Strategic Management: Formulation and Implementation

Computerized Financial Planning

Probably the most visible technological change in recent years has come through managements's efforts at expanding computerization.

Widespread use of computers in management provides certain essential up-to-date information analysis. Many organizations now have sophisticated management information systems. The computers help managers by providing timely and accurate information on the status of accounts - that may be useful not only to the credit manager but to other managers as well.

These developments in both computer hardware and software programs include also the introduction that are specialized for application to financial planning. Financial planning software packages allow to construct budgets and forecasts. The real advantage of the computer occurs if there is a need for different scenarios to be evaluated quickly and at low cost in labour-hours.

Another major development that has a significant impact on the extent to which computers are used in the planning and budgeting process is the advance of the microcomputers. The development of financial planning software has parallelled the development of microcomputer technology. The number of spreadsheet packages usually include graphic programs as well as elementary database management capabilities.