For example, an organization may have one instance of SAP running in the U. The second type of consolidation is to merge two different systems with similar functionality into a single system. The consolidation effort in this case would move all the users to a single application--most likely SAP or Oracle.For example, an organization may be running Oracle's E-Business Suite in the U. The second type of consolidation is generally more difficult than the first because it requires a much greater amount of planning, requirements mapping, business process reengineering, and user training.Ian Greenhalgh, Head of Applications Strategy at HCL Technologies, answered readers' questions on instance consolidation strategies, what warning signs to look out for before embarking on a consolidation project, and best practices to ensure the process of aligning a single set of processes is as streamlined as possible.Below you can view the chat replay as well as read the edited transcript, which includes answers to questions such as: Ian Greenhalgh, Head of Applications Strategy, HCL Technologies Ian is head of applications strategy for HCL.Although the easiest short-term solution is to simply consolidate financial information at an executive level of reporting, companies should not use multiple systems to track financials for similar business units on a long-term basis, as the disparities in reporting and closing the books drive different business practices and take a toll on corporate operations.
He is actively involved in working with clients to analyze issues and opportunities, architecting, and implementing innovative technology, business change and operational improvement solutions to fulfill these needs.
In the early days of 2014, Paul Hamerman, vice president and principal analyst at Forrester Research in Cambridge, Mass., said finance departments should take stock of their systems this year and simplify them if possible.
Large companies in particular often amass a significant number of core and tangential financial systems as they grow, which can inhibit data visibility.
It may be that one or more systems create bottlenecks that can be avoided by choosing a newer or more efficient financial management system.
Alternately, you might find that some of your current financial practices are based on outdated compliance issues that have been superseded by new legislation or internal controls. Choose a consolidated system that takes your company's IT roadmap into consideration.