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:
Topics: Big Data, data science, Mobile, Customer Experience, Human Capital Management, Machine Learning, Office of Finance, . cloud computing, revenue recognition, 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
Ventana Research recently announced the results of its latest Benchmark Research, Next-Generation ERP. The enterprise resource planning (ERP) system is at the core of nearly every company’s record-keeping and management of business processes. Its smooth and uninterrupted functioning is essential to an organization’s accounting and finance functions. In manufacturing and distribution, ERP manages inventory and logistics. Some companies use it to handle human resources functions like tracking employees, payroll and related costs.
Topics: Big Data, Mobile, Office of Finance, cloud computing, revenue recognition, Collaboration, Inventory Optimization, Work and Resource Management, Enterprise Resource Planning, ERP and Continuous Accounting
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.
Topics: Big Data, data science, Mobile, Customer Analytics, Customer Experience, Machine Learning, Office of Finance, Wearable Computing, cloud computing, Continuous Planning, business intelligence, Analytics, Data Integration, Internet of Things, Financial Performance Management, digital technology, Digital Marketing, Mobile Marketing, Digital Commerce, Operations & Supply Chain, Enterprise Resource Planning, Machine Learning and Cognitive Computing, ERP and Continuous Accounting, Sales Planning and Analytics
Senior finance executives and finance organizations that want to improve their performance must recognize the value of technology as a key tool for doing high-quality work. Consider how poorly your organization would perform if it had to operate using 25-year-old software and hardware. Having the latest technology isn’t always necessary, but it’s important for executives to understand that technology shapes a finance organization’s ability to improve its overall effectiveness.
Topics: Big Data, data science, Mobile, Mobile Technology, Office of Finance, cloud computing, Continuous Planning, revenue recognition, Business Intelligence, Collaboration, analytics, Financial Performance Management, recurring revenue, Price and Revenue Management, Inventory Optimization, Billing and Recurring Revenue, Operations & Supply Chain, Enterprise Resource Planning, Sales and Operations Planning, Machine Learning and Cognitive Computing, ERP and Continuous Accounting, Collaboration for Business
The topic of corporate governance received renewed attention recently after the publication of an open letter signed by 13 prominent business leaders, including Warren Buffett of Berkshire Hathaway and Jamie Dimon of JPMorgan Chase. The first principle the group advocated in the letter is the need for a truly independent board of directors. To achieve that aim, the letter suggests having the board meet regularly without the CEO and that the members of the board should have “active and direct engagement with executives below the CEO level.” From my perspective, translating this idea into reality would be helped by a change in the dynamics of most board meetings. I would eliminate the standard presentation of results and begin the meeting with questions and observations from the board members directed to company executives related to its financial and operating results and any other matters on the agenda. This could take place with or without the CEO.
Our recently published Office of Finance benchmark research assesses a broad set of functions and capabilities of finance organizations. We asked research participants to identify the most important issues for a finance department to address in a dozen functional areas: accounting, budgeting, cost accounting, customer profitability management, external financial reporting, financial analysis, financial governance and internal audit, management accounting, product profitability management, strategic and long-range planning, tax management and treasury and cash management. Among the key findings is this: Not using the most capable software is an underlying cause, often unrecognized, of process, analytics and data issues.
Topics: Mobile, Planning, Predictive Analytics, ERP, FP&A, Reporting, Self-service, Budgeting, close, closing, computing, Controller, dashboard, planning and budgeting, report, Tax, Analytics, Business Intelligence, Cloud, Collaboration, Accounting, Business Performance Management (BPM), CFO, Data, finance, Financial Performance Management (FPM), BI, Financial Performance Management, FPM, Microsoft Excel, scorecard, Spreadsheets, treasury
Our recent Office of Finance benchmark research demonstrates the importance of using automation to execute finance department functions. Information technology systems do at least two things very well that make better use of people’s time, and both of them can substantially improve organizational performance. First, they eliminate the need for people to do repetitive tasks, which frees them to spend time on more valuable work that requires judgment and skill. IT systems also can be programmed to focus only on relevant information while eliminating the need to get immersed in detail. The latter capability supports a “management by exception” approach, which enables executives and managers to better allocate how and where they spend their time.
