Corporate Budgets Going Mobile: Budget Variance Tracking Anyone?

Variances are a great way to evaluate performance. If a business claims to be successful yet their actual costs are consistently higher than the standard costs, we could surmise that the organization is not working effectively, that it is not conducting profitable activities, or as profitable as they could be, and that its leadership is evidently not in touch with this gap. We could say that this company is not performing well.
On the other hand, let us say that a company is consistently operating with a favorable variance, continuing to save money, exceed expectations of monthly budgets and generally operates efficiently as a result. Such companies are more appealing to investors and potential buyers. They also generate better credibility with the consumers.
Service companies don't have the same needs as manufacturing companies. Whereas manufacturing focuses on items and production and statistics, service companies dwell more in the intangibles world and is usually based on the satisfaction of the customer, rather than meeting a specific target. Variances however, may not always mean the same thing in a different company.
I remember getting this big job, and literally deciding to buy all the things I needed. I was fully confident I would have the money, as I had budgeted for it previously. Needless to say I blew my budget. Not because it wasn't effective and efficient, but because I was undisciplined and engaged in additional discretionary spending which was not captured in the budget. 

These days, I budget everything, using a phone app as well as Excel. It's the best practice, and it's what managers do. I should be able to manage my own circumstance, if i'm to be expected to, and trusted with, manage a department or division for a company.  Mobile budgeting should be making its appearance in corporations soon.  It's about time that managers get the ability to monitor their budget variances on demand, on the go.

Consumers Flex Their Mobile Muscle

Shoppers are turning to mobile apps for product information when making purchasing decisions, so retailers need to engage with app developers to make sure they've got the right information.

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It’s hardly a secret that retailing is undergoing one of the biggest transformations in its history. Mobile point-of-sale systems, analytics and the cloud are fundamentally altering both online and in-store experiences. What’s not apparent to many retailers, says GS1 U.S. President and CEO Bob Carpenter, is how much power and sway today’s consumers have.

In the past, the power of comparison shopping was mostly limited to the web, where companies such as Nextag, Bizrate, Shopzilla and PriceGrabber compared everything from computers and cameras to shoes and perfume. Now, thanks to barcode scanning and price comparison apps, this capability is being pushed out to stores, where it has the power to thoroughly disrupt traditional business models.

Carpenter notes that, in the past, retailers have relied on their own loyalty card programs to communicate directly with consumers. However, today’s consumer is increasingly looking for price comparisons and go-to apps not related to specific retailers. As a result, retailers must work with third-party mobile apps to share private-label information with consumers. Those that stand on the sidelines risk losing mind share -- and market share.

However, success requires more than simply connecting with various pricing apps. CapGemini, which consults with many of the world’s top retailers, says that there’s a critical need to ensure the accuracy of product data that’s shared over the air. In a recent report, Beyond the Label, CapGemini and GS1 found that between 30 percent and 40 percent of smartphone users rely on barcode scanning apps. The use of these apps has increased about 1,600 percent since 2010.

However, 91 percent of mobile barcode scans returned incorrect product descriptions; 75 percent returned no data at all, and 38 percent of consumers said they would not purchase a product if they didn't trust the production information displayed about it on their smartphone.

Carpenter says that retailers must begin working with app producers to improve accuracy and create consistent and streamlined tools. Solutions that share digital product information with consumers must work in a global environment, be highly scalable, provide real-time data, and be multi-sourced to include all the data that consumers require to make a buying decision.

By Samuel Greengard / Baseline