Robert Kugel's Analyst Perspectives

Workday Planning Improves Control and Visibility

Posted by Robert Kugel on Nov 21, 2016 8:58:54 AM

Ventana Research recently awarded Workday a 2016 Technology Innovation Award for its newly released application, Workday Planning, because it simplifies and streamlines the budgeting and planning processes while facilitating collaboration, deepening visibility into spending and enabling tight fiscal control. These capabilities can help a variety of user organizations in several ways.

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Topics: Big Data, Marketing, Office of Finance, Budgeting, In-memory, CFO, Workday, controller, demand management, Financial Performance Management, financial reporting, FPM, Integrated Business Planning

Steelwedge Enables Actionable and Continuous Planning

Posted by Ventana Research on Dec 16, 2015 10:30:30 PM

Supply and demand chain planning and execution have grown in importance over the past decade as companies have recognized that software can meaningfully enhance their competitiveness and improve their financial performance. Sales and operations planning (S&OP) is an integrated business management process first developed in the 1980s aimed at achieving better alignment and synchronization between the supply chain, production and sales functions. A properly implemented S&OP process routinely reviews customer demand and supply resources and “replans” quantitatively across an agreed rolling horizon. The replanning process focuses on changes from the previously agreed sales and operations plan; while it helps the management team understand how the company achieved its current level of performance, its primary focus is on future actions and anticipated results. Adoption of S&OP has increased as software to support the process has become more powerful and affordable and as a growing list of companies demonstrated its value in producing meaningfully improved business results. Even without adopting a full-scale S&OP management approach, companies can benefit from better coordination and collaboration between their supply and demand functions. Software plays an important role here, too, in facilitating this coordination and collaboration.

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Topics: Planning, SaaS, Sales, Forecast, Mobile Technology, Operational Performance Management (OPM), Human Capital, Supply Chain Planning, Analytics, Business Analytics, Business Collaboration, Cloud Computing, Business Performance Management (BPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Sales Planning, Supply Chain, Supply Chain Performance Management (SCPM), Demand Chain, Integrated Business Planning, SCM Demand Planning, S&OP

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

Host Analytics Modeling Cloud Simplifies Planning and Reporting

Posted by Ventana Research on Jul 10, 2015 6:04:34 AM

Our benchmark research on next-generation business planning finds that a large majority of companies rely on spreadsheets to manage planning processes. For example, four out of five use them for supply chain planning, and about two-thirds for budgeting and sales forecasting. Spreadsheets are the default choice for modeling and planning because they are flexible. They adapt to the needs of different parts of any type of business. Unfortunately, they have inherent defects that make them problematic when used in collaborative, repetitive enterprise processes such as planning and budgeting. While it’s easy to create a model, it can quickly become a barrier to more integrated planning across the business units in an enterprise. As I’ve noted before, software vendors and IT departments have been trying – mainly in vain – to get users to switch from spreadsheets to a variety of dedicated applications. They’ve failed to make much of a dent because although these applications have substantial advantages over spreadsheets when used in repetitive, collaborative enterprise tasks, these advantages are mainly realized after the model, process or report is put to use in the “production” phase (to borrow an IT term).

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Topics: Planning, Marketing Planning, Operational Performance Management (OPM), Reporting, Budgeting, Analytics, Business Analytics, Business Collaboration, Business Performance Management (BPM), Business Planning, Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Demand Planning, Integrated Business Planning

Adaptive Insights Highlights Importance of Strategic Finance

Posted by Ventana Research on Apr 30, 2015 10:24:45 AM

Adaptive Insights held its annual user group meeting recently. A theme sounded in several keynote sessions was the importance of finance departments playing a more strategic role in their companies. Some participating customers described how they have evolved their planning process from being designed mainly to meet the needs of the finance department into a useful tool for managing the entire business. Their path took them from doing basic financial budgeting to planning focused on improving the company’s performance. This is one of the more important ways in which finance organizations can play a more strategic role in corporate management, an objective that more finance organizations are pursuing. Half of the companies participating in our Office of Finance benchmark research said that their finance organization has undertaken initiatives to enhance its strategic value to the company within the last 18 months.

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Topics: Planning, Operational Performance Management (OPM), Reporting, Budgeting, Human Capital, Analytics, Business Analytics, Business Collaboration, Business Performance Management (BPM), Business Planning, Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain, Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), Demand Planning, Integrated Business Planning, Project Planning

Integrated Business Planning Is More Effective

Posted by Ventana Research on Feb 24, 2015 8:03:03 PM

Ventana Research recently released the results of our Next-Generation Business Planning benchmark research. Business planning encompasses all of the forward-looking activities in which companies routinely engage. The research examined 11 of the most common types of enterprise planning: capital, demand, marketing, project, sales and operations, strategic, supply chain and workforce planning, as well as sales forecasting and corporate and IT budgeting. We also aggregated the results to draw general conclusions.

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Topics: Big Data, Planning, Predictive Analytics, Sales, Social Media, Human Capital Management, Marketing, Office of Finance, Operational Performance Management (OPM), Reporting, Budgeting, Controller, Business Analytics, Cloud Computing, In-memory, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain, Workforce Performance Management (WPM), capital spending, demand management, Financial Performance Management, financial reporting, FPM, Integrated Business Planning, S&OP

Making Business Planning More Accurate, Effective and Useful

Posted by Robert Kugel on Feb 5, 2015 8:36:27 PM

Business planning includes all of the forward-looking activities in which companies routinely engage. Companies do a great deal of planning. They plan sales and determine what and how they will produce products or deliver services. They plan the head count they’ll need and how to organize distribution and their supply chain. They also produce a budget, which is a financial plan. The purpose of planning is to be successful. Planning is defined as the process of creating a detailed formulation of a program of action to achieve some overall objective. But it’s more than that. The process of planning involves discussions about objectives and the resources and tactics that people need to achieve them. When it’s done right, planning is the best way to get everyone onto the same page to ensure that the company is well organized in executing strategy. Setting and to a greater degree changing the company’s course require coordination. Being well coordinated in this case means being able to understanding the impact of the policies and actions in your part of the company on the rest of the company.

