14.04.2014 - Businesses are not prepared for Management reporting of the future
Berlin / Kaufbeuren, 14 April 2014 – Management reporting is becoming a hot topic, not only for multinational groups, but especially for medium-sized companies. At the same time, metrics are being used for analysing and controlling all productive areas of the company, not just financial accounting. In the process, chief financial officers (CFOs) and reporting officers are increasingly becoming sparring partners for management. Companies are slowly but surely evolving into analytical organisations.
However, while businesses are increasingly demanding powerful analytics tools and well-developed technologies are now available on the market, companies often lack clear organisational structures as well as business intelligence strategies that are tailored to business goals. In addition, there is an increasing shortage of employees in management reporting positions. As the pressing challenges of globalisation and digitalisation give rise to new customer requirements, companies cannot remain competitive unless they can evolve into analytical organisations that can respond quickly to changes in the competitive environment.
In light of these developments in management reporting, Lünendonk GmbH recently collaborated with LucaNet AG on a study that offers insights into the future of this field. The 2014 Lünendonk study is entitled "3 x 3 BI – The Future of Management Reporting" and discusses one of the most urgent challenges of our increasingly globalised and complex economic environment. It also deals with the effects of digitalisation on Internet-based business models as well as management reporting.
The study is divided into three different areas of analysis: "Know-how", "Tools" and "Trends". The analysts have published their three different theories in three separate parts. Part 1, "Know-how", explains the present and future challenges faced by companies, and examines the effects of changes such as globalisation and digitalisation on corporate management. The second part, "Tools", discusses how business intelligence (BI) can best be used. Part 3, "Trends", examines how technology trends such as cloud computing and mobile enterprises can benefit management reporting. One theory also puts forward the importance of BI for creating annual financial statements and conducting tax audits. The study can be downloaded free of charge at www.lucanet.com.
Key business metrics for fact-based decision-making
"It's a well-known fact that business intelligence has been primarily used for creating analyses in financial accounting/controlling", says Mario Zillmann, head of Professional Services at Lünendonk and author of the study. "However, more and more, technical departments such as logistics, marketing, sales or corporate management are requiring and demanding access to important business metrics for faster, fact-based decision-making. This trend will have a considerable impact on the growing demand for BI software in the coming years."
Dominik Duchon from the Executive Board at LucaNet AG adds: "The role of the CFO is also becoming much more important because this financial role represents the nerve centre of the company, where all strategic activities converge. More and more companies are realising that financial and non-financial metrics for all areas of the company must be consolidated and analysed at one central location".
Lünendonk studies and publications are part of Lünendonk GmbH's "Strategic Data Research" (SDR) services. Through the company's "Strategic Roadmap Requirements" (SRR) and "Strategic Transformation Services" (STS) offerings, Lünendonk provides customers with a full range of consulting services, which include everything from developing strategies, collecting and analysing the necessary information to implementing solutions in day-to-day business operations.
Lünendonk GmbH, Company for Information and Communication (Kaufbeuren, Germany), studies and advises business in the IT, consulting and service industries throughout Europe. With its Kompetenz3 concept, Lünendonk offers independent market research, market analysis and market consulting from a single source. The company's market research division is responsible for the "Lünendonk Lists and Studies", which have been recognised as market barometers since 1983, and for all market observation operations.