In the face of a very uncertain future, companies have been discovering the value of rapid planning and budgeting cycles. As events unfold, they’re changing expectations for the future significantly on a daily or weekly basis. However, even when the world returns to a steadier state, companies will benefit from making their planning and budgeting processes faster, easier, more relevant, more strategic, more agile and more accurate.
Topics: Office of Finance, IBP, Business Planning, CFO, Integrated Business Planning
ESG reporting is a matter that organizations – and especially publicly held corporations – will be confronting over the next several years. Ventana Research asserts that by 2025, one-half of corporations with 1,000 or more employees will have a formal ESG reporting process in place to address legal mandates or shareholder demand. The roots of ESG investing go back many decades but it has gained significant attention recently as demand in the investment world for non-accounting measures to guide ethical investments has grown. Organizations face three distinct challenges in dealing with ESG. In this analyst perspective, Ventana Research SVP and Research Director Robert Kugel discusses the considerations and benefits of organizing your organization’s ESG reporting.
Topics: FP&A, Governance, Office of Finance, Performance, Reporting, CFO, ESG
As a result of the rapidly changing business landscape in 2020 and the need to quickly – and intelligently – change business plans and budgets, many more companies have been deciding to adopt a continuous planning approach to be able to add speed and flexibility. Transforming how organizations plan and budget has become a top-of-mind issue for CFO and even CEOs. Ventana Research has been advocating what we call continuous planning to improve organizational performance. In this multimedia Analyst Perspective, SVP and Research Director Robert Kugel discusses three important technologies necessary for continuous planning – technologies that can substantially enhance the effectiveness of the FP&A organization.
Topics: FP&A, Office of Finance, budget, CFO, financial planning
Profitability Management: A CFO Priority to Gain Competitive Advantage
Profitability management produces a sustainable competitive advantage but by 2025 only one-third of companies will have implemented a profitability management initiative, explains Ventana Research SVP and Research Director Robert Kugel. This brief video shows why FP&A organizations must be part of a profitability management approach to pricing and costing.
Topics: FP&A, Office of Finance, Sales Operations, CFO, Profitability, Price and Revenue Management
Updating FP&A’s Mission - A New Approach for the 2020s
In this Analyst Perspective from Robert Kugel, learn how FP&A can redefine its mission to achieve the long-stated goal of making it more of a strategic partner with the rest of the organization. This means fully adopting integrated business planning, a high participation, collaborative, action-oriented approach to planning and budgeting built on frequent, short planning sprints. Short planning cycles enable companies to achieve greater agility in responding to market or competitive changes, and in the face of a very uncertain future, companies have been discovering the value of rapid planning and budgeting cycles. Watch the video to learn more.
Topics: FP&A, Office of Finance, Budgeting, Business Planning, CFO, financial planning, forecasting
2020 Reporting: Improving Visibility, Transparency and Perspective
FP&A and business analysts can make reporting more effective by reimagining how, what and when their company does its reporting. They should provide the users of their reports the information they want in a form they want it. They should be thinking about how they can make reporting more effective by rethinking how data is presented, how interactive it is, and what visualizations are used. Rethinking how to combine narratives, data, charts and graphics to everyday communications. How to add audio and video where it’s appropriate. Reimagine reporting to make it a more effective form of communications designed to improve a company’s performance.
Topics: FP&A, Office of Finance, CFO, Financial Performance Management, financial reporting, financial standards, tax planning
The Central Ledger: Restructuring Accounting with Technology
Sometimes it takes a while for technology to fundamentally change how work is done. That’s because several innovations usually have to come together before a transformation can occur. For instance, Karl Benz created the first practical motorcar in 1885, but consumers would have to wait until the 1920s for the modern automobile. Computerized accounting systems originated in the 1950s but it’s only now that technologies have evolved and come together to fundamentally change how work is done.
Topics: ERP, Office of Finance, close, closing, CFO, controller, Financial Performance Management, ERP and Continuous Accounting
The Business Continuity Imperative: The Selling Experience and Sales Performance Agenda
Sales plays a lead role in the revenue and growth of every organization. Whether the selling is direct or indirect, what happens in the sales department has ramifications that are perilous to underestimate. The imperative to maintain business continuity becomes painfully clear in a global pandemic, and that imperative demands that organizations cultivate sales excellence. This effort should start with leadership and engage sales operations, management and professionals with the objective of building customer relationships that can survive the test of time. The health of a sales organization hinges on an effective selling experience, and this requires technology investments that enable leaders to not just manage sales performance but help inspire it every single day.
Topics: Sales, Sales Performance, Sales Operations, Business Continuity, CFO, Sales Performance Management, sales enablement
The global pandemic crisis was, in effect, an unrehearsed stress test measuring the resiliency of the department. The crisis highlighted the importance of sustaining confidence in the accuracy and control of accounting processes, not just efficiency. Virtualizing the close means using technology to substantially reduce the amount of manual processing and paper involved needed to complete the accounting close. Finance and accounting organizations that can operate in a virtual mode are better able to adapt to circumstances and overcome obstacles. Having systems that can be readily accessed remotely and having the ability to collaborate and execute processes virtually makes it easier for departments to meet their commitments with confidence.
Topics: Office of Finance, Continuous Accounting, Fast close, CFO, Digital Technology
For decades I’ve heard people talk about cutting audit costs to reduce administrative overhead but based on my observations, I was skeptical — mostly because, until recently, the documented success stories haven’t been about going from good to great so much as going from awful to average. That’s changing. I recently wrote about a company that had set out to cut its external auditor’s fees. The benefits it had accrued are significant, including a reduction in staff time devoted to the audit. I also explained why cutting audit fees wouldn’t be easily duplicated in every company.
Topics: Office of Finance, audit, Continuous Accounting, Financial Performance, CFO
I recently attended BlackLine’s annual user conference. The company aims to automate time-consuming repetitive tasks and substantially reduce the amount of detail that individuals must handle in the department. The phrase “the devil is in the details” certainly applies to accounting, especially managing the details in the close-to-report phase of the accounting cycle, which is where BlackLine plays its role. This phase spans from all the pre-close activities to the publication of the financial statements. The non-practitioner is likely unaware of the hair-curling amount of essential detail that the finance and accounting organization must handle in the close-to-report. Beyond its toll on efficiency, the time and attention involved in performing this work manually bedevils departments’ attempts to become a more strategic partner to the rest of the business.
Topics: automation, close, closing, Consolidation, control, effectiveness, Reconciliation, CFO, compliance, Data, controller, Financial Performance Management, FPM, Sarbanes Oxley, Accounting, process management, report
Warning: Software Now Mandatory for Lease Accounting
Accountants love electronic spreadsheets – and for good reason. They’re a powerful and versatile personal productivity tool and just about everyone knows how to use them. Spreadsheets are the default software tool for accountants because they enable autonomy (you don’t need to ask IT for anything) and they’re free (so you don’t have to make a business case to authorize buying something). Some accountants humorously (but earnestly) invoke the line “you’ll have to pry this spreadsheet from my cold, dead hands” whenever somebody suggests eliminating them.
Topics: ERP, Office of Finance, Continuous Accounting, FASB, IASB, CFO, controller, Financial Performance Management, Spreadsheets, Enterprise Resource Planning, ERP and Continuous Accounting, revenue recognition, Accounting, Lease Accounting, real estate, Lease Management, ASC842, IFRS16, leasing
For several years, I’ve commented on a range of emerging technologies that will have a profound impact on white-collar work in the coming decade. I’ve now coined the term “Robotic finance” to describe this emerging focus, which includes four key areas of technology: Artificial intelligence (AI) and machine learning (ML), robotic process automation (RPA), bots utilizing natural language processing, and blockchain distributed ledger technology (DLT), each of which I describe below. Robotic finance will have a disproportionate impact on finance and accounting departments: I estimate that adoption of these technologies potentially will eliminate one-third of the accounting department’s workload within a decade.
Topics: ERP, Machine Learning, close, Consolidation, Continuous Accounting, Reconciliation, CFO, Robotic Process Automation, blockchain, AI, natural language processing, Accounting, RPA, bots, voice automation
Country-by-Country Reporting Challenges Tax Departments
In 2013, the Organization for Economic Cooperation and Development (OECD) published a report titled “Action Plan on Base Erosion and Profit Shifting” (commonly referred to as “BEPS”), which describes the challenges national governments face in enforcing taxation in an increasingly global environment with a growing share of digital commerce. Country-by-country (CbC) Reporting has developed in response to the concerns raised in the report. To date, 65 countries (including all members of the European Union but not the United States) are signatories of the multilateral competent authority agreement establishing CbC reporting.
Topics: ERP, GRC, audit, finance transformation, LongView, Tax, Business Analytics, Oracle, CFO, Vertex, FPM, BEPS, tax department, tax planning
Artificial Intelligence and Machine Learning in Business Applications
The application of artificial intelligence (AI) and machine learning (ML) to business computing will have a profound impact on white collar professions. This is especially true in heavily rules-based functions such as accounting. Companies recognize the transformational potential of AI and ML, but the progression and pace of the adoption of these technologies is unclear. Some applications of AI and ML are already in use but others are a decade or more away from replacing human tasks.
Topics: Big Data, Machine Learning, Office of Finance, Analytics, CFO, finance, CEO, AI, accountants, NLP, Accounting
Fra Luca Pacioli, a 15th-century Franciscan friar living in what’s now Italy, is credited with codifying double-entry bookkeeping, which is the foundation of accounting. Pacioli, a polymath, was well acquainted with his contemporary and fellow polymath Leonardo Da Vinci. So, given they were at times collaborators, it’s fitting that one of the most important applications of SAP’s Leonardo technology will be in helping to disrupt finance and accounting organizations in corporations.
Topics: ERP, Machine Learning, Office of Finance, Internet of Things, CFO, Artificial intelligence, AI, Leonardo
Workiva’s Wdesk Supports Expanded ASC 606 Disclosures
Workiva’s Wdesk, a cloud-based productivity application for handling composite documents, will have a larger role to play as companies adopt new revenue recognition standards governing accounting for contracts. The Financial Accounting Standards Board (FASB), which administers Generally Accepted Accounting Principles in the U.S. (US-GAAP), has issued ASC 606 and the International Accounting Standards Board (IASB), which administers International Financial Reporting Standards (IFRS) used in most other countries, has issued IFRS 15. The two are very similar, and both will enforce fundamental changes in accounting for contracts.
Topics: close, closing, XBRL, CFO, Document Management, SEC, 10Q, SEDAR, Composite document
The treasury function in finance departments doesn’t get a lot of attention, but it’s a fundamentally important one: to ensure that all funds are accounted for and that there is sufficient cash on hand each day to meet operating requirements. Keeping track of and managing cash, especially in larger organizations, can be complicated because of multiple bank accounts, complex financing requirements and various methods of receiving and making payments; the complexity deepens when more than one currency is used across multiple jurisdictions, which also can pose regulatory issues.
Topics: Predictive Analytics, Office of Finance, credit, debt, Analytics, CFO, cash management, controller, Financial Performance Management
Ventana Research recently awarded Workday a 2016 Technology Innovation Award for its newly released application, Workday Planning, because it simplifies and streamlines the budgeting and planning processes while facilitating collaboration, deepening visibility into spending and enabling tight fiscal control. These capabilities can help a variety of user organizations in several ways.
Topics: Big Data, Marketing, Office of Finance, Budgeting, Controller, In-memory, CFO, Workday, demand management, Financial Performance Management, financial reporting, FPM, Integrated Business Planning
SYSPRO is a 35-year-old software vendor that focuses on selling enterprise resource planning (ERP) systems to midsize companies, particularly those in manufacturing and distribution. In manufacturing, SYSPRO supports make, configure and assemble, engineer to order, make to stock and job shop environments. The company attempts to differentiate itself through vertical specialization and its years of ongoing development, which can reduce the need for customization and cut the cost of initial and ongoing configurations to suit the needs of companies in these industries, thereby reducing the total cost of ownership. Worldwide its targeted verticals include electronics, food, machinery and equipment and medical devices; in the United States, SYSPRO adds automotive parts (original equipment and after-market) and energy. The company’s development efforts follow a design philosophy that balances its target customers’ need for software capabilities that are on par with larger enterprises with their resource constraints (chiefly limited financial resources and technical staffs). Its software can be deployed on-premises or in the cloud.
Topics: Big Data, SaaS, ERP, Governance, Human Capital Management, Office of Finance, close, Continuous Accounting, Analytics, CIO, Cloud Computing, Collaboration, CFO, CRM, CEO
Ditch Presentations to Improve Corporate Governance
The topic of corporate governance received renewed attention recently after the publication of an open letter signed by 13 prominent business leaders, including Warren Buffett of Berkshire Hathaway and Jamie Dimon of JPMorgan Chase. The first principle the group advocated in the letter is the need for a truly independent board of directors. To achieve that aim, the letter suggests having the board meet regularly without the CEO and that the members of the board should have “active and direct engagement with executives below the CEO level.” From my perspective, translating this idea into reality would be helped by a change in the dynamics of most board meetings. I would eliminate the standard presentation of results and begin the meeting with questions and observations from the board members directed to company executives related to its financial and operating results and any other matters on the agenda. This could take place with or without the CEO.
Topics: Mobile, Governance, Human Capital Management, Office of Finance, Consolidation, Reconciliation, CFO, CEO, board of directors, accounting close
The imperative to transform the finance department to function in a more strategic, forward-looking and action-oriented fashion has been a consistent theme of practitioners, consultants and business journalists for two decades. In all that time, however, most finance and accounting departments have not changed much. In our benchmark research on the Office of Finance, nine out of 10 participants said that it’s important or very important for finance departments to take a strategic role in running their company. The research also shows a significant gap between this objective and how well most departments perform. A large majority (83%) said they perform the core finance functions of accounting, fiscal control, transaction management, financial reporting and internal auditing, but only 41 percent said they play an active role in their company’s management. Even fewer (25%) have implemented a high degree of automation in their core finance functions and actively promote process and analytical excellence.
Topics: Big Data, Planning, Predictive Analytics, Social Media, Governance, GRC, Human Capital, Mobile Technology, Office of Finance, Budgeting, close, Continuous Accounting, Continuous Planning, end-to-end, Tax, Tax-Datawarehouse, Analytics, Business Analytics, Business Collaboration, Business Performance, CIO, Cloud Computing, Financial Performance, In-memory, Uncategorized, CFO, CPQ, Risk, CEO, Financial Performance Management, FPM
Transforming Tax Departments into Strategic Entities
The steady march of technology’s ability to handle ever more complicated tasks has been a constant since the beginning of the information age in the 1950s. Initially, computers in business were used to automate simple clerical functions, but as systems have become more capable, information technology has been able to substitute for increasingly higher levels of human skill and experience. A turning point of sorts was reached in the 1990s when ERP, business intelligence and business process automation software reduced the need for middle managers. Increasingly, organizations used software to coordinate activities as well as communicate results and requirements up and down the organizational chart. Both were once the exclusive role of the middle manager. Consequently, almost every for-profit organization eliminated management layers so that today corporate structures are flatter than they once were. Technology automation also eliminated the need for administrative staff to perform routine reporting and analysis. Meanwhile, over the course of the 1990s, the cost of running the finance department measured as a percentage of sales was cut almost in half as a result of eliminating staff and because automation enabled companies to scale without adding headcount. During the last recession, companies in North America and Europe once again made deep reductions to their administrative staffs, relying on information technology to pick up the slack.
