The Best-of-class Financial Systems Strategy

The Best-of-class Financial Systems Strategy: An Alternative to ERP Platforms

This white paper features insight from the UNIT4 group (which includes the CODA Financials software suite) about the issues facing companies that need an adaptable financial system but not necessarily a full-blown enterprise resource planning (ERP) solution.
Also featured in this white paper: TEC's suggestions for identifying financial system functionality that will support your organization's changing processes. The latter portion of this white paper includes a descriptive checklist for soliciting such information about enterprise software solutions.
TEC recognizes the thought leadership role and industry expertise of the UNIT4 group. However, this document should not be construed as an explicit TEC endorsement of the CODA Financials software suite.

Introduction

For better or worse, most companies have purchased financial software from large-scale enterprise resource planning (ERP) platform suppliers over the last decade. But as companies search for ways to lower costs and respond to a difficult business climate, the merits of implementing large-scale ERP platforms have come under closer scrutiny. This paper will examine an alternative approach that may be more appropriate and strategically sound for many companies: a best-of-class systems strategy.
With that notion in mind, this paper will contemplate the following questions:

• Have ERP platforms grown too unwieldy for some organizations?
• Does ERP make sense for all types of business, especially in today's fast-changing and frugal business environment?
• Are ERP platforms being sold to companies that simply don't need it?
• Have technological advances eliminated some of the reasons for ERP platforms in the first place?
• Is the drive for competitive differentiation causing companies to develop more of their own operational systems, thereby eliminating the value of ERP?
• What does a best-of-class strategy entail, and what are the advantages?

 

Building a Best-run Finance Organization: A New Role to Address Today’s Business Realities

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There is a company executive with a growing influence in today’s boardroom – the chief financial officer. And the role of the finance organizations that these executives lead is expanding as well.
While the advent of the Sarbanes-Oxley Act has focused enormous attention on the financial accountability and internal controls of companies across all industries, company executives recognize that individual business activities do not occur in a vacuum. All functions – such as sales, marketing, manufacturing, service, and even human resources – affect not only the bottom line but also a company’s financial integrity. Increasingly, prudent companies are drawing their finance organizations into greater collaboration with the operational aspects of the enterprise. Moreover, companies are asking their financial officers to take on a more prominent role in defining company strategy.
This SAP Executive Insight examines the changing role of the finance organization in today’s business environment. Further, by answering the following questions, it describes how companies can develop best-run finance organizations:

• What operating characteristics help companies develop best-run finance organizations?
• How do you measure a best-run finance organization?
• How does the focus of an organization change as bestrun finance methods are applied?

Executive Agenda At a Glance...

Creating value: An interactive tutorial - McKinsey Quarterly - Corporate Finance - Valuation

Creating value: An interactive tutorial - McKinsey Quarterly - Corporate Finance - Valuation