WO2006116805A1

WO2006116805A1 - Method and apparatus for calculating business unit statistics using distributed data

Info

Publication number: WO2006116805A1
Application number: PCT/AU2006/000564
Authority: WO
Inventors: Ross Hedditch; Lloyd Volkwyn; Peter Mclean
Original assignee: Rpl Solutions Pty Ltd
Priority date: 2005-05-04
Filing date: 2006-05-02
Publication date: 2006-11-09

Abstract

Computers are used in calculating statistical information from data associated with distributed operational business units. This is particularly useful in operating a business and comparing operational data of a business operation unit with like operational units. Operational statistics are calculated, including business plans, budgets, financial analyses, variance analysis and the like, for operational business units comprising the steps of storing, transmitting and transforming data among data files on networked computers using telecommunication networks and the Internet. Computer software displays data graphically. Data calculated for a single operational business unit is compared with aggregated data calculated for other like business units and used for calculating variance in parameters between a business unit and aggregated data. Telecommunication networks and the Internet are used for data updating. The data of a business unit is restricted from being accessed by another business unit.

Description

Method and Apparatus for Calculating Business Unit Statistics Using Distributed Data

Field of the Invention

This invention relates to methods and apparatus for using computers in calculating statistical information from data derived from distributed operational business units. More particularly, the invention relates to using networked computers for transmitting data over telecommunications systems such as the Internet for comparing operational data with like operational units.

Background

A business can involve a very complicated set of activities, including financial and non-financial transactions, selling, buying, planning and other functions, e.g. planning for future business growth.

The advent of computers has made it possible to create software to carry out many individual business reporting and management functions. Those skilled in the art will be aware of many different examples of special purpose software applications developed for managing payrolls, accounting, taxation, inventory, budgeting, planning, financial consolidation, strategy management, production reporting, and forecasting. Programs might do simple arithmetic calculations or involve much more sophisticated creation, manipulation, and analysis of databases. Database computer software is often used to account for inventory, customer orders, customer details and the like, Word processing software independently allows the use of computers to create documents efficiently. Often a system incorporating several applications is offered to a customer for a specific purpose, or the marketplace in general, the system including modules from a list of applications, the modules incorporated into a package in no systematic fashion. The system is then used with inputs from the business to manage its internal activities. Depending on the size of a business and the types of transactions it undertakes, computer programs that support many functions can be located on individual desktop computers, or larger server computers networked with a number of individual desktop computers at one time in an intranet. Often business methods and supporting software comprises a collocation of applications created and used for different purposes, particularly for small and medium-sized enterprises. Often large businesses and corporations have very large systems constructed for their specific use.

Large businesses often use the Internet and intranets for their busines$ methods. Business methods and supporting software for smaller enterprises to date generally has not incorporated the benefits of the Internet.

The Internet has made it possible to input business data at one computer in on© place and use the public telecommunications system to transmit the data • to another computer at another location. The data may be transformed using software in a first computer or at another computer depending on where the transformation software is located.

Brief Description of the Figures

Figure 1a shows a schematic diagram of an embodiment of the invention in seven steps.

Figure 1b shows a schematic diagram of an embodiment of the invention involving iterations of the steps. Figure 2a shows factors involved in the strategic planning step of an embodiment of the invention.

Figure 2b shows a schematic diagram linking inputs and outputs of the strategic planning step of the method of the invention.

Figure 3a shows a schematic indicating the element in the construction of a business plan for internal users of an organisation in an embodiment the invention.

Figure 3b shows a schematic indicating the element in the construction of a business plan for external users of an organisation in an embodiment the invention. Figure 4 shows a schematic diagram of the activities and linkages therebetween leading to a business plan according to the invention.

Figure 5a shows an example of output business statistics for a real estate business unit using property management income streams. Figure 5b shows an example of output business statistics for a real estate business unit using sales income streams

Figure 5c shows an example of data for an organisation that could be exported for comparison with aggregated data for (ike organisations according to the invention. Figure 6a shows an example of s statement of performance and a statement of position for an organisation created according to the invention.

Figure 6b shows an example of a profit and loss statement for an organisation.

Figure 6c shows a further example of a profit and loss statement for an organisation.

Figure 6d shows a further example of a profit and loss statement for an organisation

Figure 6e shows an example of analysis for an organisation in comparison with like or "peer" organisations. Figure 7 shows an example embodiment of computers networked between like organisations using the method of the invention.

Figure 8 shows an example of a benchmarking report created according to the invention.

Figure 9 shows examples of charts the may be created from a benchmarking report using the method of the invention.

Figure 10 shows an example of a variance analysis according to the invention.

Figure 11 shows a schematic diagram of the flow of data between networked computers using the method of the invention.