Topics: Sustainability, ERP, Governance, GRC, Human Capital, Office of Finance, audit, finance transformation, LongView, Tax, Analytics, Business Analytics, Business Performance, Financial Performance, Oracle, CFO, Risk & Compliance (GRC), Vertex, FPM, Innovation Awards, Thomson-Reuters multinational
Workday Financial Management (which belongs in the broader ERP software category) appears to be gaining traction in the market, having matured sufficiently to be attractive to a large audience of buyers. It was built from the ground up as a cloud application. While that gives it the advantage of a fresh approach to structuring its data and process models for the cloud, the product has had to catch up to its rivals in functionality. The company’s ERP offering has matured considerably over the past three years and now is better positioned to grow its installed base. Workday recently added Aon, the insurance and professional services company, to its customer list (becoming its largest customer to date) and reported that its annual contract value (ACV - the annualized aggregate revenue value of all subscription contracts as of the end of a quarter) has doubled since the second quarter of this year, albeit from a low base. This is an important milestone because for years the company’s growth has come from the human capital management (HCM) portion of the business, not financials. Workday has around 160 customers for its financials (more than 90 of which are live) compared to more than 1,000 customers for HCM.
Topics: Microsoft, SAP, ERP, FP&A, Human Capital, NetSuite, Office of Finance, Reporting, close, Controller, dashboard, Tax, Operational Performance, Analytics, Business Intelligence, Business Performance, Cloud Computing, Collaboration, Financial Performance, IBM, Oracle, Uncategorized, CFO, Data, Financial Performance Management, FPM, Intacct, Spreadsheets
The enterprise resource planning (ERP) system is a pillar of nearly every company’s record-keeping and management of business processes. It is essential to the smooth functioning of the accounting and finance functions. In manufacturing and distribution, ERP also can help plan and manage inventory and logistics. Some companies use it to handle human resources functions such as tracking employees, payroll and related costs. Yet despite their ubiquity, ERP systems have evolved little since their introduction a quarter of a century ago. The technologies shaping their design, functions and features had been largely unchanged. As a measure of this stability, our Office of Finance benchmark research found that in 2014 companies on average were keeping their ERP systems one year longer than they had in 2005.
Topics: Big Data, Microsoft, SAP, Social Media, Supply Chain Performance, ERP, FP&A, Human Capital, Mobile Technology, NetSuite, Office of Finance, Reporting, close, closing, Controller, dashboard, Reconciliation, Operational Performance, Analytics, Business Collaboration, Business Intelligence, Business Performance, Cloud Computing, Collaboration, Financial Performance, IBM, Oracle, Uncategorized, CFO, Data, finance, Financial Performance Management, FPM, Intacct
Whatever Oracle’s cloud strategy had been the past, this year’s OpenWorld conference and trade show made it clear that the company is now all in. In his keynote address, co-CEO Mark Hurd presented predictions for the world of information technology in 2025, when the cloud will be central to companies’ IT environments. While his forecast that two (unnamed) companies will account for 80 percent of the cloud software market 10 years from now is highly improbable, it’s likely that there will be relentless consolidation, marginalization and extinction within the IT industry sector driven by cloud disruptions and the maturing of the software business. In practice, though, we expect the transition to the cloud to be slow and uneven.
Topics: Microsoft, Predictive Analytics, Sales Performance, SAP, Supply Chain Performance, ERP, Human Capital, Mobile Technology, NetSuite, Office of Finance, Reporting, close, closing, Controller, dashboard, Tax, Customer Performance, Operational Performance, Analytics, Business Collaboration, Business Intelligence, Cloud Computing, Collaboration, IBM, Oracle, Business Performance Management (BPM), CFO, Data, finance, Financial Performance Management (FPM), Financial Performance Management, FPM, Intacct
Continuous Accounting Enables a Strategic Finance Department
Many senior finance executives say they want their department to play a more strategic role in the management and operations of their company. They want Finance to shift its focus from processing transactions to higher-value functions in order to make more substantial contributions to the success of the organization. I use the term “continuous accounting” to represent an approach to managing the accounting cycle that can facilitate the shift by improving the performance of the accounting function. Continuous accounting embraces three main principles:
Topics: ERP, Office of Finance, Reporting, close, closing, Controller, dashboard, Tax, Analytics, Business Intelligence, Business Performance, Cloud Computing, Collaboration, Financial Performance, CFO, Data, finance, Financial Performance Management, FPM
Finance Transformation Requires Strong Leadership
The theme of transforming the finance organization is hot again. The term “finance transformation” refers to the longstanding objective of shifting the focus of finance departments from transaction processing to more strategic activities such as providing the rest of the organization with forward-looking analysis. I focus on the technology and data aspects of this type of business issue in these analyst perspectives because they are usually essential to achieving some business objective. However, technology rarely fixes a problem by itself. If it were a simple matter of just buying software or having better data stewardship, it would be relatively easy to achieve finance transformation. But it’s not simple at all. When it comes to changing how the finance and accounting organization operates, there’s no substitute for leadership. Doing that requires changes in the habits of the department, which include the CFO changing how the department works with the rest of the company.
Topics: Performance Management, continuous improvement, Controller, Analytics, Business Performance, Financial Performance, CFO
Integrated Business Planning Is More Effective
Ventana Research recently released the results of our Next-Generation Business Planning benchmark research. Business planning encompasses all of the forward-looking activities in which companies routinely engage. The research examined 11 of the most common types of enterprise planning: capital, demand, marketing, project, sales and operations, strategic, supply chain and workforce planning, as well as sales forecasting and corporate and IT budgeting. We also aggregated the results to draw general conclusions.
Topics: Big Data, Planning, Predictive Analytics, Sales, Sales Performance, Social Media, Supply Chain Performance, Human Capital Management, Marketing, Office of Finance, Reporting, Budgeting, Controller, Customer Performance, Operational Performance, Business Analytics, Business Performance, Cloud Computing, Financial Performance, In-memory, Workforce Performance, CFO, Supply Chain, capital spending, demand management, Financial Performance Management, financial reporting, FPM, Integrated Business Planning, S&OP
One of the issues in handling the tax function in business, especially where it involves direct (income) taxes, is the technical expertise required. At the more senior levels, practitioners must be knowledgeable about accounting and tax law. In multinational corporations, understanding differences between accounting and legal structures in various localities and their effects on tax liabilities requires more knowledge. Yet when I began to study the structures of corporate tax departments, I was struck by the scarcity of senior-level titles in them. This may reflect the low profile of the department in most companies and the tactical nature of the work it has performed. Advances in information technology have the potential to automate most of the manual tasks tax professionals perform. This increase in efficiency will enable tax departments to fill a more strategic, important role in the companies they serve.
Topics: Big Data, ERP, Governance, GRC, Office of Finance, audit, finance transformation, LongView, Tax, Analytics, Business Analytics, Business Performance, Financial Performance, Information Management, Oracle, CFO, Risk & Compliance (GRC), Vertex, FPM, Innovation Awards, Thomson-Reuters multinational
Last year Ventana Research released our Office of Finance benchmark research. One of the objectives of the project was to assess organizations’ progress in achieving “finance transformation.” This term denotes shifting the focus of CFOs and finance departments from transaction processing toward more strategic, higher-value functions. In the research nine out of 10 participants said that it’s important or very important for the department to take a more strategic role. This objective is both longstanding and elusive. It has been part of the conversation in financial management circles since the 1990s and has been a primary focus of my research practice since its inception 12 years ago. Yet our recent research shows that most finance organizations struggle with the basics and few companies are even close to achieving this desired transformation.
Topics: Big Data, Planning, Predictive Analytics, Governance, GRC, Office of Finance, Budgeting, close, end-to-end, Tax, Tax-Datawarehouse, Analytics, Business Performance, CIO, Financial Performance, In-memory, CFO, CPQ, Risk, CEO, Financial Performance Management, FPM
Office of Finance Research Demonstrates Importance of Using Effective Financial Software
Our recently published Office of Finance benchmark research assesses a broad set of functions and capabilities of finance organizations. We asked research participants to identify the most important issues for a finance department to address in a dozen functional areas: accounting, budgeting, cost accounting, customer profitability management, external financial reporting, financial analysis, financial governance and internal audit, management accounting, product profitability management, strategic and long-range planning, tax management and treasury and cash management. Among the key findings is this: Not using the most capable software is an underlying cause, often unrecognized, of process, analytics and data issues.
Topics: Mobile, Planning, Predictive Analytics, ERP, FP&A, Office of Finance, Reporting, Self-service, Budgeting, close, closing, computing, Controller, dashboard, Tax, Analytics, Business Intelligence, Business Performance, Cloud Computing, Collaboration, Financial Performance, CFO, Data, finance, Financial Performance Management, FPM, Microsoft Excel, Spreadsheets
Make Automating the Office of Finance and Accounting a Priority
Our recent Office of Finance benchmark research demonstrates the importance of using automation to execute finance department functions. Information technology systems do at least two things very well that make better use of people’s time, and both of them can substantially improve organizational performance. First, they eliminate the need for people to do repetitive tasks, which frees them to spend time on more valuable work that requires judgment and skill. IT systems also can be programmed to focus only on relevant information while eliminating the need to get immersed in detail. The latter capability supports a “management by exception” approach, which enables executives and managers to better allocate how and where they spend their time.
Topics: Big Data, Mobile, Planning, ERP, FP&A, Office of Finance, Reporting, Self-service, Budgeting, close, closing, computing, Controller, dashboard, Tax, Analytics, Business Analytics, Business Collaboration, Business Intelligence, Business Performance, Cloud Computing, Collaboration, Financial Performance, CFO, Data, finance, Financial Performance Management, FPM, Microsoft Excel, Spreadsheets
Beqom Simplifies Compensation in Sophisticated Ways
It is more important than ever for businesses to attract and retain the best talent, and managing compensation effectively is an essential tool for doing so. Obviously companies must pay well to compete, but managing salary, merit pay, variable pay and incentives for employees, tracking their hiring anniversaries and conducting accurate performance appraisals make total compensation management a complex process. All of this must be managed within budget and policy guidelines. As organizations grow and require more employees, the challenges multiply and the difficulty increases. Our benchmark research finds that inconsistent execution is the top impediment to effective compensation management for nearly half (47%) of organizations. Software designed for this purpose can help.
Topics: HCM, Human Capital Management, Sales Compensation, Operational Performance, Business Performance, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, Compensation, finance, HR, Talent Management, TCM
A company’s enterprise resource planning (ERP) system is one of the pillars of its record-keeping and process management architecture and is central to many of its critical functions. It is the heart of its accounting and financial record-keeping processes. In manufacturing and distribution, ERP manages inventory and some elements of logistics. Companies also may use it to handle core human resources record-keeping and to store product and customer master data. Often, companies bolt other functionality onto the core ERP system or extensively modify it to address limitations in the system. Because of the breadth of its functionality, those unfamiliar with the details of information technology may perceive ERP as a black box that controls just about everything. So it’s not surprising that when a company’s information technology becomes more of an issue than a solution, many assume that the ERP system needs replacing. This may or may not be true, so it’s important for a company to assess its existing ERP system in the context of its business requirements (as they are now and will be in the immediate future) and evaluate options for it.
Topics: Sales Performance, Supply Chain Performance, ERP, Office of Finance, Operational Performance, Analytics, Business Performance, CIO, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, Data, HR
Technology Can Enhance Performance in Finance Departments
Finance transformation” refers to a longstanding objective: shifting the focus of CFOs and finance departments from transaction processing to more strategic, higher-value functions. Our upcoming Office of Finance benchmark research confirms that most of organizations want their finance department to take a more strategic role in management of the company: nine in 10 participants said that it’s important or very important. (We are using “finance” in its broadest sense, including, for example, accounting, corporate finance, financial planning and analysis, treasury and tax functions.) Finance departments have the ability and at least an implicit mandate to improve business performance and enable a corporation to execute strategy more effectively. Yet the research shows that becoming strategic is a work in progress. Most departments handle the basics well, but half fall short in areas that can contribute significantly to the performance of their company. More than three-fourths of participants said they perform accounting, external financial reporting, financial analysis, budgeting and management accounting well or very well. But only half said that about their ability to do product and customer profitability management, strategic and long-range planning and business development.
Topics: Big Data, Mobile, Performance Management, Predictive Analytics, Social Media, ERP, FP&A, Office of Finance, Reporting, Management, close, closing, computing, Controller, Tax, Analytics, Business Analytics, Business Collaboration, Business Performance, Cloud Computing, Collaboration, Financial Performance, CFO, finance, Tagetik, FPM
Finance Needs Better Analytics and Analytic Skills
Finance and accounting departments are staffed with numbers-oriented, naturally analytical people. Strong analytic skills are essential if a finance department is to deliver deep insights into performance and visibility into emerging opportunities and challenges. The conclusions of analyses enable fast, fully informed business decisions by executives and managers. Conversely, flawed analyses undermine the performance of a company. So it was good news that in our Office of Finance benchmark research 62 percent of participants rated the analytical skills of their finance organization as above average or excellent.
Topics: Big Data, Mobile, Planning, Predictive Analytics, ERP, FP&A, Office of Finance, Reporting, Self-service, Budgeting, close, closing, computing, Controller, dashboard, Tax, Analytics, Business Analytics, Business Intelligence, Business Performance, Cloud Computing, Collaboration, Financial Performance, CFO, Data, finance, Tagetik, Financial Performance Management, FPM, Microsoft Excel, Spreadsheets
Infor recently held its annual Inforum user group meeting, along with a series of sessions with analysts. The $2 billion business software company has products in the major categories of ERP (including enterprise financial management), human capital management, customer relationship management and performance management among others.
Topics: Microsoft, Mobile, SaaS, Sales, Sales Performance, Salesforce.com, Supply Chain Performance, ERP, HCM, Human Capital, Office of Finance, Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, Kenandy, PSA, Sage Software, Unit4, Operational Performance, Analytics, Business Analytics, Business Collaboration, Business Performance, Cloud Computing, Collaboration, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, FinancialForce, HR, Infor, Workday, HANA, Plex, Professional Services Automation
Like most vendors of on-premises ERP and financial management software, in moving to the cloud Oracle has focused on developing for existing and potential customers the option of multitenant software as a service (SaaS). (I’m using the term “ERP” in its most expansive sense, to include such systems employed by all types of companies for accounting and financial management rather than only systems that are used by manufacturing and distribution companies.) Oracle’s ERP Cloud Service includes Fusion Financials as well as planning and budgeting, risk and controls management, procurement and sourcing, inventory and cost management, product master data management, and project portfolio management. Although to date our benchmark research has consistently found that a large majority of finance departments do not prefer to deploy software in the cloud, we also observe the balance shifting in this direction. SaaS vendors that address finance department requirements have demonstrated faster revenue growth than those that offer products only on-premises. Like other vendors Oracle must establish itself as a credible vendor of cloud ERP and financial management services to be well positioned as market demand shifts further in that direction. The company made sizable investments in acquiring ERP and financial management software in the 2000s (notably PeopleSoft – which included JD Edwards – and Hyperion), and the investments have paid off as many companies have opted to keep their existing systems (and continue to pay maintenance) rather than replace them. Our Office of Finance benchmark research finds that over the past decade the average age of ERP systems in use has increased to 6.4 years from 5.1 years. The longevity of these systems is partly the result of the slow pace of innovation in underlying technologies used for business computing. Even so, modest year-by-year changes are adding up to make replacement a more attractive option while negative attitudes toward the cloud are dissipating. To retain its installed base, it’s important for any established vendor to have solid customer references and the ability to make sales of cloud products as demand for ERP and financial management software in the cloud increases.
Topics: Microsoft, Mobile, SaaS, Sales, Salesforce.com, ERP, HCM, Human Capital, Office of Finance, Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, Kenandy, PSA, Sage Software, Unit4, Operational Performance, Analytics, Business Performance, Cloud Computing, Collaboration, Customer & Contact Center, Financial Performance, CFO, FinancialForce, HR, Infor, Workday, HANA, Plex, Professional Services Automation
Tax Data Warehouses Become Essential as Governments Raise the Ante
I’ve written before about the increasing importance of having a solid technology base for a company’s tax function, and it’s important enough for me to revisit the topic. Tax departments are entrusted with a highly sensitive and essential task in their companies. Taxes usually are the second largest corporate expense, after salaries and wages. Failure to understand this liability is expensive – either because taxes are overpaid or because of fines and interest levied for underpayment. Moreover, taxes remain a political issue, and corporations – especially larger ones – must be mindful of the reputational implications of their tax liabilities.