Topics: Big Data, Mobile, Planning, ERP, FP&A, Reporting, Self-service, Budgeting, close, closing, computing, Controller, dashboard, planning and budgeting, reconciliations, report, Tax, Analytics, Business Analytics, Business Collaboration, Business Intelligence, Cloud, Collaboration, Accounting, Business Performance Management (BPM), CFO, Data, finance, Financial Performance Management (FPM), BI, Financial Performance Management, FPM, Microsoft Excel, scorecard, Spreadsheets, treasury
Finance transformation” refers to a longstanding objective: shifting the focus of CFOs and finance departments from transaction processing to more strategic, higher-value functions. Our upcoming Office of Finance benchmark research confirms that most of organizations want their finance department to take a more strategic role in management of the company: nine in 10 participants said that it’s important or very important. (We are using “finance” in its broadest sense, including, for example, accounting, corporate finance, financial planning and analysis, treasury and tax functions.) Finance departments have the ability and at least an implicit mandate to improve business performance and enable a corporation to execute strategy more effectively. Yet the research shows that becoming strategic is a work in progress. Most departments handle the basics well, but half fall short in areas that can contribute significantly to the performance of their company. More than three-fourths of participants said they perform accounting, external financial reporting, financial analysis, budgeting and management accounting well or very well. But only half said that about their ability to do product and customer profitability management, strategic and long-range planning and business development.
Topics: Big Data, Mobile, Performance Management, Predictive Analytics, Social Media, ERP, FP&A, Reporting, Management, close, closing, computing, Controller, planning and budgeting, Tax, Analytics, Business Analytics, Business Collaboration, Cloud, Cloud Computing, Collaboration, Accounting, Business Performance Management (BPM), CFO, finance, Financial Performance Management (FPM), Tagetik, FPM, treasury
When applying information technology to drive better business performance, companies and the systems integrators that assist them often underestimate the importance of organizing data management around processes. For example, companies that do not execute their quote-to-cash cycle as an end-to-end process often experience a related set of issues in their sales, marketing, operations, accounting and finance functions that stem from entering the same data into multiple systems. The inability to automate passing of data from one functional group to the next forces people to spend time re-entering data and leads to fragmented and disconnected data stores. The absence of a single authoritative data source also creates conflicts about whose numbers are “right.” Even when the actual figures recorded are identical, discrepancies can crop up because of issues in synchronization and data definition. Lacking an authoritative source, organizations may need to check for and resolve errors and inconsistencies between systems to ensure, for example, that what customers purchased was what they received and were billed for. The negative impact of this lack of automation is multiplied when transactions are complex or involve contracts for recurring services.
Topics: Big Data, Mobile, ERP, Operational Performance Management (OPM), Operations, Management, close, closing, computing, end-to-end, quote-to-cash, requisition-to-pay, Analytics, Cloud, Data Management, Accounting, Business Performance Management (BPM), CRM, Data, finance, Information Applications (IA), Information Management (IM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), FPM
Finance and accounting departments are staffed with numbers-oriented, naturally analytical people. Strong analytic skills are essential if a finance department is to deliver deep insights into performance and visibility into emerging opportunities and challenges. The conclusions of analyses enable fast, fully informed business decisions by executives and managers. Conversely, flawed analyses undermine the performance of a company. So it was good news that in our Office of Finance benchmark research 62 percent of participants rated the analytical skills of their finance organization as above average or excellent.
Topics: Big Data, Mobile, Planning, Predictive Analytics, ERP, FP&A, Reporting, Self-service, BizNet Software, Budgeting, close, closing, computing, Controller, dashboard, planning and budgeting, report, Tax, Analytics, Business Analytics, Business Intelligence, Cloud, Cloud Computing, Collaboration, Accounting, Business Performance Management (BPM), CFO, Data, finance, Financial Performance Management (FPM), Tagetik, BI, Financial Performance Management, FPM, Microsoft Excel, scorecard, Spreadsheets, treasury