Zero Based Budgeting (ZBB)
Zero Based Budgeting (ZBB) is an approach used to budget operational spending. It enables organizations to identify their major recent costs, and more importantly, determine the resources they need to allocate, align and sustain their strategic priorities.
ZBB is not a new approach but it is quite unlike traditional budgeting methods. Dating back more than 50 years, it can be described as a reform in terms of the financial freedom it brings to companies in cost and performance management.
What is ZBB?
In traditional budgeting approach, new budgets are created by calculating the realized spending of the previous periods. On the other hand, ZBB, which resurfaced in the 21st century and gained popularity among organizations again, is an approach to budgeting that starts from zero. Focus is on the future, not what happened in the past, and the results are seen quickly.
How ZBB works
Fast, flexible and user-friendly ZBB solution by LUCEO
With LUCEO's fast, flexible and user-friendly Z+Pack | LUCEO Zero-Based Budgeting Package for Intelligent Enterprises on SAP Analytics Cloud solution, adopt the next generation ZBB approach and focus on the future.
As an SAP-qualified package, Z+Pack offers turnkey templates to implement the ZBB approach as well as user-friendly interfaces, automated calculations and dashboards on the SAP Analytics Cloud platform. With Z+Pack, we can mitigate risks, and optimize your costs and performance! How?
• We analyze your organization’s spending and budgeting habits.
• We develop a common language and perspective for expense items.
• We use the ZBB approach to model budgeting and management templates and move them to SAP Analytics Cloud.
• We design user-friendly login screens and reporting interfaces, all tailored to your organization.
• We define flexible authorizations that align with your organizational chart.
“Zero Based Budgeting" approach can be rapidly and easily integrated with any system with LUCEO's Z+Pack solution. It requires no additional equipment!
Build a cost management culture with ZBB