This article discusses next steps to take for your reporting and budgeting needs regarding Dynamics 365.
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Microsoft unveiled their cloud-based enterprise resource planning (ERP) system, Dynamics 365, just a little over a month ago. As a potential business intelligence (BI) customer, you’re probably curious about your reporting and budgeting processes in the context of moving towards a cloud-based ERP system. As you know, a new United States president was elected on November 8th, and as always with a new president, people are curious or worried how things will work out. If you are one of the approximately 85% of the world still using an on-premise ERP system, this same analogy can be applied to those who are planning to go onto a cloud ERP. This article focuses on the next steps to take for your reporting and budgeting in regards to Microsoft’s Dynamics 365 unveiling.
After the Thanksgiving holiday, I sat down with Solver’s Chief Operating Officer (COO) Corey Barak to talk about the importance of business intelligence (BI) for organizations. Corey is our “Chandler” from the television sitcom, Friends. Everybody admires him for his sarcastic humor, intellect, and his sound judgment. Corey manages the day-to-day operations and focuses on maximizing the service quality to our customers and partners. He has been in the BI industry for 20 years, and started his career at Solver in 1999 as a Senior Business Intelligence Consultant. Outside of Solver, he is a father of two children and a husband. As 2016 is coming to a close, I was pondering on the New Year, and the kind of impact BI may have on companies. As an author of leading BI books, including “Process Improvement for Effective Budgeting and Financial Reporting” and “BI360 Book – The Ultimate How-To Guide,” I thought Corey would be the appropriate person to pick his brain about the importance of BI for any company.
Watch the interview below or read on for the transcript of our conversation.
Kim: “Why is BI important for companies and does the beginning of the year have an impact?”
Barak: “BI is the framework for setting strategy and managing the success and failure of the strategy. Companies should create a closed-loop process where they set strategy, set the goals for the strategy, put together the budget or the forecast, and constantly review and analyze the actual vs. the budget/forecast of the goals. If changes need to be made, then the strategy or the goals may need to be modified, which starts the loop over again. It has an impact on the beginning of the year as the majority of companies are going through their budget process. If they have a fiscal year that isn’t based on a calendar year, then this would be a chance to do forecasting. They could reforecast based on the strategy. If the strategy has not been set and finalized, then it makes it impossible for managers to put together a budget that should be dependent on the strategy.”
Kim: “What are steps to start adding BI for your organization?”
Barak: “The first step is to determine what impacts your business – the revenue growth and profitability -and determine how to measure that. Some manufacturing companies may have areas around manufacturing speeds or getting things out to the market quicker. Find those Key Performance Indicators (KPIs) that drive your revenue growth. If you company doesn’t know what they are, the company needs to find out what they are. If they don’t have the data to determine their KPIs, then it is time to look into a BI tool that can bring in data from disparate systems and display them in structured reports and dashboards that are quick and easy to view. Make sure you’re making progress and improving. If you’re not improving and you’re actually declining, this is where you can start reviewing your strategy as things aren’t going the way you planned. Once it is finalized, then determine if this data is easy to access or it takes time to put this together. Bring that data in, calculate the KPIs, and compare it to your budget or your forecast every month.
Kim: “What are some tips that you can share with organizations that are looking into investing in BI?”
Barak: “Find a tool that can bring your financial data and operational data together. Generally, a KPI is not going to be based on just financial data or just operational data, but a combination of the two. Determine the company’s KPIs and then determine the departmental KPIs, and create dashboards for them as well. Concentrate on the company’s KPIs, what really impacts the entire business and then start moving to each department. Find out how to get the data and what the calculation would be for the KPIs. Next step is try to build those, practice them before you put it into the dashboards. Go manually calculate them, make sure it’s trending properly. The next step is building a dashboard. Start early in the process of implementing a BI Tool and if you have a BI Tool, then start the process of strategy and planning early. There should be regular forecasts based on potential changes to the strategy and initiatives.”