Summary of the Invention

In one aspect the invention provides a method for calculating operational statistics, including plans, budgets, financial analyses, and the like for an operational business unit, comprising the steps of: a first step of acquiring data for calculating operational statistics for a first operational business unit; a second step of storing the data in at least one input computer file in a first group of computer files associated with the first operational business unit; a third step of transforming the data in the at least one input computer file in said first group of computer files according to computer programmed instructions; a fourth. step of storing the transformed • data for the first operational business unit in at least one output computer file; a fifth step of transmitting the transformed data to at least one remote computer file in a second group of computer files; a sixth step of acquiring data for calculating the same operational, statistics as the first operational business unit for at (east a second operational business unit; a seventh step of storing the data for the at least second operational business unit in at least one input computer file in a third group of computer files associated with said second operational business unit; an eighth step of transforming the data in the at least one input computer files according to computer programmed instructions; a ninth step of storing the transformed data for said at least second operational business unit in at least one output computer file; a tenth step of further transforming the transformed data from said first group of computer files for said first operational business unit and said transformed data from said third group of computer files for said at least second operational business unit by aggregating said transformed data from said first operational business unit and said transformed data from said second operational business unit in said at least one computer file in said second group of computer files; an eleventh step of repeating the sixth to ninth steps for each additional operational business unit, if any or if desired, wherein the data whether transformed or otherwise Tor operational statistics for an operational business unit is not accessible by another operational business unit but the aggregated transformed data for operational statistics of at least two operational business units is available to any operational business unit; and wherein the transmission of the data from at least one computer file to at least another computer file occurs by telecommunications means. The invention provides that the sequence of steps may include variations of the order of the steps described herebefore. The method includes that the output or outputs of the steps may comprise, for an operational business unit, any one or more of a strategic plan, a business plan, a budget, a financial statement, or a financial variance analysis. The method further includes that the data in at least one computer file in the first group of computer files may comprise a business plan. The method further includes that the data in at least one computer file in the firat group of computer files may include financial forecasting data. The method includes that the output or outputs of a step may be displayed graphically.

In a second aspect, the invention provides a method for preparing computer- generated information about an organisation, including the steps of creating a computer file comprising a strategic plan on a first at least one computer; creating a computer file comprising a business plan on said first at least one computer; creating a computer file comprising projects and tasks that are inputs to a budget on said first at least one computer; creating a computer file comprising a budget for the organisation; transmitting data from any preceding step to at least one file on second at least one computer, said at least one file containing like data from at least a second organisation; and aggregating the like data from any preceding step on said second at least one computer into an output computer file; and transmitting said output computer file containing transformed data to a corresponding computer file on said first at least one computer whrerein said corresponding computer file on said first at least one computer is updated with data including data from said first organisation and data from at least a second organisation.

The method In said second aspect may include the step of creating data for inclusion in at least one financial statement in said at least one data file. The method in said second aspect may include a step of creating data comprising an analysis of financial variance, or it may include that any of the steps are repeated for at least one successive time intetval with updated data from said first organisation or said at least second organisation. The method in said second aspect may further include that the step of creating a budget occurs only once in the sequence of steps. The method may include that the step of creating a budget cannot be repeated once the budget is first established by preceding steps. The method may include that the data in said output computer file includes variance analysis between the data of said first organisation and the data in said output file containing transformed data for at least a second, organisation. The method may include displaying output data graphically.

In a third aspect the invention provides apparatus for calculating statistical information for at least two operational business units, comprising at least two computer file storage means, at least two data processing means; telecommunications means for transmitting data between computer storage file means; and means for securing access to computer files wherein a user representing an operational business unit has access to computer files containing aggregated data for the operational business unit and computer files containing aggregated statistical information for all operational business units but the means for securing access to computer files prevents one user from accessing computer files containing unaggregatβd statistical information for other operational business units. The apparatus may include computer software for storing data. The apparatus may include computer software for transforming data. The apparatus may further include computer software for transmitting data over a telecommunications system. The apparatus may include means for displaying output data graphically.

Detailed Description of the Invention and Preferred Embodiments

It is an object of the invention to provide an improved business management system for small to medium-sized enterprises that assists such enterprises to be more efficient in their business management activities by incorporating separate but interlinked computer software applications that can be accessed over telecommunications networks, in particular, the Internet, ft is a further object to improve the management of an individual business by providing the business with immediate industry statistical data through dynamic data acquisition and transformation. The invention provides a method for business management that incorporates steps as modules of strategic thinking, business planning, and project and task management as inputs to the preparation and modification of a budget for a business. The budget for a financial year is finalised as the output at the end of a sequence of activities. The budget in turn becomes an input for other activities like variance analysis, reporting and forecasting. The modules may be implemented in software for operation using a computer. The method incorporates the advantage of accepting data for input into its modules from diverse sources, including businesses completely independent and separate, such as competing businesses within an industry. Alternatively, the method is suitable for use by large organisations with multiple operating business units.