Topics: ERP, Governance, GRC, Office of Finance, audit, finance transformation, LongView, Tax, Analytics, Business Analytics, Business Intelligence, Business Performance, Financial Performance, Information Management, Oracle, CFO, Risk & Compliance (GRC), Vertex, FPM, Innovation Awards, Thomson-Reuters multinational
Like other vendors of cloud-based ERP software, NetSuite offers the key benefits of software as a service (SaaS): a smaller upfront investment, faster time to value and potentially lower operating costs. Beyond that NetSuite’s essential point of competitive differentiation from is broad functionality beyond financial management, including capabilities for customer relationship management (CRM), professional services automation (PSA) and human capital management (HCM). These components make it easier for businesses to manage processes from end to end (such as quote- or order-to-cash) as well as to have transactions and business data available in a single system in consistent forms and synchronized. This in turn facilitates real-time reporting, dashboards and the use of analytics that integrate a wider set of functional data. Midsize companies are most likely to benefit from this integration because typically they have smaller, less sophisticated IT staffs than larger ones. A side benefit of having a single, integrated data source is improvement of situational awareness and visibility for executives and managers. It also enables organizations to reduce their use of spreadsheets for stitching together processes, doing routine analyses and reporting. These sorts of activities waste valuable time and reduce an organization’s agility.
Topics: Microsoft, Mobile, SaaS, Sales, Social Media, Customer Experience, ERP, HCM, Human Capital, Office of Finance, communications, Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, PSA, Sage Software, UI, Unit4, Analytics, Business Analytics, Business Collaboration, Business Performance, Cloud Computing, Financial Performance, Workforce Performance, CFO, CRM, FinancialForce, HR, Infor, Social, Financial Performance Management, FPM, Plex, Professional Services Automation, Workday Collaboration
The Future of Integrating ERP and Applications in the Cloud
In recent years line-of-business applications including accounting, human resources, manufacturing, sales and customer service have appeared in the cloud. Cloud -based software as a service (SaaS) has replaced on-premises applications that were previously part of ERP and CRM environments. They have helped companies become more efficient but have also introduced interoperability challenges between business processes. Their advantage is that cloud software can be rented, configured and used within a day or week. The disadvantage is that they don’t always connect with one another seamlessly, as they used to and when managed by a third party there is limited connectivity to integrate them.
Topics: Sales Performance, Supply Chain Performance, ERP, Office of Finance, Order Management, Operational Performance, Business Analytics, Business Performance, CIO, Cloud Computing, Customer Service, Financial Performance, CFO, SFA
Tagetik Advances Disclosure Management for Office of Finance
Tagetik provides financial performance management software. One particularly useful aspect of its suite is the Collaborative Disclosure Management (CDM). CDM addresses an important need in finance departments, which routinely generate highly formatted documents that combine words and numbers. Often these documents are assembled by contributors outside of the finance department; human resources, facilities, legal and corporate groups are the most common. The data used in these reports almost always come from multiple sources – not just enterprise systems such as ERP and financial consolidation software but also individual spreadsheets and databases that collect and store nonfinancial data (such as information about leased facilities, executive compensation, fixed assets, acquisitions and corporate actions). Until recently, these reports were almost always cobbled together manually – a painstaking process made even more time-consuming by the need to double-check the documents for accuracy and consistency. The adoption of a more automated approach was driven by the requirement imposed several years ago by United States Securities and Exchange Commission (SEC) that companies tag their required periodic disclosure filings using eXtensible Business Reporting Language (XBRL), which I have written about. This mandate created a tipping point in the workload, making the manual approach infeasible for a large number of companies and motivating them to adopt tools to automate the process. Although disclosure filings were the initial impetus to acquire collaborative disclosure management software, companies have found it useful for generating a range of formatted periodic reports that combine text and data, including board books (internal documents for senior executives and members of the board of directors), highly formatted periodic internal reports and filings with nonfinancial regulators or lien holders.
Topics: Big Data, Mobile, ERP, Human Capital Management, Modeling, Office of Finance, Reporting, Budgeting, close, closing, Consolidation, Controller, Finance Financial Applications Financial Close, IFRS, XBRL, Analytics, Business Analytics, Business Intelligence, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), CFO, compliance, Data, benchmark, Financial Performance Management, financial reporting, FPM, GAAP, Integrated Business Planning, Profitability, SEC Software
Longview Tax Software Helps Tax Departments Be More Strategic
Longview Solutions has a longstanding presence in the financial performance management (FPM) software market and was rated a Hot vendor in our most recent FPM Value Index. Several years ago it began offering a tax provision and planning application. I think it’s worthwhile to focus on the tax category because it’s less well known than others in finance and is an engine of growth for Longview. We expect larger corporations increasingly to adopt software to manage direct (income) taxes to improve the quality and efficiency of what today in most companies is an inefficient, spreadsheet-driven process.
Topics: ERP, GRC, Office of Finance, audit, finance transformation, LongView, Tax, Analytics, Business Analytics, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), CFO, FPM, Innovation Awards
The keynote theme at this year’s Sapphire conference in Orlando was Simple. Top executives from SAP, a software company associated with complexity, stated and restated that its future direction is to simplify all aspects of its products and the ways customers interact with them and the company itself. SAP’s longstanding and commendable aspiration to thoroughness in its software will be giving way to an emphasis on elegance in its engineering. This objective is more than admirable – SAP’s future competitiveness depends on it. Changing the fundamental architecture of SAP’s offerings – already well under way with HANA – is absolutely necessary. The design underpinnings in SAP’s ERP applications, for example, have been shaped by technology limitations that have disappeared, as Dr. Hasso Plattner, one of the company’s founders, pointed out in his keynote. However, the relevant issue facing SAP and the software market is how far the company can progress toward this goal and how fast.
Topics: Microsoft, Mobile, SaaS, Sales, Salesforce.com, Supply Chain Performance, ERP, HCM, Human Capital, Office of Finance, Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, Kenandy, PSA, Sage Software, Unit4, Operational Performance, Analytics, Business Collaboration, Business Performance, Cloud Computing, Collaboration, Financial Performance, CFO, FinancialForce, HR, Infor, Workday, HANA, Plex, Professional Services Automation
Analytics has long been a core discipline of Finance, applied to analysis of balance sheets, income statements and cash-flow statements. However, as I’ve noted, most finance departments have not kept up with recent advances. Our recent research in finance analytics shows that few organizations are realizing the potential of more advanced analytic methods and tools such as predictive analytics and driver-based modeling. One reason for this sluggishness is that they have not looked past yesterday’s requirements to see what possible. Another is that they are distracted by the difficulties they face in simply doing tried-and-true analysis, which is the result of difficulties in accessing the necessary data and inadequate tools. A third reason is that people receive too little training in the application of analytics to business and the use of more advanced analytic tools and methods.
Topics: ERP, FP&A, Office of Finance, Controller, Finance Analytics, Business Analytics, Business Performance, Financial Performance, CFO, Financial Management
Epicor used its recent user group conference to explain its strategic direction and product roadmap. The company is the result of multiple mergers of business software corporations over the past 15 years; its target customers are midsize companies and midsize divisions of larger organizations. Its most significant products are Epicor (ERP software aimed mainly at manufacturing and distribution companies) and Activant Solutions (software for small and midsize retailers, including a point-of-sale system). The company also has software that manages CRM, HR and human capital and supply chains, and provides financial performance management (FPM) and governance, risk and compliance (GRC) capabilities. These components of the software suites are adequate for the needs of many of the company’s target customers and are not intended as stand-alone applications.
Topics: Microsoft, Mobile, SaaS, Sales, Supply Chain Performance, Customer Experience, ERP, HCM, Human Capital, Office of Finance, communications, Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, Epicor, Sage Software, UI, Unit4, Operational Performance, Analytics, Business Analytics, Business Performance, Cloud Computing, Collaboration, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, FinancialForce, HR, Infor, Workday, Social, Financial Performance Management, FPM, Plex
From my perspective, Infor’s strategy to accelerate revenue growth is to offer companies more innovation and a lower and more predictable cost of ownership than its rivals in the business software market; its products include the major categories of ERP, human resources and financial performance management. It aims to innovate by focusing on improving the user experience and to lower costs by redesigning its software architecture. The innovation stems from a fresh approach to designing interactions between users and business software: simplifying it and providing a more modern user experience that people have grown accustomed to in their personal software. The better cost-effectiveness rests on designing its software to reduce the expense of integrating and customizing it. One element of this is creating richer functionality for narrowly segmented micro-verticals. Another is offering cloud-based versions built on less expensive open source infrastructure and third-party commodity services. The software markets that Infor serves are mature and offer limited growth. So to be successful the company must increase both its market share and its share of a company’s IT spend (capturing internal IT spending and outlays to third-party consultants and systems integrators). To prove that the company’s strategy is working will require sustained organic growth (excluding new acquisitions) in revenues.
Topics: Microsoft, Mobile, SaaS, Sales, Sales Performance, Supply Chain Performance, Customer Experience, ERP, HCM, Human Capital, Office of Finance, Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, Sage Software, UI, Unit4, Operational Performance, Analytics, Business Analytics, Business Collaboration, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, Information Management, Workforce Performance, CFO, FinancialForce, HR, Infor, Workday, Financial Performance Management, FPM, Plex
Our research consistently finds that data issues are a root cause of many problems encountered by modern corporations. One of the main causes of bad data is a lack of data stewardship – too often, nobody is responsible for taking care of data. Fixing inaccurate data is tedious, but creating IT environments that build quality into data is far from glamorous, so these sorts of projects are rarely demanded and funded. The magnitude of the problem grows with the company: Big companies have more data and bigger issues with it than midsize ones. But companies of all sizes ignore this at their peril: Data quality, which includes accuracy, timeliness, relevance and consistency, has a profound impact on the quality of work done, especially in analytics where the value of even brilliantly conceived models is degraded when the data that drives that model is inaccurate, inconsistent or not timely. That’s a key finding of our finance analytics benchmark research.
Topics: Big Data, Planning, Predictive Analytics, Governance, Office of Finance, Budgeting, close, Finance Analytics, Tax, Operational Performance, Analytics, Business Analytics, Business Intelligence, Business Performance, CIO, Financial Performance, Governance, Risk & Compliance (GRC), In-memory, Information Applications, CFO, Risk, CEO, Financial Performance Management, FPM
Finance Departments Still Lag in Using Advanced Analytics
Business computing has undergone a quiet revolution over the past two decades. As a result of having added, one-by-one, applications that automate all sorts of business processes, organizations now collect data from a wider and deeper array of sources than ever before. Advances in the tools for analyzing and reporting the data from such systems have made it possible to assess financial performance, process quality, operational status, risk and even governance and compliance in every aspect of a business. Against this background, however, our recently released benchmark research finds that finance organizations are slow to make use of the broader range of data and apply advanced analytics to it.
Topics: Big Data, Planning, Predictive Analytics, Governance, Office of Finance, Budgeting, close, Finance Analytics, Tax, Analytics, Business Analytics, Business Intelligence, Business Performance, CIO, Financial Performance, Governance, Risk & Compliance (GRC), In-memory, Information Management, CFO, Risk, CEO, Financial Performance Management, FPM
Anaplan, a provider of cloud-based business planning software for sales, operations, and finance and administration departments, recently implemented its new Winter ’14 Release for customers. This release builds on my colleagues analysis on their innovation in business modeling and planning in 2013. Anaplan’s primary objective is to give companies a workable alternative to spreadsheets for business planning. It is a field in which opportunity exists. Our benchmark research on this topic finds that a majority of companies continue to use spreadsheets for their planning activities. Almost all (83%) operations departments use spreadsheets for their plans, as do 60 percent of sales and marketing units. Yet the same research shows that satisfaction with spreadsheets as a planning tool is considerably lower than satisfaction with dedicated planning applications. But despite general agreement in companies that the planning process is broken and spreadsheets are a problem, companies seem reluctant to break the bad habit of using spreadsheets. This conclusion suggests that either switching to dedicated software hasn’t been easy enough or that the results of doing it have not been compelling enough to motivate change. Anaplan intends to address both of these issues.
Topics: Big Data, Performance Management, Planning, Predictive Analytics, Sales Performance, Supply Chain Performance, Marketing, Office of Finance, Operations, Reporting, Budgeting, Controller, Operational Performance, Business Analytics, Business Performance, Cloud Computing, Financial Performance, In-memory, Workforce Performance, CFO, Sales Planning, Financial Performance Management, financial reporting, FPM, Integrated Business Planning
There’s a growing realization that the multitenant approach to the cloud isn’t the only option that companies should weigh in deciding between deploying software on-premises and in the cloud. That some people describe the multitenancy approach as “the real cloud” reflects the contentious nature of some technical debates, especially those that occur early in the evolution of a new technology. Multitenancy does have advantages that confer cost savings, and these have been important in the first stages of cloud adoption. However, we predict that single-tenant structures will rapidly gain in importance as corporations mature in their use of cloud computing, especially with respect to how they manage their ERP systems, as I have written. Corporations are increasingly adopting Web-based applications and moving their computing environments to a hybrid model that combines a combination of on-premises and cloud deployment options (private, community and public; single- and multitenant; or managed cloud). The right choice depends on the needs of the company and the ability of vendors to provide services that match their requirements.
Topics: Microsoft, Mobile, SaaS, Sales, Salesforce.com, ERP, HCM, Human Capital, Office of Finance, Planview, Concur, Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, PSA, Sage Software, Unit4, Analytics, Business Performance, Cloud Computing, Financial Performance, Workforce Performance, CFO, FinancialForce, HR, Infor, Tagetik, Workday, Plex
Reconciling accounts at the end of a period is one of those mundane finance department tasks that are ripe for automation. Reconciliation is the process of comparing account data (at the balance or item level) that exists either in two accounting systems or in an accounting system and somewhere else (such as in a spreadsheet or on paper). The purpose of the reconciling process is to identify things that don’t match (as they must in double-entry bookkeeping systems) and then assess the nature and causes of the variances. This is followed by making adjustments or corrections to ensure that the information in a company’s books is accurate. Most of the time, reconciliation is a matter of good housekeeping. The process identifies errors and omissions in the accounting process, including invalid journal postings and duplicate accounting entries, so they can be corrected. Reconciliation also is an important line of defense against fraud, since inconsistencies may be a sign of such activity.
Topics: Office of Finance, automation, close, closing, Consolidation, Controller, effectiveness, Reconciliation, XBRL, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), CFO, Data, Document Management, Financial Performance Management, FPM
Information technologists are fond of predictions in which the next big thing quickly and entirely renders the existing thing so completely obsolete that only troglodytes would cling to such outmoded technology. While this vision of IT progress may satisfy the egos of technologists, it rarely reflects reality. Mainframes didn’t disappear, for example. Although they long ago lost their dominant position, many remain key parts of corporate computing infrastructures. The IT landscape is a hybrid because technology users have varying requirements and constraints that can lengthen replacement cycles. Most business users of IT pay little attention to the religious wars of technologists because they take a pragmatic approach: They use technology to achieve business ends. This scenario is repeating itself in clamor about another corporate mainstay, the ERP system, which advocates claim will soon be redeployed en masse to cloud computing. That, too, won’t happen. I believe that ERP will increasingly become cloud-based, but it will be in hybrid cloud environments.
Topics: Microsoft, SaaS, Sales, Salesforce.com, ERP, HCM, Human Capital, Office of Finance, Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, PSA, Sage Software, Unit4, Analytics, Business Performance, Cloud Computing, Financial Performance, CFO, FinancialForce, HR, Infor, Workday, Plex, Professional Services Automation
Convergence is the Microsoft Dynamics business software user group’s meeting. Dynamics’ core applications are mainly in the accounting and ERP category, descendants of products Microsoft acquired: Great Plains (now GP), Solomon (SL), Navision (NAV) and Damgaard’s Axapta (AX), to which Microsoft has added its own CRM application. It has been more than a decade since the acquisitions of Great Plains (which itself had already purchased Solomon Software), and Navision, Damgaard and the software applications family has evolved steadily if slowly since then. More recently, Microsoft has added cloud services that simplify and improve the connection between remote users and the on-premises core systems, as well as integration with Office365.
