While ERP/accounting back-office systems and analytics have been inseparable ever since the idea of business automation via IT formed way back in the 1960s, they have nonetheless had different user experiences, evolutionary paths, and so on. Namely, although ERP systems have positively transformed many enterprises' business processes, many users have still been left feeling they were oversold due to the overwhelming notion that these systems inhibit access to the vital information "jailed" in the system. Many have inevitably felt that mixing real time back-office transactions with astute reporting is like mixing oil and water.
Business intelligence (BI)/analytics provides an environment in which business users receive information that is reliable, consistent, understandable and easily manipulated (i.e., flexible). C-level executives and middle management have always had a need to understand their business's performance regardless of good or bad economic times—while the output from BI might change, the need is always there. Particularly the recent massive demise of dot-coms, depressed economic times, and the stringent Sarbanes-Oxley Act (SOA) reporting regulatory requirements following up the high-profile corporate fraud scandals (e.g., Enron, Tyco, and WorldCom) have additionally increased executives' focus on understanding and managing corporate performance.
New disclosure rules are prompting companies to share information faster (for example, accelerated filling of 10Q quarterly statements and 10K annual reports, report sales of stock by executives [insider trading] within days of the transaction, expanded list of "significant events" to include changes in debt ratings, inclusion of financial results of partnerships in earnings reports, etc.), and sophisticated data-collection and data-analysis applications come in handy in that regard. Given that the BI tools have neither been terribly complex nor expensive to deploy, but have still been helpful in facilitating the decision-making process, they have become considered necessary rather than only a luxury. Also, decisions are nowadays increasingly made at ever lower levels in organizations.
On the other hand, the financial statement reporting process been important ever since the establishment of capitalist business practices. In addition to the tight economy's revelations of many companies' inability to proactively manage their financial performance (thus, repeatedly missing earnings and, in a knee-jerk fashion resorting time and again to last-minute layoffs, restructuring and operational expenditure freezes), its importance has particularly been emphasized with the outbreak of attention now being paid to the above-depicted accurate and certifiable reporting to external markets and government agencies.
However, creation, maintenance, and dissemination/publishing of financial statements (e.g., profit and loss [P&L] statements, balance sheets, and cash flow reports) have traditionally been maintenance-intensive tasks, with users expending significant effort just to meet basic requirements. Not to mention that everyone amongst the top brass always wants something more and different, such as different views, complex comparative reports, and drill-down analyses, but still within the familiar form of the financial statements.
Unfortunately, the financial reporting programs delivered with the traditional back-office financial management and accounting applications have proven only their rudimentary or pesky nature. Consequently, financial savvy users, having a strong preference to see results in the traditional P&L statement or balance sheet form, have long sought for ways to improve the report creation and maintenance process. On the other hand, the formatting and calculation constraints of the above statements, which require user-defined sorting and grouping, have been nearly impossible for generalist BI providers to fully accomplish.
Most ERP products have a rich database, but, translating the data stored within the database to information useful for making enterprise decisions has proven difficult. With the availability of software analytic solutions, dozens of ERP providers can supply their customers with a valuable tool for harvesting the business value from the database. For example, the list of current back-office solutions whose GLs have been integrated with FRx financial reporting analytic solutions is impressive, and the following are just some more prominent ones: Advanced Data Systems, Best Software, Epicor Software, Expandable Software, Flexi International, Geac Enterprise Solutions, IQMS, Made2Manage Systems, MAPICS, McKesson, Ross Systems, Softrax Corporation, and naturally MBS Great Plains and Solomon (the integration with Navision and Axapta is under way). Other financial reporting providers like F9 or Timeline have almost as impressive a list of ERP partners.
As an example, MBS for Analytics—FRx (formerly FRx Financial Reporter), with its spreadsheet-like interface, can consolidate financial data from disparate accounting systems even if they use different code structures, fiscal years, or server sites. By pulling information already set up in the GL, the product automatically understands the fiscal periods, chart of accounts, detail transactions, and various types of balances. Due to built-in accounting intelligence, it even recognizes concepts such as current and year-to-date amounts, debit versus credit balances, positive and negative variances, and posted and un-posted transactions. Furthermore, users can leverage the rows, columns and formulas that they may have created in Excel and import the information, with all data intact, directly into FRx.
The key tenets of FRx's flexibility have been the following three building blocks:
1. Row format, which lets users specify the data source and what they want to do with each row of a report. By using a link to the GL, users can select individual accounts, a range of accounts or a list of non-continuous accounts to be included in a report. Once created, a row format can be saved and used again as required.
2. Column layout, which lets users specify the data source and select the type of column they want from a list. Combined with row format, Column Layout lets users include period actuals, budget information, or other types of data in a report, either from the GL or from another data source like a spreadsheet. Math formulas across columns can be applied to identify variances, projections, or percentages. Like with row format, once created, a column layout can be saved and used again.
3. Reporting trees, which lets users create a hierarchical picture of their organization to understand or change their organizational and reporting structures. An auto-build function constructs reporting trees directly from the organization's chart of accounts, while an intuitive drag-and-drop functionality enables users to create alternative structures and multiple rollups of various accounts without having to make costly modifications to their GL or charts of accounts. Once created, a reporting tree can be saved and used again.