The method very advantageously produces a series of outputs, including the business plan, which can be used by other organisations that interact or "do . business" with the operational. business unit using the invention. For example, a business plan produced using the method of the invention can be used by a financial institution for the purpose of determining whether or not to lend money to the operational business unit using the invention.

The invention most advantageously uses the immediacy of telecommunications networks like the Internet to enable multiple users to input data from their businesses, calculate collective statistical information about business parameters for at least two separate business units, and make available that collective statistical information about business parameters to individual business units. This enables the management of a business unit to firstly, use the invention to determine the business parameters for their business unit according to the method of the invention, but also to compare the performance of their business unit to other like business units. Thus the invention enables the management of a business unit to describe the parameters of the business unit in relation to other business units at a specific time or over time and the adjustment of business operations to ensure that the business unit will operate most efficiently relative to other similar business units. The method of the invention recognises the primary importance of strategic thinking, and includes a dynamic process of implementing the outputs of the strategic thinking by driving accountability for outcomes through an organisation using the invention. As a consequence of the method of the invention, the outcomes and targets for a business unit are quantified, firstly in the business plan, and secondly, in the budget, The variance analysis measures actual results against budgeted expectations, and the forecast factors in the information to produce a more correct and focussed budget result.

Once the budget for a business unit for a financial year is fixed by following the method of the invention, further activities of the method that result in changes to financial information of the business unit can be incorporated into the financial forecast for the business unit. This Is evident in the ordered sequences of activities of the method provided herebelow. it will be . understood by persons skilled in the art that elements of the invention are iterative and can be repeated. In some cases it will be expected that they will be repeated over time. At each iteration the outputs of a step are input into the next step or later steps, causing a cascade of modifications in the parameters describing the business unit.

The invention incorporates a structured sequence of activities, which translate into seven steps as illustrated in Figures 1 a and 1 b, including:

• strategic thinking 1

• business planning 2

• project/task management with budget impacts 3

• uploading data to central host server 4

• financial reporting and Internet aggregating data comparisons 5 • variance analysis 6

• financial forecasting & task revisions 7

The method of the invention is accomplished in said described steps above. Whereas steps 1 to 7 of the invention may be accomplished by actions using data and processes, including computer software, of an individual user or business unit , said steps 4, 5, and 6 may advantageously utilise the facility of modern telecommunications technology, in particular, and most advantageously, the Internet, for aggregating the data of the plurality of users to implement the most preferred embodiment of the invention.

■The invention is most easily understood with reference to the drawings. Figure 1 a shows that the invention includes said seven main steps: strategic thinking 1 , planning 2, task management 3, data upload 4, reporting 5, analysis 6 and forecasting 7. Each of said steps incorporates a number of activities, Figure 1b shows the iterative nature of the seven steps of the method of the invention, wherein the lines with arrows indicate the flow of output data of a step to another step. The arrows indicate that the output data from any selected step may be input to a second step in the method of the invention but, in some cases, said output data may be input to a later step than the subsequent step, or to more than one step. Further, the output ^"data of a subsequent step to a first step, in some cases may be input data to the first step, it will be understood that the invention includes embodiments wherein the operation of the method is not restricted to any particular sequence of steps herein described. In operation of the method, the sequence of steps chosen will be that most suitable for a user to achieve the objects of the invention. By referring to Figure 1 b and Figure 4 it will be evident that the iterative nature of the method of the invention means that step 7 informs step 1 and 3, and that steps 1 and 3 inform other sequential steps which impact step 7 and that all of the steps "come together" in step 5.

Step i

in Figure 1 a it is shown in the strategic thinking step 1 , that there is undertaken an analysis to establish the nature and direction of the business unit in terms of its mission, vision and values 8, analysis to establish the time frame for achieving business management objectives 9, and analysis to establish the business unit's capabilities in order to realise its mission, vision and values 10. Strategic thinking is often considered not to be integral to the operation and management of a business unit. Strategic thinking is often not undertaken at all or undertaken in an unsystematic manner by the management of a business unit and without the benefit of a computer software program. The step of strategic thinking in the method of the invention includes the activity of reflecting strategically on the business unit and its environment. The activity takes into account the history and nature of the business and the envisaged and/or possible characteristics of the business unit. ^■

The strategic thinking activity includes creating data from considering and providing answers to questions about identifying the mission, vision, and values and other parameters for the business unit. This activity is the first requirement necessary to frame choices in subsequent steps of the invention, The consequence of the activities of the strategic thinking process in shown at 8, 9 and 10 is to determine the Gap Aπalysis, which is the difference between (a) where the business is, and (b) where the business unit wants to be. Gap analysis is the deficiency in the capabilities that appear as critical issues.

The first activity of the strategic thinking step is to set the mission vision and values of the business unit This activity, shown in Figure 2a, shows the inclusion of the analyses of factors that impact on:

• the external environment and on customers of the business unit 19 ; • the internal environment and on customers of the business unit 20 ; and

• the governance of the business unit 21.

