Corporate executives lack adequate information for decision-making: Lawson Software and Price Waterhouse LLP announce results of corporate financial information study at FEI annual conference.

DALLAS--(BUSINESS WIRE)--Oct. 23, 1995--Despite investing billions in information technology, most companies still are unable to gather adequate information to effectively make critical management decisions, according to research conducted by Price Waterhouse LLP and Lawson Software.

The two companies surveyed top executives at North American corporations regarding the role of information and information systems in their companies. The survey results were presented at the 64th Annual Financial Executives Institute Conference in Dallas Monday.

While executives gave high ratings regarding the quality and availability of traditional financial information such as budgeting, sales and earnings, they reported that existing systems fail to provide quality information to understand their marketplace, customers or competitive environment.

Only 13 percent said they had good information for anticipating market needs.

"Corporate decisions are frequently made with too much emphasis on financial information and minimal consideration to other factors," said Scott W. Kaufman, Price Waterhouse national director of Financial and Cost Management Services.

"Companies need to develop a more complete understanding of their business and environment. This may be the information age, but executives still don't have all the information they need."

The over-emphasis on financial data generally results from implementing systems based on traditional ledger-based accounting. Companies are better off completely re-engineering new information systems based on core business activities, rather than relying on traditional accounting systems that incrementally change over time.

"Too many systems developers simply automated standard accounting and record-keeping processes," said Lee Geishecker, Lawson brand manager for financial applications. "The survey clearly shows us the traditional ledger-based model for information management is failing to provide the full spectrum of information. Executives need new and better information from their technology tools."

Other research findings include:

o 26 percent of respondents do not have confidence in the

accuracy of the cost data in their systems.

o Only 56 percent of executives said their company's

performance measures were actually tied to their business

strategies.

o Just 26 percent of respondents rated their systems as

"somewhat or very state-of-the-art," while 25 percent rated

their systems as "somewhat or very old-fashioned."

o 82 percent of executives said that better integration of

financial information and non-financial data is needed.

o Fewer than half of the respondents could identify costs

or revenues to the individual activities with which they

correspond.

o Only 48 percent of respondents said the general ledger 

provided information necessary to run their business.

o Respondents said existing systems are capable of handling the

necessary transaction volume, but are unable to provide

appropriate level of detail.

Following the FEI Conference, Lawson and Price Waterhouse will hold a series of seminars in major U.S. and Canadian cities. The survey results will be presented along with a discussion of the implications for corporate information management systems. The two firms will also present examples of how other companies have addressed these issues in an effort to develop strategic information systems.

There will be no charge to attend the seminars which will likely be held in Atlanta, Boston, Calgary, Chicago, Dallas, Los Angeles, Minneapolis, New York, Seattle, Toronto and Washington D.C. For information on the seminars or to receive a free copy of the research findings, call 800/477-1357.

Price Waterhouse LLP helps leading corporations solve complex business problems by providing global, multidisciplinary consulting, business advisory, auditing, accounting and tax services. With more than 15,000 men and women in 106 U.S. offices, the firm is a vital part of the worldwide Price Waterhouse network of 53,000 professionals in 434 offices.

Lawson Software is a $70 million, full-service provider of enterprise-wide client/server business application solutions, specializing in accounting, human resources, healthcare, and distribution and materials management. Founded in 1975 and headquartered in Minneapolis, the organization employs more than 750 professionals from around the world.

Offices are located in Atlanta, Boston, Chicago, Columbus, Dallas, London, Los Angeles, New York, Seattle, Toronto and Washington D.C., with affiliates in France, The Netherlands, South Africa, Spain and Sweden.

The company was recently ranked among the leading client/server business application vendors by International Data Corp. and was listed among the top five vendors of client/server financial applications by Price Waterhouse LLP and Information Week.

CONTACT: Price Waterhouse LLP

Jan Butler, 212/819-4838

Jim Rafferty, 800/792-7856

or

Lawson Software

Terry Plath, 612/362-4718

Lyn Corbett, 312/988-3804