Topics: Microsoft, SaaS, Sales, Sales Performance, Salesforce.com, ERP, HCM, Human Capital, Office of Finance, Consulting, distribution, Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, PSA, Sage Software, Unit4, Operational Performance, Analytics, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, CFO, FinancialForce, HR, Infor, Workday, Plex, Professional Services Automation
Building a Better Business Case for Buying Software
When it comes to making a business case for software investments, many people fail to recognize that the case itself is just one part of what amounts to an internal sales and marketing effort that they must perform well to be successful. Focusing only on the numbers and assumptions in a spreadsheet is not enough. Making a successful business case requires an understanding of the audience’s perspective and motivations. Since the individuals who will review the business case may not be sufficiently aware of the issues that are behind it and their seriousness, it may be necessary to begin an awareness-building program before presenting the business case. And because the benefits of software investments can be difficult to quantify, executive sponsors are useful in achieving acceptance of these calculations. Unfortunately, many business cases founder because proponents do not realize the importance of taking a sales and marketing approach.
Topics: Planning, Sales Performance, Supply Chain Performance, ERP, Office of Finance, Research, budgeting and planning, ROI, Operational Performance, Analytics, Business Performance, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, CRM, business plan, capital spending, Financial Performance Management, FPM, SCM, Software
A core objective of my research practice and agenda is to help the Office of Finance improve its performance by better utilizing information technology. As we kick off 2014, I see five initiatives that CFOs and controllers should adopt to improve their execution of core finance functions and free up time to concentrate on increasing their department’s strategic value. Finance organizations – especially those that need to improve performance – usually find it difficult to find the resources to invest in increasing their strategic value. However, any of the first three initiatives mentioned below will enable them to operate more efficiently as well as improve performance. These initiatives have been central to my focus for the past decade. The final two are relatively new and reflect the evolution of technology to enable finance departments to deliver better results. Every finance organization should adopt at least one of these five as a priority this year.
Topics: Big Data, Performance Management, Planning, Predictive Analytics, Sales Performance, Supply Chain Performance, Office of Finance, Budgeting, close, dashboard, PRO, Tax, Analytics, Business Analytics, Business Collaboration, Business Performance, CIO, Customer & Contact Center, Financial Performance, In-memory, CFO, Supply Chain, CEO, demand management, Financial Performance Management, FPM, S&OP
The Challenge of Making ERP Systems More Configurable
In the wake of the past year’s usual crop of failed ERP implementations, I’ve read a couple of blogs that bemoan the fact that ERP systems are not nearly as user-friendly or intuitive as the mobile apps that everyone loves. I’ve complained about this aspect of ERP, and our research confirms that ERP systems are viewed as cumbersome: Just one in five companies (21%) said it is easy to make changes to ERP systems while one-third (33%) said making changes is difficult or very difficult. Yet as with many such technology topics, addressing the difficulty in working with ERP systems is not as straightforward as one might hope. ERP software vendors must make it easier, less expensive and less risky for customers to adapt the systems they buy to their changing business needs. To do this, vendors must design products to be more configurable. The goal should be that organizations can make changes and add new capabilities to their ERP system in far less time than it takes today and without having to engage outside consultants.
Topics: Mobile, SAP, ERP, Analytics, Business Collaboration, Business Performance, Cloud Computing, Financial Performance, Oracle, CFO, Infor, Workday, Social, business process, FPM, Intacct
Senior finance executives and finance organizations that want to improve their performance must recognize that technology is a key tool for doing high-quality work. To test this premise, imagine how smoothly your company would operate if all of its finance and administrative software and hardware were 25 years old. In almost all cases the company wouldn’t be able to compete at all or would be at a substantial disadvantage. Having the latest technology isn’t always necessary, but even though software doesn’t wear out in a physical sense, it has a useful life span, at the end of which it needs replacement. As an example, late in 2013 a major U.K. bank experienced two system-wide failures in rapid succession caused by its decades-old mainframe systems; these breakdowns followed a similarly costly failure in 2012. For years the cost and risk of replacing these legacy systems kept management from taking the plunge. What they didn’t consider were the cost and risk associated with keeping the existing systems going. Our new research agenda for the Office of Finance attempts to find a balance between the leading edge and the mainstream that will help businesses find practical solutions.
Topics: Big Data, Planning, Predictive Analytics, Governance, GRC, Office of Finance, Budgeting, close, Tax, Analytics, Business Analytics, Business Collaboration, Business Performance, CIO, Cloud Computing, Financial Performance, Governance, Risk & Compliance (GRC), In-memory, CFO, Risk, CEO, Financial Performance Management, FPM
Research Agendas for 2014: Optimizing the Use of Technology for Business
Greetings, everyone, and best wishes for a great start to 2014. In this new year, utilizing best practices and skills learned in 2013 will be critical for optimizing the use of efforts to support both business and IT. In 2013 many organizations made progress in balancing technology decisions across business and IT as the lines of business continued to take leading roles in investment and prioritization. Major investments were made in business applications using software as a service, business analytics and mobile computing applications. In some other areas of innovation, particularly big data and social collaboration, deployments are just beginning to happen and a significant amount of projects are in experimental and proof of concept than enterprise use.
Topics: Sales Performance, Social Media, Supply Chain Performance, Market Research, IT Performance, Operational Performance, Analytics, Business Analytics, Business Collaboration, Business Intelligence, Business Performance, CIO, Cloud Computing, Customer & Contact Center, Financial Performance, Governance, Risk & Compliance (GRC), Information Applications, Information Management, Location Intelligence, Operational Intelligence, Workforce Performance, CFO, COO, Technology
Host Analytics Lifts Spreadsheets to Cloud for Finance
Host Analytics has introduced AirliftXL, a new feature of its cloud-based financial performance management (FPM) suite that enables its software to translate users’ spreadsheets into the Host Analytics format. I find it significant in three respects. First, it can substantially reduce the time and resources it takes for a company to go live in adopting the Host Analytics suite, lowering the cost of implementation and accelerating time to value. Second, it enables Host Analytics users who have the appropriate permissions to create and modify models and templates that they use in planning, budgeting, consolidation and reporting. This can enhance the value of the system by making it easier to maintain. Third, it can make it far easier to routinely collect and connect planning and analytical models used by all departments and business users as it has outlined in its planning cloud offering. Although it has limitations in its initial release, AirliftXL gives corporations a workable alternative to stand-alone spreadsheets and has the potential to substantially increase productivity and effectiveness of an organization in the full range of budgeting, planning, consolidation and reporting functions.
Topics: Modeling, Office of Finance, Reporting, closing, Consolidation, Controller, Host Analytics, Operational Performance, Analytics, Business Analytics, Business Performance, Cloud Computing, Financial Performance, Workforce Performance, CFO, Financial Performance Management, FPM
All the hubbub around big data and analytics has many senior finance executives wondering what the big deal is and what they should do about it. It can be especially confusing because much of what’s covered and discussed on this topic is geared toward technologists and others working outside of Finance, in areas such as sales, marketing and risk management. But finance executives need to position their organization to harness this technology to support the strategic goals of their company. To do so, they must have clarity as to what big data can do, what they want it to do, and what skills and tools they need to meet their objectives.
Topics: Big Data, Performance Management, Predictive Analytics, Customer Experience, Fraud, Governance, GRC, Office of Finance, audit, Controller, Analytics, Business Analytics, Business Performance, Cloud Computing, Financial Performance, Governance, Risk & Compliance (GRC), Information Management, Operational Intelligence, CFO, compliance, finance, Risk, Financial Performance Management, financial risk management
PROS Will Acquire Cameleon to Enhance Sales Effectiveness
PROS Holdings, a provider of price and revenue optimization software, has an agreement in principle to acquire Cameleon Software, which offers configure, price and quote (CPQ) applications. The combined company is likely to benefit from a broader geographic presence (PROS is based in Houston while Cameleon is in Toulouse, France) for their sales and marketing efforts. However, the longer-term strategic value of the merger lies in the combination of the related categories of price optimization and CPQ to improve sales effectiveness and financial performance.
Topics: Sales, Sales Performance, FP&A, PRO, PROS, Operational Performance, Analytics, Business Analytics, Business Collaboration, Business Performance, Financial Performance, CFO, CPQ, CEO, FPM, Price Optimization, Profitability
Tidemark Unifies New Generation of Business Planning Software
Tidemark announced the release of the Fall 2013 version of its eponymous cloud-based application that my colleague assessed earlier in 2013. This new release adds capabilities for labor planning and expense management as well profitability modeling and analysis. These two areas of planning and analysis are common to all businesses. The new release adds features that enhance the software’s ability to do sales forecasting, initiative planning and IT department planning. The company continues to refine its modeling capabilities to make it easier for people engaged in the planning process to translate their expectations and concerns into a quantified view of the future. For example, users now can build models using natural-language modeling. The objective is to eliminate the need for help from business analysts or experts trained in the use of a tool and immersed the details of the IT plumbing, such as the metadata used for specific general ledger accounts or operational data.
Topics: Big Data, Performance Management, Planning, Predictive Analytics, Sales Performance, Supply Chain Performance, Office of Finance, Reporting, Controller, Operational Performance, Analytics, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, In-memory, Workforce Performance, CFO, Tidemark, Financial Performance Management, financial reporting, FPM, Integrated Business Planning
CEOs and Executives Need Business Planning Software
Business planning is a new software category. These applications enable senior executives to integrate all the plans of business units into a single, integrated view, which helps them have more accurate plans, do more insightful what-if planning, achieve greater agility in reacting to changing business and economic conditions, and execute plans in a more coordinated fashion than was possible. Business planning software is intended for CEOs and COOs, who are not well served by current capabilities. Business planning software enables executives and managers to understand both the operational and the financial consequences of their actions, but it emphasizes the things that the various parts of the business focus on: units sold, sales calls made, the number and types of employees required, customers serviced and so on. Lines of business already do this but in a fragmented fashion using desktop spreadsheets circulated within silos via email. Business planning software provides a platform to support modeling in individual business units, individual planning processes and visualization of the impacts of changes in what-if scenarios. It offers a central data repository for all plans; our benchmark research shows the advantage of this approach: Companies that directly link individual business unit data to an integrated plan get more accurate results. To be specific, 22 percent of those with such links have very accurate budgets compared to just a handful with less direct links and none that employ summarized data.
Topics: Big Data, Performance Management, Planning, Predictive Analytics, Office of Finance, Reporting, Budgeting, Controller, Operational Performance, Business Analytics, Business Collaboration, Business Performance, Cloud Computing, Financial Performance, In-memory, Workforce Performance, CFO, Financial Performance Management, financial reporting, FPM, Integrated Business Planning
Oracle Hyperion Products Challenged by New Generation of Expectations
Oracle continues to enrich the capabilities of its Hyperion suite of applications that support the finance function, but I wonder if that will be enough to sustain its market share and new generation of expectations. At the recent Oracle OpenWorld these new features were on display, and spokespeople described how the company will be transitioning its software to cloud deployment. Our 2013 Financial Performance Management Value (FPM) Index rates Oracle Hyperion a Warm vendor in my analysis, ranking eighth out of nine vendors. Our Value Index is informed by more than a decade of analysis of technology suppliers and their products and how well they satisfy specific business and IT needs. We perform a detailed evaluation of product functionality and suitability-to-task as well as the effectiveness of vendor support for the buying process and customer assurance. Our assessment reflects two disparate sets of factors. On one hand, the Hyperion FPM suite offers a broad set of software that automates, streamlines and supports a range of finance department functions. It includes sophisticated analytical applications. Used to full effect, Hyperion can eliminate many manual steps and speed execution of routine work. It also can enhance accuracy, ensure tasks are completed on a timely basis, foster coordination between Finance and the rest of the organization and generate insights into corporate performance. For this, the software gets high marks.
Topics: Big Data, Mobile, Planning, Social Media, ERP, Human Capital Management, Modeling, Office of Finance, Reporting, Budgeting, close, closing, Consolidation, Controller, driver-based, Finance Financial Applications Financial Close, Hyperion, IFRS, Tax, XBRL, Analytics, Business Analytics, Business Intelligence, Business Performance, CIO, Cloud Computing, Financial Performance, In-memory, Oracle, CFO, compliance, Data, benchmark, Financial Performance Management, financial reporting, FPM, GAAP, Integrated Business Planning, Price Optimization, Profitability, SEC Software
It’s Past Time for the Next Generation of Business Planning
Business planning as practiced today is a relic, a process hemmed in by obsolete conceptions of what it should be. I use the term “business planning” to encompass all of the forward-looking activities in which companies routinely engage, including, for example, sales, production and head-count planning as well as budgeting. Companies need to take a fresh view of all these, adopting a new approach to business planning that while preserving continuity makes a substantial departure from what most companies do now. Currently, in most organizations the budget is the only companywide business plan. However, while necessary for financial management and control, budgets are not especially useful for running an organization.
Topics: Big Data, Planning, Predictive Analytics, Sales Performance, Social Media, Supply Chain Performance, Office of Finance, Reporting, Budgeting, Controller, Operational Performance, Business Performance, Financial Performance, In-memory, Workforce Performance, CFO, Financial Performance Management, financial reporting, FPM, Integrated Business Planning
Find Out Which Is the Hottest Financial Performance Management Software
We recently issued our 2013 Value Index on Financial Performance Management. Ventana Research defines financial performance management (FPM) as the process of addressing the often overlapping people, process, information and technology issues that affect how well finance organizations operate and support the activities of the rest of their organization. FPM deals with the full cycle of finance department activities, which includes planning and budgeting, analysis, assessment and review, closing and consolidation, and internal and external financial reporting, as well as the underlying IT systems that support them. Our Value Index is informed by more than a decade of analysis of how well technology suppliers and their products satisfy specific business and IT needs. We perform a detailed evaluation of product functionality and suitability to task in five categories as well as of the effectiveness of vendor support for the buying process and customer assurance. Our resulting index gauges the value offered by each individual vendor and its products in supporting FPM, which is necessary for running an organization efficiently and effectively.
Topics: Mobile, Planning, Predictive Analytics, Office of Finance, Budgeting, closing, Consolidation, contingency planning, Analytics, Business Analytics, Business Collaboration, Business Performance, Cloud Computing, Financial Performance, CFO, Value Index, Financial Performance Management
Enterprise resource planning (ERP) systems emerged in the 1990s. Even though they don’t do much in the way of planning, the systems provide companies a means of centralizing and consolidating transaction data collection (such as purchase orders, inventory movements and depreciation), automating the management of processes, and handling the bookkeeping and financial record keeping for these transactions and related processes. ERP systems are an indispensable piece of IT infrastructure in today’s enterprises. Alas, they also are inherently flawed. But perhaps not for much longer.
Topics: Mobile, SAP, Social Media, Supply Chain Performance, ERP, Operational Performance, Analytics, Business Collaboration, Business Performance, Cloud Computing, Financial Performance, Oracle, CFO, Infor, Workday, Social, FPM, Intacct
Vertex Enterprise Helps Tax Departments Increase Effectiveness
Technology for the Office of Finance can have transformative power. Although progress has been slow at times, today’s finance organizations are fundamentally different from those of 50 years ago. For one thing, they require far fewer resources (chiefly people) to perform basic accounting, treasury and corporate finance tasks. In addition, public corporations report results sooner – sometimes weeks sooner – than they could in the mid-20th century. And finance departments are able to harness substantially more data and a wider array of analytics to promote insight and support more agile decision-making.
Topics: ERP, GRC, Office of Finance, audit, finance transformation, Tax, Analytics, Business Analytics, Business Intelligence, Business Performance, Financial Performance, CFO, Vertex, FPM, Innovation Awards
Many finance executives want to improve their department’s effectiveness in order to play a more strategic role in their company. However, frequently they find at least three serious challenges to achieving this sort of finance transformation. One is that too much time and resources are devoted to purely mechanical tasks. Another is that the information executives need is not always available immediately. A third is that they lack the data (which is unavailable or too difficult to access), the analytic tools or both to do rapid contingency planning. One area in the Office of Finance that needs particular attention is treasury, as I commented recently. Treasury management is a challenge because it’s highly detailed and demands complete accuracy. These requirements make it an area that can benefit from more automation.
