Monash College Examines 60 Scenarios Within a Week Due to Uncertainty Surrounding International Student Cap
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Brief Overview
- Monash College adopted IBM Planning Analytics to enhance its financial planning and scenario modeling capabilities.
- This upgrade enabled the college to simulate 60 scenarios within a week amid governmental uncertainty regarding student enrolment limits.
- Previously, modeling each scenario required a full week due to manual processes reliant on Excel.
- The transformation encompassed enhancements to ERP systems, procure-to-pay processes, and performance management tools.
- Excel continues to be a crucial instrument used in conjunction with Planning Analytics for straightforward analysis.
- The finance team now takes ownership of the planning system, allowing for quicker adaptations and increased agility.
- Monash College has reduced its month-end closing time from four days to two, with forecasts now finalized in just two days.
Monash College Adopts Digital Transformation to Address International Student Cap Constraints
Revamping Financial Operations with IBM Planning Analytics
Core Enterprise Overhaul
In mid-2023, Monash College initiated a comprehensive transformation in finance, revamping almost every core system. With assistance from consulting partner Cubewise, the college integrated IBM Planning Analytics—previously referred to as TM1—as a contemporary enterprise performance management (EPM) solution. This initiative aimed to boost forecasting abilities, financial adaptability, and scenario modeling.
Replacing Outdated Systems
The transformation featured significant upgrades to its enterprise resource planning (ERP), procure-to-pay systems, assurance software, and payment solutions. Most importantly, it substituted an obsolete planning tool that had become inefficient and unreliable for immediate forecasting. Even with a premium spent on this legacy tool, most financial operations remained tied to Microsoft Excel.
Excel’s Continued Importance
While IBM Planning Analytics now oversees essential forecasting and modeling tasks, Excel remains an integral part of the finance team’s everyday toolkit. Associate director of financial services and transformation Michael Williamson states that Excel and Planning Analytics are “complementary.” He suggests that eliminating Excel entirely would be unwise, highlighting its adaptability and user familiarity.
Adaptable Scenario Planning Amid Government Caps
Rapid Scenario Modeling
In late 2023, the Australian federal government proposed caps on international student enrolments—a significant policy shift considering international students make up a substantial portion of Monash College’s demographic. The college swiftly responded by running 50 to 60 financial scenarios within just one week to evaluate potential revenue consequences. This responsiveness was enabled by the new Planning Analytics system.
Turning Weeks into Days
Prior to the overhaul, Monash College would require up to a week to execute just one scenario. Now, with automated data flows and integrated modeling, they can quickly conduct analyses involving multiple scenarios. The system permits a single input adjustment to affect workforce planning, operational costs, and financial reports.
Accelerated Reporting and Forecasting Cycles
Streamlined Monthly Closure
The transformation has greatly sped up the college’s financial reporting timelines. The month-end closing period has decreased from four days to two, and forecasting turnaround has been slashed from two weeks to two days. This enhancement empowers Monash College to react to market changes and policy adjustments more effectively.
Enabling Finance Teams Through Ownership
Managing Change Internally
A significant drawback of the prior system was that it couldn’t be entirely governed by the finance team, especially regarding updates to business rules. With IBM Planning Analytics, finance professionals now possess the freedom to implement changes without relying on IT support. This flexibility is crucial in a sector that frequently adjusts to new government policies and academic programs.
Agile Business Decision Making
The college regularly initiates new projects driven by innovative concepts. Having a system capable of quickly assessing the long-term financial implications of these projects is critical. Whether launching a new course or reacting to external disruptions like changes in visa policies, Monash College can now evaluate its alternatives swiftly and assuredly.
The Importance of Planning Systems in Digital Transformation
Beyond ERP: Planning as a Strategic Resource
While organisations often prioritize ERP upgrades, Williamson contends that planning systems like IBM Planning Analytics offer even more significant value for strategic decision-making. Effective enterprise performance management (EPM) solutions extend beyond mere compliance—they facilitate forecasting, scenario modeling, and resource optimization on a large scale.
Conclusion
Monash College has established a new standard in financial agility and planning by integrating IBM Planning Analytics during a period of considerable policy uncertainty within the Australian education landscape. By substituting outdated systems, empowering its finance team, and maintaining a pragmatic approach to tools like Excel, the college has significantly enhanced its capacity to forecast, report, and adapt to changes. The capability to simulate 60 scenarios in one week showcases the success of this digital transformation.
Common Questions
Q: Why did Monash College replace its planning system?
A:
The former system was outdated, inefficient, and could not be fully managed by the finance team. Most tasks were still performed using Excel, and scenario modeling was slow and labor-intensive.
Q: What system did they implement and why?
A:
Monash College deployed IBM Planning Analytics (previously TM1), which provides integrated forecasting, modeling, and an easy-to-use Excel interface. It allows for quick scenario analysis and real-time financial planning.
Q: How did the federal government’s cap on international students impact the college?
A:
The cap represented a significant threat to revenue, prompting the college to simulate 50–60 scenarios in one week to gauge and prepare for potential financial repercussions.
Q: Is Excel still utilized by the finance team?
A:
Yes. While IBM Planning Analytics manages core modeling, Excel remains an essential tool for simpler calculations and daily analyses. The two systems function together effectively.
Q: How has the transformation enhanced reporting?
A:
The monthly closure time has been cut in half from four days to two, and forecasting can now be completed in two days—a process that previously exceeded two weeks.
Q: Who oversees the new planning system?
A:
The finance team now owns and governs the planning system, granting them the ability to update business rules and modify the tool as the institution evolves.
Q: Why is scenario planning vital in the education sector?
A:
Educational institutions frequently encounter changes in policy, student demographics, and funding. Scenario planning equips them to prepare for various outcomes and make informed strategic choices.
Q: How does this transformation benefit international students?
A:
By ensuring financial stability and responsiveness, Monash College can better plan for student services, course offerings, and resource distribution—fostering a consistent and high-quality experience for international learners.