*Side note – A KPI stands for a key performance indicator, which is a business metric used to evaluate factors that are important to the success of a company. For example a KPI can be gross margin, turnover, net income, sales by salesperson, and more. There are thousands of KPIs you can use. The key is to find what is important to your company and industry.
Kim: “How does Solver use dashboards that other companies may not?”
Barak: “Solver has completely revamped our financial process. End of 2015, we decided to change the way we report our financials. In 2015 and prior, we would literally get an email with our financials and everyone looked at different values, but there was no determination of what the most important KPIs are to the executives and to managers that will grow the business to drive profitability. We rebuilt our allocation model in January 2016, so that it would take into account what was truly important and impacts our decision making. We brought in more data sources. We finally built KPI’s and dashboards for executives and then we built them for department managers. This is how we start meetings rather than looking at a financial statement. Our financial statements are backups now and used mainly if we have a question or need to drill down. Our KPI’s show comparisons to the budget/forecast and to prior years. We show 24 and 36-month trends so we know if we are trending up or trending down. We now are able to make decisions immediately because we have the data and analysis at our fingertips.”
Hopefully, this conversation is helpful for your BI needs and for your organization, no matter the size.
This article will focus on the benefits of Business Intelligence (BI) for the sales, marketing, human resources, and information technology departments using Dynamics GP.
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Each department has an important role in a company. As a department leader, you may know what your team needs to achieve department-specific goals. BI solutions that cover budgeting, forecasting, reporting, and analyses can help you meet those goals in an efficient and quicker way. For example, at my own company, the current team of department heads includes Nils Rasmussen for Sales, Gina Louie for Human Resources, IT Manager Allan Bacero, and Marketing Director Vanessa Sierra. I will cover four general departments that you would typically find in an organization and explore how a BI tool would help each department.
On November 1, Microsoft officially released not just one new version of Dynamics, but two. And there’s the element of moving away from 4 different products and toward one entity or umbrella that has two different offerings, but more importantly, Microsoft Dynamics is moving to the cloud. What does it all mean for the traditional, on premise implementations of Microsoft Dynamics AX, GP, NAV, and SL? How do other Microsoft products factor into this development? What should customers know about connecting some on premise systems, like Business Intelligence applications, to Dynamics 365? I had the opportunity to have a hearty cup of coffee and conversation with Solver CEO Nils Rasmussen about this major development from Microsoft and the impact it will have on both the technology and business worlds.
Watch the interview below – or read on for the transcript of our conversation.
This article focuses on the future of Dynamics GP Users and their Reporting and Budgeting tools.
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Why are many companies still keeping their Dynamics GP ERP system on-premise when there is a cloud option available? Some may not know the options to migrate to the cloud. Others may feel safer using a more traditional platform. Microsoft just changed the whole game for Microsoft Dynamics Enterprise Resource Planning (ERP) users. A true cloud version of Microsoft Dynamics, Microsoft Dynamics 365, officially released this November 1st. Dynamics 365 lets companies combine CRM, ERP and Microsoft Office capabilities into the next generation of business applications in the cloud. This Azure-hosted Dynamics service seems to be the true future for many Dynamics GP customers. Therefore, if your company is slowly making its way to the cloud, and on premise tools are most likely developed less progressively, eventually moving to Dynamics 365 or other CRM/ERP tools seems a pretty interesting alternative. This article focuses on the steps your company will need to take when your ERP is moving to the cloud.
In this article, we will explore the perspectives of some key leaders in regard to BI software that reports on, plans with, showcases, or manages Microsoft Dynamics GP data.
Oftentimes, the executive team tasks an employee, usually in the finance and/or IT department(s), with finding financial reporting, budgeting, dashboards, or data management solutions for the organization. You might clearly understand what your team needs to achieve department-specific goals, especially with the muscle memory of processes as they heretofore have gone. But you might not exactly understand what is important to your team of decision makers, whether that is strictly the executive team or a larger group of stakeholders. In this article, we will explore the perspectives of some key leaders in regard to BI software that reports on, plans with, showcases, or manages Microsoft Dynamics GP data.