Crisis, Cost Reductions and Business Solutions - Business Intelligence

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Crisis, Cost Reductions and Business Solutions

01 Mar Crisis, Cost Reductions and Business Solutions

Posted at 08:20h in APARITII MASS MEDIA, CLUB IT&C, Filip Zgubea by Silvia 0 Comments

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We live very different and very special times. The most used word in the last 6 months is – CRISIS. Regardless of business, the crisis is felt by direct actions and, in the most common situations, by indirect actions. Business consultants are pressed to adapt their strategies, promoted so far under conditions of economic growth, to conditions similar to the recession of the 1930s.

Management is faced with limited situations. For these limit situations, identifying solutions is a difficult process that does not fit in the urgency of the moment, and once identified, solutions prove difficult to implement. Companies are forced to operate in a new environment where profits are falling sharply, and where investment budgets disappear from day to day. It’s the environment where if you do not make the best decisions you can not stay in business.

According to specialized studies, for 2009, many companies have reduced IT budgets by up to 40%.

Budgets for maintenance, development, integration of new functionalities, budgets for the implementation of new business support solutions are reduced. It is even talking about a phenomenon of preparation for the “HIBERNATION” of companies, whose management has decided, a priori, to reduce all costs from the IT area and business solutions.

Making performance management in crisis situations, giving up just the tools for substantiation and support managerial decision is not exactly a recommended strategy during this period. The real ally of a manager, in times of crisis, is represented by managerial support solutions. Managers need to rediscover the real attributes of ERP systems – resource planning and management of all business processes. The times when the ERP system was considered a tool to solve the problems in the operational area must be forgotten.

Managers need to rediscover the principles that motivated them to invest hundreds of thousands of euros in ERP applications – controlling business processes and getting the information needed for decision-making. And they still have to remember something – when they made the decision to deploy an ERP system they were still in a crisis situation, even if it was marked by the need to cope with the strategy of expanding the business.

We live in times when a decision made on the basis of wrong information can cause real disasters.

To supply more than market demand, to fail to control your production or distribution costs, to have no access to marketing information, are activities whose percentage of presence in a company’s life must be reduced to 100%. The basis for the decision can no longer be left to a “skilled” person in making simple reports with information from accounting and administration, it is the time of strategies based on predictions and analyzes like WHAT IF?

The foundation of decision making using dashboards that connect ERP system data to CRM, SFA, Warehouse Management, Marketing, is the key to successful and efficient management.

How do managers cope with the crisis without investing in Business Intelligence applications?

The benefits of these applications are unanimously recognized: low acquisition costs – compared to ERP systems – short implementation time, outstanding results in the management support area. The Business Intelligence application not only reports, as we often hear from the uninformed. Business Intelligence applications are designed for strategic management. Forecasting analytics, sales management, cost management, performance indicators are the default tools of BI applications, tools absolutely necessary for management in organizing and controlling business in crisis situations.

Then, I come back with the question: how will managers cope with the crisis by eliminating budgets for BI applications?

The strategies to be followed during this period should be based on optimizing the company’s resources, organizing information for the sake of creating trustworthy decision support and, last but not least, implementing practical business solutions for the company’s specific business area.

Managers who will take advantage of these systems, understanding that ERP systems are not simple accounting and management applications, and BI applications do not only provide operational reports, will be those in the statistics over a few years who have survived this crisis.

About Filip Zgubea, Sales Manager, ERM Business Unit, CRESCENDO

Filip Zgubea has over 14 years of experience in consulting business solutions.

Club IT&C

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Aplicatii de Business, Business Intelligence, ERP, Filip Zgubea

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