Topics: Predictive Analytics, Office of Finance, Controller, credit, debt, Kyriba Financial Performance Management, Analytics, Business Performance, Financial Performance, CFO, cash management
Transforming Lease Accounting with Better Software
Because of its impact on the Office of Finance, I’ve written in the past aboutthe proposed timeline and IT implications of the convergence of U.S. Generally Accepted Accounting Principles (U.S. GAAP) and the International Financial Reporting Standards (IFRS). While the bottom-line differences between U.S. GAAP and IFRS are likely to be minimal for most businesses, some aspects of the convergence promise to be significant and problematic. One important change is how companies account for leases. The process of arriving at these rules has been contentious because it represents a major change that will entail substantial process and accounting challenges for U.S. GAAP companies. These changes are likely to go into effect as part of U.S. GAAP well ahead of any adoption of IFRS in the U.S. IT systems also will be affected, but software could smooth the transition if vendors provide a workable product.
Topics: GRC, Office of Finance, control, error, IFRS, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), CFO, Financial Performance Management, GAAP
This is the beginning of the season when companies that are on a calendar year begin their strategic and long-term planning. Ventana Research performed an extensive investigation in this area with our long-range planning benchmark research. Strategic and long-range planning is a process and discipline that companies use to determine the best strategy for succeeding in the markets they serve and then ensure they have the capabilities and resources needed to support their strategic objectives.
Topics: Big Data, Master Data Management, Performance Management, Planning, Sales Performance, Supply Chain Performance, Human Capital Management, Office of Finance, Reporting, Budgeting, dashboard, Operational Performance, Analytics, Business Performance, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, Data, CEO, Financial Performance Management, FPM
Pricing, Planning and Performance Management Software Creates Business Value
People who don’t spend much time analyzing the software market may have trouble understanding the differences between products in a given software category or the difference between two categories. This happens because vendors and commentators use the same words to describe different depths of functionality and degrees of comprehensiveness in one type of application. As well, there can be multiple categories of software that address the same general business issues but are designed for different specific uses. Not only is it worth the effort to sort through the labels and understand what does what best, but different categories of software that are sold and deployed separately can provide even greater value when used together.
Topics: Performance Management, Sales Performance, Supply Chain Performance, Office of Finance, dashboard, PRO, Operational Performance, Business Analytics, Business Performance, Financial Performance, CFO, Supply Chain, CEO, demand management, FPM, S&OP
Along with other aspects of the finance organization, there’s increasing emphasis on having the treasury function play more of a strategic role in the organization. Typically, Treasury is charged with keeping track of and managing cash. Especially in larger organizations, this can be complicated because of multiple bank accounts, complex financing requirements and many methods of receiving and making payments; the complexity deepens when more than one currency is used across multiple jurisdictions, which also can pose regulatory issues. Treasury’s primary directive is to ensure that all funds are accounted for and that there is sufficient cash on hand each day to meet operating requirements. To accomplish this, finance professionals must perform key analytic tasks accurately to produce a clear picture of cash inflows and cash requirements. Analysis often is challenging because these numbers are constantly changing and because the process of collecting, analyzing and reporting all the data can be excessively time-consuming if done manually. This is a situation perfectly suited for dedicated applications that automatically manage the data needed to orchestrate treasury processes and provide analysis to inform decisions. Yet our benchmark research finds that more than half (56%) of companies with more than 1,000 employees either use spreadsheets exclusively or employ them heavily in conjunction with a treasury application.
Topics: Predictive Analytics, Office of Finance, Controller, credit, debt, Analytics, Business Performance, Financial Performance, CFO, cash management, Financial Performance Management
Planview Improves Potential of Long-Range Planning
Planview recently announced general availability of Planview Enterprise 11. The new release enhances the user experience through a comprehensive redesign of the interface to promote ease of use. The changes are intended to facilitate an integrated approach to long-range planning of capital projects and major corporate initiatives across departments. There’s an important difference between strategic and long-range planning, and this difference is the reason why long-range planning benefits from software specifically designed to support that process. Strategic planning involves the formal conceptualization of a corporation’s strategy and its individual supporting elements such as product, sales, pricing and financial strategy. The strategic planning process is aimed at solidifying ideas and concepts into words to ensure understanding and agreement by the senior leadership team. Strategic planning naturally is done at the highest echelons of an organization. For that reason, it involves a relatively small group of senior executives and deals more in concepts and less in specific numbers. Long-range planning is the next step. It’s the formal quantification of the strategic plan and how that strategy is expected to play out. Translating the company’s strategic plan into numbers should be an iterative process of dialogue between those who set the strategy and those responsible for carrying it out. Being able to get quick answers to these what-if questions makes for a more productive, accurate and fact-based dialog.
Topics: Big Data, Performance Management, Planning, Sales Performance, Supply Chain Performance, Office of Finance, Planview, Reporting, FEI, FERF CEO, Operational Performance, Business Performance, Financial Performance, CFO, Financial Performance Management, FPM
I recently attended Vision 2013, IBM’s annual conference for users of its financial governance, risk management and sales performance management software. These three groups have little in common operationally, but they share software infrastructure needs and basic supporting software components such as reporting and analytics. Moreover, while some other major vendors’ user group meetings concentrate on IT departments, Vision focuses on business users and their needs, which is a welcome difference. For me, there were three noteworthy features related to the finance portion of the program. First, IBM continues to advance its financial performance management (FPM) suite and emphasizes its Cognos TM1 platform to support a range of finance department tasks. Second, the user-led sessions illustrated improvements that finance departments can make to their core processes today, ones that improve the quality of these processes and go a long way toward enabling Finance to play a more strategic role in the company it serves. Third, the Cognos Disclosure Management product has better performance and useful new features to support the management of a full range of internal and external disclosure documents, including the extended close, which I have discussed.
Topics: Planning, Reporting, Budgeting, closing, XBRL, Analytics, Business Performance, Data Management, Financial Performance, IBM, CFO, Financial Performance Management, FPM, SEC, TM1, Digital Technology
Anaplan’s software is designed to help organizations across finance, sales and operations improve accuracy, timeliness and collaboration in their business analytics and planning. I recently attended the company’s first user conference, Hub 2013, in San Francisco, which featured customer success stories and latest on product information. Anaplan has built its business on the subtleties of modeling and planning that are shared between sales, operations and finance departments, and it enables them to apply analytics to projections in revenue, sales, forecasting, territory planning, commissions, quotas and profitability – areas that are intertwined through many business processes. Anaplan’s team has more than decades of experience in the analytics and planning software markets that has led to its devised cloud-based, in-memory computing software.
Topics: Big Data, Planning, Sales Performance, Supply Chain Performance, FP&A, Modeling, Operational Performance, Analytics, Business Analytics, Business Intelligence, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, finance, Sales Planning
At this year’s annual SAP user conference, SAPPHIRE, the technology giant showed advances in its cloud and in-memory computing efforts. It has completed the migration of its conventional application suite and portfolio of tools to operate on SAP HANA, its in-memory computing platform, and made improvements in its cloud computing environment, SAP HANA Enterprise Cloud. The last time I analyzed SAP HANA was when it won our firm’s 2012 Overall IT Technology Innovation Award. Now HANA has been transitioned from just a database technology into a broad platform. SAP wisely consolidated its efforts previously known as SAP NetWeaver into SAP HANA. This resolves some confusion regarding HANA and NetWeaver in the cloud, which I assessed. The recently announced SAP HANA Platform now provides the enterprise class of HANA implementation in the cloud. It comes with a trial edition of the data and visual discovery technology now called SAP Lumira, whose price has been reduced to encourage adoption (and which I discuss more below). The use of in-memory databases for big data is accelerating: According to our technology innovation research, 22 percent of organizations are planning to use this technology over the next two years, and through 2015 it will have a higher growth rate than other approaches.
Topics: Big Data, Predictive Analytics, SAP, Social Media, Supply Chain Performance, Teradata, Mobile Technology, Operational Performance, Business Analytics, Business Collaboration, Business Intelligence, Business Performance, CIO, Cloud Computing, Customer & Contact Center, Financial Performance, Governance, Risk & Compliance (GRC), HP, Information Applications, Information Management, Workforce Performance, CFO, CMO, SAP EPM, SAP HANA, SAP Lumira, SAPPHIRE, Tagetik
Software Aims To Prevent Foreign Corrupt Practices
In some parts of the world, bribing government officials is still considered a normal cost of doing business. Elsewhere there has been a growing trend over the past 40 years to make it illegal for a corporation to pay bribes. In the United States, Congress passed the Foreign Corrupt Practices Act (FCPA) in 1977 in the wake of a succession of revelations of companies paying off government officials to secure arms deals or favorable tax treatment. More recently other governments have implemented anticorruption statutes. The U.K., for instance, enacted the strict Bribery Act in 2010 to replace increasingly ineffective statutes dating back to 1879. The purpose of these actions is to enable ethical and law-abiding companies to compete on a level playing field with those that are neither. A cynic might wonder about the real, functional difference between, say, Wal-Mart’s recent payments to officials in Mexico to accelerate approval of building permits and the practice in New York City of having to engage expediters to ensure timely sign-offs on construction approval documents. No matter – the latter is legal (it’s a domestic issue, after all) while the former is not.
Topics: SAP, ERP, Governance, GRC, bribery, Operational Performance, Business Analytics, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), IBM, Operational Intelligence, Oracle, CFO, compliance, FPM, Oversight Systems
Oracle Aims To Simplify IT and Innovate Your Business
I was recently at Oracle Analyst World which is the vendor’s annual gathering of technology industry analysts. Its executives and others in the products organization deliver the latest news on where the titan is focusing efforts to expand its technology and markets. This year, against the background of the consumer and business markets embracing mobile and cloud computing, Oracle is working to sound like a more friendly supplier that can help remove legacy issues and inefficiencies that plague CIOs and data centers. Oracle also used this forum to attract IT departments to the technology advances it has made across its deep and broad portfolio of products. Oracle has more than 3,900 software products and more than 3,000 software patents that indicate its significant investment in R&D. Now the company is beginning to release improved products more frequently, which most customers now expect from technology vendors.
Topics: Big Data, Mobile, Sales Performance, Social Media, Supply Chain Performance, Social Collaboration, IT Performance, Operational Performance, Business Analytics, Business Collaboration, Business Intelligence, Business Mobility, Business Performance, CIO, Cloud Computing, Customer & Contact Center, Financial Performance, Governance, Risk & Compliance (GRC), Information Applications, Information Management, Location Intelligence, Operational Intelligence, Oracle, Workforce Performance, CFO, COO
Infor Demonstrates Steady Stream of Advances to Customers
At this year’s Inforum user group conference, Infor representatives showed the progress the organization has made since last year in transforming itself from a ragbag of mostly small, often obsolete software companies to a competitive vendor of a modern enterprise management software suite. Infor was created by private equity investors employing a “rollup” strategy, aimed at combining smaller companies within an industry to form a single larger company that could achieve economies of scale and greater market presence. Others have tried this in the software industry in the past and encountered difficulty in making it work for two primary reasons. One is the technical challenge of achieving economies of scale in enterprise applications by turning a set of similar but separately developed software pieces into a single offering. Computer Associates achieved economies of scale through acquisition in the 1990s in the IT infrastructure software segment. But it did this largely by forcing customers of the various acquired companies to migrate to its single offering in the specific category. This is not a practical approach for business and finance enterprise applications because customers are willing to go off maintenance and eventually look for another vendor. The second difficulty is that newer or larger competitors can focus on innovation and overtake the rollup company while its attention and resources are focused on stitching the pieces together.
Topics: Big Data, Mobile, Planning, Sales Performance, Social Media, Supply Chain Performance, GRC, Office of Finance, Budgeting, closing, IT Performance, Operational Performance, Analytics, Business Analytics, Business Collaboration, Business Performance, Cloud Computing, Collaboration, Customer & Contact Center, Financial Performance, Information Management, Workforce Performance, CFO, Infor, Risk, FPM, SEC
For four years Adaptive Planning has been building out its cloud-based financial software. Starting with budgeting, planning and forecasting, it added analytics, data visualization, dashboards and alerting as well as flexible reporting and collaboration tools. It recently announced the general availability of consolidation functionality in its cloud-based suite. This addition eliminates a notable gap in the company’s functionality, giving it a more complete financial performance management suite. The addition of the consolidation capability should increase its appeal to larger companies and broaden usage within its existing customer base. According to Adaptive Planning, already about one-fourth of its customers are organizations or parts of organizations that have annual revenue in excess of US$500 million.
Topics: Office of Finance, close, Consolidation, Controller, Business Performance, Cloud Computing, Financial Performance, CFO, Data, Financial Performance Management
The Importance of Managing Details in Long-Range Planning
Ventana Research recently completed an in-depth benchmark research project on long-range planning. As I define it, long-range planning is the formal quantification of the more conceptual strategic plan. It makes specific assumptions and expresses in numbers how a company expects its strategy will play out over time. Almost all (95%) of those participating in the research see a need to make improvements to their long-range planning process. The research shows that one useful improvement is integrating long-range planning with the budgeting process. Today, many corporations confine their long-range planning to a high-level, less detailed extension of their current budget. Our research shows that companies that incorporate individual capital projects and major business initiatives as discrete elements of the long-range plan get better results. Marrying the high-level business outlook with the more significant bottom-up investment details produces better results.
Topics: Big Data, Performance Management, Planning, Sales Performance, Supply Chain Performance, Office of Finance, Reporting, Operational Performance, Business Analytics, Business Performance, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, CEO, Financial Performance Management, FPM
Tidemark Leads New Wave of Innovation in Planning and Performance Excellence
Organizations succeed through continuous planning to achieve high levels of performance. For most organizations planning is not an easy process to conduct. Planning software is typically designed for only a few people in the process, such as analysts, or organizations might use spreadsheets, which are not designed for business planning across an organization. Most technologies only allow you to examine the past and not plan for the future. For decades organizations have tried to focus planning on driving better results through higher participation, but they have usually failed, as technology has not advanced enough to support this business need.
Topics: Big Data, Sales Performance, Supply Chain Performance, Mobile Technology, Operations, Operational Performance, Business Analytics, Business Collaboration, Business Intelligence, Business Performance, Cloud Computing, Cloudera, Customer & Contact Center, Financial Performance, Governance, Risk & Compliance (GRC), Information Applications, Workforce Performance, Business Planning, CFO, finance, Tidemark, Workday
This is annual report season, the time of year that a majority of European and North American corporations issue glossy paper documents aimed at investors, customers, suppliers, existing and prospective employees as well as the public at large. (Some countries have different conventions; in Japan, for instance, most companies are on a March fiscal year.) In reviewing some of the annual reports that are available on the Web, I was struck by the absence of advanced reporting technology used on investor web pages and in online annual reports of vendors of advanced reporting technology. (One notable exception is Microsoft, which uses Silverlight on its investor web pages.) Adobe Acrobat (introduced 20 years ago) is the presentation method of choice for the annual report. It would be great if publicly traded vendors that sell tools that automate the process of assembling investor documents (such as Exact Software, IBM, Infor, SAP and Trintech) would demonstrate their value beyond simple compliance. These companies’ tools support and automate the processes that are part of what some call “the last mile of finance,” referring to their use in the final steps of a stream of activities that starts with closing the books and performing statutory financial consolidations and ends with publishing and filing financial documents to satisfy regulatory or contractual obligations. (I prefer to use the term “close-to-disclose cycle” because it’s a more accurate description.) These vendors should go the extra mile and redesign their investor sites to show how XBRL-tagged financial documents can be used to communicate more effectively with shareholders.
