Including Human Factors In Business Ecosystem Network To Expose & Predict Budgetary Risk

During a project's budget life cycle there is always the risk of expected income not materializing, or expected expenses differing. Most large organizations have a complexity of departments, where one department consumes another's product, or multiple departments compete with one another by providing a similar product using different technologies. In such an interlocked environment, budgeting risks may propagate across related projects and impact many seemingly unrelated departments. Being able to predict the risks and expose them to all related parties is crucial.Some risks are truly unpredictable and therefore beyond the scope of our discussion, but some are due to deliberate, and predictable, decisions made by people. Organizations typically use ERP systems to manage their budgets, however these systems are not able to manage this kind of risks. This paper seeks to show an approach to manage such risks by creating a business ecosystem network model to present the complex relationships among an organization from a budget management perspective. By incorporating human factors the network will allow analytics on decision making patterns for key contributors and thus predict budgetary risk propagation on both the individual and aggregate level.