Robert Kugel's Analyst Perspectives

B2B Pricing Management Can Strengthen Bottom Line

Posted by Robert Kugel on Mar 20, 2017 8:45:28 AM

More businesses are using software to implement and support a strategic pricing strategy designed to optimize revenue and margins in business-to-business (B2B) transactions because it can help improve results at the bottom line. “Optimize” in this instance means managing the trade-off that usually exists between revenue and profitability objectives in order to support a company’s strategy and capabilities in a given market. Business-to-business pricing management is Ventana Research’s term for such processes and applications. Software built for this purpose centralizes control and enforces consistency in pricing while assisting sales agents in negotiating prices that achieve desired business objectives. It enables agents to use techniques that can increase the revenue from a transaction, the margin on the sale or the probability of closing the sale.

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Topics: data science, Big Data, Pricing and Promotion Management, Office of Finance, ERP and Continuous Accounting, Financial Performance Management, Price and Revenue Management, Sales Enablement and Execution, Sales Performance Management, Analytics, Sales, Cloud Computing

The Office of Finance Research Agenda for 2017

Posted by Robert Kugel on Feb 16, 2017 6:33:18 AM

Senior finance executives and finance organizations that want to improve their performance must recognize the value of technology as a key tool for doing high-quality work. Consider how poorly your organization would perform if it had to operate using 25-year-old software and hardware. Having the latest technology isn’t always necessary, but it’s important for executives to understand that technology shapes a finance organization’s ability to improve its overall effectiveness.

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Topics: Business Intelligence, Collaboration, data science, Mobile, Big Data, Machine Learning and Cognitive Computing, Mobile Technology, Office of Finance, Continuous Planning, ERP and Continuous Accounting, Financial Performance Management, Price and Revenue Management, Operations & Supply Chain, Enterprise Resource Planning, Inventory Optimization, Sales and Operations Planning, Analytics, Human Capital Management, Cloud Computing

Vertex Enterprise Addresses Today’s Tax Challenges

Posted by Robert Kugel on Feb 7, 2017 12:14:58 AM

I’ve long advocated the use of effective technology in the tax function, especially for organizations that operate in multiple jurisdictions or have complex legal structures manage direct tax provision and analysis using outdated or inappropriate tools. Our Office of Finance benchmark research reveals that most organizations use spreadsheets to manage their tax provision and analysis: Half (52%) rely solely on spreadsheets, and another 38 percent mainly use them. I recommend to corporations that operate in multiple countries and that have even a moderately complex legal entity structure that they consider establishing what I call a tax data warehouse of record.

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Topics: Big Data, Office of Finance, Continuous Planning, ERP and Continuous Accounting, Financial Performance Management, Analytics

B2B Price and Revenue Optimization Goes Mainstream

Posted by Robert Kugel on Jan 24, 2017 12:16:39 AM

Price and revenue optimization (PRO) is a business discipline used to produce demand-based pricing; it applies market segmentation techniques to achieve strategic objectives such as increased profitability or greater market share. In essence, PRO enables companies to surf the demand curve using dynamic rather than fixed pricing to achieve the most desirable trade-offs between revenue volume and profit margins. The trade-off is defined by strategic factors such as the company’s market position, product and service portfolio, and marketing strategy.

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Topics: data science, Big Data, Pricing and Promotion Management, Office of Finance, ERP and Continuous Accounting, Financial Performance Management, Price and Revenue Management, Sales Enablement and Execution, Sales Performance Management, Analytics, Sales, Cloud Computing

Workday Planning Improves Control and Visibility

Posted by Robert Kugel on Nov 21, 2016 8:58:54 AM

Ventana Research recently awarded Workday a 2016 Technology Innovation Award for its newly released application, Workday Planning, because it simplifies and streamlines the budgeting and planning processes while facilitating collaboration, deepening visibility into spending and enabling tight fiscal control. These capabilities can help a variety of user organizations in several ways.