Topics: Office of Finance, extended close, US-GAAP, XBRL, Analytics, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), CFO, compliance, financial reporting, SEC, Digital Technology
Getting to the Next Generation of Finance Analytics
One of the most important IT trends over the past decade has been the proliferation of ever wider and deeper sets of information sources that businesses use to collect, track and analyze data. While structured numerical data remains the most common category, organizations are also learning to exploit semistructured data (text, for example) as well as more complex data types such as voice and image files. They use these analytics increasingly in every aspect of their business – to assess financial performance, process quality, operational status, risk and even governance and compliance. Properly applied, business analytics can deliver significant value by deepening insight, supporting better decision-making and providing alerts when situations require attention from managers or executives.
Topics: Planning, Predictive Analytics, Customer, Human Capital Management, Office of Finance, Budgeting, close, closing, Finance Analytics, PRO, Operational Performance, Analytics, Business Analytics, Business Collaboration, Business Performance, Cloud Computing, Financial Performance, CFO, Risk, costing, FPM, Profitability
I’m wondering whether the rapid rise in earnings restatements by “accelerated filers” (companies that file their financial statements with the U.S. Securities and Exchange Commission that have a public float greater than $75 million) over the past three years is a significant trend or an interesting blip. According to a research firm, Audit Analytics, that number has grown from 153 restatements in 2009 to 245 in 2012, a 60 percent increase. What makes it a blip is that the total is still less than half the number that occurred in 2006 as the Sarbanes-Oxley Act began to take effect. As well, the number of companies restating is still less than one percent of the total. Yet it’s a blip worth paying attention to, since the consequences of a restatement pose a serious professional challenge to finance executives. The right software can help address some of the underlying causes that lead to the need to restate earnings.
Topics: Customer Experience, Governance, GRC, Office of Finance, Reporting, audit, close, Consolidation, Controller, Tax, XBRL, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), CFO, compliance, FPM, SEC
Ventana Research completed an in-depth benchmark research project on long-range planning recently. As I define it, long-range planning is the formal quantification of the strategic plan and how that strategy is expected to play out over a period of time. The benchmark demonstrated that there’s room for improvement in almost every aspect of the long-range planning process. Almost all (95%) of those participating in the research see the need to advance their process. The research confirmed that long-range planning does not work well in isolation. Greater integration of the annual budget with the long-range plan and deeper integration of individual capital projects and initiatives are two ways to enhance the value of long-range planning process.
Topics: Big Data, Performance Management, Planning, Office of Finance, Reporting, Uncategorized, CFO, CEO, Financial Performance Management, FPM
Ventana Research recently completed an in-depth benchmark research project on long-range planning. As part of the research we had discussions with CFOs and those involved in financial planning and analysis about their company’s strategic and long-range planning processes, which pointed to the need for clarity in using the terms “strategic planning” and “long-range planning.”
Topics: Big Data, Performance Management, Planning, Sales Performance, Supply Chain Performance, Office of Finance, Reporting, Operational Performance, Business Performance, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, CEO, Financial Performance Management, FPM
I was discussing the United States Securities and Exchange Commission’s (SEC) eXtensible Business Reporting Language (XBRL) mandate with a former head of investor relations at a Fortune 100 company. His take on it is much the same as that of everyone else involved with corporate reporting: it doesn’t produce much value and costs a bundle to comply. I related to him my thoughts on the lack of progress I saw in making the XBRL mandate more useful to corporations and investors alike. Making XBRL data readily available to the public – not just for SEC enforcement purposes – is consistent with the SEC’s three-fold mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. In addition to giving XBRL-tagged data greater practical value to investors, the trove of company data assembled by the SEC could be used by a wide range of people working within corporations.
Topics: Office of Finance, Reporting, extended close, US-GAAP, XBRL, Analytics, Business Performance, Financial Performance, CFO, compliance, financial reporting, FPM, SEC, Digital Technology
To mark the fourth anniversary of the Securities and Exchange Commission’s (SEC) interactive data mandate, Columbia Business School (my alma mater) and its Center for Excellence in Accounting and Security Analysis (CEASA) published a review of the current state of eXtensible Business Reporting Language (XBRL) that notes the manifold issues that plague this promising technology. From its perspective, three key issues hamper greater use of XBRL. The first is the high error rate in the tagging process and the tendency of companies to use too many non-standard tags, both of which substantially reduce the usefulness of the data to practitioners. Second, they believe technologists, not regulators and accountants, should be more involved in developing software that makes it easier to consume XBRL-tagged data. Third, companies should spend more effort improving the quality of their data than on trying to kill the mandate.
Topics: Office of Finance, extended close, US-GAAP, XBRL, Analytics, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), CFO, compliance, financial reporting, SEC, Digital Technology
Taxes – both indirect (sales or value added taxes, for example) and direct (income taxes) – are one the largest expense items on the corporate income statement. In recent years it has become common for large and even midsize companies to automate their indirect tax management process, but direct tax management has remained a bastion of manual processes built on a heap of desktop spreadsheets. In previous blog posts I discussed this issue and the role of the tax data warehouse as a necessary foundation for automating the direct tax process. Addressing an important need, Vertex is currently providing a limited release of its Enterprise offering, a single-platform approach to managing all types of taxes (direct and indirect) across the entire tax life cycle (from analysis through provisioning to audit defense) using a single data source.
Topics: ERP, GRC, Office of Finance, audit, finance transformation, Tax, Analytics, Business Analytics, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), Information Management, CFO, Vertex, FPM
The Rationale and Agenda for Why Human Capital Management in 2013
Human capital is most organizations’ largest investment and one of their largest differentiators against the competition. So it follows that those that take advantage of the compelling, game-changing technology now available in human capital management (HCM) will place themselves at a competitive advantage.
Topics: Big Data, Social Media, HCM, Human Capital Management, Learning, Office of Finance, Social Collaboration, Analytics, Business Analytics, Business Collaboration, Business Intelligence, Business Performance, Cloud Computing, Information Applications, Information Management, Workforce Performance, CFO, Compensation, finance, HR, Talent Management, Workforce Management
Businesses always see a lag between when technology makes some advance possible and when a majority of companies actually adopt it. There’s even a longer lag between the emergence of an advance in a business process or technique and the time it takes to become mainstream. When we write our research agendas at the top of each year, we have to strike a balance between focusing on the new and different, which is still many years away from general acceptance, and the mainstream, which has been anticipated for so long that it almost seems passé. Our research agenda for office of finance to support business for 2013, which I just finalized, is once again an attempt to balance the leading edge and the mainstream with an eye to practical solutions.
Topics: Big Data, Planning, Predictive Analytics, Sales Performance, Governance, GRC, Office of Finance, Budgeting, close, Operational Performance, Analytics, Business Analytics, Business Collaboration, Business Performance, CIO, Cloud Computing, Financial Performance, Governance, Risk & Compliance (GRC), In-memory, Workforce Performance, CFO, Risk, CEO, Financial Performance Management, FPM
What Every CEO Should Know About Software for Finance and Sales
This is the third in a series of blog posts on what CEOs (and for that matter, all senior corporate executives) need to know about IT and its impact on running a business. The first covered the high-level issues. As I noted, it’s not necessary for a CEO to be able to write Java code or master the intricacies of an ERP or sales compensation application. However, CEOs must grasp the basics of IT just as they must understand basic corporate finance, the production process and – at least at a high level – the technologies that support that process. My second post was about four supporting technologies that will drive change in business computing over the next five years. It relates examples of how applications can help every part of a business operate more effectively, not just efficiently. Now let’s turn our attention to finance and sales – and as I’ve noted in the previous posts, what follows is an “elevator pitch” treatment of what could be a much longer discussion.
Topics: Planning, Predictive Analytics, Sales, Sales Performance, Customer, Human Capital Management, Office of Finance, Budgeting, close, closing, PRO, Operational Performance, Analytics, Business Analytics, Business Performance, Customer & Contact Center, Financial Performance, Information Management, CFO, CEO, FPM, Profitability, SPM
Equifax Workforce Solutions for Human Capital Management
Businesses need to simplify HR and compliance processes to save time and reduce risk. Talx, which helps employers address concerns in hiring, pay and compliance, has now assumed the name of its parent company and become Equifax Workforce Solutions [PDF]. HR and finance professionals should recognize the parent company’s brand from its work in the consumer credit industry. The company hopes these professionals will see that Equifax Workforce Solutions offers a better approach to governance, risk and compliance. According to our research, 79 percent of organizations want a better method to identify and manage risks faster.
Topics: Equifax, eThority, GRC, I9, Office of Finance, Operational Performance, Financial Performance, Governance, Risk & Compliance (GRC), Workforce Performance, CFO, Compensation, compliance, finance, Hiring, HR, TALX, Workforce Solutions
Using the Close as a Finance Department Diagnostic
Earlier this year we published our Trends in Developing the Fast, Clean Close benchmark research findings. The most significant was that, on average, it takes longer for companies to close their books today than it did five years ago. In 2007, nearly half (47%) we closing their quarters within five or six days, but now only 38 percent can do it as quickly.
Topics: Office of Finance, close, closing, Consolidation, Controller, effectiveness, XBRL, Business Performance, Financial Performance, CFO, Data, Document Management, Financial Performance Management, FPM
What Every CEO Needs to Know About Key Supporting Technologies
I recently started a series of blog posts on what CEOs (and for that matter, all senior corporate executives) need to know about IT. The first covered the high-level issues. As I noted there, it’s not necessary for a CEO of a company to be able to write Java code or master the intricacies of an ERP or sales compensation application. However, CEOs must grasp the basics of IT just as they must understand basic corporate finance, the production process and – at least at a high level – the technologies that support that process. This installment is about four supporting technologies that will be drive considerable change in business computing over the next five years. Each of these subjects is worthy of a chapter-length discussion or even a book; what follows is the “elevator pitch” version.
Topics: Big Data, Mobile, SaaS, Sales Performance, Social Media, Supply Chain Performance, Customer, ERP, Operational Performance, Business Analytics, Business Collaboration, Business Performance, Cloud Computing, Complex Event Processing, Customer & Contact Center, Financial Performance, In-memory, Information Management, Workforce Performance, CFO, CEO, PaaS
I’m happy to say that Ventana Research celebrated its tenth anniversary at our recent Business Technology Innovation Summit in San Jose at the Tech Museum. This location was fitting, since at the event we introduced and presented our first-ever Technology Innovation Awards and seventh annual Leadership Awards. If you did not get a chance to attend, we have the live webstream available for replay at no cost; thanks to Splunk for sponsoring this to let everyone enjoy the sessions.
Topics: Sales Performance, SAP, Social Media, Supply Chain Performance, Peoplefluent, Planview, Research, Splunk, IT Performance, Operational Performance, Business Analytics, Business Collaboration, Business Intelligence, Business Performance, CIO, Cloud Computing, Customer & Contact Center, Financial Performance, IBM, Information Applications, Information Management, Location Intelligence, Operational Intelligence, Workforce Performance, Ceridian, CFO, CMO, COO, Datawatch, Saba, Technology
The business/IT divide is a barrier that prevents most companies from achieving their true performance potential. The divide has remained a constant impediment since the dawn of business computing six decades ago. It’s not necessary for a CEO of a company to be able to write Java code or master the intricacies of an ERP or sales compensation application. However, that CEO must master the basics of IT just as he must understand basic corporate finance, the production process and – at least at a high level – the technologies that support that process. Only a handful of business schools give prospective MBAs a good grounding in the practical elements of information technology or preach the necessity of mastering an understanding of IT as they would, say, the efficient market hypothesis.
Topics: Big Data, Performance Management, Sales Performance, Supply Chain Performance, Human Capital Management, competition, executive, Operational Performance, Business Performance, CIO, Cloud Computing, Customer & Contact Center, Financial Performance, In-memory, Workforce Performance, CFO, IT, CEO, FPM
Budget season is about to open at most companies that operate on a calendar year, so this is probably as good a time as any to rethink the process. Almost all companies will undertake the construction of a budget this year the same way they did it last year, despite widespread complaints that it is a monumental waste of time. One major reason why budgeting never changes is that it isn’t important enough to be worth serious rethinking. Another reason is that too many vested interests are aligned with the status quo, especially because compensation is tied to budgets. Despite this, I think companies can do better, evolving the process from a finance-centric activity to one that serves the needs of broader business interests as well.
Topics: Big Data, Planning, Sales Performance, Office of Finance, Reporting, Budgeting, Controller, Operational Performance, Business Performance, Financial Performance, CFO, Compensation, cash management, FPM, Integrated Business Planning
Tagetik Offers a Suite Spot for Financial Performance Management
If you’re considering purchasing a financial performance management (FPM) suite, you shouldn’t overlook a recent entrant in the category, Tagetik (which sort of rhymes with “magnetic”). The company, which was founded in 1986 and is based in Lucca, Italy, began by focusing mainly on Europe, but has extended its efforts in the United States in the past two years. Tagetik 4.0 is an elegant implementation of a financial performance management suite running on Microsoft’s SharePoint infrastructure.
Topics: Big Data, Planning, Office of Finance, Reporting, Budgeting, close, Consolidation, Controller, SharePoint, XBRL, Business Analytics, Business Collaboration, Business Performance, Dashboards, Financial Performance, Workforce Performance, CFO, Tagetik, FPM
What a Bugatti Can Teach Us About Information Management
One of the community groups to which I donate my time is an organization that puts on a Concours d’Élegance – a vintage car show. Such Concours date back to seventeenth-century France, when wealthy aristocrats gathered to see who had the best carriages and most beaudacious horses. Our Concours serves as the centerpiece to a broader mission of raising money for several charities. There a many such events in the United States and elsewhere, but this one, which has been held every year since 1956, has the distinction of being the longest continuously running Concours in the United States.
Topics: Big Data, GRC, IT Performance, Operational Performance, Business Analytics, Business Intelligence, Business Performance, CIO, Financial Performance, Information Management, Operational Intelligence, CFO, finance, Talent Management, FPM
Good Data Stewardship Is Critical for Business Analytics
Our research consistently finds that defects in data are the root cause of a wide range of problems encountered by modern corporations. The magnitude of the problem correlates with the size of the company: Big companies have bigger headaches than midsize ones. Data issues diminish productivity in every part of a business as people struggle to correct errors or find workarounds. Issues with data are a man-made phenomenon, yet companies seem to treat bad data as some sort of force of nature like a tornado or earthquake – something that’s beyond their control to fix. At best they look for one-off workarounds and Band-Aids without tackling the root causes or recognizing the need to keep data issues in check. Data stewardship can and should be a part of a disciplined approach to management in the same way organizations implement quality control, cash management and legal compliance.
Topics: Big Data, Predictive Analytics, Sales Performance, Supply Chain Performance, GRC, IT Performance, Operational Performance, Business Analytics, Business Intelligence, Business Performance, CIO, Customer & Contact Center, Financial Performance, Information Management, Operational Intelligence, Workforce Performance, CFO, finance, FPM
Midsize Companies Find ERP in the Cloud Increasingly Attractive
Midsize businesses “pay” for their use of entry-level accounting systems by not having the essential information they need readily available and by using up valuable time that could be better spent generating business, finding issues or responding to opportunities sooner or simply enhancing the efficiency of the organization. Nevertheless, the transition from an entry-level accounting package such as QuickBooks to an on-premises system can be daunting for companies whose entry-level software no longer addresses their needs. Usually, the shortcomings start off as minor annoyances for companies that have between 100 and 500 employees and grow over time, and usually the pain grows with the number of employees and the volume and complexity of the underlying business. As business volumes expand and complexity grows, entry-level accounting systems are increasingly less able to support the underlying business. Yet finance executives usually don’t want to migrate to a new system until their old software threatens the orderly management of the business or becomes an overwhelming burden on finance operations. I know this firsthand, since not all that long ago I worked at a company where the CFO thought his biggest IT challenge was finding spare parts for the ancient Burroughs mainframe on which our financial system ran.
