Ventana Research Analyst Perspectives

Workday Financial Management Gains Momentum

Posted by Robert Kugel on Dec 2, 2015 11:28:28 PM

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.

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Topics: Microsoft, SAP, ERP, FP&A, Human Capital, NetSuite, Reporting, close, Controller, dashboard, reconciliations, report, Tax, Operational Performance, Analytics, Business Intelligence, Business Performance, Cloud Computing, Collaboration, Financial Performance, IBM, Oracle, Uncategorized, Accounting, CFO, Data, Amazon, BI, Financial Performance Management, FPM, Intacct, scorecard, Spreadsheets, treasury

Evolving to the Next Generation of ERP Systems

Posted by Robert Kugel on Nov 29, 2015 1:12:02 PM

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.

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Topics: Big Data, Microsoft, SAP, Social Media, Supply Chain Performance, ERP, FP&A, Human Capital, Mobile Technology, NetSuite, Reporting, close, closing, Controller, dashboard, Reconciliation, report, Operational Performance, Analytics, Business Collaboration, Business Intelligence, Business Performance, Cloud, Cloud Computing, Collaboration, Financial Performance, IBM, Oracle, Uncategorized, Accounting, CFO, Data, finance, BI, Financial Performance Management, FPM, Intacct, scorecard

Oracle Must Pivot to Business Applications

Posted by Ventana Research on Nov 5, 2015 10:18:30 PM

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.

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Topics: Microsoft, Predictive Analytics, Sales Performance, SAP, Supply Chain Performance, ERP, Human Capital, Mobile Technology, NetSuite, Reporting, close, closing, Controller, dashboard, reconciliations, report, Tax, Customer Performance, Operational Performance, Analytics, Business Collaboration, Business Intelligence, Cloud, Cloud Computing, Collaboration, IBM, Oracle, Accounting, Business Performance Management (BPM), CFO, Data, finance, Financial Performance Management (FPM), Amazon, BI, Financial Performance Management, FPM, Intacct, scorecard, spreadsheet, treasury

Recurring Revenue Challenges Finance Departments

Posted by Ventana Research on Mar 13, 2015 8:43:55 AM

As I noted in a recent analyst perspective note the recurring revenue business model is gaining increasing use worldwide. Our recently completed recurring revenue benchmark research shows that companies are using this business approach because they find that it can convey a strategic advantage in creating additional sales opportunities, making future revenues more predictable, enhancing their customers’ experience  and increasing customer loyalty. However, recurring revenue businesses have unique challenges, especially in finance and accounting departments because most ERP systems (the ones that handle the accounting function) are not designed to manage the specific requirements of a recurring revenue businesses.

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Topics: SaaS, NetSuite, Recurring Revenue, Zuora, Billing, streaming, Customer Performance, Operational Performance, Business Performance, Cloud Computing, Customer Service, Financial Performance, Accounting, Aria Systems, billing software, Intacct, invoicing

Recurring Revenue: An Increasingly Important Business Model

Posted by Ventana Research on Feb 19, 2015 4:46:06 AM

Recurring revenue is a term applied to business models that involve three types of selling and billing structures: a one-time transaction plus a periodic service charge; subscription-based services involving periodic charges; or a contractual relationship that charges periodically for goods and services. Telecommunications was the first major industry to use it, but recently the model has gained popularity in others. It is a major trend in information technology as an increasing number of companies offer software and hardware technology accessed as a service through cloud computing. Recurring revenue also has been transforming the entertainment business, as customers subscribe to rent movies, music and other creative digital products instead of owning them; this is part of the so-called “sharing economy” whose social impacts are wide-ranging.

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Topics: SaaS, NetSuite, Recurring Revenue, Zuora, Billing, streaming, Customer Performance, Business Performance, Cloud Computing, Customer Service, Financial Performance, Accounting, Aria Systems, billing software, Intacct, invoicing