The use of financial modelling in strategic planning

Abstract The focus of this study is the application of computerised financial modelling technology to the strategic planning function of certain industrial and commercial organisations. The purpose of the research was to establish whether a new generation of modelling technologies and concepts, as expressed by the notion of decision support systems, had been successful in resolving the problems experienced with previous generations of computer models. The research was based on a structured questionnaire completed by 51 selected users of packaged financial modelling systems. The results indicate that many problems have indeed been resolved by the new technology which emphasises the direct involvement in modelling activity of management responsible for the strategic management function and points to the key role of the “implementer” who provides the necessary interface. It is concluded that the management of financial modelling as an organisational discipline is now of increased importance.