Topics: Sales Performance, Customer Experience, ERP, Office of Finance, end-to-end, finance cloud, Business Performance, Cloud Computing, Financial Performance, Business Process Management, CFO, finance, accounting software, business process execution, financial systems, FPM
People used to use the phrase “the last mile” solely to refer to a condemned prisoner’s path to execution. Then the telecommunications industry picked it up to describe that part of a circuit between a major trunk line and a subscriber. Later still a defunct software company, Movaris (now part of Trintech), used the phrase in an analogy to refer to the set of activities that take place between when a company closes its books and the point where it finishes its external reporting activities, such as disclosing periodic earnings and financial conditions to investors or filing financial statements with regulators or lenders. It was an attempt to focus attention on the need to automate and better coordinate the multiple, disparate but interconnected threads that have to be orchestrated to complete the external reporting tasks accurately and on time. Personally, I’ve never cared for the phrase being used in this context; there are really multiple “last miles,” with multiple and sometimes overlapping destinations. I prefer “the close–to-report cycle” because it’s more precise in its description, and because rather than pointing to finality, “cycle” defines it for what it is – a repetitive periodic activity. And because it is periodic and repetitive, it benefits from process optimization and automation, which can substantially reduce the effort required to complete a cycle and alleviate the stress certain departments often feel as deadlines loom.
Topics: Customer Experience, Governance, GRC, Office of Finance, Reporting, audit, close, Consolidation, Controller, XBRL, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), CFO, compliance, FPM, SEC
Is Your Vendor Hot in Financial Performance Management Software?
We recently issued our 2012 Value Index on Financial Performance Management (FPM). Ventana Research defines FPM as the process of addressing the often overlapping people, process, information and technology issues that affect how well finance organizations operate and support the activities of the rest of their organization. FPM deals with the full cycle of finance department activities, which includes planning and budgeting, analysis, assessment and review, closing and consolidation, internal financial reporting and external financial reporting, as well as the underlying information technology systems that support them. We construct the Index through a detailed evaluation of each product’s suitability to task in five categories, as well as the effectiveness of the vendor’s support for the buying process and customer assurance. The resulting index gauges the value offered by a vendor and its products.
Topics: Mobile, Planning, Predictive Analytics, Office of Finance, Budgeting, closing, Consolidation, contingency planning, Analytics, Business Analytics, Business Performance, Financial Performance, CFO, Value Index, Financial Performance Management
CODA’s Financials has a specific target market, from companies in the upper half of the midsize range to the lower end of the large range (that is, companies with 500 to 2,500 employees) in services (not manufacturing) businesses. CODA, the company, started in the 1990s and differentiated itself by designing ERP and accounting software to run on a multidimensional database rather than the more common relational databases of the day. This has proven to be an elegant approach, because businesses inherently have multiple perspectives from which to view and describe their operations. Some of the most common dimensions include products, customers, corporate business units, time and currency. Each of these can be defined in a hierarchy: Individual stock-keeping units are part of products, which are part of product families, which may be part of a specific brand. Days are parts of weeks or months, which are part of quarters, which are part of years. If the multidimensional database had been available in the 15th century when Fra Luca Pacioli codified double-entry bookkeeping, I’m certain the friar would have kept his books in this form.
Topics: Sales Performance, ERP, Office of Finance, CODA, Operational Performance, Analytics, Business Analytics, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, CFO, FinancialForce, financials
I’ve written frequently on issues that confront desktop spreadsheet users, such as business modeling and capital investment, as well as the risk and control issues spreadsheets pose and their contribution to paralysis by analysis. I focus mainly on the technology aspects of organizational challenges, and I usually recommend replacing stand-alone desktop spreadsheets with more appropriate tools. Yet there are many instances where spreadsheets work well, and in other cases people continue to use them when they shouldn’t. For these reasons, executives and managers must pay attention to spreadsheet training. Many people who use spreadsheets have overblown estimations of their own competence, often those who use them all the time and have years of experience. With these and other tools, unless people are tested and trained on a recurring basis, one can never be sure how well they perform. The consequences of poorly trained spreadsheet users can be significant, both in terms of their impact on direct productivity and in relating to the capabilities of the spreadsheet files they construct and the potential for errors in poorly crafted ones.
Topics: GRC, Office of Finance, Operational Performance, Business Analytics, Business Intelligence, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), CFO, finance, Training
What’s a fast, free and reasonably reliable way of gauging the effectiveness of a finance department’s management? It’s the number of days it takes it to close the books. Companies that take six days or fewer after the end of the period to close their monthly, quarterly or semiannual accounts demonstrate a basic level of effectiveness that those that take longer do not. In my judgment, finance executives should regard a slow close as a negative key performance indicator pointing to less-than-effective management on their part. I draw this conclusion from our recent benchmark research, which followed up similar research we completed in 2007.
Topics: Sales Performance, Office of Finance, close, Consolidation, Controller, XBRL, Business Analytics, Business Intelligence, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), CFO, Data, Document Management, Financial Performance Management
Anyone who focuses on the practical uses of information technology, as I do, must consider the data aspects of adopting any new technology to achieve some business purpose. Reliable data must be readily available in the necessary form and format, or that shiny new IT bauble you want to deploy will fall short of expectations. Our research benchmarks cover a range of core business and IT processes, and they regularly demonstrate that data deficiencies are a root cause of issues organizations have in performing core functions; typically the larger the company, the more severe the data issues become.
Topics: Social Media, Supply Chain Performance, GRC, IBM Business Analytics, Business Technology Innovation, Operational Performance, Business Analytics, Business Collaboration, Business Intelligence, Business Performance, CIO, Customer & Contact Center, Financial Performance, Governance, Risk & Compliance (GRC), Information Applications, Information Management, Location Intelligence, Operational Intelligence, Workforce Performance, CFO, finance
Planview Helps Direct Business and IT Portfolios to Optimal Outcomes
Business has been getting smarter about using technology for analyzing processes and optimizing outcomes, but still has much room for improvement when it comes to operational management. Traditional project management has advanced to encompass financial and operational planning, including prioritization toward goals and expected outcomes, creating the concept of portfolio management. In essence, optimizing the use of people and processes associated with products and services along with supporting technology is what portfolio management is all about. Unfortunately, many organizations that use personal productivity tools do not realize that email, presentations and spreadsheets are not efficient or effective tools for these purposes compared to adopting applications designed for them.
Topics: Sales Performance, Supply Chain Performance, Portfolio Management, IT Performance, Operational Performance, Analytics, Business Analytics, Business Intelligence, Business Performance, CIO, Cloud Computing, Customer & Contact Center, Financial Performance, Workforce Performance, CFO
Cognos Express Gives Midsize Companies Outsize Capabilities
A main reason why desktop spreadsheets are pervasive in midsize companies (which we define as those with 100 to 1,000 employees) is that these organizations do not have the financial and manpower resources to implement and maintain traditional enterprise business intelligence and performance management systems. To address this gap in the market, several years ago IBM Cognos launched Express, a business intelligence and planning software package designed specifically for midsize companies as well as independent workgroups within larger corporations. It’s a package designed for easy (and relatively inexpensive) implementation and maintenance, often by channel partners.
Topics: ERP, Office of Finance, Reporting, Budgeting, Analytics, Business Intelligence, Dashboards, IBM, Uncategorized, CFO, finance, Financial Performance Management
For at least a couple of decades completing the financial close within five or six business days after the end of the period has been accepted as a best practice. As such, that creates an expectation that finance organizations that take longer should work to reduce their closing intervals. In updating our last benchmark research on the closing process, Ventana Research has found this not to be the case. In fact, the latest research shows that many companies are taking longer to close today than they did five years ago. Whereas nearly half (47%) were able to close their quarter or half-year period within six business days back then, just 38 percent are able to do so now. Similarly, five years ago 70 percent of companies were able to complete their monthly close in six days; today only half can. To be sure, closing quickly still gets lip service: The research confirms that most companies (83%) view closing their books quickly as important or very important. Yet far from demonstrating progress, the results show slow closers are regressing.
Topics: Office of Finance, close, Consolidation, Controller, XBRL, Business Analytics, Financial Performance, Governance, Risk & Compliance (GRC), Information Management, CFO, Data, Document Management, Financial Performance Management
The mandate by the U.S. Securities and Exchange Commission (SEC) that requires its filers to apply eXtensible Business Reporting Language (XBRL) tags to their financial statements has been in effect for several years. (XBRL is a core element of our Office of Finance Research Agenda for 2012.) One of the most important ideas behind this “interactive data” requirement was to make it as simple as possible for investors to be able to consume and analyze corporate financial data filed with the SEC. This intent sets the SEC mandate apart from most other XBRL tagging requirements, which are designed for the needs of regulatory bodies such as the Bank of Japan, the Australian federal and state governments and the U.S. Federal Deposit Insurance Corporation (FDIC). Moreover, I believe the depth and breadth of the SEC’s database and the size of the U.S. equity capital markets make this the most important public-focused use of XBRL in the world. Considerable progress has been made toward the main objective, but considerably more is needed, and the sooner the better.
Topics: Office of Finance, extended close, US-GAAP, XBRL, Analytics, Business Analytics, Business Collaboration, Business Intelligence, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), Information Applications, Information Management, CFO, compliance, financial reporting, SEC, Digital Technology
Time To Consider How Accounting Rules Changes Will Affect IT Systems
The evolution from United States Generally Accepted Accounting Standards (US-GAAP) to International Financial Reporting Standards (IFRS) has been under way for more than a decade. I’ve commented on IFRS adoption before. It’s a hot topic for accountants and auditors because it goes to the heart of how companies keep their books.
Topics: Office of Finance, closing, Controller, FASB, IASB, IFRS, XBRL, financial performance, Analytics, Business Analytics, Business Intelligence, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), CFO, financial statement, GAAP, SEC
Data Plays a Key Role in the Close-to-Report Cycle
Ventana Research recently completed an update to our last benchmark research on the financial closing process. It shows that many companies are taking longer to close today than they did five years ago. Whereas nearly half (47%) were able to close their quarter or half-year period within six business days five years ago, just 38 percent are able to do so in our latest benchmark. Similarly, five years ago 70 percent of companies were able to complete their monthly close in six days; today only half can. The research confirms that most companies (83%) view closing their books quickly as important or very important. Participants acknowledge that they can do better, saying on average that their company can cut at least two days from both the monthly and quarterly closes. Moreover, the longer it takes their company to close, the more time participants think they could save.
Topics: Office of Finance, close, Consolidation, Controller, XBRL, Business Analytics, Business Mobility, Business Performance, Cloud Computing, Financial Performance, CFO, Data, Document Management, Financial Performance Management
Ventana Research’s new financial close benchmark research reveals that many companies are taking longer to close today than they did five years ago. Whereas nearly half (47%) were able to close their quarter or half-year period within six business days five years ago, just 38 percent are able to do so in our latest benchmark. Similarly, five years ago 70 percent of companies were able to complete their monthly close in six days; today only half can. The research confirms that most companies (83%) view closing their books quickly as important or very important. Participants acknowledge that they can do better, saying on average that their company can cut at least two days from both the monthly and quarterly closes. And the longer it takes their company to close, the more time participants think they could save. Although there is some evidence that external factors such as economic and regulatory events have increased the workload in the close process, which in turn has extended some companies’ close period, I believe that organizations that take more than a business week to close their books have not made much effort to shorten the close, as I noted in a recent blog.
Topics: Office of Finance, close, Consolidation, Controller, XBRL, Operational Performance, Business Analytics, Business Performance, Financial Performance, Workforce Performance, CFO
Slow Closers Aren’t Serious about Improving Financial Performance
The most intractable issues that face finance departments are those that “everyone” knows must be addressed but somehow never muster the collective urgency to do so. Many couch potatoes know they need to watch their diet and exercise regularly. If asked, they would say it’s important or even very important. Yet there they sit. Based on our newly completed benchmark research “Trends in Developing the Fast, Clean Close”, it appears that closing falls into this category. This is especially true for companies that are slow closers, by which we mean those that take more than five or six business days (essentially one business week) to complete their monthly, quarterly or, for those that publish their financial statements only twice yearly, semiannual close. Our research shows that in general there has been no progress in achieving fast closes – indeed, there’s been some backsliding – over the past five years and, indeed, since our initial research on this subject in 2004.
Topics: Office of Finance, close, Consolidation, Controller, XBRL, Operational Performance, Business Analytics, Business Performance, Financial Performance, Workforce Performance, CFO
Financial analysts typically classify real estate as a fixed cost. Strictly speaking, that’s correct, but looking at it this way leads many organizations to overlook and miss opportunities to more carefully manage their real estate and other occupancy expenses. In industries where occupancy or ownership costs account for more than 20 percent of total business expense, taking a more active approach to managing real estate and occupancy can improve a company’s profitability. But in most cases achieving a higher return from money spent on corporate facilities requires some organizational and process changes.
Topics: Performance Management, Customer Experience, Office of Finance, Operational Performance, Business Analytics, Business Performance, Financial Performance, CFO, Financial Performance Management
GAAP and IFRS Harmonize Revenue Recognition Standards
The melding of the world’s two main financial accounting standards – United States Generally Accepted Accounting Standards (US-GAAP) and International Financial Reporting Standards (IFRS) – continues apace. Initially, the idea was to converge the two into a single, global standard. Although there was general agreement that the concept was a noble one, there were enough differences to produce practical concerns about implementing these changes, especially in the United States. Then, in December 2010, the U.S. Securities and Exchange Commission (SEC), which mandates accounting standards for publicly traded companies, indicated that while in principle it favors a single international accounting standard, the Commission was going to take a “condorsement” approach, which I covered in a note last year. The SEC’s move essentially derailed the prior objective of replacing US-GAAP with IFRS by the middle of this decade. Still, the coming together of US-GAAP and IFRS continues to forge ahead even without acceptance of full adoption in the U.S. The two bodies that administer accounting standards, the Financial Accounting Standards Board (FASB), which manages US-GAAP, and the International Accounting Standards Board (IASB), which manages IFRS, are attempting to standardize wherever possible and harmonize as best they can elsewhere. One important area where there’s been significant progress is revenue recognition.
Topics: Office of Finance, Controller, FASB, IASB, IFRS, XBRL, Financial Performance, CFO, financial statement, GAAP, SEC
One of the major issues IT executives face is how to charge their departmental costs back to each part of the business according to their usage. It’s a touchy issue that can be the source of end-user disenchantment with the performance and contribution of the IT organization. Ultimately, charge-back friction can hobble IT’s ability to make necessary investments in new capabilities and become the primary cause of misallocated IT spending. The two risks are related: Unless an IT department can calculate the real costs of the services it provides to specific parts of the business and charge for them accordingly, it is almost impossible for line-of-business department managers to assign priorities to the “keep the lights on” part of the budget, so even low-priority maintenance or upgrade efforts can crowd out all but the most pressing needs. The issue of allocating IT department costs spills over to Finance, which typically handles the allocations in budgeting and profit calculations. As a first step toward establishing an effective means of funding the IT function, I believe the finance department must establish better methods of allocating IT costs. Eventually the proper allocation of IT costs also becomes an issue for senior corporate executives as well because it has a direct impact on how effectively a company uses information technology.
Topics: Performance Management, Office of Finance, Budgeting, Operational Performance, Analytics, Business Analytics, Business Intelligence, Business Performance, CIO, Enterprise Software, Financial Performance, CFO, CEO
I recently had a briefing from Vertex on its tax data warehouse (TDW), a key component of its tax technology platform Vertex Enterprise. The TDW concept has been around for decades, but the earliest versions were custom-built and hampered by the technology limitations of their day. This made them expensive to deploy and maintain and constrained their ability to adapt to changing corporate requirements. The basic idea behind a TDW is straightforward: a data store that makes all tax data readily available and can be used to plan and provision a company’s taxes. But the complexity of tax-related data overwhelmed the ability of information technology to deliver on the concept. With today’s technological advances the basic idea is finally realizable in a practical sense.
