Robert Kugel's Analyst Perspectives

About the Analyst

Robert Kugel

Rob heads up the CFO and business research focusing on the intersection of information technology with the finance organization and business. The financial performance management (FPM) research agenda includes the application of IT to financial process optimization and collaborative systems; control systems and analytics; and advanced budgeting and planning. Prior to joining Ventana Research he was an equity research analyst at several firms including First Albany Corporation, Morgan Stanley, and Drexel Burnham, and a consultant with McKinsey and Company. Rob was an Institutional Investor All-American Team member and on the Wall Street Journal All-Star list. Rob has experience in aerospace and defense, banking, manufacturing and retail and consumer services. Rob earned his BA in Economics/Finance at Hampshire College, an MBA in Finance/Accounting at Columbia University, and is a CFA charter holder.


Recent Posts

Blockchains Pose Problems of Persistence and Trust

Posted by Robert Kugel on Jan 15, 2020 6:00:00 AM

I’ve written before about blockchain’s significant potential. A lot of the current discussion on the topic centers on cryptocurrencies and financial trading platforms, both of which are already in operation. However, my focus is on its applicability to business generally, especially in B2B commerce, where I believe there is significant potential for it to serve as a universal data connector. There’s also a great deal of potential for blockchain to provide individuals with greater power in managing their identity and greasing the wheels of trade. That noted, those designing and planning to implement commerce-related blockchains must address fundamental issues if blockchain technology is to achieve its potential.

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Topics: Sales, Human Capital Management, business intelligence, Business Collaboration, Internet of Things, Data, Product Information Management, Digital Commerce, Enterprise Resource Planning, blockchain, candidate engagement, collaborative computing, continuous supply chain

Price Optimization: Cover Your Bases

Posted by Robert Kugel on Jan 13, 2020 6:00:00 AM

Pricing is an eternally vexing issue in business. Over the years, organizations have used different strategies to establish prices for their products, depending on custom, the nature of the business and the degree of competitiveness in the market. The most straightforward approaches to price setting are a cost-plus calculation (cost plus some mark-up) and follow-the-leader (charge what competitors are charging). More recently, demand-based pricing has achieved a following as technology has made this approach more workable. It’s a method that uses buyer demand, based on an estimate of the good’s or service’s perceived value to the buyer, as the central element in setting price.

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Topics: Financial Performance Management, Price and Revenue Management

Kinaxis Opens Its Concurrent Planning Platform

Posted by Robert Kugel on Dec 27, 2019 6:00:00 AM

Kinaxis recently held its annual user conference, Kinexions, which focuses on helping the company’s customers improve their execution of supply chain and sales and operations planning (S&OP). Its RapidResponse software handles S&OP, demand, supply, inventory and capacity planning. S&OP is a function sorely in need of improvement: Our research finds that only 22 percent of companies perform it well or very well.

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Topics: Continuous Planning, Analytics, Enterprise Resource Planning, AI and Machine Learning, continuous supply chain

Sage Intacct Looks to the Future of Finance

Posted by Robert Kugel on Dec 23, 2019 12:00:00 PM

Sage Intacct recently hosted its annual user group meeting, Advantage, and earlier this year met with industry analysts. Both meetings shed light on how the company is addressing two key opportunities. One is building a robust offering to address rapidly evolving technology requirements for the Office of Finance. The other is broadening the scope of its offering to address the financial management and administration needs of its customers.

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Topics: Office of Finance, business intelligence, Financial Performance Management, ERP and Continuous Accounting, robotic finance, Predictive Planning, AI and Machine Learning, revenue and lease accounting

Cutting Audit Costs Significantly? It’s Actually Possible

Posted by Robert Kugel on Dec 3, 2019 7:00:00 AM

For years I’ve viewed with skepticism the claim that one technology or another will reduce audit costs. For one, there’s rarely a silver bullet. An array of moving parts drive audit fees. For example, the complexity of the corporation, accounting data management and the audit staff’s familiarity with the industry and the company all affect the time auditors must spend. Also, most of the time I’ve found that achieving significant savings was not the result of going from good to great, but from fixing deep-seated issues. If a company’s books and accounting practices are a mess, it can achieve considerable savings simply by cleaning up its act. In this circumstance, technology can play a part of a broader initiative that addresses the people, process and data management elements that are behind the mess.

