A root cause of these operational challenges can be found in the disconnectedness of the systems supporting the business—specifically in functions such as finance. As the business environment has become more complex, traditional ERP systems can’t keep up.
Historically, growing companies deployed a legacy ERP system in their headquarter location and regional or country-specific accounting systems in other countries where they do business, mainly due to the high costs associated with deploying the legacy solutions for smaller locations. As a result, many enterprises now have a variety of disparate financial systems—different brands and versions, on various platforms, deployed by multiple systems integrators.
Each of those systems has its own processes, security model, and version of “the data,” which are almost never complete or in sync with one another. This creates major obstacles when it comes to gathering, reconciling, and consolidating data, and understanding what is happening in remote locations, far away from corporate controllers and auditors.