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
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.