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Topics: Office of Finance, Analytics, Business Intelligence, Financial Performance Management, ERP and Continuous Accounting, robotic finance, AI and Machine Learning

CFOs in Midsize Companies Face Challenges

Posted by Robert Kugel on Nov 25, 2019 7:00:00 AM

Ventana Research recently published benchmark research findings on the Office of Finance, many of which show a trend in the right direction. Organizations are closing the books sooner; financial planning and analysis has improved; and companies are more frequently establishing Finance IT groups to manage the increasingly technological requirements for effectiveness.

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Topics: Office of Finance, Financial Performance Management, Price and Revenue Management, ERP and Continuous Accounting, robotic finance, Predictive Planning

FP&A Performance Is Improving, But …

Posted by Robert Kugel on Nov 6, 2019 7:00:00 AM

The financial planning and analysis (FP&A) group is the linchpin of any transformation effort in the Office of Finance. Our recently completed Office of Finance benchmark research was conducted against the backdrop of the idea that finance organizations must play a more strategic role in the management of the modern organization. This transformation envisions a finance department that’s more of a partner to the rest of the company — one that is less focused on “bean counting,” instead directing its resources and energy to providing more insightful analytics, facilitating transactions of value and communicating actionable data analyses that enable managers to make better decisions more consistently. The research uncovered advances in how corporations handle analytics as well as budgeting and planning. Yet the research also indicates that there is much left to be done in most companies.

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Topics: Office of Finance, embedded analytics, Analytics, Financial Performance Management, robotic finance, Predictive Planning

Achieve Fatter Margins with Dynamic CPQ

Posted by Robert Kugel on Oct 30, 2019 7:00:00 AM

Configure, price and quote (CPQ) software has been around for decades. Lately, I’ve been using the term “Dynamic CPQ” to apply to a variant of this software category that explicitly aims to produce a quote that optimizes the trade-off between the profitability of a deal and the probability of closing a sale. Dynamic CPQ software is a hybrid of price and revenue optimization (PRO) software and CPQ, providing companies with the ability to better execute their market share and pricing strategies. It’s designed especially for business-to-business (B2B) relationships that involve sales agents in the pricing process.

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Topics: Customer Experience, Office of Finance, Data Preparation, Information Management, Sales Performance Management, Financial Performance Management, Price and Revenue Management, robotic finance, revenue and lease accounting, sales enablement

Be FIT: Modern Finance Needs Finance IT

Posted by Robert Kugel on Oct 17, 2019 7:00:00 AM

The traditional office of finance has five main organs: accounting keeps the books; financial planning and analysis (FP&A) analyzes performance and manages the forward-looking activities of the company such as planning, budgeting and forecasting; corporate finance raises outside money; treasury takes care of the cash and bank accounts, and tax. The modern office of finance requires a sixth: Finance IT (FIT).

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Topics: Office of Finance, Analytics, Financial Performance Management, Price and Revenue Management, Digital Technology, Operations & Supply Chain, ERP and Continuous Accounting, blockchain, robotic finance, Predictive Planning, Conversational Computing, AI and Machine Learning, revenue and lease accounting, collaborative computing, subscription management

Finally, a Faster Close

Posted by Robert Kugel on Oct 7, 2019 7:00:00 AM

A quarter century ago the “fast, clean close” became a key measure of a finance and accounting department’s effectiveness. Since then there has been general agreement that companies should be able to close their books within a business week. Our research on the accounting close has consistently shown that companies with very similar characteristics (measured in terms of revenue, number of employees, location and industry) vary considerably in the number of days it takes them to complete their accounting cycle. The lack of connection between the structural conditions of a corporation and the time it takes to close the books suggests that the obstacles to a faster close are not innate, but the result of poor process design and execution, insufficient automation of the process as well as choices made by finance executives. One of those choices is deciding — for whatever reason — not to close sooner.

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Topics: Office of Finance, Financial Performance Management, ERP and Continuous Accounting, robotic finance