Best-of-Class Financials
The software arms race
In some ways, today’s business environment has turned into a software arms race. Companies of all types are differentiating their businesses with unique software and systems.
Organizations are increasingly building or buying specialized software to stand out in the marketplace and to escape the trappings of big, cumbersome ERP systems. Meanwhile, the changes brought on by the economic downturn and regulatory environment have pushed ordinary accounting systems well past their limits, causing financial managers to rely more heavily on manual workarounds and elaborate spreadsheets. All this means you can’t compete effectively, using a generic ERP system and substandard financial applications. Companies can no longer compromise – you need great operational applications and great financial systems. This is the best-of-class application approach.
Best-of-Class means “no compromises”
With CODA Financials, you can buy or build your own specialized applications and use CODA Financials as an accounting plug-in or a centralized financial hub. The CODA Link™ architecture allows you to easily connect best-of-class applications, of all types, in a federated approach using our web services. You are then free to concentrate on adding value to your specialized systems, while simultaneously benefiting from a great financial software package.
Best-of-Class is for you if…
…You’re wondering if Big ERP is overkill
If your company requires a relatively limited set of accounting functions, an ERP platform can be overkill and add unnecessary complexity to an otherwise finite situation. ERP overkill manifests itself in the form of unnecessary layers of technology, tools, complexity and added costs. And despite higher costs, the capabilities in ERP financial modules are often lagging because development resources are diverted to a wide array of other toolsets, acquired products and application modules supported by the vendor. Quite simply, ERP platforms have been forced into many organizations, when a more agile and specialized tool would do the job better. This is akin to putting a battleship in a swimming pool – it is simply overkill, costly and unnecessary, not to mention potentially damaging!
…You need specialized or vertical application packages
In these environments, companies aren’t able to find the vertical functionality they need in generic ERP platforms, so they purchase Best-of-Class vertical solutions, which can be integrated and used more effectively with a Best-of-Class financial system. Trading systems at Financial Services organizations come to mind.
…You “roll your own” custom or company-specific applications
These days, nearly every company is in the software business, developing mission-critical applications to differentiate themselves in the marketplace. Companies from FedEx to Wal-Mart are in the software business as much as the logistics business. Once again, best-of-class financials plug in perfectly into this environment. On the other hand, ERP platforms can be a liability in this situation, since they are designed for inward integration into their own proprietary tools and applications.
…You need to integrate legacy applications
Most companies have longstanding investments in legacy applications that are the lifeblood of the business. Dramatic changes to these systems could cause massive disruptions. Very often, these environments have a mixture of computing platforms and databases, requiring the financial system to have a Switzerland-like ability to remain neutral, without disrupting the other systems around it. A best-of-class approach allows you to retrofit and modernize the financials, while the other operational systems remain in place – and unaffected.
…You often add, change and integrate new systems
Acquisitions, new lines of business and new products can continually drive the need to assimilate new business systems. Best-of-class applications are designed to co-exist with these systems as an integral component, using a common integration language without imposing a particular technology or architecture. Since best-of-class systems are not tied to a particular technology stack, systems such as CODA Financials offer the freedom to use a variety of databases, not just one particular database.
…Your current financial system isn’t making the grade
The current economic situation has put intense pressure on the financial departments inside every company. In many cases, financial users are trying to respond to increased demands with old, inferior financial software. This has put them in a stressful situation, as they attempt to bridge the gap by working more hours and plugging system holes with spreadsheets, email and post-it notes. As we’ve already pointed out, ERP financial suites can lag in financial functionality because the development focus is spread across a wide variety of applications and platform technology. Because of our focus, CODA’s best-of-class financial software provides superior functionality – particularly in areas such as financial modeling, reporting, control automation and complex multi-site/multi-national environments.
…Your financial system can’t handle change
In today’s business setting, financial applications must do much more than simple bookkeeping. They must be exceptionally pliant and enable organizations to continually adapt to structural upheaval whether it is caused by a re-organization, merger, acquisition or new line of business. At UNIT4 CODA, we believe that a financial system must literally account for and expect change, whether it is caused by rapid growth, a new set of controls or closing down a line of business. If your business is under constant change, best-of-class financial applications are the answer.
…You have shared services operations
As companies look to decrease transaction costs, reduce overhead and consolidate cash management activities, interest in shared services has accelerated. Shared accounting service operations require three primary capabilities:-
- Rich, multicompany, multichart, multicurrency and multicultural software functionality found in only the best financial software.
- The ability to easily integrate to a potpourri of operational systems
- The ability to simultaneously accommodate this diverse financial and technical environment from a single instance.
The very nature of this environment dictates a best-of-class approach. The application set is finite (finance only), the functional barriers are very high and the ability to co-exist concurrently with a variety of operating applications is critical. On the other hand, an ERP platform in this environment is a poor fit at best. By definition, shared services operations don’t need the myriad of applications provided by an ERP platform, so the platform itself is nearly useless. Furthermore, the proprietary and inward focus of an ERP platform architecture can be difficult to intermingle with other applications, without extensive and expensive modification. In short, ERP is a duck out of water in this environment.
…You use “Agile” software development methodologies
If your company has embraced the Agile Software manifesto, http://agilemanifesto.org/ then your company is an ideal candidate for the best-of-class financial systems approach. As an Agile development shop ourselves, we value people and applications that play well with others. Our software is designed to adapt to constant change. CODA Financials can serve as a compartmentalized and flexible accounting component that can be quickly plugged into a wider Agile development project. We believe our approach is the antithesis to the slow, expensive, Big ERP way of doing business.
