Robert Kugel's Analyst Perspectives

Zuora Acquires Leeyo for Revenue Recognition

Posted by Robert Kugel on May 22, 2017 9:17:57 AM

Zuora, a subscription commerce and billing software company, recently acquired Leeyo, a company that provides software that automates the revenue recognition and forecasting processes. The terms were not disclosed. The acquisition is relevant to subscription-based businesses because of changes to accounting standards about to go into effect that will have a significant impact on how they account for their revenue. Leeyo and Zuora already have been deployed together with multiple ERP systems. The combined company plans to tighten integration between the two going forward.

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Topics: Customer Experience, Human Capital Management, Office of Finance, Continuous Planning, Contact Center, Financial Performance Management, Enterprise Resource Planning, ERP and Continuous Accounting

Oracle Growing ERP in Cloud

Posted by Robert Kugel on Apr 17, 2017 7:26:10 AM

Oracle recently held its second ERP Cloud Summit with industry analysts. The all-day event wasn’t just about ERP. The company covered a range of its business applications, including financial performance management as well as its Adaptive Intelligent Applications. And it wasn’t just about the cloud. After more than a decade of steady developments, ERP systems have begun to change fundamentally, facilitated by the growing availability of new technologies including cloud computing, advanced database architecture, collaboration, user interface design, mobility, analytics and planning. Here are my key takeaways from the event:

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Topics: Big Data, data science, Mobile, Customer Experience, Human Capital Management, Machine Learning, Office of Finance, Analytics, Data Integration, Internet of Things, Cognitive Computing, HRMS, Financial Performance Management, Mobile Marketing Digital Commerce, Digital Marketing, Digital Commerce, Operations & Supply Chain, Enterprise Resource Planning, ERP and Continuous Accounting

Digital Process Reengineering Drives Business Change

Posted by Robert Kugel on Mar 23, 2017 9:28:13 AM

Business process reengineering was a consulting fashion in the early 1990s that spurred many companies to purchase their first ERP systems. BPR proposes a fundamental redesign of core business processes to achieve substantial improvements in market and customer responsiveness, productivity, cycle times and quality. ERP systems support business process reengineering by guiding the step-by-step execution of the redesigned process to ensure that it is performed consistently. They also automate the handoffs between individuals and departments to accelerate completion of that process.

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Topics: Big Data, data science, Mobile, Customer Analytics, Customer Experience, Machine Learning, Office of Finance, Wearable Computing, Continuous Planning, business intelligence, Analytics, Cloud Computing, Data Integration, Internet of Things, Financial Performance Management, digital technology, Digital Marketing, Digital Commerce, Operations & Supply Chain, Enterprise Resource Planning, Machine Learning and Cognitive Computing, ERP and Continuous Accounting, Sales Planning and Analytics

Oracle Plus NetSuite Equals More

Posted by Robert Kugel on Dec 16, 2016 11:17:28 PM

Oracle and NetSuite have completed their merger. The combination is likely to be positive for customers because NetSuite will have access to “more,” a word repeated many times over the course of Oracle’s post-acquisition webcast. Existing NetSuite customers will benefit from increased investment as well as economies of scale that Oracle can bring to R&D and sales and marketing. Oracle has stated that there’s little overlap between its target customer base and NetSuite’s. However, there is substantial overlap with NetSuite’s application partner network because of Oracle’s own broad application portfolio. As such, many of these partners are likely to shift their attention to NetSuite’s cloud-only competitors (for example, FinancialForce and Intacct), which will benefit those rivals’ sales and marketing efforts.

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Topics: Sales, Customer Experience, Human Capital Management, Marketing, Office of Finance, Continuous Planning, Customer Service, HRMS, Inventory Optimization

Intacct Advances Subscription Billing and Reporting

Posted by Robert Kugel on Nov 9, 2016 7:32:13 AM

Intacct, a cloud-based ERP vendor focused on midsize companies, recently held its annual user group meeting. Two of its products that were covered in the keynote are worth noting. One, already available, enables companies to manage their order-to-cash process in a continuous fashion, from the time a salesperson begins to engage with a prospect to the time funds are collected. The other is a custom report writer, to be available in the first quarter of 2017, that will provide business users with the ability to create even complex reports from any data that resides within Intacct in a straightforward, interactive fashion that is similar to building reports in a desktop spreadsheet. The company also presented modules that will facilitate compliance with the new revenue recognition standards.

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Topics: SaaS, Sales, Customer Engagement, Customer Experience, ERP, Human Capital Management, Marketing, NetSuite, Office of Finance, customer life cycle, Customer Service, billing software

Aria Enables Effective Recurring Revenue Management

Posted by Robert Kugel on Feb 7, 2016 8:36:14 PM

Aria Systems provides companies with software for managing subscription or recurring revenue business models. A recurring revenue business models includes three types of selling and billing structures: a one-time transaction plus a periodic service charge; subscription-based services involving periodic charges; or a contractual relationship that charges periodically for goods and services. Aria’s cloud-based software addresses key requirements of users in the marketing, sales, operations and accounting functions in this type of business.

