The Revolution Of Finance Management: Financial Sharing Model Research And Application

Shared Service and centralization is the international management trend and developing way of modern enterprise. As globalization is more and more common, "smooth earth" brings resource allocation and flowing in whole world, more and more multinational corporations emerges. Therefore, high-efficient cross-border financial management and capital operation becomes a key problem. Nowadays, over half of the world's top 500, especially multinational corporations, adopt financial sharing or centralized management model in different degree. However, only a few domestic corporations start to do so.As one of the world's top 500 and an oversize enterprise in China, CMCC has advanced management mode. Since 2006, CMCC has started to try finance centralization in provincial branches. As one of the key members of the project, in the reference of advanced experience of domestic and foreign enterprises in shared service, The author has led their team to achieve provincial financial centralization as trial in the end of 2007. The project won high praise of Ministry of Finance, the SASAC and the Audit Commission, attracted a high degree of response in the industry, which lay foundation for his research in sharing and centralization, and enriched his practical experience in this field. In this article, the author firstly talk about the orientation of financial management revolution, then expatiate on the change of financial desire and function in the new environment, analyze the shared service and centralization theory brought out by financial transformation, research the development course, character, benefit and frame, and conclude the important meaning of it to improve enterprise value and competitive power.There are a lot of successful examples of financial sharing and centralization in whole world. Together with theory discussing, the article also analyzes a lot of examples and data of shared service of domestic and foreign enterprises in the way of demonstration studying, concentrate on the key stages and content how CMCC push financial sharing and centralization that the author planned and organized by himself, in the aspect of background, key element, range, organization, technological process, system support, benefit result, revolution management, etc., and illuminates the deep influence to traditional capital management, accounting affairs, decision support, enterprise development, management improvement by the pattern.The author hopes that the theory and practice research of financial sharing and centralization management can help the large and medium-sized enterprises, especially group enterprises to explore the orientation of financial management, and give a reference to the enterprises who are implementing or will implement revolution of shared service and centralization.The article has 4 chapters.ChapterⅠOrientation of Financial Management RevolutionIt briefly introduces the change of key function of finance, various of revolution in order to improve global competence by enterprises, as well as competition status of mobile communication industry and practical significance of financial centralization revolution, which brought out the thesis of the article.ChapterⅡTheory of Financial Sharing and CentralizationWith the data of historic revolutions, it introduces the theory of financial sharing and centralization, advantage and disadvantage of the two patterns: centralization and dispersal model, significance of sharing and centralization for enterprise development and management, as well as applying range of sharing and centralization.ChapterⅢApplication of Finance Sharing and Centralization-the Example of CMCCIt introduces the background and implementing process how CMCC pushed finance centralization in provincial branches in detail, expatiates on the several key elements, analyzes the benefit brought by finance centralization and how shall a corporation behave in revolution management.ChapterⅣPreceding of Finance Shared ServiceIt briefly introduces the developing orientation of shared service, with which what shall happen to accounting industry in the future, and the value increment for the enterprises.