We recently had a discussion with an IT financial management analyst who asked why an ERP system can’t provide the details needed to effectively manage IT finances. It’s a great question and one we frequently get from prospects. The short answer: traditional financial systems built for accounting are based on principles that deliver acceptable financial statements, but are not designed to deliver insights for effective IT business management.
In financial accounting, the journal entry places exclusive value on the economic classification of business activity represented by the account number. Accounting systems collect this information via the chart of accounts, leaving out valuable management information—the who, what, when, where, and why of operational IT business activities.
Some have tried to remedy this problem by layering additional business intelligence software onto accounting software and operational systems to try to recreate a CIO-relevant view. The only true fix to this problem requires redesigning, reengineering, and eventually rebuilding a new breed of IT financial management software. And that's what we've done at Nicus. M-PWR takes advantage of available detailed consumption, usage, and financial information throughout the enterprise to provide an application designed from creation to support your IT business management needs.
With M-PWR, our customers can aggregate, report, and analyze their IT business information by capturing the who, what, when, and where of activities; therefore, make better informed management decisions. We believe a detailed approach is the only path forward to success.