Abstract:

After 100 years of successful implementation and execution in millions of companies over the world, traditional budgeting has become a bit outdated. Despite the importance, discussions continue to question the efficiency and effectiveness of budgeting. It is claimed that the traditional system has lost relevance with the modern business environment and is no longer satisfying the needs of managers. These discussions led to development of new concepts: from Better Budgeting through Advanced Budgeting to Beyond Budgeting. One recommends continuous improvement of budgeting process while the other promotes shifting to a system without budgets. These approaches are only appropriate to a certain degree and are still in their infancy requiring further development and practical implementation.

Considering the above The Internationaler Controller Verein, an international association of controllers, founded an expert work group with over 50 members active in research and consulting, with experience in a whole host of industries and companies. In the last few years, the work group developed a profound, consistent and practical concept called Modern Budgeting. The concept is based on the assumption that effective planning is possible only when strategy, operational planning and performance management are mutually complementary.

In the time of Big Data when we are flooded with too much data, practical implementation of this innovative budgeting style without assistance of IT is almost unthinkable. While working on solutions for effective software assistance it quickly became apparent to work group members that there are no ready-made solutions supporting the idea of Modern Budgeting. 6 months after the information had come into light, members of ICV Poland in cooperation with Solet Business Intelligence, launched a new project aimed at the development of IT solutions being in line with Modern Budgeting principles. The effect of undertaken project is Bnovation - modern space for planning, a tool that is to combine and unify the world of managers and controllers. It constitutes the platform for cooperation between all participants of value chain. Bnovation, developed in accordance with Modern Budgeting recommendations, once again promotes budgeting process as a key tool in management. It is dedicated for managers, executives, investors and obviously controllers. Therefore this new IT solution needs to be a kind of open enterprise management system for strategic and operational planning.

IT application, supporting the implementation of Modern Budgeting, must enable mapping the business model, being one of the fundament of the concept. Bnovation gives user a possibility to illustrate company value chain in different scenarios. Using graphic in the system to create business model helps to engage top managers into budgeting process. Each unit of a value chain should be characterized by up to 7 indicators/measures – strategic and operational – forming a part of wider business model. Created map of business value chain is a basis for communications of strategic objectives and linking strategic aims with operational objectives.

The paper presents a case of implementation of the Bnovation application at the Faculty of Economics, Maria Curie-Sklodowska University in Poland. The software is going to be used for teaching students of management and logistics programs.

Keywords:

Bnovation, modern budgeting, business intelligence, managers, financial controllers, new teaching program.