Modeling Dynamic Budgeting Based On Object-Oriented

As one kind of management method to optimize resources disposition, control cost and regulate management in modern enterprise, Budgeting has been extensively approved and applied since 1920s. Budgeting as one of the managerial control way which could integrate all key issues existed in the organization in one system. But present budgeting models are facing criticisms which include long-winded preparation cycle, lack of accuracy in budget data, mismatch with corporate strategy, oriented to financial results, adjustable difficulty and inability to adapt to the new operational environment. Similarities exist in Chinese enterprises. The important reason that these problems arises is the static state under traditional budgeting model. How to achieve flexibility and dynamic to solve the problems above becomes the focus of attention of budgeting.Reviewing the existing defeats of budgeting in view of dynamic management, and focusing on the key issue that how to achieve dynamic budgeting under the dynamic and complex circumstances, this dissertation is supposed to provide theoretical basis and practical methods for dealing with these problems concerned. The dissertation's main contents are as fellows:(i) Based on the retrospect of budgeting module's evolution and innovation course, it is founded that budgeting module's innovation has tree features, that is, budgeting module innovation's cycle becomes shorter and shorter; different rising theories, methods and techniques are gradually to be the main forces of budgeting module's innovation; the tendency of budgeting module combining with and taking advantage of information technology is more and more clear. After studying on the literatures about the development and application of enterprises' budgeting modules, budgeting dynamic management, and information technology applying on budgeting , it could make a safe conclusion that: (A)budgeting module's innovation needs to be beyond and bettered at the same time, which demands paying close attention to different rising theories and methods that could be used as budgeting thoughts, integrating and applying advanced ideas and methods into budgeting, and bringing forth advanced and practical budgeting module;(B)the current studies on budgeting dynamic management are scattered, lack integration and systematization. Therefore, it is necessary to build systematic theory framework and operating module of dynamic budgeting, so as to provide theoretical basis for achieving budgeting information's input and output, and budgeting feedback and control's dynamic;(C)with information technology's significant development, it is an inevitable chose that enterprises achieve flexible and dynamical budgeting by building an opening, and integrated with information technology and budgeting , platform, on which various advanced information technology integrated together to be used by budgeting.(ii)A theory framework of dynamic budgeting is built in third chapter. In view of features of enterprises' dynamic complex and the current budgeting 's dilemma, and taking account to strategy management theory, informationization management theory, valuation management theory and other theories and methods, it suggests that, based on the hypothesis of dynamic complexity, rolling periods, and multi-measurements, and focusing on bringing about strategic objectives of long-term value creation of enterprises' budgeting , dynamic budgeting should be provided with the features of strategy-orientated, rolling schedule, real time control, flexibly adjustment and continuous improvement. Guiding with the dynamic budgeting ideology, a theory framework of dynamic budgeting is put forward. In this framework, it could make budgeting converts from process and static management to object and dynamic management, by integrating with budgeting and strategy management, business operation, and information technology. Thus, budgeting will deal with dynamic and complex enterprises' business circumstance smartly and immediately.(iii) Some suggestion is given in fourth chapter to improve and revise every links in budgeting. Focusing on the key issue that how to achieve budgeting dynamic management, and referring to the theories and methods which are successfully applied in other fields of economy and administration, the dissertation gives some advice to improve and revise budgeting on budgeting estimation, schedule method, control system, and management process. This innovations and improvements are:(A) methodology innovation in realizing dynamic budgeting , this includes, first, by introducing system dynamics, artificial nerve network, and other economic estimation method into dynamic budgeting , this dissertation provides accurate and multiple budgeting decision objectives for the latter; second, budgeting schedule method for dynamic budgeting is meet by improving elastic budgeting and rolling budgeting; (B) by applying benchmark, balance sore card, and other theories and methods, and researching on the key issues about dynamic budgeting, such as management innovation, performance valuation, budgeting culture building, it solves the problem that how "soft circumstance " to support dynamic budgeting;(C)by applying the theory and method of business process restructuring, budgeting process is restructured, in order to ensure dynamic budgeting 's execution and application.(iv) An object-oriented dynamic budgeting module is established in fifth chapter. Based on the introduction and review of object-oriented theory and method, and by referring to the basis thought and designing method of objective-oriented, the basis thought of object-oriented is introduced into dynamic budgeting. Therefore, a new budgeting module, which is named dynamic budgeting in this dissertation, is put forward. The dissertation gives a detail remark on this new module's definition, essence, features and module framework. Then, the dissertation discusses the establish process of object-oriented dynamic budgeting, which is realized in the follow. According to this module, budgeting is objected and modulated, and the feature of inheritance and polymorphism of budgeting objective is defined. So, respecting of enterprises' needs, a budgeting system that is changeable, independent and could be used again and again, is established. Thus, dynamic budgeting, including budgeting input, output, schedule, execution, feedback, and evaluation, is totally achieved. Object-oriented budgeting module has the advantage that management is dynamic and integrated with information technology, which helps the existing budgeting get out of the dilemma that budgeting is said to be too static, less adoptive and adjustable. Furthermore, object-oriented budgeting provides theoretical basis for information technology's application and development in budgeting.(v) Integral concept of dynamic budgeting system is put forward. Aiming at present deficiency of budgeting system, this dissertation puts forward integral concept of dynamic budgeting system based on the demand on informational technology reflected by budgeting puzzle presently and the managerial demand on dynamic budgeting and objective-orientated budgeting. According to this concept, on the basis of analysis for the interrelationship of decision-backing system and dynamic budgeting, of defining the basic function target to objective-orientated dynamic budgeting comprehensive decision-backing system, this dissertation brings forward, based on advanced informational technology such as objective-orientated analysis, intelligent decision-backing system and data storage, integral framework of object-oriented budgeting comprehensive decision-backing system. At the same time, it gives the functional structure of object-oriented budgeting data base, model storage and data warehouse an elementary definition.(vi) Specific innovations and improving strategy of Foton's budgeting are put forward. Based on researching demand, deeply investigation and widely information collecting for the practice of Foton's budgeting are implemented. After analyzing actuality of Foton's present budgeting and concluding its' deficiencies, a solving scheme is made to totally improve and innovate Foton's budgeting in accordance with the dynamic budgeting mode designed in this dissertation. Internal research on Foton's case makes a further step on proving the significance of this dissertation. Also designing of Foton's budgeting's solving scheme deepens its' research.(vii) The forecasting model of dynamic budgeting objective EVA based on the ANN is established. Started at enterprise value creating view and integrated with the framework and basic concepts of balance-score-card, this dissertation divide the EVA into specific KPI according to the four aspects of BSC. Furthermore, with the KPI as the input variables and EVA as the output variables, the EVA forecasting model which based on the key budgeting index is established. Then take the Yulong Auto (Taiwan) as the sample, the author test the forecasting model. The testing results indicate some following aspectual. Firstly, it is feasible and effective that making use of balance-score-card KPI to establish the forecasting model based on ANN. Secondly, KPI has a significant influence on forecasting results. This dissertation has made four different KPI portfolios to. establish different forecasting models, which indicates that eleven index such as ROE and velocity of accounts receivables etc are the best KPI to EVA forecasting.