Finance Overview

Well run companies rely on developing and maintaining a business model to help justify long term strategic decision making. These models are generally financially focused, whether the organization is a newly formed company trying to justify a return for their investments (equity), or a mature business trying to convince the bond rating agencies that their current strategy will ensure a healthy stream of cash enabling them to easily make interest and principle payments (debt). Business models are (or should be) a tool used by companies of virtually all sizes and shapes to grow and manage their business in the long run.

In contrast to a budgeting system, business models are a big picture view of the organization. They tend to focus on much less quantity of data, but unlike budgeting systems which are usually focused on operating activity only, business models are extremely keen on the entire Income Statement, Balance Sheet and Cash Flow. Therefore a business model is an integrated financial model and is essentially a series of calculations that inter-relate the entire Income Statement, Balance Sheet and Cash Flow. A user can change a forecast input assumption on a particular account and see the related impacts across the entire financial model (based on the example above, a user may increase sales growth to see the impact on his return on investment or to see whether his bond rating goes from a B+ to a B++ ).

Tenzing is developing a software product that is geared to integrated financial modeling (thus a niche product as compared to Excel). In doing so, making the product architecturally very simple to run and install.