Robert Kugel's Analyst Perspectives

Fix Sales and Operations Planning to Improve Financial Efficiency

Posted by Robert Kugel on Dec 10, 2021 3:00:00 AM

Several years ago, I noted the importance of gaining resilience in managing supply chains. The world had entered a new era of trade following the financial crisis of 2007, as multilateral relationships were steadily fragmenting. For decades, sourcing and supply chain management was focused almost exclusively on achieving the lowest cost, and the world’s trade environment supported this approach. However, I observed that the new era of trade, supply chain planning and execution, would be more complex, and organizations needed to shift focus to emphasize business continuity and sustainability, accommodating change with the least disruption at the lowest cost. Sourcing decisions, logistics and product design would be crafted with an eye to a far-from-perfect and changeable world. Higher costs would be balanced against necessary resilience and sustainability, supported by the ability to make changes rapidly with assurance and limited risk.

Read More

Topics: Office of Finance, Continuous Planning, Business Planning, Operations & Supply Chain, Enterprise Resource Planning, continuous supply chain

The Operations and Supply Chain Market Agenda for 2021: Increasing Agility and Resilience of the Supply Chain

Posted by Robert Kugel on Feb 26, 2021 3:30:00 AM

Ventana Research recently announced its 2021 research agenda for Operations and Supply Chain, continuing the guidance we’ve offered for nearly two decades to help organizations across industries derive optimal value from business technology and improve outcomes.

Read More

Topics: Continuous Planning, Product Information Management, Price and Revenue Management, Operations & Supply Chain, Enterprise Resource Planning, continuous supply chain, work experience management

The Bottom Line is the Bottom Line

Posted by Robert Kugel on Apr 17, 2020 5:29:20 PM

The Chief Financial Officer can enable her or his finance department play a more strategic role in company operations by adopting what I call profitability management. In the interest of time I’ve made this a very high-level description that’s intended to be just an introduction to the topic. Profitability management is a cross-functional effort. It integrates finance and sales to achieve an optimal balance of revenue and margin objectives. It’s an analytics-based approach designed achieve higher sales and fatter margins. Why should the CFO drive a profitability management initiative? The main reason is that it will improve the company’s profitability and competitiveness. The bottom line is the bottom line.

Read More

Topics: Office of Finance, Continuous Planning, CFO, Financial Performance Management (FPM), CEO, Integrated Business Planning

Fortune Favors the Prepared (Video)

Posted by Robert Kugel on Apr 7, 2020 5:14:50 PM

I like Louis Pasteur’s observation that “fortune favors the prepared mind.” So-called black swan events happen regularly and can have a very negative effect on a business. Of course, risk is inherent in any commercial undertaking; organizations don’t succeed by being overly cautious and reckless ones usually fail after awhile. Those that are consistently successful are ones that manage risk intelligently. That is, they correctly identify vulnerabilities, avoid the decisions and situations where risks outweigh the benefits, insure the risks that are economically insurable and quickly mitigate the impact of negative events. They are resilient in the face of change because they are adaptable.

Ventana Research Analyst Perspective Video Fortune Favors the Prepared 2020
Read More

Topics: Office of Finance, Continuous Planning, Integrated Business Planning, CEO, CFO, Financial Performance Management, Foreca

Fortune Favors the Prepared

Posted by Robert Kugel on Apr 2, 2020 1:36:26 PM

I like Louis Pasteur’s observation that “fortune favors the prepared mind.” So-called black swan events happen regularly and can have a very negative effect on a business. Of course, risk is inherent in any commercial undertaking; organizations don’t succeed by being overly cautious and reckless ones usually fail after awhile. Those that are consistently successful are ones that manage risk intelligently. That is, they correctly identify vulnerabilities, avoid the decisions and situations where risks outweigh the benefits, insure the risks that are economically insurable and quickly mitigate the impact of negative events. They are resilient in the face of change because they are adaptable.

Read More

Topics: Human Capital Management, Office of Finance, Continuous Planning, Workforce Management, Financial Performance Management, Work and Resource Management, Predictive Planning

Host Analytics Becomes Planful

Posted by Robert Kugel on Jan 29, 2020 6:00:00 AM

Host Analytics recently announced it will now go by the name Planful. The change formally signifies a new chapter in an evolution that began with the company’s acquisition by Vector Capital a year ago and the accession of a new CEO, Grant Halloran. Planful executives say the new name better represents its focus, which is on what Ventana Research calls continuous planning, as well as its focus on the associated processes of forecasting, analysis, consolidation and reporting. 

Read More

Topics: Office of Finance, Continuous Planning, Financial Performance Management (FPM), robotic finance, Predictive Planning

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.

Read More

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

TradeLens Emerges in a New Era of Trade

Posted by Robert Kugel on Sep 17, 2019 8:30:00 AM

What’s the easiest way to completely immobilize a 500,000-ton ship?

Lose a sheet of paper.

The paperwork that accompanies international trade is a serious source of friction, inefficiency — and therefore cost — in supply chain execution. Trade documentation requires massive amounts of paper that today can be replaced by digital data. In 2018, Maersk, the world’s largest shipping company, teamed up with IBM to create TradeLens, a digital platform that utilizes blockchain technology as a secure, unified source of trade transaction data used by businesses, financial institutions and government authorities. TradeLens is designed to enable all participants to connect, share information and collaborate, providing them with a comprehensive view of the data they need to transact trade. The system makes it possible to digitally collaborate in handling their global supply chains.

Read More

Topics: Office of Finance, Continuous Planning, Internet of Things, Data, Operations & Supply Chain, Enterprise Resource Planning, blockchain, continuous supply chain

The Promise and Perils of a Platform Strategy

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

“Platform,” as used in the world of technology, originally referred to an operating system on which one could construct software applications. More recently, its usage has been expanded to apply to two types of business models. One enables third parties to create products and services that are complementary to a company’s core technology. For instance, both Apple and Salesforce have attracted a wide array of third-party software developers whose offerings greatly increase the value of each software vendor’s platform to its customers. The second, such as Amazon’s marketplace, Facebook, Twitter and Uber, facilitates transactions and interactions. This latter type adds value by reducing transaction frictions and increasing efficiency and, in attracting large numbers of people to the platform, enables innovative business offerings to take advantage of Metcalf’s law — the “network effect.”

Read More

Topics: Human Capital Management, Marketing, Office of Finance, Voice of the Customer, Continuous Planning, Information Management, Internet of Things, Workforce Management, Financial Performance Management, Price and Revenue Management, Digital Marketing, Digital Commerce, Operations & Supply Chain, Enterprise Resource Planning, ERP and Continuous Accounting, robotic finance, Predictive Planning, revenue and lease accounting, collaborative computing, continuous supply chain

Supply Chain Management and Sourcing in a New Era of Trade

Posted by Robert Kugel on Feb 22, 2019 6:00:00 AM

We’re in a new era of trade, the result of converging issues that have been building for at least a decade. Structurally and politically, the liberal ethos that drove the trade environment through the second half of the 20th century and into the 21st has changed. There will be a new equilibrium in the future; getting there, though, will be a bumpy ride. Adding to the challenges posed by a shifting trade environment are commodity and currency market volatility and the impacts of ongoing legal, regulatory and taxation changes.

Read More

Topics: Office of Finance, Recurring Revenue, Continuous Planning, Financial Performance Management, Price and Revenue Management, Inventory Optimization, Operations & Supply Chain, Enterprise Resource Planning, Sales and Operations Planning, ERP and Continuous Accounting, Sales Planning and Analytics, revenue recognition