Robert Kugel's Analyst Perspectives

The Modern Finance Organization is a Technology Fast Follower

Posted by Robert Kugel on Mar 15, 2018 10:08:14 AM

Robots of the physical sort are not about to take over finance and accounting but we have arrived at the age of “Robotic Finance”. I coined this term to focus on four key technologies with transformative capabilities: artificial intelligence and machine learning, robotic process automation, bots and natural language processing and blockchain distributed ledger technology. Embracing these technologies will enable any department to redefine itself as a forward-looking strategic partner to the rest of the company.

Read More

Topics: Machine Learning, close, closing, Robotic Process Automation, Artificial intelligence, blockchain, AI, Accounting, bots, robotic finance

Self-Describing Data Powers B2B Blockchain Distributed Ledgers

Posted by Robert Kugel on Feb 15, 2018 7:23:11 AM

The use of blockchain distributed ledgers in business processes is now a common theme in many business software vendors’ presentations. The technology has a multitude of potential uses. However, presentations about the opportunities for digital transformation always leave me wondering: How is this magic going to happen? I wonder this because the details about how data flows from point A to point B via a blockchain are critically important to blockchain utility and therefore the pace of its adoption.

Read More

Topics: Planning, Predictive Analytics, Forecast, FP&A, Machine Learning, Reporting, budget, Budgeting, Continuous Planning, Analytics, Data Management, Cognitive Computing, Integrated Business Planning, AI, forecasting, consolidating

Predictive Finance Organizations Are More Valuable

Posted by Robert Kugel on Feb 12, 2018 4:32:47 AM

Ventana Research uses the term “predictive finance” to describe a forward-looking, action-oriented finance organization that places emphasis on advising its company rather than fulfilling the traditional roles of a transactions processor and reporter. Technology is driving the shift away from the traditional bean-counting role. The cumulative evolution of software advances will substantially reduce finance and accounting workloads by automating most of the mechanical, rote functions in accounting, data preparation and reporting. (I recently summarized these in a “Robotic Finance”)

Read More

Topics: Planning, Predictive Analytics, Forecast, FP&A, Machine Learning, Reporting, budget, Budgeting, Continuous Planning, Analytics, Data Management, Cognitive Computing, Integrated Business Planning, AI, forecasting, consolidating

Welcome to the Age of Robotic Finance

Posted by Robert Kugel on Dec 29, 2017 5:24:49 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.

Read More

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

Robotic Process Automation is a Cornerstone of Digital Finance

Posted by Robert Kugel on Dec 25, 2017 7:52:13 AM

Robotic process automation (RPA) relies on programming or the application of analytical algorithms to execute the most appropriate action in an automated workflow. RPA enables business users to configure a “robot” (actually, computer software) to interact with applications or data sources to process a transaction, move or manipulate data, communicate with other digital systems and manage machine-to-machine and man-to-machine interactions. This technology is gaining increasing notice by finance departments, with good reason: RPA represents an important step beyond simple process automation in that it uses software to execute routine but complex workflows that require judgment. Rather than making an individual check-off a step in a routine approval, a robotic system applies an algorithm that decides the next step. The system thus does what people spend an awful lot of their time doing every day: making judgments that most of the time could be done by a machine.

Read More

Topics: Operations, automation, close, closing, Continuous Accounting, finance, banking, Robotic Process Automation, Accounting, web crawler, legacy systems, bank

Prophix – Financial Performance Management for Midsize Organizations

Posted by Robert Kugel on Dec 12, 2017 5:47:01 AM

Prophix is an established provider of financial performance management (FPM) software for planning and budgeting, forecasting, analysis and reporting, and managing the financial close and consolidation process. Its eponymous software is designed specifically for midsize companies or midsize divisions of larger corporations. These organizations are a distinctive segment of the market in that they have almost all the functional requirements of large enterprises but have fewer resources to apply to these critical tasks. Fortunately, the evolution of information technology over the past decade has been especially beneficial to midsize customers, bringing them expanded capabilities, substantially better performance and greater automation of routine tasks at an affordable total cost of ownership.

Read More

Topics: Planning, Office of Finance, Reporting, Budgeting, Consolidation, Continuous Planning, Analytics, Business Intelligence, Collaboration, Financial Performance Management, Integrated Business Planning, accounting close, Price and Revenue Management, Work and Resource Management, Sales Planning and Analytics, Midsize

Oracle Demonstrates ERP Cloud Progress at OpenWorld

Posted by Robert Kugel on Nov 30, 2017 6:27:07 AM

Oracle OpenWorld is a fall event that sprawls over a lot of territory – figuratively in terms of the IT landscape and, if you’re in San Francisco, literally. My focus here is on the ERP portion of the company’s software portfolio.

Read More

Topics: Office of Finance, Recurring Revenue, Cloud Computing, asc 606, Enterprise Resource Planning, ERP and Continuous Accounting, revenue recognition

Kinaxis Kinexions Advances Supply Chain Value for Customers

Posted by Robert Kugel on Nov 23, 2017 8:52:34 AM

From my perspective, supply chain management (SCM) and sales and operations planning (S&OP) are two of the most underappreciated disciplines of modern corporate management. Properly applied, they can improve performance and competitiveness by increasing customer satisfaction and reducing costs. A combination of more capable information technology with advances in operations research and analytics has made managing supply and demand chains potentially more impactful by making them more flexible and adaptable to market conditions. Consequently, companies can enhance profitability, reduce working capital and improve customer satisfaction by providing more reliable service.

Read More

Topics: ERP, Kinaxis, Supply Chain Planning, Analytics, SCM, S&OP, Sales and Operations Planning, supply chain management, procurement

Intacct is a Sage Investment

Posted by Robert Kugel on Nov 14, 2017 8:54:36 AM

Sage Intacct recently held its annual user group meeting. The cloud financial management software service provider targets rapidly growing small- and midsize services companies. Within this broad category, Sage Intacct focuses on verticals including software, financial services, healthcare, nonprofits, wholesale and franchisers.

Read More

Topics: Office of Finance, Recurring Revenue, Cloud Computing, asc 606, Enterprise Resource Planning, ERP and Continuous Accounting, revenue recognition

Country-by-Country Reporting Challenges Tax Departments

Posted by Robert Kugel on Nov 6, 2017 11:14:06 PM

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.

Read More

Topics: ERP, GRC, audit, finance transformation, LongView, Tax, Business Analytics, Oracle, CFO, Vertex, FPM, legal, tax optimization, tax data warehouse Thomson-Reuters multinational, international tax, tax compliance