Business Intelligence Blog from arcplan
3Oct/130

Don’t Rely on Spreadsheets: Essential Tools for Planning, Budgeting, and Forecasting

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aberdeen-group-guest-postIn my role as the Senior Research Analyst in the Aberdeen Group’s Business Planning and Execution research practice, I spend a significant amount of time studying the key pressures facing organizations in their planning processes as well as the key technologies that top performing organizations use. Unsurprisingly, I often get questions on the role of spreadsheets in the planning process. Spreadsheets continue to be a popular tool used in financial planning, budgeting, and forecasting processes. In fact, Aberdeen’s 2013 Financial Planning, Budgeting, and Forecasting Benchmark survey found that 89% of organizations use spreadsheets in the planning, budgeting, and forecasting processes. Employees are comfortable with spreadsheets because many of them use them in both their professional and personal lives. This familiarity makes it unsurprising that both top performing and Laggard organizations are employing them in some aspect of their financial planning process. This reliance may stay the norm for the foreseeable future and spreadsheets are likely to continue to be an integral part of the planning process.

Yet while the Best-in-Class may be using spreadsheets as a part of the planning process, they are less reliant on them as the sole means of communication and interaction, preferring to combine them with the use of applications (Figure 1). Being a repository of exported data is in fact the leading role spreadsheets play in top performing companies. As the methods in which spreadsheets are used become more manual, the Best-in-Class and the Laggards switch rankings…

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