Prototyping for effective data management

Firms uncertain about whether to invest large sums on data management consultants as an alternative to their spreadsheet software might first consider prototyping the system. A prototyping firm can assess the extent to which existing resources and data collection procedures will need to be modified to justify, or otherwise, the potentially large outlays on specialized software, consultants and the financial system changes required. Discusses the use of PC database software as an alternative to the use of spreadsheets to compile the information for a prototype model. In essence an activity‐based costing (ABC) system is simulated by other means to those provided by bespoke ABC software. Uses evidence from the Australian implementation of an ABC system to examine the benefits of adopting PC database software and presents examples of the database model elements employed to illustrate the benefits of such a decision‐support system.