The pharmaceutical industry is challenged by the Industry 4.0 which facilitates numerous change processes. Innovations such as the Internet of Things (IoT), Internet of Services (IoS), Smart Factory, and Cyber-Physical Systems (CPS) are being employed (Ding, 2018, p. 155). These new circumstances stimulate change, innovations, competition, and partnerships. At the same time, technologies such as Big Data Analytics (BDA), artificial intelligence (AI), or Self-Service BI disrupt and enhance financial processes.
In light of the changing environment, the discourses regarding budgeting effectiveness, managerial control, and organizational performance gain new importance. Organizations are dared to ensure solution-oriented approaches that solve budgeting problems that are detrimental to innovation and motivation whilst reinforcing slack-building behavior and inflexibility. In this context, the given paper focuses on budgeting challenges and opportunities with an emphasis on the pharmaceutical industry. As a result of an extensive review, the authors suggest a checklist on how to sustainably improve budgeting processes.
Research data about financial planning cycles are collected from multiple sources such as practitioner literature and online presentations. The propositions made should be investigated with empirical verification and further comparisons with other organizations.
JEL classification numbers: F30, G30, G31.
Keywords: Budgeting, Better-budgeting, Beyond-budgeting, Change management, Pharmaceutical industry, Big data, Artificial intelligence.
ISSN: 1792-6599 (Online)