Given OIS can’t replace budget, what are the analyses that:

• the traditional budget can’t perform
• are of interest to the CFO and CEO

The suggestion is these analyses could be performed by small CHQ OIS department. It’s a small department because OIS is a model so the turn around is quick and the staff requirements are modest. The department becomes, in effect, advanced analytics “wheel house” for the CFO/CFO.  In fact, such function was out-looked in 2014 by the then CEO of Deloitte. In addition, in 2016 Thomas Davenport published another article in CMO describing Finance as currently behind in advanced analytics’.

In addition to those described in “OIS’s Advantages,” other analyses the budget can’t support include:

–If warranted, CFO/CEO can make “in flight” course corrections to improve profit. Data is readily available to assess the extent of the budget’s disruption. Simply add OIS’s department’s activities and compare with budget’s departments costs.

–Use activity-based costs in each department to focus on improving its efficiency rather than managing costs

-Share OIS’s results with firm’s stock analysts

–Initiatives for eliminating the budget over time