In addition to the on-the-fly reports creation option, application servers provide report scheduling and automatic e-mail report distribution. Using one of many customizable report templates, users can often get started creating relevant financial reports right away using the building-block approach and auto-build functionality, without much help from IT resources or other technically-minded personnel. Then, these reports can be posted to the Web or be sent via e-mail to be accessed immediately by on-site and off-site users alike, while a connection to the GL is not required.
Business intelligence (BI)/analytics provides an environment in which business users receive information that is reliable, consistent, understandable and easily manipulated (i.e., flexible). C-level executives and middle management have always had a need to understand their business's performance regardless of good or bad economic times—while the output from BI might change, the need is always there. Particularly the recent massive demise of dot-coms, depressed economic times, and the stringent Sarbanes-Oxley Act (SOA) reporting regulatory requirements following up the high-profile corporate fraud scandals (e.g., Enron, Tyco, and WorldCom) have additionally increased executives' focus on understanding and managing corporate performance.
New disclosure rules are prompting companies to share information faster (for example, accelerated filling of 10Q quarterly statements and 10K annual reports, report sales of stock by executives [insider trading] within days of the transaction, expanded list of "significant events" to include changes in debt ratings, inclusion of financial results of partnerships in earnings reports, etc.), and sophisticated data-collection and data-analysis applications come in handy in that regard. Given that the BI tools have neither been terribly complex nor expensive to deploy, but have still been helpful in facilitating the decision-making process, they have become considered necessary rather than only a luxury. Also, decisions are nowadays increasingly made at ever lower levels in organizations.
On the other hand, the financial statement reporting process been important ever since the establishment of capitalist business practices. In addition to the tight economy's revelations of many companies' inability to proactively manage their financial performance (thus, repeatedly missing earnings and, in a knee-jerk fashion resorting time and again to last-minute layoffs, restructuring and operational expenditure freezes), its importance has particularly been emphasized with the outbreak of attention now being paid to the above-depicted accurate and certifiable reporting to external markets and government agencies.
However, creation, maintenance, and dissemination/publishing of financial statements (e.g., profit and loss [P&L] statements, balance sheets, and cash flow reports) have traditionally been maintenance-intensive tasks, with users expending significant effort just to meet basic requirements. Not to mention that everyone amongst the top brass always wants something more and different, such as different views, complex comparative reports, and drill-down analyses, but still within the familiar form of the financial statements.
Unfortunately, the financial reporting programs delivered with the traditional back-office financial management and accounting applications have proven only their rudimentary or pesky nature. Consequently, financial savvy users, having a strong preference to see results in the traditional P&L statement or balance sheet form, have long sought for ways to improve the report creation and maintenance process. On the other hand, the formatting and calculation constraints of the above statements, which require user-defined sorting and grouping, have been nearly impossible for generalist BI providers to fully accomplish.
Most ERP products have a rich database, but, translating the data stored within the database to information useful for making enterprise decisions has proven difficult. With the availability of software analytic solutions, dozens of ERP providers can supply their customers with a valuable tool for harvesting the business value from the database. For example, the list of current back-office solutions whose GLs have been integrated with FRx financial reporting analytic solutions is impressive, and the following are just some more prominent ones: Advanced Data Systems, Best Software, Epicor Software, Expandable Software, Flexi International, Geac Enterprise Solutions, IQMS, Made2Manage Systems, MAPICS, McKesson, Ross Systems, Softrax Corporation, and naturally MBS Great Plains and Solomon (the integration with Navision and Axapta is under way). Other financial reporting providers like F9 or Timeline have almost as impressive a list of ERP partners.
As an example, MBS for Analytics—FRx (formerly FRx Financial Reporter), with its spreadsheet-like interface, can consolidate financial data from disparate accounting systems even if they use different code structures, fiscal years, or server sites. By pulling information already set up in the GL, the product automatically understands the fiscal periods, chart of accounts, detail transactions, and various types of balances. Due to built-in accounting intelligence, it even recognizes concepts such as current and year-to-date amounts, debit versus credit balances, positive and negative variances, and posted and un-posted transactions. Furthermore, users can leverage the rows, columns and formulas that they may have created in Excel and import the information, with all data intact, directly into FRx.
The key tenets of FRx's flexibility have been the following three building blocks:
1. Row format, which lets users specify the data source and what they want to do with each row of a report. By using a link to the GL, users can select individual accounts, a range of accounts or a list of non-continuous accounts to be included in a report. Once created, a row format can be saved and used again as required.
2. Column layout, which lets users specify the data source and select the type of column they want from a list. Combined with row format, Column Layout lets users include period actuals, budget information, or other types of data in a report, either from the GL or from another data source like a spreadsheet. Math formulas across columns can be applied to identify variances, projections, or percentages. Like with row format, once created, a column layout can be saved and used again.
3. Reporting trees, which lets users create a hierarchical picture of their organization to understand or change their organizational and reporting structures. An auto-build function constructs reporting trees directly from the organization's chart of accounts, while an intuitive drag-and-drop functionality enables users to create alternative structures and multiple rollups of various accounts without having to make costly modifications to their GL or charts of accounts. Once created, a reporting tree can be saved and used again.
In addition to the on-the-fly reports creation option, application servers provide report scheduling and automatic e-mail report distribution. Using one of many customizable report templates, users can often get started creating relevant financial reports right away using the building-block approach and auto-build functionality, without much help from IT resources or other technically-minded personnel. Then, these reports can be posted to the Web or be sent via e-mail to be accessed immediately by on-site and off-site users alike, while a connection to the GL is not required.
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