Perspective CPM technologies

2015-2016

Analytical opportunities

According to Maxim Andreyev, the director of business applications of Croc company, most of customers uses CPM systems only for process automation of collecting and approval of the budget, at the same time analytical opportunities are not applied in general, or in extremely small degree.

"CPM is not used neither for decision making, nor for modeling, nor for the scenario analysis – unloaded in advance prepared forms in Excel, designated "realistic", "optimistic" and "pessimistic" versions of the budget - and on it "modeling" came to the end. Now even more often we hear from customers desire to manage profitability of business, to model different scenarios, to build forecasts using mathematical models – it inspires optimism", - Andreyev says.

Sergey Safronov, the director of the department of CPM of CORUS Consulting Group, considers that good potential has everything, as for ABC-costing and the deep analysis of communication not only variables, but also fixed costs with a business amount. "Have in time information on real profitability of the product/client/channel of a sale/segment of the market – pressing need of management of any company", - Safronov notes.

The budget focused on result

The director of methodology of INTALEV group Boris Karabanov, believes that the high potential can give application of BOR – the Budget focused on result.

"BOR coordinates 3 blocks in a single system: budgeting (for management of an expense of resources), key performance indicators (for management of result), and personnel management (material stimulation from observance of the budget according to the achieved results). Basic Element of BOR – the key performance indicators (KPI) which form in the form of the Target funnel (Target funnel) in which indicators of result are connected with indicators of process in which this result is created. In the same process for creation of result resources (budget) are spent, and all work is performed by the personnel motivated on result at observance of the budget. This trinity also provides high operational efficiency of activity as separate divisions, and processes, in them proceeding, and the companies in general", - Karabanov notes.

Strategic planning, risk management, forecasting and financial planning

Yulia Amiridi, the deputy CEO for business development of Intersoft Lab, answering a question of the perspective CPM functions, compares domestic and foreign customers of such systems.

So, according to her, unlike foreign consumers of SRM which give the top priority to implementation of functionality for strategic planning, risk management, forecasting and financial planning today the Russian customers lag behind in use of these components so far.

"The reason is that the culture of use of SRM-technologies for review of strategy, risk management and business performance management against the background of the changing operating environment in our country only forms, and unambiguous understanding of communication of corporate performance and sources of profitability for the majority remains badly formulated purpose. However gradual focusing on problems of assessment of profitability, use of the management reporting about profits and losses for decision making concerning the strategy of work with clients, pricing, products and sales markets demonstrates the movement towards expansion of application of opportunities of SRM and obtaining synergy effect of their complex future reference", - Yulia Amiridi says.

In detail about opportunities of the modern CPM systems, a status of this segment of the market and the implemented projects read in the overview of TAdviser of CPM 2016.

2013-2014

Scenario budgeting

Igor Shumakov, the expert of NPO Kompyyuter, notes in the most part of projects implementation of functionality on management of finance (treasury) and on drawing up the main financial budget BDDS. These processes are already rather fulfilled in most the companies. Full scenario budgeting (creation of difficult connected operating budgets with their data in an income and expense budget, the investment budget, drawing up balance estimation) are implemented only on the largest projects so far. The same concerns creation of a large number of the reporting, in total with means of flexible information analysis.

"I dare to assume that in process of increase in the general literacy of personnel of the enterprises, this functionality will be more demanded", - Igor Shumakov commented.

Functional and cost analysis

Yuli Amiridi, the deputy CEO for business development of Intersoft Lab, noted that for the beginning of 2013 in Russia almost unclaimed is a potential of the CPM-applications intended for cost accounting of business processes on the basis of the functional system of the cost calculation also widely known as functional and cost the analysis (Activity Based Costing or FSA). Implementation of this approach allows to define with a high accuracy costs for each function (transaction) of business process, for example, of sales process of a banking product or customer service.

Objective brake of application of FSA still were, on the one hand, weak formalization of business processes (almost all banks actively work on correction of this situation now), with another – technical restrictions of the core banking system in the majority of which time of execution of business operations necessary for cost calculation is not fixed.

"Such situation remained while to most banks there was enough accuracy of assessment of financial results of banking activities which provides a traditional distribution model of indirect expenses (allocations). The general decline in yield and the amplifying competition force banks to look for reserves of operational efficiency in the organization of internal business processes. Therefore for FSA, certainly, the future", - Yulia says.

Strategic planning

One more important direction of development of VRM – technology of strategic planning, control and the analysis. Today at calculation of such projects implemented in the Russian banks there will even be many fingers of one hand, Yulia Amiridi notes. The gap between strategy and the organization of management to banks is a reality. Today the customer is in understanding of this problem, and first of all he needs instruments of strategic management, but not their automation. Therefore IT suppliers need only to wait when the stage of formation of technologies of strategic management in banks is completed.

Forecasting

One of key technologies of CPM is a statistical analysis and forecasting. The leading system providers offer in the arsenal so-called data mining - immersion in data. Modern approach to this process is that a system allows to look for patterns in business, issuing to heads and analysts of a hypothesis, based on statistics.

"Implementation of such tool requires preliminary expert work and as many projects have rather technology character, use of data mining technology is for the present very limited. Not to mention its application for large volumes of information when connection of management tools Big Data is required. We hope that our market will learn to apply such technologies and managerial concepts soon", - Anton Shmatalyuk, the director on managerial and to IT consulting RDTECH told TAdviser.