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: Analytics, Business Intelligence, Business Performance, CFO, close, Cloud Computing, Collaboration, Controller, dashboard, Data, ERP, Financial Performance, Financial Performance Management, FP&A, FPM, Human Capital, IBM, Intacct, Microsoft, NetSuite, Operational Performance, Oracle, Reporting, SAP, Spreadsheets, Tax, Uncategorized, Office of Finance
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: Analytics, Business Collaboration, Business Intelligence, Business Performance, CFO, close, closing, Cloud Computing, Collaboration, Controller, dashboard, Data, ERP, finance, Financial Performance, Financial Performance Management, FP&A, FPM, Human Capital, IBM, Intacct, Microsoft, Mobile Technology, NetSuite, Operational Performance, Oracle, Reconciliation, Reporting, SAP, Social Media, Supply Chain Performance, Uncategorized, Big Data, Office of Finance
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: Analytics, Business Collaboration, Business Intelligence, Business Performance Management (BPM), CFO, close, closing, Cloud Computing, Collaboration, Controller, Customer Performance, dashboard, Data, ERP, finance, Financial Performance Management, Financial Performance Management (FPM), FPM, Human Capital, IBM, Intacct, Microsoft, Mobile Technology, NetSuite, Operational Performance, Oracle, Predictive Analytics, Reporting, Sales Performance, SAP, Supply Chain Performance, Tax, Office of Finance
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: Analytics, Business Intelligence, Business Performance, CFO, close, closing, Collaboration, Controller, dashboard, Data, ERP, finance, Financial Performance, Financial Performance Management, FPM, Reporting, Tax, Office of Finance, Cloud Computing
In our benchmark research at least half of participants that use spreadsheets to support a business process routinely say that these tools make it difficult for them to do their job. Yet spreadsheets continue to dominate in a range of business functions and processes. For example, our recent next-generation business planning research finds that this is the most common software used for performing 11 of the most common types of planning. At the heart of the problem is a disconnect between what spreadsheets were originally designed to do and how they are actually used today in corporations. Desktop spreadsheets were intended to be a personal productivity tool used, for example, for prototyping models, creating ad hoc reports and performing one-off analyses using simple models and storing small amounts of data. They were not built for collaborative, repetitive enterprise-wide tasks, and this is the root cause of most of the issues that organizations encounter when they use them in such business processes.
Topics: Analytics, application, benchmark, Business Analytics, Business Collaboration, Business Intelligence, Business Performance, closing, Customer Performance, dashboard, Data, enterprise spreadsheet, ERP, Excel, Financial Performance, Financial Performance Management, Forecast, GRC, Information Management, Operational Performance, Planning, Reporting, Risk, Sales Performance, Office of Finance