Performance Management - Forecasting and Budgeting

Forecasting may be like everyone putting their fingers in the air. But for most businesses it is essential - especially for cash flow, and to achieve corporate plans.

There is a big gap between expensive corporate forecasting systems (such as Hyperion and Cognos Planning , formerly Adaytum), and Excel which is often the forecasting workhorse of SMEs and smaller corporates.

There have many attempts to fill the gap, but commercially it's a difficult proposition. For example, Inca Planning (formerly Dillon) nearly disappeared in 2009, only to be bought by COA Solutions and re-branded "ClearView Planner".

Confusing as a London company similarly called Clear Plan (SAAS) Limited is marketing the US-based cloud solution Adaptive Planning into Europe. Adaptive Planning comes in various flavours, including a free starter edition, and for its sins is the planning component of Netsuite.

Otherwise TM1 is probably the best known mid-market solution. But as part of the IBM Cognos stable, it's difficult to know how it will progress. I was sorely embarrassed for the TM1 specialist who was giving a demo at Cognos's offices, when the Cognos Planning representative came in and effectively rubbished TM1. I'd like to have heard what was said afterwards! Interestingly Inca, the company that sold off Inca Planning, is now selling TM1 alongside their traditional role with Cognos Planning (Inca started as a spin off from the sales team of Adaytum, with Adaytum's consulting team becoming Budgeting Solutions).

Another cloud solution worth considering for larger businesses is Rocket's CorVu CorPlanning. This allows multi-user development of integrated P&L, balance sheet and cash flow statements, with the most sophisticated logic when you need it. Sadly the entry price is not for the faint-hearted.

When Microsoft canned the forecasting component of PerformancePoint in early 2009, as part of the migration of its reporting functionality into SharePoint, one of the executives founded XLPlanning. The product is browser-based, and available hosted in the cloud or on-premise. Simpler than CorPlanning, it is priced for businesses with revenues of £10-100m.

There are various other cloud and on-premise forecasting systems, stand-alone or as a module of a broader financial system. If you are a vendor or user of a sytem you'd like to tell us about, especially for start-ups and businesses in the £5-£500m range, please comment with a suitable link.

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