6 Benefits of capital planning software
Ah, capital planning. Really big projects with really big budgets and many moving parts.
Luckily, there are powerful tools with the potential to elevate the standards of capital planning and help organizations seeking sustainable growth, success, and community approval. In this blog, we’ll explore capital planning and six reasons why you should use a capital planning solution.
So, what exactly is capital planning?
For those with extensive facilities and infrastructure, capital planning is a critical aspect of any financial strategy. Capital planning involves the careful and intentional allocation of financial resources to support the growth, maintenance, and enhancement of assets—no small feat, right?
By evaluating the condition and performance of existing facilities and assets, organizations—and those who lead them—can make informed decisions about where to invest their capital to achieve the best returns and meet their long-term objectives.
Wait, is that different from capital project management?
In short, yes, though, they are connected. While capital planning focuses on determining the who/what/where and most importantly, how much funds are allocated, capital project management complements this by overseeing the execution of those projects.
Capital project management involves the planning, coordination, and control of infrastructure or facilities projects throughout their lifecycle. From the initial concept and design phases to procurement, construction, and project completion, effective project management ensures that the allocated budgets are utilized efficiently and that projects are delivered on time and within budget.
6 reasons to use capital planning software
When you have great capital planning software by your side, it’s easier to make wise financial decisions, keep things running smoothly, and have a bright future ahead for your organization. Let’s dig into six elements you should consider when choosing a capital planning solution.
1. Give yourself a crystal ball to better predict asset life
What if you could use data to better understand your assets? They can cost a lot of money, whether you’re replacing or repairing them, right? So, wouldn't it be helpful if you had a tool that could help you understand your assets’ health and exactly where they are in their life cycles?
With the right technology, you can:
- accurately predict (and extend) the life span of your assets
- plan proactively for maintenance and replacements
- reduce unexpected breakdowns and costly repairs
Look for software, such as Brightly Predictor, that can enable you to apply service-based lifecycle degradation paths and proven proprietary algorithms at the component, asset, asset type or asset class level.
2. Get the help you need to justify funding requests
Ah, funding. Everyone wants it, but the ones who can best explain why they need it usually get the moola first. Why? Because data tells a story that your executives need to make informed financial decisions. A good capital planning tool leverages data from multiple sources within your organization to create the bigger picture of funding needed. With software, you can create powerful—and easily digestible—visuals that demonstrate the long-term impact of funding on your assets. Compelling visualizations enable you to effectively communicate the importance of investment to those that determine funding, helping them understand the significance of allocating money for asset preservation and growth.
3. Compare various funding scenarios to make data-driven decisions
Capital planning software should let you model different funding scenarios and assess their impact on your organization's assets and infrastructure health. This invaluable feature gives you the power to make data-driven decisions about where to allocate funds and identify the most effective strategies for optimizing asset performance. Voila!
4. Customize planning to match your needs
Every organization is different and has unique decision-making processes and requirements. Look for capital planning software that can be fully customizable to fit your specific needs. You want the capability to tailor the platform to align with your organization's goals and preferences, so you can ensure seamless integration into your existing workflow.
5. Capital projects drive asset (and organization) health
How does that old quote go? “You can satisfy some of the people all the time, and all of the people some of the time, but you cannot satisfy all of the people all the time.” Though credited to a poet hundreds of years ago, they might as well have been talking about capital planning and projects.
Achieving a delicate balance between your community's needs and your organization's financial requirements is no small task. You need capital planning software that enables you to consider the interests of all stakeholders and make informed decisions that support the long-term well-being of your community while meeting budget constraints.
6. Design better budgets today for a Brightly tomorrow
With access to powerful data that provides insights up to 100 years into the future, you can confidently plan for a brighter tomorrow. The right capital planning software will equip you with the ability to build budgets from multiple funding sources to take advantage of all budget availability. Used in conjunction with extensive asset intelligence, organizations can get on the path to smarter budgeting and sustainable growth.
Build a Brightly future
Capital planning and supporting capital planning software are indispensable components of financial management for organizations with substantial facilities and infrastructure. With powerful technology like Brightly Predictor, you can go beyond traditional capital budgeting software and capital planning solutions to quickly turn today’s data into service- and budget-optimized strategies.
By utilizing data-driven insights to make informed decisions, optimize budget allocation, and ensure that assets are adequately maintained and strategically developed to meet long-term objectives, organizations can successfully execute projects and drive sustainable growth in a competitive business environment.
Want to learn more about our capital planning solution? Schedule a call with an expert today!