For each of the analysis activities of strategic thinking 19, 20, 21 , it can be seen in Figure Sb that the analysis is expressed in terms of the gap between (a) where the business unit is, and (b) where the business unit wants to be, expressed in terms of its mission, vision and values. The "gap" is comprised of critical issues 22, which are stated as key results areas (KRAs) which informs the business plan including:

• information technology needs

• employees, and recruiting of employees training of employees work practices within the business developing a reputation, or brand, of the business from its goods and/or services

• the processes and systems

• growth prospects of the business and market share of the products of the business

• product and service development (including research & development).

The outputs 23 of the first step of the invention, strategic thinking, become the inputs 24 to 31 of the second step of planning. The step of strategic thinking identifies critical issues for the business. Those critical issues that are the outputs 23 of the strategic thinking activity are used to define the key result areas of the business plan.

The step of strategic thinking 1 in the method of the invention is a continuing and dynamic activity. A pass through the sequential steps of the invention at a first time with the data for the business unit and its external environment at said first time may produce a different result from the step of strategic thinking 1 at a second time and at subsequent times with new and differing data. This wilt be apparent to persons skiiled in the art that the business characteristics and the external environment of the business unit will bs different at subsequent times. As previously noted, Figure 1 b illustrates the dynamic and iterative nature of the method of the invention.

Step 2 Step 2, planning, uses the outputs 23 of step 1 , strategic thinking, to define key result areas 30. The activities of the step of planning 2 are shown in Figures 3a and 3b. The outputs 23 of step 1 , and the gap analysis 22 are incorporated into the business plan in step 2 of the method of the invention, planning.

At the commencement of the step of planning 2, it is determined for what user the business plan 11 will be prepared. The method of the invention provides for two types of users, those internal to the business unit, such as company or business management as represented in Figure 3a or those external to the business unit, such as a lender, investor, or bank as represented in Figure 3b. It will be apparent to those skilled in the art that the list of examples of users provided herein is. not exhaustive and the invention may be used for other types of users within the external and internal classes of user.

The activities of step 2, planning, are carried out as shown in Figure 3a and Figure 3b, Two alternative sequences of activities of the planning step 2 for different users are shown in Figure 3a and 3b. The alternative sequences in Figure 3a and 3b create and incorporate business unit characteristics including: the business unit overview 24, structure 25, history 26, strategy and viability 27, past performance 28, benchmarking 29, and key result areas 30. The shaded boxes in Figure 3a indicate that the data for those boxes is the same data for the corresponding unshaded boxes in Figure 3b. Both of the alternative planning sequences shown in Figure 3a and 3b end with the identification of initiatives and tasks 31 for the budget 44 preparation.

In Figure 3a it is shown the elements of thθ method of the invention where the business plan 11 is constructed for internal users, In the method of operation of the invention, step 2, preparing the business plan 11 , includes the elements of:

• a business overview 24;

• past performance 28 • benchmarking 29

• key result areas 30; and

• budget initiatives and task management 31. In Figure 3b it is shown the elements of the method of the invention where the business plan 1 1 is constructed for external users. In the method of operation of the invention, step 2, preparing the business plan 1 1 , includes the elements of

• a business overview 24;

• structure 25;

• history 26;

• strategy and viability 27; • past performance 28

• benchmarking 29

• key result areas 30; and

• budget initiatives and task management 31.

In the initial activities in preparing the budget 44 to match the business plan 11 , it is shown in Figure 3 that the business overview element 24 comprises an introduction for the business unit as a unique organisation and a description of the nature of the business, mission, vision and values, what the business unit does, its geographical area, customers, clients, and the like.

The structure 25 describes how the organization carrying out the business is structured, including data such as the legal status of the entity, if any, carrying out the business; the majority shareholders, if the entity has a company structure requiring shareholders; and the management structure. It will be understood that the business will be undertaken by an entity that may or may not be a corporate entity and the structure of the entity will be suitable to carry out the business within the legal framework where the business is carried out.

The history element 26 of the business describes how the organization developed and important past activities, characteristics and events, such as, but not limited to: origins, changes in ownership, background detail, and past successes. The strategy and viability element 27 includes information that can assist external users of the business plan 11 to establish opinion of risk and reward. Said strategy and viability element includes data including, but not limited to: profit potential, market for goods and/or services, goods and/or services produced by the business, skill level of employees carrying out the business, parties having a stake holding in the business, and customer benefits deriving from the business.

In operation of the method of the preferred embodiment of the invention, past performance data 28 is conveniently extracted from commonly available third- party accounting software and imported into the software included in said preferred embodiment, Past performance data includes accounting data from the previous year's accounts and the current year's profit and loss statement and balance sheet.

