Robert Kugel's Analyst Perspectives

Using Maturity Assessments to Improve Performance

Posted by Robert Kugel on Oct 30, 2012 11:04:07 AM

The idea of devising and using maturity assessments to improve business performance has been a staple of management, functional and strategic consultants for decades. It’s based on two unassailable principles. One is the general assertion that companies differ in their ability to do anything along a range from nonexistent to advanced. The second is that at any time it’s possible for a knowledgeable individual to construct a scale of competence for some business function from least to most mature based on the important characteristics about how an organization designs and executes that function. Using maturity scales is a handy way for executives and managers to size up where they lie on a continuum of capabilities and an easy way to define the steps necessary for improvement. Maturity assessments have the advantage of being straightforward, but there’s the danger that they can be overly simplistic.

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Topics: Performance Management, Social Media, Customer Experience, Governance, Operational Performance Management (OPM), Business Analytics, Business Collaboration, Business Intelligence, Cloud Computing, Governance, Risk & Compliance (GRC), Operational Intelligence, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), Information Applications (IA), Information Management (IM), IT Performance Management (ITPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), benchmark, FPM

Get Serious about Managing Customer Profitability

Posted by Robert Kugel on Jul 12, 2012 9:38:43 AM

It’s clear that certain customers generate more profits than others, just as some products offer greater economic returns than others, as I’ve noted before. For this reason, efforts to improve customer profitability are not a new trend. Good managers have always looked for ways to achieve the highest sustainable margins. However, at some point, almost all businesses realize that increasing sustainable profitability can’t be achieved simply through increasing revenue or cutting costs. Those straightforward approaches are fine for tactical, one-off decisions, but they’re too simplistic for designing and implementing business strategies.

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Topics: Office of Finance, Operational Performance Management (OPM), Analytics, Business Analytics, Business Intelligence, Business Performance Management (BPM), CRM, Customer Performance Management (CPM), Financial Performance Management (FPM), Information Applications (IA), Sales Performance Management (SPM), Financial Performance Management, Profitability

Operational Risk Management Is a New Imperative

Posted by Robert Kugel on Jun 29, 2012 12:36:45 PM

Risk has always been an integral part of business, but our recent Governance, Risk and Compliance (GRC) benchmark research shows that companies deal with risk with varying degrees of effectiveness – especially operational risk. A majority of companies lag in their overall GRC maturity, as I covered in a recent blog post. Operational risk management should be of greater interest to executives today because they can have greater control of it than before. The expansion of IT systems to automate and support most business processes has made it easier than ever to measure, monitor and report on what’s going on in a company. It’s now practical to expand the scope of operational risk management and improve companies’ effectiveness in handling risk events when they occur.

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Topics: Big Data, Performance Management, Predictive Analytics, Customer Experience, Governance, GRC, Operational Performance Management (OPM), Management, Analytics, Business Analytics, Business Collaboration, Business Intelligence, Governance, Risk & Compliance (GRC), Operational Intelligence, Business Performance Management (BPM), compliance, Customer Performance Management (CPM), finance, Financial Performance Management (FPM), Information Applications (IA), Information Management (IM), IT Performance Management (ITPM), Risk, Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), financial risk management

Keeping Big Data from Becoming Big GIGO

Posted by Robert Kugel on Jun 27, 2012 1:28:10 PM

Anyone who focuses on the practical uses of information technology, as I do, must consider the data aspects of adopting any new technology to achieve some business purpose. Reliable data must be readily available in the necessary form and format, or that shiny new IT bauble you want to deploy will fall short of expectations. Our research benchmarks cover a range of core business and IT processes, and they regularly demonstrate that data deficiencies are a root cause of issues organizations have in performing core functions; typically the larger the company, the more severe the data issues become.

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Topics: Social Media, GRC, Operational Performance Management (OPM), IBM Business Analytics, Business Analytics, Business Collaboration, Business Intelligence, CIO, Governance, Risk & Compliance (GRC), Operational Intelligence, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), finance, Financial Performance Management (FPM), Information Applications (IA), Information Management (IM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM)

Infor Presents Itself as a Large Software Startup

Posted by Robert Kugel on Apr 30, 2012 11:28:33 AM

Infor described this year’s Inforum user group meeting as a coming-out party for a large startup company. Such a debut was necessary because Infor had been operating in something of a stealth mode for the past three years: a limited marketing presence, no unified message and a weak, sometimes inconsistent brand identity. It also needed to formally introduce Infor to customers of Lawson, the ERP supplier it acquired last year. The “startup” designation is meant to signal that Infor has been able to render a decade-long consolidation of dozens of smaller companies into one cohesive entity.

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Topics: Performance Management, Salesforce.com, SAP, Social Media, Sustainability, ERP, Human Capital Management, Marketing, Operational Performance Management (OPM), Epiphany, expense management, Lawson, Business Analytics, Business Collaboration, Business Intelligence, Business Mobility, Cloud Computing, Governance, Risk & Compliance (GRC), IBM, Operational Intelligence, Oracle, CRM, Customer Performance Management (CPM), finance, Financial Performance Management (FPM), Infor, Information Applications (IA), Information Management (IM), IT Performance Management (ITPM), Sales Performance Management (SPM), Supply Chain, Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), Financial Performance Management

BizNet Enables Enterprise Spreadsheet-Based Reporting

Posted by Robert Kugel on Apr 19, 2012 10:39:24 AM

I’ve been advocating more intelligent use of spreadsheets for the better part of a decade. Ventana Research coined the term “enterprise spreadsheet” in 2004 to describe software applications that marry a Microsoft Excel user interface with a business rules server and a relational or multidimensional data store. This approach offers the best of both worlds in the sense of taking advantage of widespread familiarity and training with Excel while substantially reducing issues stemming from the desktop spreadsheet’s lack of data integrity, referential integrity and limited dimensionality as well as limited auditability and control. One example of the enterprise spreadsheet is data consolidation and data reporting software offered by BizNet Software. It enables business users to work within an Excel environment to assemble, manage and deliver periodic reports from enterprise data sources. It offers greater efficiency than stand-alone spreadsheets while effectively addressing the above-mentioned core issues.

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Topics: Planning, Social Media, Sustainability, Operational Performance Management (OPM), Reporting, Budgeting, Analytics, Business Analytics, Business Collaboration, Business Intelligence, Business Mobility, Cloud Computing, Governance, Risk & Compliance (GRC), Business Performance Management (BPM), Customer Performance Management (CPM), Data, Financial Performance Management (FPM), Information Applications (IA), Information Management (IM), IT Performance Management (ITPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), Financial Performance Management, Microsoft Excel, Spreadsheets

Full Use of XBRL Is Not Here Yet

Posted by Robert Kugel on Apr 12, 2012 11:01:53 AM

The mandate by the U.S. Securities and Exchange Commission (SEC) that requires its filers to apply eXtensible Business Reporting Language (XBRL) tags to their financial statements has been in effect for several years. (XBRL is a core element of our Office of Finance Research Agenda for 2012.) One of the most important ideas behind this “interactive data” requirement was to make it as simple as possible for investors to be able to consume and analyze corporate financial data filed with the SEC. This intent sets the SEC mandate apart from most other XBRL tagging requirements, which are designed for the needs of regulatory bodies such as the Bank of Japan, the Australian federal and state governments and the U.S. Federal Deposit Insurance Corporation (FDIC). Moreover, I believe the depth and breadth of the SEC’s database and the size of the U.S. equity capital markets make this the most important public-focused use of XBRL in the world. Considerable progress has been made toward the main objective, but considerably more is needed, and the sooner the better.

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Topics: Office of Finance, extended close, US-GAAP, XBRL, Analytics, Business Analytics, Business Collaboration, Business Intelligence, Governance, Risk & Compliance (GRC), Business Performance Management (BPM), CFO, compliance, Financial Performance Management (FPM), Information Applications (IA), Information Management (IM), financial reporting, SEC, Digital Technology