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Topics: Budgeting, CFO, controller, Financial Performance Management, financial reporting, FPM, In-memory, Integrated Business Planning, Marketing, Workday, Office of Finance, Big Data, demand management

SYSPRO Advances with Collaboration and CRM

Posted by Robert Kugel on Nov 10, 2016 7:21:58 AM

SYSPRO is a 35-year-old software vendor that focuses on selling enterprise resource planning (ERP) systems to midsize companies, particularly those in manufacturing and distribution. In manufacturing, SYSPRO supports make, configure and assemble, engineer to order, make to stock and job shop environments. The company attempts to differentiate itself through vertical specialization and its years of ongoing development, which can reduce the need for customization and cut the cost of initial and ongoing configurations to suit the needs of companies in these industries, thereby reducing the total cost of ownership. Worldwide its targeted verticals include electronics, food, machinery and equipment and medical devices; in the United States, SYSPRO adds automotive parts (original equipment and after-market) and energy. The company’s development efforts follow a design philosophy that balances its target customers’ need for software capabilities that are on par with larger enterprises with their resource constraints (chiefly limited financial resources and technical staffs).  Its software can be deployed on-premises or in the cloud.

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Topics: CEO, CFO, CIO, close, Continuous Accounting, ERP, Governance, Collaboration, SaaS, CRM, Analytics, Office of Finance, Human Capital Management, Big Data, Cloud Computing

Oracle Adapts Business Applications Intelligently in the Cloud

Posted by Robert Kugel on Oct 31, 2016 9:30:19 AM

The annual Oracle OpenWorld user group meeting provides an opportunity to step back and take a longer view of business, industry and technology trends affecting the company. Last year, after listening to Larry Ellison’s and Mark Hurd’s vision for the future of IT, I wrote that Oracle had to continue shifting its focus to business applications because the accelerating shift to cloud computing would lead corporations to outsource their IT infrastructures, services and security to third parties. Eventually, this would substantially shrink the market for corporate IT departments, which has been Oracle’s strength. At this year’s conference the company demonstrated how it is applying its technology strengths to create a competitive advantage that it can apply to its broad business applications portfolio.

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Topics: ERP, Performance Management, SaaS, PaaS, Big Data, Analytics, Office of Finance, digital technology, Cloud Computing

Vendavo Builds Price and Revenue Optimization into Business Processes

Posted by Ventana Research on Sep 1, 2016 9:02:00 AM

Vendavo is a vendor of business-to-business (B2B) price and revenue optimization software, which I have written about. A major focus of the conference sessions this year at the company’s annual user group meeting was on practical approaches to successful price optimization initiatives. While this category of software has been achieving increasing acceptance, penetration is still limited in the B2B segment, which includes, for example, industrial goods and services.

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Topics: Business Analytics, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), Operational Performance Management (OPM), Sales Performance Management (SPM), Vendavo, price, pricing, optimization, revenue, cu, Big Data

IBM Watson and Cognitive Computing to Streamline Compliance

Posted by Ventana Research on Aug 5, 2016 9:45:34 AM

Today’s proponents of artificial intelligence (AI) tend to focus on its spectacular uses such as self-driving cars and uplifting ones such as medical treatment. AI also has the potential to aid humanity in more modest ways such as eliminating the need for individuals to do tedious repetitive work in white-collar areas. Along these lines, at its recent Vision users conference, IBM displayed an application of its Watson cognitive computing technology designed to automate important aspects of regulatory and legal compliance. Should it prove workable, the application of cognitive computing to compliance could be the first step in achieving what various “Paperwork Reduction Act” legislation has failed to do: substantially cutting the time needed to comply with rules imposed by government entities.

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Topics: Business Performance Management (BPM), Cloud Computing, Financial Performance Management (FPM), Governance, Risk & Compliance (GRC), GRC, governance, risk, compliance, risk management, Operational Performance Management (OPM), Uncategorized, Big Data

Modeling Revenue Recognition for Contracts to Meet New Regulations

Posted by Ventana Research on Jul 22, 2016 9:19:10 AM

I recently wrote about the challenge some companies will face in planning and budgeting when new revenue recognition rules go into effect in most countries in 2018. It’s important for companies that will be affected to be sure they have the appropriate systems, processes and training to handle the more difficult demands imposed by the new rules. With the change in accounting, the time lag between when a contract is signed and when a company recognizes revenue from it may be more variable and less predictable than in the past. In extreme cases, performance measured by financial accounting will diverge materially from the “real” economic performance of the organization. Consequently, executives – especially those leading publicly listed companies – will need the ability to look at their plans from both perspectives and be able to distinguish between the two in assessing their company’s performance. In companies where the timing of revenue recognition can diverge substantially from current methods, financial planning and analysis (FP&A) groups will need to be able plan using models that incorporate financial and managerial accounting methods in parallel. They will need to be able to identify actual-to-plan variances caused by differences in contract values booked in a period and differences between the expected and actual timing of revenue recognized from contracts signed in a period.

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Topics: Business Performance Management (BPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Uncategorized, Big Data