SAP BusinessObjects Planning and Consolidation: Analyze Financial Scenarios for Enhanced Relationship Management
- by William Newman, Managing Principal, Newport Consulting Group
- April 27, 2010
As part of its positioning for the corporate boardroom set of enterprise performance management applications, SAP BusinessObjects Planning and Consolidation, version for SAP NetWeaver, allows for the transparency and flexibility to create predictive financial scenarios that can anticipate changes in the cost and corresponding investor relationship model. Learn how to increase performance by predicting capital asset ratings and enhance relationship management for effective governance using SAP BusinessObjects Planning and Consolidation and SAP BusinessObjects Strategy Management.
SAP BusinessObjects Planning and Consolidation and SAP BusinessObjects Strategy Management, as part of the enterprise performance management (EPM) solutions suite, allow you to quickly determine real-time changes to the key predictive indicators that ratings firms use to establish access to capital and liquidity instruments, as well as corporate and individual performance management target achievement.
The investor relationship model used by many publicly traded organizations relies on results and projections taken from financial models and operational roll-ups that correspond to actual performance versus planned performance. The accurate monitoring of key performance indicator (KPI) and strategic goal achievement in the organization are at the heart of this monitoring process. In addition, many individual performance management elements linked to executive reward and recognition systems use these results to determine both direct and indirect compensation models.
The handover to operational planning and financial execution has also been a source of greater examination of both financial executives and fund portfolio managers who seek returns for their investors in publicly traded enterprises. How the enterprise performs against predicted targets, viewed from both internal and external perspectives, can have a profound impact on the availability and cost of capital to execute operations and the perceived relationship of the organization in the marketplace.
The Increased Use of Governance Ratings
To determine the relative health of organizations, particularly publicly traded companies, several financial services firms and organizations offer products designed to provide financial and governance ratings for organizations. These ratings affect the cost of capital for organizations, the ease of obtaining working capital lines of credit, and other financial instruments required to fund business growth and company operations.
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