The difference CFO’s need to know
Modern software solutions are essential to effectively address the management and financial processes of all, but especially, medium to large sized enterprises. These solutions can make a ready change in how the operations are managed and how decisions are made which has the immediate effect of driving growth and innovation.
Deciding which software solution answers to your organisation unique needs best is a key factor in software success and implementation. In this blog, we look at some of the key differences between two types of modern technology, BI and CPM which are sometimes confused as doing the same thing.
The basic difference is that BI is focussed on and only does reporting whilst CPM is focussed on budgeting and planning but also does reporting, arguably not as good but it all depends on what you are looking for. Excel was the forerunner of CPM tools and as anyone who uses Excel knows it is very powerful in terms of calculations etc but it is a personal productivity tool never designed as a multi-user tool. Power BI can’t do what Excel does.
Where the confusion comes from is that, at their core, they are both driven by, and dependent on, basically the same data … data that is extracted from operational and financial systems, both internal and external and integrated into a format that allows for better analysis, drill-down, slice and dice and also what-if and scenario planning. One key and obvious difference between the two is data entry …. CPM tools allow for data entry whereas BI tools don’t.
CPM tools also allow for What-if and scenario planning and simple and complex calculations and rules. Complex calculations like Salary and Shift calculators, three-way forecasts, financial consolidation including allocations and eliminations etc can’t be done with BI tools.
We are partners with global leading products in each of the categories, both of which we have extensive experience and we specialise in providing services to our customers in both.
Power BI is a leading BI tool and BOARD International is a leading CPM Platform.
BOARD is a decision-making platform for medium and large-size businesses that want to move from pure data analysis to decision-making processes. The cloud-based solution supports budgeting , forecasting and analysis, simulation, and planning processes across the organization, with the flexibility to allow individual users to adjust the technology based on their unique business needs.
Businesses that use BOARD have the ability to connect and integrate into a multi-dimensional data store. They can collect data from multiple sources and integrate and automate the the process to occur on a scheduled or ad-hoc basis so the data is always current. This data can then be shared with multiple users, based on security profiles, within a larger organisation.
Financial Processes: BOARD helps businesses combine their planning budgets, forecasts, financial consolidation, reports, dashboards and scorecards. In the software the user can perform what-if analysis, scenario planning and goal seeking to manage various scenarios. With the automatic allocation of changes, you can modify data at all levels of aggregation and distribute those changes automatically.
Predictive Analytics: BOARDS predictive analytics tool enables organisations to simulate various future scenarios and then make important decisions based on what they uncover. The self-service platform, builds predictive analytics into the decision making process and enables companies to uncover deeper insights about the sustainability of the business.
Reporting: BOARD’s business intelligence reporting tools combine traditional reporting functions with Performance Management application tools, making it possible for you to make decisions based on a single, collaborative information base. Your account can be setup to allow for an unlimited number of report authors and consumers and completed reports can be exported in multiple formats.
Microsoft Power BI is a cloud-based business intelligence and analytics service that provides a full overview of your most critical data. Connecting to all data sources, Power BI simplifies data evaluation and sharing with scalable dashboards, interactive reports, embedded visuals and more.
Dashboards: Dashboards are interactive panels that correlate disparate data through smaller displays called tiles. Dashboards are linked to each dataset for comparison and evaluation, and they can be shared with colleagues to easily exchange information.
Reports: Power BI’s reports can be created from scratch to ensure only critical information is included. These custom reports can be imported to any dashboard for quick, simple sharing among colleagues.
Both solutions provide significant benefits to the ongoing operations of an organisation. However, business leader need to clearly identifiy the organisations unique needs to best choose the solution that suits the business best.
We are more then happy to provide further information, so you can make the best decision for your business.
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