Expense management plays an essential role in building a business strategy. There are many methods to manage expense of which effective cost cutting appears to be very simple and popular.
Business intelligence is always known as the tools, technologies, methodologies and best practices that help organisation have insights information on their business. BI helps organisations to have a clear view about their data to make better decisions and push the business process forward. In our previous posts, we discussed about the rising needs for business insights and how to correctly operate a BI platform to improve business performance. However, the business world is changing constantly; therefore corporation needs to have flexible business strategies to go along with the waves while still preserving its image and position in the market. Consequently, the implementation of BI is also challenged as BI solutions are one of the key factors that help businesses to stay competitive.
McKinsey in a recent research reports that while 75 million people cannot have a job, yet many businesses have vacancies that cannot be filled, and that there is a gap between the current workforce’s skills and what employers want from employees. Especially in the finance and accounting world, where people need accuracy, concentration and speed, it is even harder for organisation to recruit and retain talents.
Having a comprehensive system will enable top managers to manage human resources especially in financial and accounting aspects more effectively in the most effective way to compete globally. Today, we’ll discuss further on 3 among 6 basic ways to use technology to shape up financial strategies and increase financial performance.
Jack Welch, former Chairman at GE once said: “The budgeting process…sucks the energy, time, fun, and big dream out of an organization”. Yes, everyone hates it! If there is an effective way to do it without trying too hard will you take its advantages to grow? What you need are just a good planning and budgeting process and the right technology!
Not only Vietnam but also all around the world, moving to full ERP solutions is a very big step for any manufacturing companies. However, not all organisations gain the best ROI from ERP. The high failure rate of ERP implementation consequents to negative impacts, such as business loss, dropping market price, losing both market share and competitive advantage. According to a book about ERP by Ptak, ERP implementation failure rates are between 60-90%, which is very critical.
Being able to utilise timely data to make game-changing decisions is what companies hope to achieve. That is why they look to implementing Business insights tools and a sound BI strategy. The success of an operational BI platform depends on a combination of specific capabilities and technology enablers (Aberdeen, 2010). In this blog, we will go over the first 3 factors: process, organisation and knowledge management.
Gartner’s 2008 CIOs survey highlighted that Business Intelligence (BI) is now one of the top priorities in business. BI is known to have positive impact on business performance of an enterprise, dramatically improving the ability to accomplish the mission by making timely and smart decisions at any level of the business.
Additionally, Forrester Research has provided a foreseeable future in their recent report that we are competing on information, where “all products and services continue to become more commoditised in our global economy”. As a results, if the two businesses share the same marketing personas and customer insight, the one who has earlier information will have significant advantages over the other. That’s why we need BI.
Chief Financial Officers, or CFOs, have been commonly known as a corporate officer who’s responsible for managing the organisation’s financial risk, financial planning and reporting to higher management board. However, in this new era, the role of CFO is no longer limited to the tasks above. As stated in a recent study by Accenture, 70% of correlation is found between high-performing financial departments and high-performing companies. This means the CFOs’ responsibility has evolved. Additional research also indicated that CFOs’ responsibilities have been changed from being a rear-view mirror perspective provider to a strategic advisor who navigates the business through hard times and shapes the company’s direction.
According to SIG (2014), analysts are predicting that social media and social apps will become a more significant component of the ERP landscape. Becoming more social can improve your company’s agility and facilitate competitive advantage. Making your enterprise social brings the power of the back office to the front office, helps customers collaborate, and drives growth.
The rise of new social media platforms such as Facebook, LinkedIn, Twitter, Tumblr and many more create an evolution in every aspect of the world, including business. ERP is not an exception of social media tide sweeping across the technology world. Today, the software applications will be expected to have the ability to provide users the communication and interaction needed within the organisation the way they’ve done in Facebook and other platforms.
In the last post, we have introduced the basic understanding of social ERP and collaboration concept in manufacturing as well as their benefits. Of course, manufacturers cannot build a successful collaboration strategy without a efficient, goal-oriented strategy to take the best advantage from social ERP.There are many types of collaboration, and each type requires different tools and priorities, and companies need to pay enough attention to all types of collaboration in order to have a unified collaboration strategy before moving to the next goals. The most effective strategy for building a successful manufacturing collaboration platform can be approached in 5 parts, together with each type of enterprise collaboration. 1. Collaboration between employees.
