Benefits Realisation and the role of management accountants.

Transcription

1 Benefits Realisation and the role of management accountants

2 The danger of false economies The challenge is to balance operating efficiency with longer term prospects Strategic context, customer needs Brand values and creative positioning Develop product features & benefits Source resources, produce & package Promote, convert prospects to sales & Deliver Customer satisfaction and retention Differentiating competencies Operational competencies

3 The problem? Costs over run? Project delivers less than expected? Project delivers late? Benefits not realised? Credibility of Post Audit (if any) Need to improve the perception of IT projects

4 Proven technology?

5 Accountants Parallel Universe? Presentation and information delivery Finance Real time access Reports & Dashboards Web Modelling and analysis Spreadsheets Customer Operations Supply Chain Access and interrogation Olap cube OLAP Data Mining Query & Reporting Data standardised, integrated and key data organised Meta Data Data Warehouse Warehouse management Extract, Transform & Load Data Sources Data Captured $E ERP CRM HR ETL SCM Legacy systems IT Infrastructure

6 Management accountants role in Business Information Customers' views Markets & competitors 0 = No responsibility 2 = Some responsibility 4 = Sole or prime responsibility leading indicators of business conditions Regulatory conditions etc

7 Financials are outcome measures Performance Management requires an understanding of the drivers of value Strategic context, customer needs Brand values and creative positioning Develop product features & benefits Source resources, produce & package Promote, convert prospects to sales & Deliver Customer satisfaction and retention Differentiating competencies Operational competencies

8 Dept Management (other admin etc) Expert Services (audit, tax, treasury...) External Reporting (statutory accounts, compliance...) Management Accountancy, information and analysis Planning & Control incl. Performance & Risk management Information Systems (data capture and access) Accounting Operations (Transaction processing, recording and basic reporting including the purchase to pay, order to cash and record to report processes)

9 The value of IT? IT doesn t matter - Nicholas Carr HBR 2003 No longer a differentiator but a utility An operating expense Paradigm Shifts ERP Internet BI Cloud

10 Business Case

11 Business Case No option; it s not discretionary What s the base case? What are the benefits? Payback RoI NPV IRR Residual Value These financial metrics are outcome measures

12 The value of IT to the business Strategic context, customer needs Brand values and creative positioning Develop product features & benefits Source resources, produce & package Promote, convert prospects to sales & Deliver Customer satisfaction and retention Understanding of the Business Idea: How value can be created Win buyin to the Business Case Project to deliver IT Solution Financial Objective? Focus

13 What might go wrong? Cagpemini / EIU Trends in Business Transformation

14 But IT is just an enabler Project to deliver IT Enabler Enabling Changes Business Changes Business Benefits Financial Objective

15 Source: Peppard, Ward & Daniel 2007

16 see also: