Robert Kugel's Analyst Perspectives

Sage Intacct Moves into Manufacturing to Spur Growth

Posted by Robert Kugel on May 6, 2022 3:00:00 AM

Sage recently announced that it is expanding its Sage Intacct software offering to support discrete manufacturing, with its initial foray into this competitive market centered in France. The move supports the company’s strategy of building out the scope of industries served by its cloud applications to include product-oriented business models and expanding Sage Intacct’s geographic footprint. The company has been extending the functionality it offers customers with human capital management as well as budgeting and planning and extending beyond its sole focus on service organizations to be able to support product-focused businesses. These include wholesale distribution, construction, retail (with the recently completed Bright Pearl acquisition) and now discrete manufacturing, specifically industrial machinery and supplies, electrical equipment and electronic parts.

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Topics: Office of Finance, ERP and Continuous Accounting, digital finance

Reordered Global Trade Requires Agile Sales and Operations Planning

Posted by Robert Kugel on Apr 29, 2022 3:00:00 AM

I first wrote about a new era of trade a few years ago to make the point that the period of optimizing supply chains for the lowest cost was over, and that companies needed to redesign them to achieve greater resiliency. That observation proved correct. Now we are hearing about “the end of globalization,” a hyperbolic phrase describing the effects of ongoing changes to the international political order that have been underway for more than a decade. These changes are forcing companies to make sometimes significant adjustments to sourcing and supply chain management. Globalization, which started in 1492, isn’t over, but managing international trade requires the ability to deal with shifts in strategic planning assumptions and agility in dealing with tactical events. Software will play an important role in enabling corporations to meet these ongoing challenges caused by a major reordering of global trade.

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Topics: Continuous Planning, Business Planning, Financial Performance Management, Enterprise Resource Planning, ERP and Continuous Accounting, continuous supply chain

Unit4 Expansion Targets Enhancements for People-Centric Organization

Posted by Robert Kugel on Mar 9, 2022 10:30:00 AM

I recently attended an analyst conference held by Unit4, an enterprise resource planning vendor focused on midsize organizations in people-centric industries. The conference was intended to communicate the company’s strategy, product updates and roadmap. The meeting took place shortly after announcement of the availability of Unit4 Industry Mesh and the acquisition of Compright, which does compensation planning as well as in the context of the broad technology shifts affecting ERP applications.

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Topics: Human Capital Management, Office of Finance, Business Planning, Financial Performance Management, Talent Managment, ERP and Continuous Accounting, Total Compensation Management, digital finance

Automate the Close Cycle for Consistently Better Performance

Posted by Robert Kugel on Mar 3, 2022 3:00:00 AM

Software that automates the full scope of the accounting close, including reconciliations, consolidation and reporting, has grown more capable and affordable over the past five years. By enabling consistent process management that captures best practices, and by automating rote, repetitive activities to boost staff productivity, these applications enable organizations to shorten the close, make the process more efficient and reduce the risk of material errors by strengthening accounting controls. As accounting departments have learned over the past two years, close automation software helps ensure business continuity under any circumstance, especially as remote workforces that are able to perform the close virtually become more commonplace.

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Topics: Office of Finance, Financial Performance Management (FPM), ERP and Continuous Accounting, digital finance

Progress for AI in Office of Finance Applications

Posted by Robert Kugel on Feb 18, 2022 3:00:00 AM

The use of artificial intelligence (AI) using machine learning (ML) will be the single most important trend in business software this decade because it can multiply the investment value of such applications and provide vendors an important source of differentiation to achieve a competitive advantage in what are today very mature software categories. I assert that by 2025, almost all Office of Finance software vendors will have incorporated some AI capabilities to reduce workloads and improve performance. However, software vendors will be challenged to apply innovations in this area quickly while ensuring that the AI capabilities function well enough in the real world to foster rapid adoption while avoiding user frustration. The failures of the Apple Newton and Microsoft’s Clippy office assistant stand out as examples of too-ambitious-too-soon attempts at infusing intelligent automation.

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Topics: Office of Finance, embedded analytics, Data Management, Business Planning, Financial Performance Management, ERP and Continuous Accounting, AI and Machine Learning, digital finance

The Office of Finance Market Agenda for 2022: Effectiveness and Profits

Posted by Robert Kugel on Feb 9, 2022 3:00:00 AM

Ventana Research recently announced its 2022 Market Agenda for the Office of Finance, continuing the guidance we have offered since 2003 on the practical use of technology for the finance and accounting department. Our insights and best practices aim to enable organizations to operate with agility and resiliency, improving performance and delivering greater value as a strategic partner.

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Topics: Office of Finance, Business Intelligence, Collaboration, Business Planning, Financial Performance Management, ERP and Continuous Accounting, Revenue, blockchain, robotic finance, Predictive Planning, AI and Machine Learning, lease and tax accounting, profitability management

Evolving ERP Systems Redefining Office of Finance Operations

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

Over the past decade, how organizations manage processes and record data related to transactional events captured by an enterprise resource planning system has undergone a significant evolution. Some of the more recent changes have been the result of a steady migration to the cloud, since these systems are typically updated frequently, require less maintenance, have better performance and are more readily available than those operating on-premises.

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Topics: Office of Finance, Business Planning, ERP and Continuous Accounting, digital finance

Digitize Tax Departments for Increased Strategic Value

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

Managing corporate income taxes is a challenge for chief financial officers. Tax codes are often complex, so tax accounting as well as the data required for tax provisions and tax compliance are different enough from statutory accounting to create significant workloads for the tax department. Today, the worldwide trend to higher taxes and growing tax code complexity is increasing the payoff for digitizing an organization’s tax function.

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Topics: Office of Finance, Financial Performance Management, ERP and Continuous Accounting, Revenue, digital finance, lease and tax accounting

Managing Price Inflation Effectively with Technology

Posted by Robert Kugel on Sep 21, 2021 3:00:00 AM

A looming challenge for companies in the developed world is price inflation, an issue periodically fretted over – but not experienced at a macroeconomic level in most developed economies – over the past four decades. Price inflation has been a frequent bugaboo that never emerged because of persistent disinflationary forces in the world economy over the past forty years. It remains to be seen to what extent recent price rises are persistent or transitory but “what if?” was the most important phrase organizations used in 2020. What if this time it really is different?

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Topics: Office of Finance, business intelligence, Business Planning, Financial Performance Management, ERP and Continuous Accounting

Meet the Environmental Social and Governance (ESG) Reporting Challenge

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

Environmental, social and governance reporting by public corporations has become a top-of-mind issue for senior executives and boards of directors as countries increasingly consider or mandate its implementation in some form. The fundamental rationale for ESG reporting is rooted in the inability of purely financial measures to capture externalities (such as greenhouse gas emissions) or provide metrics that enable an objective assessment of management’s ability to properly determine trade-offs between short-term results and long-term sustainability. And, while in the United States the Sarbanes-Oxley Act mandates that auditors assess governance, the focus of this assessment is on preventing financial fraud as opposed to broader objectives that may be important to the functioning of the company as a sustainable entity.

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Topics: Human Capital Management, Office of Finance, Business Intelligence, Data Governance, Data Preparation, Data, Financial Performance Management, ERP and Continuous Accounting