A planning and reporting system is foundational to FP&A’s mission of supporting business decisions by deploying resources to the most efficient use.
Up the Technology Ladder
The failure rate of IT projects is between 30-60% as measured by unmet goals, spend over budget, significant delays, or just outright giving up on the project.
30-60%
Yet, the right system frees up time for value-added insights, business partnering, and strategic work that supports customers.
Here are 3 steps to help you make a strong start on your new planning system.
STEP 1: LAYING THE GROUNDWORK
An IT implementation is not about the technology and the go-live date; it is about integrating people and data to facilitate business planning.
How does the system support my digitally enabled finance function?
Ideally, start with a motivating vision that turns into a roadmap, a high-level plan that identifies the goal that are enabled by digital initiatives. However, for some, the new system IS the digital strategy; then be sure to plan for flexibility so your system can grow and evolve with you.
How do I integrate the systems into my current process?
Consider the services that finance delivers to the customer, and how new technology could change operating model and delivery of those services through organizational or process changes.
How do I sell the business case?
The challenge is to craft a winning business case for a non-revenue generating system even though the work is getting done under current methods via sub-optimal efforts.
STEP 2: SELECTING THE SOFTWARE
The general steps of the selection process are below.
As you move through the process, consider who is on the evaluation team and at what points you will rely on them.
Research
Find out who the key players are to identify the ones you would like to examine more closely:
- Review industry publications
- Meet with vendors at AFP conferences, user conferences or local meetups
- Ask your network (Collaborate, LinkedIn, etc)
- Try interactive trials and free demos
RFP Docs
Think of the RFP as a document to educate vendors on what you’re looking for. They can then develop a response for you that meets your needs and provide a fair estimate of cost, time and effort.
Issue RFP
In most cases you will have already contacted the companies under consideration during your background research; simply forward the RFP and other documents to your contact. For companies with a heavier process, the procurement team will handle dissemination through approved channels.
Evaluate
How well does the software solve your business problems, now and in the future?
Negotiating & Contracting
There are likely to be two parties in the process and at the negotiating table. The costs and services are negotiated separately, and the key price elements and leverage points differ. Build a 3 year model of the total software costs to evaluate vendors; although difficult, try to create an equal basis to evaluate implementers considering all elements of the project.
Resist the temptation to propose a solution; instead clearly state the problem, goals, objectives and key requirements; let the respondents bring ideas to you!
What is the experience and capability of this implementer’s team members? How will we work together during the process and after “go-live”?
What have been the experiences of other customers, and what would they recommend that I do?
Jump to where you are in the process.
LAYING THE GROUNDWORK
STEP 1
SELECTING THE SOFTWARE
STEP 2
GETTING INTO THE DETAILS
STEP 3
But getting it right is a challenge.
STEP 3: GETTING INTO THE DETAILS
Product Diligence
Implementer Diligence
Customer Diligence
Roadmap samples from the AFP community that reflect different scope and visions for project.
Digital Finance Roadmap Samples
For a Deeper Dive on
Moving your finance function
is key to your successful digital transformation.
1) Getting on board with the overall technology roadmap of the organization
2) Additional capabilities to support other teams
3) Reduce risk from fragile spreadsheets, low process control, individuals who are
“masters of the model” and inability to attract talent
4) Economics—the high cost of time in maintaining the current system
Here are 4 strategies to tie the investment to larger trends in your organization:
DOWNLOAD
Part 1 of the FP&A Guide
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to View Digital Finance Roadmap Samples
Laying the Groundwork
Get Started
Download the AFP sample RFP document and customize with your data.
Available to AFP Members Only
Customizable scorecard to help you evaluate your responses.
Vendor Scoring Matrix
Available to AFP Members Only
Extreme Automation: How to Execute on a Vision of Finance
For a Deeper Dive on
Selecting the Software
DOWNLOAD
Part 2 of the FP&A Guide
Failure rate of IT projects
Take a deeper dive and
Download both FP&A Guides
DOWNLOAD
Part 2 of the FP&A Guide
DOWNLOAD
Part 1 of the FP&A Guide
Underwritten by Adaptive Insights
Get Started
Download the AFP Scoring Matrix and customize with your data.
Available to AFP Members Only
Terms commonly used in planning system implementations.
Available to AFP Members Only
Glossary of Technical Terms
Ask your peers on
AFP Collaborate
Available to AFP Members Only
Have a Question on Digital Transformation?
Accelerate your planning and reporting project with sample RFP.
Available to AFP Members Only
Planning System RFP Template
Building Citizen Data Scientists
Virtual Roundtable Replay