Workday will acquire Adaptive Insights for $1.55 billion in cash, with the transaction scheduled to close in the third quarter of this year. The combination adds Adaptive Insight’s well-developed cloud-based financial performance management software to Workday’s workforce and financial management suite. Workday says Adaptive will operate as a standalone business and continue with its current product strategy.
Workday recently presented a technology summit for industry analysts. The presentations focused on Workday’s ongoing product advancements as well as its approach to employing emerging technologies. These technologies include artificial intelligence (AI) and machine learning (ML), robotic process automation (RPA) and bots utilizing natural language processing. Ventana Research uses the term “robotic finance” to refer to these technologies when used in the office of finance. In our view, they will have a profound impact on the nature of white-collar work over the coming decade. Financial management and ERP software vendors are focusing on these technologies because they will disproportionately affect finance and accounting departments: I estimate that their adoption has the potential to eliminate one-third of the accounting department’s workload within a decade.
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.
Topics: Analytics, Business Intelligence, Collaboration, Office of Finance, Continuous Planning, Financial Performance Management, Price and Revenue Management, Work and Resource Management, Sales Planning and Analytics, Budgeting, Planning, Integrated Business Planning, Midsize, Consolidation, accounting close, Reporting
In 2016 Unit4 acquired Prevero, a financial performance management software company. The acquisition reflects a trend toward the convergence of transactional and analytical business applications. ERP and financial management software vendors increasingly are adding analytic capabilities – especially in financial performance management (FPM) – to the core functions of transaction processing and accounting in order to broaden the scope of their offerings. The integration of transaction processing and analytical software is especially valuable to Unit4’s core customer base of midsize organizations, which we define as those with 100 to 1,000 employees. Midsize entities have almost the same systems requirements as larger ones but lack the resources the latter enjoy.
Topics: Analytics, Business Intelligence, Cloud Computing, Collaboration, Workforce Management, Marketing, Office of Finance, Continuous Planning, Financial Performance Management, FPM, Operations & Supply Chain, Work and Resource Management, Sales Planning and Analytics
Anaplan recently held Anaplan Hub, its annual user group meeting. The company offers a cloud-based business planning platform that incorporates a modeling and calculation engine. The tool makes it relatively easy to add or expand the scope of plans that can be connected and monitored as a central source. Companies typically use Anaplan software for financial planning or budgeting, sales, workforce, marketing and IT planning. These are the types of plans in which companies often need to create models that incorporate their specific requirements, their strategy and their business systems.
Topics: Business Intelligence, Collaboration, Customer Analytics, HRMS, Workforce Management, Marketing, Marketing Performance Management, Office of Finance, Continuous Planning, ERP and Continuous Accounting, Financial Performance Management, Recurring Revenue, Price and Revenue Management, Operations & Supply Chain, Work and Resource Management, Sales Enablement and Execution, Sales Performance Management, Sales Planning and Analytics, Analytics, Human Capital Management, Cloud Computing
Ventana Research recently announced the results of its latest Benchmark Research, Next-Generation ERP. The enterprise resource planning (ERP) system is at the core of nearly every company’s record-keeping and management of business processes. Its smooth and uninterrupted functioning is essential to an organization’s accounting and finance functions. In manufacturing and distribution, ERP manages inventory and logistics. Some companies use it to handle human resources functions like tracking employees, payroll and related costs.
Topics: Collaboration, Mobile, Big Data, Office of Finance, ERP and Continuous Accounting, Enterprise Resource Planning, Inventory Optimization, Work and Resource Management, Human Capital Management, Cloud Computing
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.
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
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.
Workday Financial Management (which belongs in the broader ERP software category) appears to be gaining traction in the market, having matured sufficiently to be attractive to a large audience of buyers. It was built from the ground up as a cloud application. While that gives it the advantage of a fresh approach to structuring its data and process models for the cloud, the product has had to catch up to its rivals in functionality. The company’s ERP offering has matured considerably over the past three years and now is better positioned to grow its installed base. Workday recently added Aon, the insurance and professional services company, to its customer list (becoming its largest customer to date) and reported that its annual contract value (ACV – the annualized aggregate revenue value of all subscription contracts as of the end of a quarter) has doubled since the second quarter of this year, albeit from a low base. This is an important milestone because for years the company’s growth has come from the human capital management (HCM) portion of the business, not financials. Workday has around 160 customers for its financials (more than 90 of which are live) compared to more than 1,000 customers for HCM.
Topics: Analytics, Business Intelligence, Business Performance Management (BPM), CFO, close, closing, Cloud Computing, Collaboration, Controller, dashboard, Data, ERP, finance, Financial Performance Management, Financial Performance Management (FPM), FP&A, FPM, Human Capital, IBM, Intacct, Microsoft, NetSuite, Operational Performance Management (OPM), Oracle, Reconciliation, Reporting, SAP, Tax, Uncategorized, Office of Finance
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.
Topics: Analytics, Business Intelligence, Business Performance Management (BPM), CFO, close, closing, Cloud Computing, Collaboration, Controller, dashboard, Data, ERP, finance, Financial Performance Management, Financial Performance Management (FPM), FP&A, FPM, Human Capital, IBM, Intacct, Microsoft, Mobile Technology, NetSuite, Operational Performance Management (OPM), Oracle, Reconciliation, Reporting, SAP, Social Media, Supply Chain Performance Management (SCPM), Uncategorized, Big Data, Office of Finance