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Topics: Big Data, Planning, Predictive Analytics, Marketing, Office of Finance, Operational Performance Management (OPM), Reporting, Budgeting, Human Capital, Sales and Forecasting, Analytics, Business Analytics, Business Collaboration, Business Performance Management (BPM), Business Planning, Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain, Supply Chain Performance Management (SCPM), Demand Planning, Integrated Business Planning, Project Planning, S&OP

Tagetik Advances Disclosure Management for Office of Finance

Posted by Robert Kugel on Jul 16, 2014 9:05:58 AM

Tagetik provides financial performance management software. One particularly useful aspect of its suite is the Collaborative Disclosure Management (CDM). CDM addresses an important need in finance departments, which routinely generate highly formatted documents that combine words and numbers. Often these documents are assembled by contributors outside of the finance department; human resources, facilities, legal and corporate groups are the most common. The data used in these reports almost always come from multiple sources – not just enterprise systems such as ERP and financial consolidation software but also individual spreadsheets and databases that collect and store nonfinancial data (such as information about leased facilities, executive compensation, fixed assets, acquisitions and corporate actions). Until recently, these reports were almost always cobbled together manually – a painstaking process made even more time-consuming by the need to double-check the documents for accuracy and consistency. The adoption of a more automated approach was driven by the requirement imposed several years ago by United States Securities and Exchange Commission (SEC) that companies tag their required periodic disclosure filings using eXtensible Business Reporting Language (XBRL), which I have written about. This mandate created a tipping point in the workload, making the manual approach infeasible for a large number of companies and motivating them to adopt tools to automate the process. Although disclosure filings were the initial impetus to acquire collaborative disclosure management software, companies have found it useful for generating a range of formatted periodic reports that combine text and data, including board books (internal documents for senior executives and members of the board of directors), highly formatted periodic internal reports and filings with nonfinancial regulators or lien holders.

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Topics: Big Data, Mobile, ERP, Human Capital Management, Modeling, Office of Finance, Reporting, Budgeting, close, closing, Consolidation, Controller, Finance Financial Applications Financial Close, IFRS, XBRL, Analytics, Business Analytics, Business Intelligence, Governance, Risk & Compliance (GRC), Business Performance Management (BPM), CFO, compliance, Data, Financial Performance Management (FPM), benchmark, Financial Performance Management, financial reporting, FPM, GAAP, Integrated Business Planning, Profitability, SEC Software

Anaplan Springs Forward with Winter Release

Posted by Robert Kugel on Apr 4, 2014 8:36:44 AM

Anaplan, a provider of cloud-based business planning software for sales, operations, and finance and administration departments, recently implemented its new Winter ’14 Release for customers. This release builds on my colleagues analysis on their innovation in business modeling and planning in 2013. Anaplan’s primary objective is to give companies a workable alternative to spreadsheets for business planning. It is a field in which opportunity exists. Our benchmark research on this topic finds that a majority of companies continue to use spreadsheets for their planning activities. Almost all (83%) operations departments use spreadsheets for their plans, as do 60 percent of sales and marketing units. Yet the same research shows that satisfaction with spreadsheets as a planning tool is considerably lower than satisfaction with dedicated planning applications. But despite general agreement in companies that the planning process is broken and spreadsheets are a problem, companies seem reluctant to break the bad habit of using spreadsheets. This conclusion suggests that either switching to dedicated software hasn’t been easy enough or that the results of doing it have not been compelling enough to motivate change. Anaplan intends to address both of these issues.

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Topics: Big Data, Performance Management, Planning, Predictive Analytics, Marketing, Office of Finance, Operational Performance Management (OPM), Operations, Reporting, Budgeting, Controller, Business Analytics, Cloud Computing, In-memory, Business Performance Management (BPM), CFO, Financial Performance Management (FPM), Sales Performance Management (SPM), Sales Planning, Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), Financial Performance Management, financial reporting, FPM, Integrated Business Planning

Tidemark Unifies New Generation of Business Planning Software

Posted by Robert Kugel on Oct 31, 2013 8:00:44 PM

Tidemark announced the release of the Fall 2013 version of its eponymous cloud-based application that my colleague assessed earlier in 2013. This new release adds capabilities for labor planning and expense management as well profitability modeling and analysis. These two areas of planning and analysis are common to all businesses. The new release adds features that enhance the software’s ability to do sales forecasting, initiative planning and IT department planning. The company continues to refine its modeling capabilities to make it easier for people engaged in the planning process to translate their expectations and concerns into a quantified view of the future. For example, users now can build models using natural-language modeling. The objective is to eliminate the need for help from business analysts or experts trained in the use of a tool and immersed the details of the IT plumbing, such as the metadata used for specific general ledger accounts or operational data.

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Topics: Big Data, Performance Management, Planning, Predictive Analytics, Office of Finance, Operational Performance Management (OPM), Reporting, Budgeting, Controller, Analytics, Cloud Computing, In-memory, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Tidemark, Workforce Performance Management (WPM), Financial Performance Management, financial reporting, FPM, Integrated Business Planning