Financial Analysis Clears the “Profit Haze”

  • Source:
  • Written By:
  • Published: December 15 2008
Designed to be agile and dependable, financial analysis solutions can bring clarity to the reasons behind your company’s growth, and help steer you toward future growth. Learn how financial analysis solutions enhance the value of your existing business support systems, and distill enterprise-wide information to answer the question: How can we increase revenue, maximize profits, and increase our competitive advantage?

Report Preview

Corporate executives are constantly looking for ways to increase revenue, profitability, and shareholder value. Moving into new markets, building new products, making acquisitions, and creating new business models while optimizing internal financial and operational effectiveness are just some of the strategies employed to achieve these objectives.

There is one challenge, however, that tends to hinder growth and profitability no matter which strategy is employed: the lack of visibility that executives have into the financial state of the business. Informal “shadow IT systems” consisting mainly of spreadsheets and manual processing crop up in an attempt to provide insight into the business. Although spreadsheets work at an individual level, they do not effectively scale to support a collaborative environment of multiple diverse business units. The situation is compounded when the business becomes more complex as a result of internal and external changes, such as mergers and acquisitions, expansion into new markets and new economic, political and regulatory environments. In the worst case, a lack of insight into the impact of these changes can paralyze an organization.

Financial analytics solutions improve corporate performance by creating visibility into all areas of an organization, effectively clearing the haze that exists around the true state of the company. They are designed to greatly increase business agility by providing an accurate, upto-date, and comprehensive picture of the business. By improving visibility into areas such as the most profitable customers, the best suppliers, and the most profitable products and services—and by providing a consistent definition of financial terms such as profit and costs, an organization can more quickly and confidently make strategic business decisions.

In addition to increasing business agility, financial analytics solutions enable organizations to reduce risk exposure and plan for change. They allow executives and managers to instantly model the effects of unforeseen and planned events and take preemptive action based on these insights.

This paper discusses the challenges that organizations face when trying to understand their existing business positions and future business scenarios. It focuses specifically on profitability analysis.

Read the full report >>

Featured Software Research:

Introduction to Customer Relationship Management

The time when a company decides to move to customer relationship management (CRM) tools marks their progress to professionalism and profit in multiple ways. This introduction to CRM provides guidelines for companies contemplating this critical step in their development. Read More

Benchmarking Your Quality Maturity: Turning a Cost Center into a Profit Center

To help organizations understand their current state and plan for managing quality, LNS Research covers a quality management research study of more than 1,000 manufacturing organizations to identify best practices in organizational change, business process redesign, and technology evaluation. Read More

You may also be interested in these related documents:

The Rising Financial Importance of Service

For the Best-in-Class, service is a profit center and a competitive differentiator. As a result, these organizations are yielding soaring financial results. Download this infographic from the Aberbeen Group and see how organizations can win by providing best-in-class service to their customers. Read More

SAP BusinessObjects Edge Planning and Consolidation: Streamline Planning and Reduce Business Risk

  • Source: SAP
  • Written By:
  • Published:
Chief financial officers (CFOs) and other senior managers are under tremendous pressure to maximize profitability, reduce operational costs, minimize risk, and improve stakeholder confidence. Read about an application that can help you streamline operations, instill confidence, and reduce risk. The solution provides planning, budgeting, and forecasting and supports financial consolidation and reporting operations. Read More
comments powered by Disqus