Does your financial system provide ROI’s per Customer or per Product line automatically? Or is your finanical system limited to financial reports by your Chart of Accounts and Department? Does your financial system support project based budgeting for the innovation pipeline, including intangible subscription based revenue and per-deliverable based costing, stacking up revenue and expenses based on your ranking or ROI's over time? Does your financial system produce multi-year proforma financial statements including existing schedule revenue schedule plus revenue schedules based on forecasts of new products proposed in the innovation pipeline? Does it do your revenue recognition based prior contract renewal history?
Does your financial system give real time feedback to Sales as they construct deals about the margin on the deal and what the target should be to keep the business healthy?
Or do you end up trying to do all of these in spreadsheets and worry about formula mistakes discrediting all your hard work? Or do you have to integrate all the work from each of the departments by hand? Do you maintain the traceability back to the reason why these costs or revenue where included so as thing change the original rankings can be reviewed and redone based on the new information?
Wouldn't it be great if an application could do all of this for you while allowing others to contribute and collaborate on an on-going basis as new information is available?
How can the Innovation Pipeline help me in the Finance organization?
Unlike other financial systems, our application has the ability to see the ROI by customer or by Product (Product line or Product Family). Value Creator is NOT intended to replace their financial system of records but to augment it to help other departments to do better budgeting and also achieve better ROI’s. Note that ERP’s with large installation typically have some sort of portfolio planning model but it is usually geared toward material planning and not focused on the product/service innovation process. Also these ERP modules are usually limited to Finance and doesn’t provide an interface for other departments to input information themselves or see the results. Otherwise, this is usually done outside of the ERP during the Annual/Quarterly planning and then entered/updated in the ERP module. This module is usually fairly expensive as well with a significant upfront cost of at least $30k to $50k just for the module not including the customization costs, which can many times the cost of the module itself.
Also, most people, doing budgets, will readily admit that doing budgets in Excel and trying to integrate the results and doing updates of budgets is a nightmare with formulas getting broken and rollups not happening correctly. There are other companies solely focused on this problem but they don’t keep information about why these costs are there and thus if conditions change in the market or priorities in the company change it is difficult to know what to change. Value Create keeps the reason why and the derived budget linked up so this is simple to do.
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