The method of the invention incorporates software to create a bench-marking report element 29. The report, which may conveniently be represented in the format of a plurality of charts for ease of view, is incorporated into the business plan 11. In the example shown herein, two charts are included in Figure 9. It will be understood that the number of charts can be varied according to the invention and that explanations may not be included with the representations. The benchmarking report element 29 incorporates financial ratios of the business unit, and compares some representative historical trading results, including those results from at least the past year, and preferable the past two years. An example bench marking report 47 is shown at Figure 8. The financial ratios may include:

• efficiency ratios;

• solvency ratios; • profitability ratios; and

• measures of credit-worthiness.

It will be understood that the benchmarking report may include a single ratio or two or more ratios, depending on the needs of the user.

The key results areas and future plan 30 of step 2 include the outputs from step 1 , strategic thinking; In this element are listed the critical issues which are to be the focus of the budget initiatives and task management 31.

In the most preferred embodiment of the method of the invention the elements including business overview 24, structure 25, history 26, strategy and viability 27, and future plan and key result areas 30 are incorporated into software as text by a user, the software being created as part of the preferred embodiment of the invention or created initially in a suitable word-processing program and then imported into the software of the invention.

Step 3 The next sequence of activities is the initiatives and task management step 3, shown in Figure 4, which result in the creation of the budget 44 for the business plan 11. Said step 3 commences with the outputs at 23 and 30 that derive from identification of key result areas 30 leading to the initial tasks and initiatives 31 , in the building of the budget 44.

In the method provided by the invention step 3 incorporates Initiatives and Task Management, wherein the key results areas 30 are expressed as budget initiatives 32 which carry budget effects 41. In said third step, initiatives and task management with budget Impacts 12, includes the activities of creating budget initiatives and tasks that implement the business plan 1 1 and assigning tasks to respondents.

A further activity in the sequence of activities of step 3 is to break down the initiatives 31 into component tasks 33. Next is to assign the profit and loss accounts in the budget 44 to each initiative 32. In parallel with this activity the key result areas 30 are assigned 34 to their respective initiatives 32 and tasks 33. A further activity in the second element of step 3 is to assign the name of the employee or external supplier 36 who will be accountable for the performance of an identified initiative 32 or task 33 . On completion of assignation of an identified initiative 32 or task 33 to an employee or external supplier 36 that party is sent a message, preferably by e-mail, as respondent, for execution as defined in the task details with regard to budgeted cost, time for performance, due dates, and the like 37, 38.

A further activity in the second stage of step 3, is the implementation 38 of tasks 33 and initiatives 32. This activity is the means by which accountability 12 for business outcomes is determined. According to the invention the implementation of the tasks, timelines, costs, etc, is managed by monitoring the tasks 33 in the system. Both the creator of a task 33 and the respondent identified to be accountable for the performance 36 have access to the same task in the method of the invention, so that the creator of the task 33 can track compliance and drive accountability for completion of the task 33.

As is shown in Figure 4, once accounts in the profit and loss statement that will be affected by the identified tasks 33 are assigned 34, those assigned accounts 34 identify budget effects and budget tasks 41 in the determination of the budget 44. Other effects 42 on the budget 44 that are not identified as either budget initiatives 32 or budget tasks 33 also contribute to the establishment of the budget 44 in the method of the invention as shown in Figure 4.

The budget 44 is finally established in the method of the invention by selecting the appropriate profit and loss data file to form the basis 39 for the budget 44. This profit and loss data file, which, in the most preferred embodiment of the invention, may be selected from accounting computer software that provides a data file for the previous year's profit and loss, from the file that is created by computer software established within the computer software in the most preferred embodiment of the invention. The information for the budget 44 is finally completed by combining other effects, including non-budget initiatives 42 and tasks that may affect the budget, with the budget effects and initiatives 41.

The amounts entered at the activity of assigning accounts 34 impact the budget 44. i.e. they affect the final budget 44 to be established. As each number is entered into an account 34, the budget 44 is automatically updated by the method of the invention. The effect of said updating is that the source profit and loss file numbers forming the basis 39 for the budget 44 are changed.

The invention provides that said amount 34 can also be changed directly 42, by changing the basis numbers 39 that have been selected, being those accounting numbers from the previous year's accounts (last year) 40. Where the previous year's accounting numbers 40 are used, the invention provides that those numbers may be imported into the computer software created to implement the most preferred embodiment of the invention. Said accounting numbers 40 may be imported by a user from commonly available accounting computer software.

The budget 44 that is heretofore established by the method of the invention is final and cannot be changed according to the invention, i.e. the budget is locked. Once established and locked, the invention provides that there will be no further changes to any of the budget amounts for the budget year. Any subsequent changes to projected profit will be made through "action" tasks and the forecast that are further provided by the method of the invention.

The invention provides that the values in the budget 44 that is established may be printed as a Budget Report (12 months, multi-period). The invention further provides in the most preferred embodiment that the printed budget 44 may be attached to the business plan 11.

The invention further provides that the values in the established budget 44 can be used for comparisons in profit and loss reports established each month throughout the year in the form of key performance indicator reports 46.

