This month brings the first report derived from my 2014 Financial Planning, Budgeting, and Forecasting / Enterprise Performance Management Benchmark Survey. This survey will inform several reports that I will be publishing throughout this year. We also have another piece in my series on tax management. This time, I explore best practices for managing Value-Added Tax (VAT). Then there are two new reports about how ERP is used in two different industries. As always, I tried to provide research on a variety of topics that can help organizations to succeed as they run from end to end. Below are links to this month’s reports, as well as some interesting data points. If there are any topics that you would like to see me cover in the future, please contact me at nick.castellina@Aberdeen.com.
This report, based on a survey of 133 organizations, reveals the capabilities and technologies that comprise the ammunition that Best-in-Class organizations use to remove the difficulties that come in the financial planning, budgeting, and forecasting process.
- Forty-four percent (44%) of the Best-in-Class automate the process flows associated with their formal, standardized budgeting process.
- Thirty-seven percent (37%) of the Best-in-Class have implemented risk-adjusted strategy and planning measures.
- The Best-in-Class are over twice as likely as All Others to have the ability to perform “what if” scenarios.
- The Best-in-Class are 40% more likely than All Others to automatically guide participants through the steps of the budgeting process.
- Fifty-percent (50%) of the Best-in-Class have the ability to assign resources and workflows for budgeting and forecasting activities in comparison to 34% of All Others.
- The Best-in-Class are 56% more likely than All Others to have the ability to integrate budgeting software with the general ledger.
- Sixty-eight percent (68%) of the Best-in-Class have the ability to reforecast as market conditions change in comparison to 33% of All Others.
Aberdeen’s recent report, Automating Sales and Use Tax: Making Sense of a Complex Regulatory Environment, identified best practices for managing SUT in today’s constantly changing regulatory environment. But just because an organization is not subject to SUT does not mean that it will escape tax headaches. Organizations outside of the United States (or US-based organizations looking to expand internationally) are subject to Value-Added Tax (VAT) laws that bring their own sets of challenges. Rather than being taxed as a percentage of retail sales, VAT spreads its fees across the entire sales chain. This means that buyers, suppliers, consumers contribute only the amount of incremental value that they have provided along the sales chain. While each business is therefore contributing less to the overall amount of tax collected, this process brings many more pitfalls and potential for mistake. For example, collecting not enough tax from a customer and then having to go back later and collect more could damage a relationship. This report identifies how technology can remove the complexity from VAT management and facilitate communication between the rest of the value chain as well as regulatory bodies.
- The Best-in-Class are 40% more likely than All Others to have a centralized repository of compliance and regulatory information.
- 37% of the Best-in-Class have real-time access to tax regulatory changes.
- The Best-in-Class are 33% more likely than All Others to have centralized management of billing tax information.
- Best-in-Class organizations are twice as likely as All Others to have the ability to share and integrate data with the extended enterprise.
- The Best-in-Class are 47% more likely than All Others to have automated workflows for tax preparation, filing, remittance, and recovery.
- The Best-in-Class are 167% more likely than All Others to have a VAT management solution.
This report, based on a survey of 81 discrete manufacturers illustrates ways in which Leaders get the most out of their ERP solutions by identifying the capabilities that are essential for success in discrete manufacturing.
- While a sample of 81 discrete manufacturers in Aberdeen’s 2013 ERP Benchmark survey found that Leaders are more likely than Follower to have implemented ERP, 90% of the total sample already implemented an ERP solution.
- Leaders are almost twice as likely as Followers to have the ability to do demand planning and forecasting.
- Leaders are 47% more likely than Followers to have the ability to schedule preventative maintenance of assets.
- Forty-four percent (44%) of Leaders have real-time visibility into the status of all processes.
- Leaders are 141% more likely than Followers to have a fully integrated view of all customer information.
- Leaders are 2.6 times as likely as Followers to receive automatic notifications based on various criteria.
- Leaders are almost twice as likely as Followers to have the ability to share and integrate data with the extended enterprise.
This report examines the importance of SaaS ERP to wholesalers and distributors, illustrate the reasons these organizations may select a solution, and the benefits these solutions provide.
- Forty-five percent (45%) of those within the sample that had their ERP less than two years have a SaaS solution
- Twenty-five percent (25%) noted that dated technology infrastructures limit their organization’s ability to respond to business more quickly.
- Forty-four percent (44%) of wholesalers and distributors with SaaS ERP have real-time collaboration across departments and divisions.
- Seventy-eight percent (78%) of those with SaaS ERP are able to integrate and coordinate manufacturing with logistics, in comparison to 57% of those with on-premise ERP.
- Wholesalers and distributors that have SaaS solutions saw a 20% improvement in complete and on-time shipments as a result of their ERP, in comparison to a 15% improvement for those with on-premise solutions.
Senior Research Analyst
Business Planning and Execution
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