Nowadays the term ‘management control’ is becoming more popular, this is a management System, which is fundamental within a company, not only to keep the operations monitored but also to be able to apply effective strategic actions. Especially when we talk about a company of medium to high size, might result difficult to have a clear overview, which allows to highline that the company is correctly following the pre-set targets and objectives. Luckily, today’s entrepreneurs can rely on powerful and innovative management control software. How can we choose between the numerous software available in the market? In this article Technis Blu, with multi annual experience in SAP implementation for companies shows the basic characteristics that a software for management control should have.
#1 Integration and centralized memory
Before looking at the technical functions of the management control software, is fundamental that it has two prerequisites that are essential, these are: integration with other management software and a centralised memory System.
With a perfect integration with the most spread management and operation Systems, will be possible to implement the software in each company area, but without overturn the daily operations. In this way is possible to avoid long training periods for the staff continuing the daily operations without problems.
Moreover, is also important that the management control software has a centralized memory System, which updates Data in real time according to the information gained in each department. In this way, in every moment is possible to obtain a wide overview of the company’s performance by linking all the different company’s areas.
What before was considered as ‘scalability’ represent one of the basic characteristics that a management control software should possess. So, we are talking about customization, this means that the management is created ad hoc for the company instead of the company having to implement changes to adapt to the new management System.
This software has a modularity, which allows not only to implement a specific software for the company, but also to make sure that this can perfectly be adapted to the dynamics of the company. In the periods of growth is possible to integrate new modules within the software, avoiding the substitution of it with a newest one therefore avoiding the involvement of any extra cost.
#3 Report and analysis
An efficient management control goes inevitably through deep analysis. This means that an innovative management control System reads the Data from different departments recorded in a centralized memory System; it elaborates them and creates full reports. Subsequently, these information could be divided according to specific filters, such as a time, the specific department they are related to or the type of customer.
In addition to the deep analysis, the software will also realize different types of graphs (bar charts, pie charts, line graphs…) to highline the level of the achieved target, also every delay in relation to the business plan.
This is the most innovative characteristic that the best management control software available on the market should possess: In the view of offering the best of the completeness of information, is necessary that the management control System gives the possibility to create simulations ‘what if’. In this way is possible to realize different business scenarios, by changing economic, financial and assets Data to understand whether a strategy could be efficient or no.
This functionality regarding the creation of simulations is fundamental as it allows the company’s management to foresee the outcome of specific strategic actions and most importantly if these will permit the achievement of the predicted targets.
A good management control software should be endowed with the characteristics expressed in this article. Firstly, a management control System has to integrate perfectly with the programs already used within a company by linking the different company’s departments through an efficient System of central memory. Moreover, there needs to be a scalability through customizing and modularity allowing the software to adapt to the current and future needs of the company. In order to have a wide clear view of the company and improve the company’s decisions is necessary the software builds analysis, reports, graphs and above all, simulations.
Would you like to know how SAP could change your company? Do not hesitate to contact us: Technis Blu team will be available to answer any question of yours.