The method of the invention provides a "what-if analysis calculator for the two primary income streams in real estate and property management fees Figure 5a and sales commissions Figure 5b in order to determine the "sweet spot". The sweet spot is the most favourable result to be achieved from the variable income drivers (like revenue per employee) and costs (like number of staff). ^■ The outputs of the what-if analysis may be compared with aggregated outputs for all users of the system and expressed in a chart. The advantage of being able to determine the sweet spot through the what-if analysis would be evident to a person skilled in the art of using methods of budgeting for business units. The key results areas 30 which are a consequence of planning 11 provide the management objectives for the business unit. Those management objectives may impact the budget in a number of different ways. The most favourable budget effects may be determined beforehand, by finding the sweet spot, through what-if analysis. It will be understood that said "what-if analysis may be applied to other types of business units wherein the calculation of a sweet spot is appropriate.

The method of the invention in its most preferred embodiment utilises computer software to incorporate the relevant elements of the business plan 24 to 31 into a single business plan document, which can be conveniently formatted and printed. Similarly the method of the invention in its most preferred embodiment utilises computer software to incorporate the relevant elements of the budget 11 into documents that can be conveniently formatted and printed.

Step 4 In the method provided by the invention step 4 incorporates uploading of data to a host 50 server. In the most preferred embodiment of the invention said server is connected to the computer of the user through the Internet. It will be understood that alternative embodiments include central servers in intranets of users that are large organizations, such as by way of example but not limited to, a national or international organisation that ha$ geographically diverse divisions using the method of the invention. According to the invention, the user prepares a computer file for export using said commonly available accounting computer software, the file containing data for the accounting profit and loss of a business 45. Said data may include month-by- month statistics, balance sheet statistics, or any other suitable statistics needed for operation of the invention. Said computer file for export is saved in a suitable format to be readable by the computer software incorporated by the method of the invention. An example of such a data file 45 is shown at Figure 5c. According to the invention, said computer file 45 for export is read by the computer software created according to the invention so that the data may be manipulated according to the invention.

The method of the invention includes the continuing input of financial data about the business as time progresses- At the end of each time period, data may be entered either manually into computer software developed to implement the invention or through commonly available accounting software packages, the data from which are exported into files 45 suitable for import into the software of the most preferred embodiment of the method of the invention. The invention provides that a Statement of Performance and a Statement of Position 46 may be generated based on year-to-date numbers 45 that are uploaded in Figure 5c. An example of such a Statement of Performance and Statement of Position is shown at Figure 6a.

Step s

In the method provided by the invention step 5 incorporates reporting, wherein the budget 44 is established, in step 5 the invention provides a full accounting profit and loss statement for each month of the budget period, including: actual or forecast, budget, and last year's numbers; expressed as this month, year-to-date, next month and full year. The invention provides that the profit and loss statement can be selected for a company as a whole, and for branches or divisions within the company (for companies which have branches or divisions), and for departmental cost centres within a company. It will be evident to those skilled in the art that in the most preferred embodiment of the method of the invention the budget is the primary benchmark of performance in the reports described herein. It will be understood that the invention is not limited to the primary bench-mark of the performance in said reports in alternative embodiments. The invention provides for alternative reports of performance. A second analysis of performance is the previous year's numbers. A third analysis of performance is the forecast, in terms of next month's anticipated performance and the anticipated full year performance. A fourth analysis of performance is the variance analysis expressed as a percentage between budget and actual. A fifth analysis of performance is the variance analysis expressed as a dollar amount difference between budget and actual. A sixth analysis of performance is the "% Total", which expresses each revenue and expense Stem as a percentage of total income for the company or business unit. A seventh analysis of performance is a summary of the Profit and Loss account (called Statement of Performance) and Balance Sheet (called Statement of Position) shown in Figure 6a. An eighth analysis of performance is the Bench Mark Key Performance Indicators 47 at Figure 8 showing various ratios of efficiency, solvency and liquidity, profitability and credit-worthiness_* A ninth analysis of performance is unique to the invention: aggregating performance numbers of all the plurality of users as a "peer" bench mark, and comparing the results to the performance of the individual user or business unit 47 at Figure 8.

Figures 6b to 6d illustrate examples of the type of Profit and Loss reporting provided by embodiments of the invention. Figure 6e shows an example of the Profit and Loss analysis showing business actual results as a percentage of the total income, and comparing that to the aame calculated number for the plurality of users of the invention, called "Peer %", and a further calculation for a business of its distance in performance from the "Peer" bench mark.

