Ventana Research Analyst Perspectives

Welcome to the Age of Robotic Finance

Posted by Robert Kugel on Dec 29, 2017 5:24:36 AM

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.

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Topics: CFO, ERP, RPA, AI, Machine Learning, Robotic Process Automation, Consolidation, Accounting, close, blockchain, bots, natural language processing, voice automation, Continuous Accounting, Reconciliation

Ditch Presentations to Improve Corporate Governance

Posted by Robert Kugel on Nov 2, 2016 1:03:00 AM

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.

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Topics: Governance, CFO, CEO, board of directors, accounting close, Mobile, Consolidation, Reconciliation, Office of Finance, Human Capital Management

ERP and Financial Performance Management Begin to Overlap

Posted by Robert Kugel on Dec 20, 2015 7:52:30 PM

The ERP market is set to undergo a significant transformation over the next five years. At the heart of this transformation is the decade-long evolution of a set of technologies that are enabling a major shift in the design of ERP systems – the most significant change since the introduction of client/server systems in the 1990s. Some ERP software vendors increasingly are utilizing in-memory computing, mobility, in-context collaboration and user interface design to differentiate their applications from rivals and potentially accelerate replacement of existing systems (as I noted in an earlier analyst perspective). ERP vendors with software-as-a-service (SaaS) subscription offerings are investing to make their software suitable for a broader variety of users in multitenant clouds. And some vendors will be able to develop lower-cost business systems to broaden the appeal of single-tenant hosted cloud deployments for companies that cannot adapt their businesses to share with other tenants or prefer not to.

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Topics: Analytics, Business Analytics, Business Performance, Consolidation, ERP, Financial Performance, Financial Performance Management, FP&A, FPM, Human Capital, Performance Management, Reconciliation, Reporting, Uncategorized, Office of Finance

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: 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

Effective Process Management Ensures a Fast Close

Posted by Ventana Research on Apr 8, 2015 7:21:27 AM

Because my research practice is centered on important business issues where technology is a key part of a solution, my written perspectives tend to focus on technology. However, it’s almost never the case that a company can just implement some application and fully resolve a business issue. Some progress may be achieved by using more effective tools, but in most cases results will fall short of what’s possible unless people, process and information issues are addressed as well. This is especially true for the accounting close.

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Topics: Business Performance, Data, Document Management, Financial Performance, Reconciliation, Office of Finance