This is the baseline level of collaboration, which we can know simply as “social business”. For organisations not in manufacturing industry, they may need collaboration in this level only. However, in manufacturing processes, it requires more than mere conversations between employees. They need to structure conversations around business activity and incorporate business transaction information to achieve effective manufacturing.
The importance of linear, process-based tools such as activity-based costing, business process re-engineering, and total quality management for enhancing individual performance has been known widely in the manufacturing industry for quite a long time. However, high individual performance doesn’t equal to high organisational performance. It is a whole different story, since globalisation has made the common ground in the business world to change. And the role of collaboration is more important than ever, especially manufacturers nowadays.
Although collaboration is the heart of any manufacturing businesses, most Vietnamese companies are still cannot figure out how to manage it more effectively. According to McKinsey (2006), effective collaboration only happens when there is harmonious combination of high individual performance, team performance and organisation-wide performance.
A dynamic social ERP system is the one which has the ability to deliver collaboration into your business processes. As the next generation of ERP systems emerges, social applications are proving their value in connecting businesses internally and with customers. Not the same as integrating ERP systems with external social-media sites, social ERP apps mirror the functionality of online social networking tools. The interface may act like Facebook, but it is secured and maintained with your ERP solution.
Social ERP tools can facilitate collaboration and communication among employees and partners using your ERP system. Connecting people quickly and easily enables them to proactively solve business problems together.2. Collaboration between systems, resources, and things
Supporting systems and resources are also important to the business development, along with employees performance in the organisation. According to Gartner (2013), a top-performed manufacturer need to leverage internal intelligence together with knowledge to provide all parties with up-to-date status of progress.
As a result, your system should be as collaborating as your employees do in level 1, by using industry standard interfaces to accelerate your overall business process. You need to develop a framework to connect different systems, resources and necessary things to keep manufacturing smoothly and consistently. You need a powerful platform to support all integration services, cloud services, mobile services and advanced reporting services within a single, unified framework.
In this level, employee collaboration is not enough, but to incorporate information from all business systems and resources with your own people’s knowledge. In turn, you get all benefits from your social ERP system, while gaining the ability to use multiple solutions as one, which helps you to easily address all aspects in your business.
Stay tuned to our next blog post about 3 remaining levels of collaboration for high-performance manufacturing, and how to pull all levels of collaboration together with the help of social ERP system. Or you can see it all now by downloading our full whitepaper “5 levels of manufacturing collaboration” here!
Business Intelligence (BI) is not just a trend that is attracting attention of various organisations around the world. It is about the best practices of using information in managing and optimising business performance in order to maximise profitability and help companies remain viable in the competitive business environment. This article will give readers a general idea of what BI is.
"Changes start from knowing what you are actually doing"
Manufacturing industry is exposing to the volatile and fragmented business environment than ever. To change or to die is the only option that they can do. But where to start and how to do it? From our point of view it should start with the acknowledgement of operation processes of both internal and external environments. This post will shed some light on new challenges to manufacturing industry and solutions that BI can help to resolve it.
In order to make the most optimization decision, managers and executives must ensure that all business processes are supported with meaningful, proactive information. Business Intelligence is one of the key technologies that help companies to successfully deliver information and transfer them into strategic plans. In our last post, we discussed about the first 5 steps to help create harmony concept between business intelligence (BI) and performance management (PM) for better business performance. The next 5 steps are to address organisational needs as well as challenges in order to direct BI and PM in the right path.
Although Performance Management (PM) and Business Intelligence (BI) can work separately, almost all leading organisations combine these two together to provide the best business results. PM uses the power from BI to get the data and information needed to make decisions, and PM adds context and guide BI in a certain direction benefiting the organisation. In previous posts, we discussed about how to optimise BI for SMEs as well as the way to operate BI platform in the right way. To explore more into how to enhance BI in your PM processes for greater results, we will look at some findings and recommendations to solve this problem.