Robert Kugel's Analyst Perspectives

Infor Advances Business Computing

Posted by Ventana Research on Sep 29, 2014 6:16:03 AM

Infor recently held its annual Inforum user group meeting, along with a series of sessions with analysts. The $2 billion business software company has products in the major categories of ERP (including enterprise financial management), human capital management, customer relationship management and performance management among others.

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Topics: Microsoft, Mobile, SaaS, Salesforce.com, ERP, HCM, Human Capital, Operational Performance Management (OPM), Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, Kenandy, PSA, reseller, Sage Software, Unit4, Analytics, Business Analytics, Business Collaboration, Cloud Computing, Collaboration, Accounting, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), Financial Performance Management (FPM), FinancialForce, HR, Infor, Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workday, Workforce Performance Management (WPM), HANA, Plex, Professional Services Automation

Oracle Financials is in the Cloud

Posted by Ventana Research on Sep 22, 2014 9:31:43 AM

Like most vendors of on-premises ERP and financial management software, in moving to the cloud Oracle has focused on developing for existing and potential customers the option of multitenant software as a service (SaaS). (I’m using the term “ERP” in its most expansive sense, to include such systems employed by all types of companies for accounting and financial management rather than only systems that are used by manufacturing and distribution companies.) Oracle’s ERP Cloud Service includes Fusion Financials as well as planning and budgeting, risk and controls management, procurement and sourcing, inventory and cost management, product master data management, and project portfolio management. Although to date our benchmark research has consistently found that a large majority of finance departments do not prefer to deploy software in the cloud, we also observe the balance shifting in this direction. SaaS vendors that address finance department requirements have demonstrated faster revenue growth than those that offer products only on-premises. Like other vendors Oracle must establish itself as a credible vendor of cloud ERP and financial management services to be well positioned as market demand shifts further in that direction. The company made sizable investments in acquiring ERP and financial management software in the 2000s (notably PeopleSoft – which included JD Edwards – and Hyperion), and the investments have paid off as many companies have opted to keep their existing systems (and continue to pay maintenance) rather than replace them. Our Office of Finance benchmark research finds that over the past decade the average age of ERP systems in use has increased to 6.4 years from 5.1 years. The longevity of these systems is partly the result of the slow pace of innovation in underlying technologies used for business computing. Even so, modest year-by-year changes are adding up to make replacement a more attractive option while negative attitudes toward the cloud are dissipating. To retain its installed base, it’s important for any established vendor to have solid customer references and the ability to make sales of cloud products as demand for ERP and financial management software in the cloud increases.

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Topics: Microsoft, Mobile, SaaS, Salesforce.com, ERP, HCM, Human Capital, Operational Performance Management (OPM), Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, Kenandy, PSA, reseller, Sage Software, Unit4, Analytics, Cloud Computing, Collaboration, Accounting, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), Financial Performance Management (FPM), FinancialForce, HR, Infor, Workday, Workforce Performance Management (WPM), HANA, Plex, Professional Services Automation

SAP Sets Course for Simple ERP

Posted by Robert Kugel on Jun 9, 2014 10:35:37 AM

The keynote theme at this year’s Sapphire conference in Orlando was Simple. Top executives from SAP, a software company associated with complexity, stated and restated that its future direction is to simplify all aspects of its products and the ways customers interact with them and the company itself. SAP’s longstanding and commendable aspiration to thoroughness in its software will be giving way to an emphasis on elegance in its engineering. This objective is more than admirable – SAP’s future competitiveness depends on it. Changing the fundamental architecture of SAP’s offerings – already well under way with HANA – is absolutely necessary. The design underpinnings in SAP’s ERP applications, for example, have been shaped by technology limitations that have disappeared, as Dr. Hasso Plattner, one of the company’s founders, pointed out in his keynote. However, the relevant issue facing SAP and the software market is how far the company can progress toward this goal  and how fast.

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Topics: Microsoft, Mobile, SaaS, Salesforce.com, ERP, HCM, Human Capital, Operational Performance Management (OPM), Dynamics AX, Dynamics GP, Dynamics NAV Dynamics SL, Kenandy, PSA, reseller, Sage Software, Unit4, Analytics, Business Collaboration, Cloud Computing, Collaboration, Accounting, Business Performance Management (BPM), CFO, Financial Performance Management (FPM), FinancialForce, HR, Infor, Supply Chain Performance Management (SCPM), Workday, HANA, Plex, Professional Services Automation

How New Information Technology Will Transform Auditing

Posted by Robert Kugel on Apr 4, 2013 11:04:58 AM

A recent news release by Robert Half, a staffing company that specializes in accounting and finance personnel, covered what it sees as the most important attributes required for auditors in the 21st century. “7 Attributes of Highly Effective Internal Auditors” covers the people dimension of the profession and focuses on the non-technical requirements of the role, including relationship-building, teamwork, and diversity. No doubt these skills are a must for just about anybody working in a modern (Western) corporation. For me, though, the most important quality on the list is at the bottom: continuous learning. That’s because the role of internal and external auditors will be transformed radically by big data, in-memory processing and other advances in information technology that will make enterprise automated fraud discovery and mitigation a reality before the end of this decade.

