are not connected to foreign subsidiaries Mobile access to reports or adding plan data on the go is impossible
- 27. Modern web-based systemssimplify planning processes of global organization → Example: FIAT Central Managers enter plan data through the Web Financial Controlling FIAT Dealership Quarterly forecast for HQ Management FIAT HQ Turin
- 28. Jedox is aWeb-based budgeting solution that… … gives you 24-hour access to budgets, forecasts & updates foreign subsidiaries send overnight … allows you to run your software on- premises, in the cloud or in a hybrid application … provides flexible options should your business decisions change
- 29. Better Budgets, Forecasting,& Decision Making with Jedox 543216546465$ 5985 68 $8654565 65656845621 789$6546554$78 6965656532 6 Finally leverage the data hiding within your divisional silos Derive insights that lead to a strategic plan with viable forecasts Create an accurate roadmap that delivers solid growth and a competitive edge
- 30. Fiat & Canonare reaping the results • Fiat implemented an integrated Jedox solution for reporting, analysis, and planning for 15 dealerships • 60 users across the Office of Finance, subsidiaries, and management • Users can enter their plan data via a Web interface • Fiat benefits from enterprise planning and reporting from one source of truth
- 31. Richard S., Headof Controlling at Fiat FCA Motor Village Germany The efficiency increase in planning alone is very impressive! Our daily work has been made significantly easier and I see great further potential for our company with Jedox.
- 32. Fiat & Canonare reaping the results • Canon built a web-based Jedox application for 15 countries within the EMEA area • It allows divisions to submit and allocate costs, margins, expenses to products and product groups & create reports • It only took 3 weeks
- 33. Frank Brouwer, ProjectDirector at Canon Europe We had to achieve our goals within very short timeframe and a limited budget. It’s great to see how everything came together and I surely recommend financials to include Jedox in their selection process.
- 34. Isn't it timeyou joined them?
- 35. Want to discoverhow Jedox simplifies budgeting & forecasting? Register for our free webinars for FP&As, CFOs and other Finance professionals: http://www.jedox.com/en/webinars • Europe: March 30th – 11 AM CET • Australia: March 30th – 2 PM AEDT • North America: March 31st – 2 PM EDT • New Zealand: March 31st – 2 PM NZDT • Asia: April 6th – 3 PM SGT Upcoming events: