Robert Kugel's Analyst Perspectives

What Every CEO Needs to Know About Key Supporting Technologies

Posted by Robert Kugel on Nov 30, 2012 11:00:31 AM

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.

Read More

Topics: Big Data, Mobile, SaaS, Social Media, Customer, ERP, Operational Performance Management (OPM), Business Analytics, Business Collaboration, Cloud, Cloud Computing, Complex Event Processing, In-memory, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), Financial Performance Management (FPM), Information Management (IM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), CEO, PaaS

The Right Software is Crucial for Effective Planning

Posted by Robert Kugel on Nov 27, 2012 9:39:46 AM

I’ve been examining how corporations plan and budget for more than decade. One clear pattern that has emerged is the difficulty that using desktop spreadsheets imposes on the process. Ventana Research recently published findings from our trends in business planning benchmark research, and the research once again confirms this observation. It shows that companies that use dedicated applications are consistently more satisfied (and much less dissatisfied) with the software they use than users of spreadsheets. Twice as many said their third-party planning application performs very well in financial and cash-flow forecasting. While one-third (32%) said their dedicated application performs the complex task of compensation planning very well, just 7 percent of spreadsheet users say so. Dedicated applications also have capabilities that spreadsheets lack; those include easily integrating data from multiple systems, drilling down on demand to understand the underlying causes of variances in reviews and performing extensive what-if planning. All of these enable more accurate planning.

Read More

Topics: Planning, forecasting, Operational Performance Management (OPM), Reporting, Budgeting, driver-based, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), Financial Performance Management, Integrated Business Planning, spreadsheet

Hewlett Packard Charges Fraud at Autonomy– Lessons Learned?

Posted by Robert Kugel on Nov 23, 2012 11:13:52 AM

Many people enjoy mystery stories or crime thrillers; in the same vein of savoring the whodunnit and howdunnit, I like a good accounting scandal. My fascination with cooking the books started when I was young with the “great salad oil swindle”, which wound up causing losses in excess of $1 billion in today’s money and even threatened a Wall Street collapse. This disaster was averted by the assassination of President Kennedy, which kept markets closed on Monday, November 25, 1963, and gave the parties involved an extra day to resolve the matter. Nowadays I look forward to receiving FIRST, a compendium prepared by IBM’s Risk Analytics group of the previous month’s financial shenanigans. So, the recent Hewlett-Packard-Autonomy imbroglio fascinates me.

Read More

Topics: Fraud, Governance, GRC, audit, Autonomy, IFRS, Governance, Risk & Compliance (GRC), Accounting, Business Performance Management (BPM), Financial Performance Management (FPM), Hewlett Packard, Meg Whitman, SEC

What Every CEO Needs to Know About IT

Posted by Robert Kugel on Nov 16, 2012 12:04:20 PM

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.

Read More

Topics: Big Data, Performance Management, Operational Performance Management (OPM), competition, executive, strategic, strategy, CIO, Cloud, In-memory, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), IT, Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), CEO, FPM

What’s Wrong with Today’s Planning and Budgeting

Posted by Robert Kugel on Nov 15, 2012 11:12:27 AM

People have been complaining about the budgeting and planning processes in their organizations for decades. If you’re old enough, you may recall President Carter’s failed attempt to use something called zero-based budgeting to impose discipline in federal outlays. (In his first year in office the federal government reported a whopping $54 billion deficit.) Some complaining is almost inevitable, but some reflects the one-way nature of the process. People spend time on creating a budget and don’t feel they get enough back from their time spent.

Read More

Topics: Planning, forecasting, Operational Performance Management (OPM), Reporting, Budgeting, driver-based, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), Financial Performance Management, Integrated Business Planning, spreadsheet

Business Planning Benchmark Shows No Improvement in How Companies Plan and Budget

Posted by Robert Kugel on Nov 13, 2012 10:42:44 AM

Organizations engage in a range of forward-looking activities. Sales organizations have pipelines to forecast sales. Manufacturing organizations set and reset demand plans and near-term production schedules, often in response to longer-term production plans that determine what they will make and where and how they will make it. Logistics people plan inbound and outbound shipments. Marketing departments plan advertising and promotion campaigns. HR departments project staffing requirements and associated salary and benefit costs. A lot of planning goes on in any business, but most of it is done in business silos and little of it is integrated, so companies spend a lot of time on planning but get less out of the effort than they should. We recently completed our integrated business planning benchmark research, which followed similar research we completed in 2008. The research shows that companies have done little to mature their planning processes over the past four years.

Read More

Topics: Planning, forecasting, Operational Performance Management (OPM), Reporting, Budgeting, driver-based, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), Financial Performance Management, Integrated Business Planning, spreadsheet