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Topics: Fraud, Governance, GRC, audit, Analytics, Business Analytics, Governance, Risk & Compliance (GRC), Accounting, Business Performance Management (BPM), compliance, Financial Performance Management (FPM), Infor, Risk, HANA, Oversight Systems

SAP’s New Fraud Management Analytical Application

Posted by Robert Kugel on Apr 2, 2013 11:20:35 AM

SAP recently announced its new Fraud Management analytic applications. Currently in “controlled” (limited) release, it’s a promising start for the product and a good example of the type of business process revolution that’s possible when companies can execute complex analytics on big data sets using in-memory and other advanced processing techniques. Over the next several years a wide swath of basic corporate processes will be transformed by the shift to in-memory processing and big data technology, two key foundational elements of my office of finance research agenda. HANA has been a consistent element of SAP’s product strategy and underlies many recent new releases, such as Business Suite on HANA.

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Topics: SAP, Fraud, Governance, GRC, audit, Analytics, Business Analytics, Governance, Risk & Compliance (GRC), Accounting, Business Performance Management (BPM), compliance, Financial Performance Management (FPM), Risk, HANA, insurance

SAP Announces Business Suite on HANA

Posted by Robert Kugel on Jan 11, 2013 11:31:24 AM

For the past couple of years I’ve been pointing to the importance of in-memory computing to the future of business applications. It’s an integral part of Ventana Research’s business and finance research agenda for 2013, and it’s one of the core technologies that senior executives should have an appreciation for because it can transform all core business processes, especially those that are analytic in nature.

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Topics: Mobile, Predictive Analytics, Real-time, SAP, ERP, Operational Performance Management (OPM), Analytics, Business Analytics, Business Collaboration, Cloud Computing, In-memory, Business Performance Management (BPM), CRM, Customer Performance Management (CPM), finance, Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), Social, Business Suite, Financial Performance Management, HANA

SAP Takes Business and Finance Mobile Using SAP HANA

Posted by Robert Kugel on Oct 19, 2012 12:20:14 PM

SAP has inaugurated a new series of business applications it calls Enterprise Performance Management (EPM) OnDemand as a cloud-based subscription service. The applications are part of SAP’s EPM version 10 suite, which it introduced last year. It’s a first step in what is likely to be a portfolio of general-purpose, lightweight and relatively low-cost apps designed to be used on mobile devices. Using HANA on the back end, the applications can deliver high performance in accessing masses of business data and deliver actionable information to executives and managers. The three on-demand apps in EPM are for expense management, profit-and-loss (P&L) analysis and capital project management. They also just released its SAP Business Planning and Consolidation that has a mobile version on the Apple iPad that is part of its recently announced EPM UnWired. The move is another indication of SAP’s emphasis on cloud computing, which my colleague Mark Smith covered earlier this year.

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Topics: Big Data, Performance Management, SAP, Operational Performance Management (OPM), expense, Analytics, Business Analytics, Business Collaboration, Cloud Computing, Business Applications, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), FPM, HANA, profit

SAP Rolls Out Business Planning and Consolidation on HANA at SAPinsider

Posted by Robert Kugel on Mar 19, 2012 10:42:24 AM

For me, the most significant announcement to come out of the recent SAPinsider conference was the company’s formal release of Business Planning and Consolidation (BPC) running on HANA, SAP’s in-memory computing appliance. For me, HANA is a potential “game changer” for planning, statutory consolidation and other analytics-supported financial processes because of the substantial reduction it enables in processing time from loading to reporting. In-memory systems provide a substantial edge in speed of processing large data sets or complex calculations, whereas the latency between thought and answer in complex scenario analyses on disk-based systems often prevents a collaborative dialogue around possible situations and their potential outcomes. Today, companies have to simplify the analysis, severely limit the amount of detail or find some combination of the two. More than likely, they wind up not having a potentially valuable collaborative dialogue in activities such as weekly or monthly review and revision of operating plans and their financial consequences, closing the books or assessing the impact of pricing changes on profitability. In the case of planning, I expect that in-memory systems will enable make it easier for companies to make changes to detailed plans (such as the budget or production plans), which is difficult today for many of them.

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Topics: Big Data, Planning, SAP, Social Media, ERP, forecasting, GRC, Mobile Computing, Operational Performance Management (OPM), Budgeting, IFRS, process, shared services, XBRL, Analytics, Business Analytics, Business Collaboration, Business Mobility, Cloud Computing, In-memory, Accounting, Business Performance Management (BPM), finance, Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), Financial Performance Management, GAAP, HANA