In the era of competition, understanding the position of the company is crucial in order to be able to set the strategy to strengthen and increase the position in the competitive market. It is important to have a strong budgeting and forecasting process to establish the target to be achieved which then set as the basis to plan the business strategy in more detail. Budgeting provides guidance, direction and target for the company to achieve within a period of time. However, it is no doubt that the budgeting process has been painful, taking much effort and time, that has led to the engagement team feeling the burden in doing the preparation. From the interview and analysis of internal workshop report, the research found the pain points of budgeting process. Among others, too many iterations while doing the work manually, lack of coordination and guidance, lack of supporting stabile technology in performing the process led to the challenges faced during budgeting process. The pain points focused on three main areas; process, people and technology. To solve the business issues, the business process should be improved. The research proposes how Business Process Re-engineering (BPR) would give solutions to overcome the issues. The building of proposed new budgeting process follows through the six stages of BPR, which are envisioning, initiating, diagnosing, transforming, implementing and evaluating. Automation, Beyond Budgeting approach and establishing Standard Operating Procedures (SOP) are the proposed tools to be used to cater the pain points identified. Beyond Budgeting is expected to bring new approach in setting the target in the form of financial ratios instead of fixed number, hence the company has flexibility in setting the target and reduce the granularity of submission to the group. Automation reduces the manual processes and create one center of data stored. SOP provides clear guidance on how the budgeting process should be performed.
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