The invention provides that at least two business units may be using the method of the invention, most preferably and advantageously utilizing the facility of the Internet. In the most preferred embodiment of the method of the invention each user of the invention inputs data from their business according to the steps of the invention and said data is aggregated for a comparison of statistical parameters of a. single business with the aggregated data statistics of a plurality of businesses,

In steps 4 and 5 of the invention the aggregation of data from a plurality of users is incorporated. This step is most advantageously carried out by each user of said plurality of users inputting data using the method of the invention into a database conveniently located on a server computer that is accessible to all users of the invention. It will be understood by persons skilled in the art that said server computer may be comprised of a single computer operating in connection with at least one other computer connected through a network. Alternatively, the server computer may include more than one computer connected to at least one other computer in a network. The computers in said network may be located close together or far apart. It will be understood that the network may operate through connections in a public telecommunications system or through an intranet. It will be understood further that such telecommunications connections will include any means to communicate data, including but not limited to, fixed line, wireless, or any other communication means shown in Figure 7 and Figure 1 1.

Step 5 of the invention includes the reporting activity of step 3, but also incorporates the data input by a plurality of users of the invention. In step 5 the data input by said plurality of users is aggregated so that each user of the method of the invention in steps 1 to 3 may compare the statistics of their business to those of other business operators. In step 5 financial parameters, which may be in the form of financial ratios 47, are calculated from data from at least two users of the invention and the resultant financial parameters can be provided to at least one user of the invention. Said financial parameters 47 may include:

• Efficiency ratios;

• Solvency ratios; • Profitability ratios; or

• Measures of credit-worthiness.

It will be understood that the financial parameters are provided for illustration and an embodiment of the invention may include any, all, or none of the exemplary parameters. It will be understood that the invention is broad and includes any suitable financial parameter for comparison of the performance of one business with another or others.

An illustration of an embodiment of the^' invention including step 4 is shown in Figure 7- It will be understood that the aspect of the invention, which incorporates networking of a plurality of users, is not limited to the embodiment of Figure 7. More or less users may be incorporated into the method of the Invention than shown in Figure 7, which is provided for illustrative purposes only. It will be further understood that users may be located anywhere in the world.

Steps 4 and 5 according to the invention allow the preparation of reports in which financial parameters for a business unit using the method of the invention can be compared with the same financial parameters for other business units using the method of the invention, This is shown by example in Figure 8 wherein the key performance indicators 47 for a business unit are compared with industry standards.

Steps 4 and 5 of the invention very advantageously allow for comparison of the financial parameters above for the business of a user of the invention to compare performance with other users of the invention, By way of example, Figure 9 illustrates how the invention may be used to illustrate two financial parameters, the current ratio 48 quick ratio 49 of a business for which the method of the invention is used for the year-to-date (YTD) in comparison to an aggregated current ratio 48 and quick ratio 49 for the industry of the business and peers of the business, It will be understood that the types of report produced using the method of the invention are limited only by the nature of the data that is input into the data files used in the invention. It will be further understood that the comparative data that is available for the preparation of reports illustrated in Figures 8 and 9 will be limited only by the aggregated data according to the number of users of the invention and the industries in which the businesses of the users operate. The invention may be used by businesses in any industry. Whether or not comparative data is available for a particular user of the invention is dependent on the presence or absence of data from other users in the same industry. It will be further understood that users of the invention may include operators of businesses who compete for customers in the same market. It will be apparent that the invention very advantageously allows such competitors to compete for the same customers but share financial data in a way that helps to provide benchmarks for said competitors to compare their own financial parameters with, without reference or identification in any way of the competitors who are using the invention, The examples in Figures 8 and 9 are used for illustrative purposes and are not intended to indicate limitations of the invention.

Step G

The method of the invention provides for the analysis of the actual performance of a business on a monthly basis relative to the budgeted expectation 44 for the business in a sixth step, variance analysis. In the most preferred embodiment of invention each user enters the percentage variance tolerance for their business into the database carried on the central server 50 at Figure 11. When actual data is uploaded 13 to the central server 50, the method of the Invention incorporates the ability to extract all income and expense items that are outside said selected variance tolerance, and presents said extracted data to said user for further analysis, consideration, and decision. Figure 10 shows an example of the process of analysing the variances 51.

Step 7

In a final step 7 illustrated in Figure 10, the method of the invention provides for review, analysis of financial variances, and forecasting of future performance. Figure 10 illustrates that the method of the invention incorporates a process of revisiting the budget initiatives 31 which were informed by the business plan 11 according to the method of the invention. Where there is a large variance 16 arising in step of variance analysis 6, new tasks called "action tasks" 52 may be required to keep the key performance areas in focus by the management of the business.

The iterative nature of the invention is evident in considering elements 52 to 57 at Figure 10. The variance analysis 51 permits the creation of new action tasks 52, to which profit and loss accounts wilt be assigned 53; then respondents are assigned to fix accountability for executing the action tasks 54; the new action tasks carry forecast effects 55 which will impact the forecast 57. The forecast can be changed by entering other non-action initiatives and tasks.

The invention incorporates the identification of said new action tasks 52, as welt as with the variance analysis 16 acts as a financial gyroscope to keep the direction of the company true, and in harmony with the strategic thinking which informs the process.