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Topics: SaaS, Sales, Customer Engagement, Customer Experience, ERP, Marketing, NetSuite, Office of Finance, Operational Performance Management (OPM), Recurring Revenue, customer life cycle, Business Analytics, Cloud Computing, Customer Service, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), billing software

Tidemark Enables More Effective Business Planning

Posted by Robert Kugel on Nov 12, 2015 10:22:49 AM

Tidemark Systems offers a suite of business planning applications that enable corporations to plan more effectively. The software facilitates rapid creation and frequent updating of integrated company plans by making it easy for individual business functions to create their own plans while allowing headquarters to connect them to create a unified view. I coined the term “integrated business planning” a decade ago to highlight the potential for technology to substantially improve the effectiveness of planning and budgeting in corporations, and it remains true that integrating business planning can produce superior results. Companies that maintain direct links between functional or departmental plans more often have a planning process that works well than others. Our next-generation business planning benchmark research shows that two-thirds (66%) of those that maintain such links have a planning process that works well or very well, compared to 40 percent that copy information from individual plans into an overall plan and just 25 percent in which plans have little or no connection.

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Topics: Planning, Predictive Analytics, Customer Experience, Marketing Planning, Reporting, Budgeting, Human Capital, Analytics, Business Analytics, Business Collaboration, Business Mobility, Cloud Computing, Governance, Risk & Compliance (GRC), Business Planning, Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Tidemark, Workforce Performance Management (WPM), Demand Planning, Integrated Business Planning, Project Planning

New Revenue Recognition Rules Require Software

Posted by Ventana Research on May 12, 2015 9:33:06 PM

For most of the past decade businesses that decided not to pay attention to proposed changes in revenue recognition rules have saved themselves time and frustration as the proponents’ timetables have slipped and roadmaps have changed. The new rules are the result of a convergence of US-GAAP (Generally Accepted Accounting Principles – the accounting standard used by U.S.-based companies) and IFRS (International Financial Reporting Standards – the system used in much of the rest of the world). Now, however, it’s time for everyone to pay close attention. Last year the U.S.-based Financial Accounting Standards Board (FASB, which manages US-GAAP) and the Brussels-based International Accounting Standards Board (IASB, which manages IFRS) issued “Topic 606” and “IFRS 15,” respectively, which express their harmonized approach to governing revenue recognition. A major objective of the new standards is to provide investors and other stakeholders with more accurate and consistent depictions of companies’ revenue across multiple types of business as well as make the standard consistent between the major accounting regimes.

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Topics: Planning, Customer Experience, Office of Finance, Reporting, Revenue Performance, Budgeting, Tax, Governance, Risk & Compliance (GRC), Business Performance Management (BPM), commission, Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM)

Recurring Revenue Challenges Finance Departments

Posted by Ventana Research on Mar 13, 2015 8:44:05 AM

As I noted in a recent analyst perspective note the recurring revenue business model is gaining increasing use worldwide. Our recently completed recurring revenue benchmark research shows that companies are using this business approach because they find that it can convey a strategic advantage in creating additional sales opportunities, making future revenues more predictable, enhancing their customers’ experience  and increasing customer loyalty. However, recurring revenue businesses have unique challenges, especially in finance and accounting departments because most ERP systems (the ones that handle the accounting function) are not designed to manage the specific requirements of a recurring revenue businesses.

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Topics: SaaS, Customer Experience, NetSuite, Office of Finance, Operational Performance Management (OPM), Recurring Revenue, Zuora, Cloud Computing, Customer Service, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), billing software, Intacct

Recurring Revenue: An Increasingly Important Business Model

Posted by Ventana Research on Feb 19, 2015 4:47:53 AM

Recurring revenue is a term applied to business models that involve three types of selling and billing structures: a one-time transaction plus a periodic service charge; subscription-based services involving periodic charges; or a contractual relationship that charges periodically for goods and services. Telecommunications was the first major industry to use it, but recently the model has gained popularity in others. It is a major trend in information technology as an increasing number of companies offer software and hardware technology accessed as a service through cloud computing. Recurring revenue also has been transforming the entertainment business, as customers subscribe to rent movies, music and other creative digital products instead of owning them; this is part of the so-called “sharing economy” whose social impacts are wide-ranging.

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Topics: SaaS, Customer Experience, NetSuite, Office of Finance, Operational Performance Management (OPM), Recurring Revenue, Zuora, Cloud Computing, Customer Service, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), billing software, Intacct