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OLAP, an alternative technology over spreadsheets
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A data warehouse appliance uses commodity processors and hardware optimized for BI and combines them with software built specifically for data warehouse-based analytics in a single box. This paper examines the value of Data Warehouse Appliances.
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In a recent study, 81% of FD’s cited that their highest priority is the accuracy of revenue and earnings forecasts while 63% complained of inadequate budgeting and forecasting systems [1].
The modern FD is coming under increasing pressure from all sides to produce more robust, meaningful and accurate financial information. This is driven by a variety of factors:
- Internet technology is creating new business models that require innovative financial models
- The emerging business environment is creating more competition that requires information based on dynamic competitive scenario analysis
- The recent accounting scandals and the regulatory response to those require a higher level of data integrity and accuracy.
All stakeholders within the enterprise are requiring more analysis, based on complex models in shorter time periods, with accuracy and the ability to explain anomalies within the data presented paramount to the successful management of the enterprise.
It is interesting then that a survey of 2000 [2] companies on financial best practices by the Hackett Group revealed that two-thirds of “world-class” companies and 90% of “average” companies are not confident that their forecasts and reports are accurate and reliable. Why?
Consider two major systems from which this data is collected.
- Multiple ERP systems are used to assemble data for budgeting, forecasting and reporting. The inter-compatibility of these systems can cause inaccuracies.
- Second, spreadsheets still compose a major part of the budgeting, forecasting and reporting functions of the finance department.
There is a growing body of research showing the problems associated with using spreadsheets within the finance department. That may be well and good, spreadsheets may not be the best system to use within the finance department. However, a satisfactory alternative has not been presented for the use of spreadsheets, and as such the research into the use of spreadsheets is of little practical value to the finance world at large. The question still remains:
“Can other Technologies replace Spreadsheets within the Finance Department?”
Why are Spreadsheets used?
Quite simply, because they can be. Finance professionals with very little knowledge of computer software development, programming or application design are able to develop complex models that can be used to manage the finance function. Also, spreadsheets are widely used and available within the enterprise and the majority of information users have access to and knowledge of how to use spreadsheets.
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Oracle #1 in Business Analytics According to IDC Research
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