Sarbanes-Oxley Act Spurs Opportunities for Financial/Business Performance Management Analytic Applications, According to IDC
FRAMINGHAM, MA – MAY 5, 2003 – Organizations are re-evaluating their financial processes, compliance procedures, and performance management strategies as a result of recent regulations and requirements brought on by the enactment of the Sarbanes-Oxley Act of 2002, according to IDC.
“As CFO’s prepare to meet these new regulations, many will look to technology solutions to support an overall financial compliance strategy,” said Henry Morris, group vice president for Applications and Information Access at IDC. “Analytic applications based upon a consistent data model will provide the information foundation for greater internal visibility, decision support, and consistent processes and controls that will markedly increase confidence in externally reported results.”
In the short term, companies should design and implement formalized and auditable internal controls and procedures that support the external financial reporting process, including real-time analysis and the visibility of potential errors and exposure. In the longer term, companies will need to ensure that there is an architecture in place that will sustain compliance changes and increased requirements in the future.
IDC’s new study, Sarbanes-Oxley: A Catalyst for a New Category of Analytic Applications (IDC #29285), explains the Sarbanes-Oxley Act of 2002 examining the initial requirements imposed by the Act and how companies might use capabilities provided by existing financial and business performance management analytic applications. The study presents a model for a more robust compliance analytical framework that supports future requirements imposed by the SEC and other regulatory bodies. In addition, the study considers whether a new category of compliance analytic applications will be needed as part of a future financial/business performance management application suite.
Kathleen Wilhide, CPA and principal at Finance and Technology Consulting (http://www.financtech.com), co-authored the study and offers readers a unique perspective on the impact of current and future regulations imposed by Sarbanes-Oxley legislation on the financial and business performance management analytic applications market. To purchase this document, call IDC's sales hotline at 508-988-7988 or email firstname.lastname@example.org.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC’s customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world’s leading IT media, research, and exposition company.
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