Topics: Master Data Management, Performance Management, Office of Finance, finance transformation, Tax, Business Analytics, Business Collaboration, Business Performance, Financial Performance, CFO
Top Ten Best Practices Learned from 2011 Technology Market Chaos and Stupidity
While we will wait until January to publish our recommendations for the new year, we can digest the lessons learned in 2011 within the technology markets and with Ventana Research right now. That’s appropriate, since we at Ventana Research are committed to helping you with solid information and education. We help thousands of organizations make a better, faster, safer, smarter and more cost-effective environment for leveraging technology to its fullest extent. Our benchmark research worldwide across thousands of organizations of all sizes and vertical industries has found there is a lot more room for improvement than most realize or are addressing.
Topics: Sales Performance, Social Media, Supply Chain Performance, Sustainability, Market Research, IT Performance, Operational Performance, Analytics, Business Analytics, Business Collaboration, Business Intelligence, Business Mobility, Business Performance, Business Technology, CIO, Cloud Computing, Customer & Contact Center, Enterprise Software, Financial Performance, Governance, Risk & Compliance (GRC), Information Applications, Information Management, Information Technology, Location Intelligence, Mobility, Operational Intelligence, Workforce Performance, CFO, Industry Analyst, Technology
Salesforce.com looking for a Successful Rypple in Human Capital Management
Salesforce.com made a surprising announcement of its agreement to acquire Rypple, a software company that defines its product as a social goals application. I call this a surprise because although Salesforce has been extending its reach beyond sales and customer service to IT in providing a platform, tools and a database for building applications and storing data in the cloud, until now it has not entered directly into other lines of business. After its annual Dreamforce conference last summer, I analyzed the company’s strategy and products. Now I want to consider what this acquisition means for Salesforce and the human capital management market.
Topics: Sales Performance, Salesforce.com, SAP, Supply Chain Performance, Human Capital Management, Marketing, Operational Performance, Business Performance, Business Technology, Chatter, CIO, Cloud Computing, Customer & Contact Center, Information Management, Oracle, Workforce Performance, Business Applications, CFO, COO, CRM, HR, SalesCloud, Service Cloud, SFA, Talent Management, Digital Technology
SAP Aims to be More Cloudy and Mobile in 2012 and Beyond
I attended the annual SAP Influencer Summit (Twitter #SAPSummit), at which executives from SAP meet with analysts and customers from around the world to discuss the company’s direction. Pointing out that in 2012 SAP will reach its 40th anniversary of operations, chief communications officer Hubertus Kulpus and chief marketing officer Jonathan Becher kicked off the summit, then passed the microphones to co-CEO Jim Hagemann-Snabe and CTO Vishal Sikka for overviews of the business and technology strategies. They presented a well-rehearsed dialogue on SAP’s definition of its software business as being in two areas, the “system of record” and “system of engagement”; the first term describes its transactional applications and the second its portfolio of business analytics.
Topics: Mobile, Sales, Sales Performance, SAP, Social Media, Supply Chain Performance, Sustainability, Human Capital Management, Smart Phones, Business Technology Innovation, IT Performance, IT Research, Operational Performance, Business Analytics, Business Collaboration, Business Intelligence, Business Mobility, Business Performance, Business Technology, CIO, Cloud Computing, Customer & Contact Center, Financial Performance, Governance, Risk & Compliance (GRC), Information Applications, Information Management, Information Technology, Location Intelligence, Operational Intelligence, Workforce Performance, Business Applications, CFO, COO, CRM, HR, Sybase, Tablets, Talent Management, Digital Technology
Users Should Apply ERP To Manage End-to-End Processes
ERP systems not only collect information about transactions, they also automate processes. The latter includes managing the handoffs between roles and enabling electronic document creation and management associated with that. Indeed, it was the promise of improving process management and process execution that spurred companies to adopt ERP in the 1990s.
Topics: Customer Experience, ERP, Office of Finance, end-to-end, Operational Performance, Business Performance, Financial Performance, Business Process Management, CFO, business process execution
NICE to Acquire Merced Systems for Excellence in Customer Service and Sales
NICE Systems last week announced an agreement to acquire Merced Systems, a provider of business applications for customer service and sales organizations. This acquisition slipped by with little fanfare, but it marks a significant milestone for NICE, a major provider of applications and technology for call centers and a player in their evolution into multichannel contact centers. Building on a good 2010, as my colleague Richard Snow noted, NICE expects to reach almost $800 million of revenue in 2011, which would make it one of the largest companies in its segment. NICE has made multiple acquisitions to build its software portfolio, including purchases of Actimize, CyberTech, eGlue and others mentioned below. It recently won our 2011 Ventana Research Leadership Award in the contact center category with its customer deployment at Alliance Data. NICE Systems plans to have Merced Systems as a foundation of its enterprise systems and a complement to its contact center workforce optimization offering. This purchase builds on its other acquisitions, including FizzBack recently and IEX and Performix in 2006, which helped NICE establish its customer service and back office agent performance management software. That area has not grown as quickly as NICE would like, mostly due to marketing that was not aggressive enough in attracting customers. NICE recently rebranded its NICE SmartCenter for helping agents, as Richard noted, and is leveraging its assets into the back office, which he also assessed. Our benchmark research on contact center technology found that companies’ priorities for future investments match up well with NICE Systems’ focuses on expanding customer service agent applications and analytics applications.
Topics: Predictive Analytics, Sales, Sales Performance, Social Media, Customer Analytics, Customer Data Management, Customer Experience, Customer Feedback Management, Marketing, Merced Systems, NICE Systems, Revenue Performance, Sales Compensation, Sales Force Automation, Social CRM, Speech Analytics, Voice of the Customer, Operational Performance, Analytics, Business Analytics, Business Collaboration, Business Mobility, Business Performance, Cloud Computing, Customer & Contact Center, Customer Service, Financial Performance, Workforce Performance, Call Center, CFO, CMO, Contact Center, Contact Center Analytics, CRM, Desktop Analytics, Sales Performance Management, SFA, Text Analytics, Unified Communications, Workforce Management
A Good Example of More Effective Tax Data Management
Right after I posted my blog about the dearth of useful content for the line-of-business and finance audience at this year’s Oracle Open World, I attended a truly useful session. (Of course, it had been shunted to the next-to-last time slot on the final day of the event.) It was a case study presented by AT&T’s tax group, discussing its use of Oracle Hyperion Financial Management to manage the corporation’s tax data.
Topics: Master Data Management, Office of Finance, chart of accounts, Tax, Business Analytics, Business Collaboration, Business Performance, Financial Performance, CFO
The globalization of business is having a profound impact on corporate taxation worldwide, which shouldn’t surprise anyone who covers international tax laws. The impacts on corporations operating in multiple national jurisdictions (which today, especially in Europe, includes a large number of midsize companies) are both positive and negative. Positive in the sense that corporate tax rates, tax benefits, reporting and other aspects of tax regulation are subject to competitive moves by countries as a way of attracting businesses. Ireland, for example, long ago crafted the most aggressively company-friendly tax structure in Europe, but now the U.K. and other countries are reducing rates and providing tax incentives for investment and operations within their borders. Even the United States seems poised to overhaul its corporate tax structure. At the same time, there are negative trends in the sense that increasing government cooperation in areas such as transfer pricing reduces a company’s freedom to optimize its tax incidence by artfully managing revenue recognition.
Topics: Office of Finance, Tax, Business Analytics, Business Performance, Financial Performance, CFO
Rolling Forecasts Are a Good First Step toward Smarter Financial Planning
I recently participated in a panel discussion about the rise in the use of rolling forecasts in corporate planning. I’m not surprised by this trend; I have encouraged it. Ever since the financial crisis started three years ago, I’ve been writing that companies should rethink how they plan and budget to respond to increasing business volatility. Rolling forecasts are useful because they continually extend the formal planning horizon out more than a year rather than having it stop abruptly at the end of a company’s fiscal year. They can be the right first step in improving the effectiveness of a company’s budgeting process, but ultimately I believe that organizations need to adopt a better approach to planning – what I refer to as integrated business planning. Moreover, companies that want to adopt a rolling forecast approach must first make important changes to their planning and budgeting processes to make them leaner, more focused and faster.
Topics: Big Data, Performance Management, Planning, Sales Performance, Social Media, Supply Chain Performance, Office of Finance, Budgeting, IBP, Operational Performance, Business Analytics, Business Collaboration, Business Mobility, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, COO, Integrated Business Planning
Sales organizations strive to maximize the performance of their staffs to meet quotas and revenue targets in an efficient manner. This focus is part of my agenda to help organizations innovate and maximize revenue in sales. To achieve this requires automation of various sales activities including compensation, incentives, quota development, territory optimization, channel management, analytics and planning. Varicent is focused on these aspects of sales, offering software deployable in three ways: rented in the cloud, hosted for easier management or purchased for use inside the organization. My last analysis of the company and its products was part of our 2011 Value Index for Sales Performance Management; in it we rated Varicent a Hot Vendor overall across our seven evaluation categories applied to its application suite. That analysis included our analysis of Varicent SPM version 7 that made significant advances in the use and process of managing compensation and incentives but also the rest of their application portfolio from territory management, sales quota management and channel management.
Topics: Sales, Sales Performance, Social Media, Marketing, Revenue Performance, Sales Force Automation, Sales Operations, Operational Performance, Business Analytics, Business Collaboration, Business Mobility, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, CMO, CRM, Sales Performance Management, SFA, Varicent
Salesforce.com’s 2011 Dreamforce conference is under way. If you’re in sales and you use the company’s application, here’s how to gain the most value from your time at the conference.
Topics: Sales, Sales Performance, Salesforce.com, Social Media, Marketing, Marketo, Merced Systems, Qvidian, Revenue Performance, Sales Force Automation, Sales Operations, Zilliant, Zyme Solutions, Operational Performance, Business Analytics, Business Collaboration, Business Mobility, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, Workforce Performance, Callidus Software, Camelon Software, CFO, ChannelInsight, Cloud9 Analytics, CMO, CRM, Sales Performance Management, SFA, Varicent, Vendavo, Xactly
In addressing the needs of their sales and operations teams to automate and improve performance, many organizations turn to providers of sales applications designed for specific activities. Many of these activities, including sales compensation, incentives, commissions, quotas, territories and others, Xactly has been delivering for years. This company is no newcomer to the market, with significant experience in meeting the needs of small to midsize sales organizations, and more recently addressing the needs of larger ones.
Topics: Sales, Sales Performance, Social Media, Marketing, Revenue Performance, Sales Force Automation, Operational Performance, Business Analytics, Business Collaboration, Business Mobility, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, CMO, CRM, Sales Performance Management, SFA, Xactly
Looking to make your sales force more effective by automating its operations? Merced Systems can provide the traction your sales team needs. The company has been providing applications for more than a decade to customer service and more recently sales organizations, helping both measure and manage performance. Several years ago Merced Systems made a substantial investment to expand to the sales organization with new applications and now offers analytics and reporting, compensation and incentives, and coaching and talent development.
Topics: Sales, Sales Performance, Social Media, Marketing, Merced Systems, Revenue Performance, Sales Compensation, Sales Force Automation, Operational Performance, Business Analytics, Business Collaboration, Business Mobility, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, CMO, CRM, Sales Performance Management, SFA
If you want to hit the booking and revenue targets required to operate a business, you have to manage your sales forecast and pipeline. Optimally you should be able to monitor and act upon them any day of the week and make adjustments whenever you need to. Unfortunately, most organizations have to wait until they finish their manual efforts at the end of the month or quarter, or they miss critical changes in deals and behavior because they rely only on reporting from their sales force automation (SFA) software.
Topics: Sales, Sales Performance, Salesforce.com, Social Media, Marketing, Revenue Performance, Sales Force Automation, Sales Forecasting, Sales Operations, Operational Performance, Business Analytics, Business Collaboration, Business Mobility, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, Cloud9 Analytics, CMO, CRM, Sales Performance Management, SFA
The largest cloud computing conference, Dreamforce 2011, operated by Salesforce.com, is now upon us. This year attendance is estimated to be over 40,000, and there will be more technology- and developer-focused attendees and dialogue than marketing material. Unlike past years, I expect marketing professionals to be a small percentage of attendees, so I thought I would offer them a guide through the circus of activities at the conference.
Topics: Sales Performance, Salesforce.com, Social Media, ExactTarget, HubSpot, Manticore Technology, Marketing, Marketing Automation, Marketing Planning, Marketo, Pardot, Revenue Performance, Sales Force Automation, Operational Performance, Business Collaboration, Business Mobility, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, IBM, CFO, CMO, CRM, Demand Generation, Eloqua, SFA, Unica, Digital Technology
Qvidian: A New Player in Sales Efficiency and Effectiveness
Qvidian entered the market for applications in sales performance management in 2011. The company, formed from the merger of The Sant Corp. and Kadient, has introduced a new suite of applications for proposals and playbooks that sales departments should examine if they’re looking to improve their efficiency and effectiveness. These applications are part of what we at Ventana Research call a sales performance management blueprint that helps optimize sales related activities and processes.
Topics: Sales, Sales Performance, Social Media, Marketing, Revenue Performance, Sales Force Automation, Operational Performance, Business Analytics, Business Collaboration, Business Mobility, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, CMO, CRM, Sales Performance Management, SFA
Our recently completed benchmark research on how finance departments use analytics makes clear that while they have a distinct competence in this area and execute the basics well, a majority of companies are immature in their use of advanced finance analytics. Regardless of industry or geography, few finance departments use predictive analytics or delve into important areas such as strategic profitability management. This is of note because these undertakings are no longer difficult to pursue: With the growing availability of in-memory processing and the improved ability to work with large data sets, information technology now makes it possible for finance departments to embrace these to enhance the effectiveness with which they execute core functions.
Topics: Predictive Analytics, Office of Finance, Finance Analytics, Analytics, Business Analytics, Business Performance, Financial Performance, CFO
Business Analysts, Take Control of Your Analytic Destiny
The recent buzz around business analytics has generated resurgent conversation about what businesses need from their data to optimize business processes and make better decisions. Our benchmark research on business analytics in more than 2,500 organizations produced unprecedented information about business and IT usage and competency with analytics. It confirmed that effective use of business analytics requires a balance of people and skills, processes, information and technology not just to provide capabilities but also to engage business analysts and users across the organization. The research also identified significant challenges facing organizations in terms of inefficient analytics processes and ineffective technology.
Topics: Sales Performance, Social Media, Supply Chain Performance, Sustainability, Business Technology Innovation, IT Performance, IT Research, Operational Performance, Business Analytics, Business Collaboration, Business Intelligence, Business Mobility, Business Performance, CIO, Cloud Computing, Customer & Contact Center, Financial Performance, Governance, Risk & Compliance (GRC), Information Applications, Information Management, Location Intelligence, Operational Intelligence, Uncategorized, Workforce Performance, Business Planning, CFO
I think one of best epigrams attributed to Mark Twain is, “Everyone talks about the weather but nobody ever does something about it.” This also has relevance to the situation with corporate planning and budgeting. Bemoaning its lack of value and calling for some sort of change goes back a long way, but few companies have matured their process. In the 1970s something called “zero-based budgeting” was all the rage in business and accounting periodicals. It was energetically advocated by President Carter to counteract the incremental budgeting that made it so difficult for the U.S. Congress to cut spending. (Of course, nothing changed.) Efforts to reform budgeting gathered steam in the 1990s as software vendors began offering dedicated applications designed for planning and budgeting. Even if one doesn’t fully embrace the idea of going budgetless, the book Beyond Budgeting is full of sensible management approaches (such as using league tables for internal benchmarking or using relative rather than fixed measures of performance). Of course, unlike the weather, people can change company practices. Yet when it comes to budgeting and planning, the same old stuff persists even as people like me continue to point out how using the right software can help transform the process into a valuable business tool. I’ve discussed why it’s important to adopt integrated business planning from my research, in which the budget is an automatically generated end product of the process, not the objective itself. And I’ve explained why driver-based planning produces better results. If it were just me advocating change, I might take its absence personally, but there have been scores of people, libraries of books and years of webinars focused on this topic for decades. Why has so little changed?
Topics: Planning, Predictive Analytics, Sales, Sales Performance, Supply Chain Performance, Office of Finance, Budgeting, contingency planning, Operational Performance, Business Analytics, Business Collaboration, Business Performance, Financial Performance<