In the method of the invention the process of creating action tasks 52 is the same as the process for creating budget tasks 33. As herebefσre described, budget tasks 33 only impact the budget 44, and once the budget 44 is locked according to the method of the invention no further budget tasks are allowed to be incorporated. Action tasks impact the forecast 57 in the same way that budget tasks impact the budget.

In the reporting of the Profit and Loss Statement Figure 6b the "this month" and "year-to-date" data relies on "actuals", "budget" and "last year's" numbers. In the Profit and Loss reporting of "next month" and "full year" numbers the reporting relies on "forecast" , "budget" and "last year's" numbers.

Claims

1. A method for calculating operational statistics, including plans, budgets, financial analyses, and the like for an operational business unit, comprising the steps of:

a) acquiring data for calculating operational statistics for a first operational business unit; b) storing the data in at least one input computer file in a first group of computer files associated with the first operational business unit;

0) transforming the data in the at least one input computer file in said first group of computer files according to computer programmed instructions; d) storing the transformed data for the first operational business unit in at least one output computer file; e) transmitting the transformed data to at least one remote computer file in a second group of computer files; f) acquiring data for calculating the same operational statistics as the first operational business unit for at least a second operational business unit; g) storing the data for the at least second operational business unit in . at least one input computer file in a third group of computer files associated with said second operational business unit; h) transforming the data in the at least one input computer files according to computer programmed instructions;

1) storing the transformed data for said at least second operational business unit in at least one output computer file; j) further transforming the transformed data from said first group of computer files for said first operational business unit and said transformed data from said third group of computer files for said at least second operational business unit by aggregating said transformed data from said first operational business unit and said transformed data from said second operational business unit in said at least one computer file in said second group of computer files; k) repeating steps f to j for each additional operational business unit, if any;

I) wherein the data whether transformed or otherwise for operational statistics for an operational business unit is not accessible by another operational business unit but the aggregated transformed data for operational statistics of at least two operational business units is available to any operational business unit; and m) wherein the transmission of the data from at least one computer file to at least another computer file occurs by telecommunications means.

2. The method according to claim 1 wherein the output of the steps comprises, for an operational business unit, any one or more of a strategic plan, a business plan, a budget, a financial statement, or a financial variance analysis,

3. The method according to claim 1 wherein data in at least one computer file in the first group of computer files comprises a business plan.

4. The method according to claim 1 wherein the data in at least one computer file in the first group of computer files comprises financial forecasting data.

5. A method for preparing computer-generated information about an organisation, including the steps of: a) creating a computer file comprising a strategic plan on a first at least one computer; b) creating a computer file comprising a business plan on said first at least one computer; c) creating a computer file comprising projects and tasks that are inputs to a budget on said first at least one computer; d) creating a computer file comprising a budget for the organisation; e) transmitting data from any preceding step to at least one file on second at least one computer, said at least one file containing like data from at least a second organisation; and f) aggregating the like data from any preceding step on said second at (east one computer into an output computer file; and g) transmitting said output computer file containing transformed data to a corresponding computer file on said first at least one computer wherein said corresponding computer file on said first at least one computer is updated with data including data from said first organisation and data from at least a second organisation.

6. A method according to claim 5 including the step of creating data for inclusion in at least one financial statement in said at least one data file. 7. A method according to claim 5 or claim 6 including the step of creating data comprising an analysis of financial variance.

8. A method according to any of claims 5 to 7 wherein any of the steps are repeated for at least one successive time interval with updated data from said first organisation or said at least second organisation. 9, The method according to claim 5 to β wherein the step of creating a budget occurs only once.

10. The method according to any of claims 5 to 9 wherein the step of creating a budget cannot be repeated once the budget is established according to claim 5. 11. A method according to claim any of claims 5 to 10 wherein the data in said output computer file includes an analysis of variance between the data of said first organisation and the data in said output file containing transformed data for at least a second organisation. 12. A method according to any one of claims 1 to 11 including the step of displaying outputs graphically.

13. Apparatus for calculating statistical information for at least two operational business units, comprising: at least two computer file storage means; at least two data processing means; telecommunications means for transmitting data between computer storage file means; and means for securing access to computer files; wherein a user representing aπ operational business unit has access to computer files containing aggregated data for the operational business unit and computer files containing aggregated statistical information for all operational business units but the means for securing access to computer files prevents one user from accessing computer files containing unaggregated statistical information for other operational business units.

14. Apparatus according to claim 13 including computer software storing data. 15. Apparatus according to any of claim 13 or 14 including computer software for transforming data. t6. Apparatus according to any of claims 13 to 15 including means for displaying data graphically.

17. Apparatus according claim 13 including computer software for transmitting data over a telecommunications system.

18. A method for calculating operational statistics, including plans, budgets and the like for an operational business unit, as describe herein with reference to the figures.

19. Apparatus for calculating statistical information for at least two operational business units, as herein described with reference to the figures.