Optimal Budget Allocation across Cost Centers

Organizations need to allocate budgets across their various cost centers in an objective fashion. Firms that deploy robust budget allocation mechanisms achieve optimal allocation of resources across the different areas of the organization, which in turn enables realization of cost management imperatives together with continuity in business operations & performance.

Budget allocation, as practised in most organizations, is driven by specific demands from the various cost centers. The relative persuasive skills of different cost-center managers is often a key determinant of the budgets that get allocated. Firms need a scientific budget allocation framework that takes into account past budgets, historical budget utilization levels, business criticality of cost centers, resource mix & costs of cost centers, etc.

insAnalytics presents an easy-to-use Budget Allocation solution that optimizes budgets across the firm's various cost centres. The solution benchmarks the different cost centers along various user-defined parameters (i.e., criteria), such as business criticality, capex dependency, resource mix, historical budget utilization, etc. Mathematical & statistical modelling reduces these various parameters (or criteria) into a reduced dimension, so as to arrive at the optimal budget allocation across the cost centers. While based on the principles of scientific decision-making, the solution provides the flexibility to accommodate situational constraints that reflect business realities and accordingly tweak the budgets allocated to the different areas of the firm.

Key Features

  • Analyze the various criteria of budget allocation across different cost centers, such as past budgets, historical budget utilization, business continuity, etc
  • Examine the budget allocation criteria in a reduced dimension, for ease of decision-making
  • Discover the underlying importance of each budget allocation criteria
  • Determine the optimal budget allocation across the various cost centres, using mathematical & statistical modelling
  • Feed-in situational constraints to tweak the budget allocation to reflect business realities

Business Benefits

  • Visually-appealing decision engine easily usable by a wide range of business end-users
  • A budget allocation framework that reflects true underlying business needs & criticality of the various cost centers
  • Optimal budget allocation across the organization that balances business requirements and cost management imperatives
  • Flexible solution that incorporates scientific decision-making and also accommodates tweaks based on business constraints

Analytics Backbone

  • Financial Modelling
  • Common Factor Analysis
  • Correlation Analysis
  • Mathematical Modelling
  • Optimization Techniques
  • Visual Analytics
  • Exploratory Analysis

Technology Variants

  • Tableau
  • Qlik View
  • SAS Visual Analytics
  • SAP Lumira
  • Oracle
  • R

The solution is technology-agnostic, and available over a range of technology platforms. Choice of the best-suited platform for specific installations is governed by the existing ERP product being used by the client, in order to provide a cost-effective solution and to ensure seamless connectivity & integration. Open-source adaptations of the solution are also available to reduce the total cost of ownership for the client.

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