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: Business Intelligence, Collaboration, Data Science, Mobile, Big Data, Machine Learning and Cognitive Computing, Mobile Technology, Office of Finance, Continuous Planning, ERP and Continuous Accounting, Financial Performance Management, Price and Revenue Management, Operations & Supply Chain, Enterprise Resource Planning, Inventory Optimization, Sales and Operations Planning, Analytics, Human Capital Management, Cloud Computing
Like many other industry observers I’ve heard overblown claims for information technology for decades. However, I’ve also observed that – eventually – reality catches up with vision. Finance and accounting departments are particularly resistant to change, yet because almost no corporations use adding machines or typewriters any more, it’s clear that transformative change can happen. Nonetheless, because users of business computing systems are inundated with “it’s better than ever” promotions by vendors, journalists and industry analysts, may have grown jaded and disbelieving. In the case of ERP systems that help run many organizations, that is too bad because we are finally at the point of a fundamental change in this business-critical software category.
Topics: Business Analytics, Business Collaboration, Business Performance Management (BPM), Cloud Computing, Customer Performance Management (CPM), Financial Performance Management (FPM), Human Capital, Mobile Technology, Operational Performance Management (OPM), Social Media, Supply Chain Performance Management (SCPM), Office of Finance, Business Intelligence
Workiva offers Wdesk, a cloud-based productivity application for handling composite documents. I use the term “composite document” to refer to those in which text is created and edited collaboratively by multiple contributors and which incorporates tabular and numerical data from multiple sources in a controlled process. Composite documents often have formats defined by law, regulation or contract and must be created at periodic intervals. To comply with the requirement by the United States Securities and Exchange Commission (SEC) that companies “tag” their financial filings using eXtensible Business Reporting Language (XBRL), many companies acquired software to automate the creation and tagging of these composite documents.
Topics: Business Collaboration, Business Performance Management (BPM), Cloud Computing, Financial Performance Management (FPM), Governance, Risk & Compliance (GRC), Mobile Technology, Uncategorized, Composite Software
Infor recently held its annual Innovation Summit at its New York City headquarters. The company has shown leadership and creativity in business applications on two fronts: focusing its development efforts on enhancing the user experience and collaboration and building an application architecture that will deliver a rich set of functionality for ERP, financial management, CRM and HRMS and business analytics in a multitenant cloud environment. All of these advances were necessary to remake a disparate portfolio of aging software into an up-to-date set of applications. The Innovation Summits have been useful indicators of Infor’s future product and market direction. And while there has been a lag between what’s demonstrated and what’s actually available in the software, it’s not clear that this really matters. Any negative impact is limited by the slow replacement cycle for ERP (our research shows that on average companies replace their systems every 6.4 years – longer than they used to take) and conservative attitudes when it comes to core enterprise systems. Innovation doesn’t seem to be a big factor yet in selling business software to mainstream buyers, but it is likely to become more important within a few years. Changes in buyer preferences will come about as technology puts more of the design and operation of these systems in the hands of business users rather than their IT departments and outside consultants. Increasing the configurability and reducing the need for customization will cut costs, reduce the time to value in purchasing replacement applications and increase the flexibility of these notoriously inflexible systems.
Topics: accounting, analytics, ERP, EAM, CRM, HCM, innovat, Business Analytics, Business Performance Management (BPM), Cloud Computing, Customer Performance Management (CPM), Financial Performance Management (FPM), Human Capital, Mobile Technology, Operational Performance Management (OPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Uncategorized
The imperative to transform the finance department to function in a more strategic, forward-looking and action-oriented fashion has been a consistent theme of practitioners, consultants and business journalists for two decades. In all that time, however, most finance and accounting departments have not changed much. In our benchmark research on the Office of Finance, nine out of 10 participants said that it’s important or very important for finance departments totake a strategic role in running their company. The research also shows a significant gap between this objective and how well most departments perform. A large majority (83%) said they perform the core finance functions of accounting, fiscal control, transaction management, financial reporting and internal auditing, but only 41 percent said they play an active role in their company’s management. Even fewer (25%) have implemented a high degree of automation in their core finance functions and actively promote process and analytical excellence.
Topics: Analytics, Big Data, Budgeting, Business Analytics, Business Collaboration, Business Performance Management (BPM), CEO, CFO, CIO, close, Cloud Computing, Continuous Accounting, Continuous Planning, CPQ, end-to-end, Financial Performance Management, Financial Performance Management (FPM), FPM, Governance, GRC, Human Capital, In-memory, Mobile Technology, Planning, Predictive Analytics, Risk, Social Media, Tax, Uncategorized, Office of Finance
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.
Topics: Analytics, Business Analytics, Business Collaboration, Business Performance Management (BPM), Cloud Computing, Demand Chain, Financial Performance Management (FPM), Forecast, Human Capital, Integrated Business Planning, Mobile Technology, Operational Performance Management (OPM), Planning, SaaS, Sales, Sales Performance Management (SPM), Sales Planning, SCM Demand Planning, S&OP, Supply Chain, Supply Chain Performance Management (SCPM), Supply Chain Planning
The enterprise resource planning (ERP) system is a pillar of nearly every company’s record-keeping and management of business processes. It is essential to the smooth functioning of the accounting and finance functions. In manufacturing and distribution, ERP also can help plan and manage inventory and logistics. Some companies use it to handle human resources functions such as tracking employees, payroll and related costs. Yet despite their ubiquity, ERP systems have evolved little since their introduction a quarter of a century ago. The technologies shaping their design, functions and features had been largely unchanged. As a measure of this stability, our Office of Finance benchmark research found that in 2014 companies on average were keeping their ERP systems one year longer than they had in 2005.
Topics: Analytics, Business Intelligence, Business Performance Management (BPM), CFO, close, closing, Cloud Computing, Collaboration, Controller, dashboard, Data, ERP, finance, Financial Performance Management, Financial Performance Management (FPM), FP&A, FPM, Human Capital, IBM, Intacct, Microsoft, Mobile Technology, NetSuite, Operational Performance Management (OPM), Oracle, Reconciliation, Reporting, SAP, Social Media, Supply Chain Performance Management (SCPM), Uncategorized, Big Data, Office of Finance
Whatever Oracle’s cloud strategy had been the past, this year’s OpenWorld conference and trade show made it clear that the company is now all in. In his keynote address, co-CEO Mark Hurd presented predictions for the world of information technology in 2025, when the cloud will be central to companies’ IT environments. While his forecast that two (unnamed) companies will account for 80 percent of the cloud software market 10 years from now is highly improbable, it’s likely that there will be relentless consolidation, marginalization and extinction within the IT industry sector driven by cloud disruptions and the maturing of the software business. In practice, though, we expect the transition to the cloud to be slow and uneven.
Topics: Analytics, Business Collaboration, Business Intelligence, Business Performance Management (BPM), CFO, close, closing, Cloud Computing, Collaboration, Controller, Customer Performance Management (CPM), dashboard, Data, ERP, finance, Financial Performance Management, Financial Performance Management (FPM), FP&A, FPM, Human Capital, IBM, Intacct, Microsoft, Mobile Technology, NetSuite, Operational Performance Management (OPM), Oracle, Reporting, Sales Performance Management (SPM), SAP, Spreadsheets, Supply Chain Performance Management (SCPM), Tax, Office of Finance, Predictive Analytics