Robert Kugel's Analyst Perspectives

Move Finance to the Cloud

Posted by Robert Kugel on May 29, 2020 10:29:36 AM

In a recent note on virtualizing the close, I observed that finance and accounting organizations that can operate in a virtual mode are better able to adapt to changing circumstances and overcome obstacles. Having systems that people can readily access remotely to collaborate and execute processes virtually makes it easier for departments to meet their commitments with confidence. The core technology underpinning the ability to work in a virtual mode is the cloud. That’s because the cloud eliminates the constraints of having to be in a specific place at a specific time; work gets done when it needs to be done.

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Topics: Office of Finance, Financial Performance Management, ERP and Continuous Accounting, Predictive Planning

Fortune Favors the Prepared

Posted by Robert Kugel on Apr 2, 2020 1:36:26 PM

I like Louis Pasteur’s observation that “fortune favors the prepared mind.” So-called black swan events happen regularly and can have a very negative effect on a business. Of course, risk is inherent in any commercial undertaking; organizations don’t succeed by being overly cautious and reckless ones usually fail after awhile. Those that are consistently successful are ones that manage risk intelligently. That is, they correctly identify vulnerabilities, avoid the decisions and situations where risks outweigh the benefits, insure the risks that are economically insurable and quickly mitigate the impact of negative events. They are resilient in the face of change because they are adaptable.

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Topics: Human Capital Management, Office of Finance, Continuous Planning, Workforce Management, Financial Performance Management, Work and Resource Management, Predictive Planning

Make Automating Finance and Accounting a Priority

Posted by Robert Kugel on Apr 1, 2020 11:15:00 AM

We find in our recent Change in the Office of Finance benchmark research an indication of the value of using automation to execute finance department functions. Our findings reveal an increase in the use of automation by finance organizations over the past five years and a concomitant improvement in performance. For example, 46 percent of companies close their monthly books within four business days compared to 29 percent in our earlier research. Yet the glass is only half full. Finance organizations continue to be laggards in adopting technology that measurably improves effectiveness.

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Topics: Office of Finance, Financial Performance Management, Price and Revenue Management, ERP and Continuous Accounting, robotic finance, Predictive Planning, revenue and lease accounting

Three Essentials for a Digital Office of Finance

Posted by Robert Kugel on Mar 3, 2020 6:00:00 AM

One of the objectives of our recent Change in the Office of Finance benchmark research was to assess the technological capabilities of finance and accounting departments. The research confirms that today we are on the verge of a major technology-led shift. Technology that’s already available can have a greater impact on how the finance department operates over the next 10 years than it has over the past 50. Advances in columnar databases, in-memory processing and artificial intelligence and machine learning, as well as a relentless reduction in the cost of computing resources, will make it possible to substantially redefine how work gets done in the department.

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Topics: Office of Finance, Financial Performance Management, Price and Revenue Management, ERP and Continuous Accounting, robotic finance, Predictive Planning, revenue and lease accounting, subscription management

The Next-Generation CFO

Posted by Robert Kugel on Feb 24, 2020 6:00:00 AM

I was invited to sit on a panel at CFO 3.0 events held in San Francisco and New York hosted by Sage Intacct. This event is about the evolution of the role that started with the archetypal CFO 1.0, the green-eye-shade-wearing bean counter. Lacking usable technology, he or she was limited to keeping the books in good order and simply reporting what just happened. Today’s CFO 2.0 relies on technology developed over the past two decades as well as the broader perception of the role, catalyzed by technology that provides deeper analysis to explain what happened and why. At the next 3.0 level, CFOs will lead an organization that can provide guidance to executives and managers so they can better shape the company’s future, providing insights through rich scenario planning.

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Topics: Office of Finance, Financial Performance Management, Price and Revenue Management, ERP and Continuous Accounting, robotic finance, Predictive Planning, revenue and lease accounting

The Office of Finance in 2020: Ventana Research Agenda

Posted by Robert Kugel on Feb 14, 2020 6:00:00 AM

Ventana Research recently announced its 2020 research agenda for the Office of Finance, continuing the guidance we’ve offered for nearly two decades on the practical use of technology for the finance and accounting department to help these organizations derive greater value and improve their performance. For decades organizations have discussed transforming Finance from a backward-looking “bean counter” to a more strategic advisory role — yet little has changed. One important reason is that the department is a technology laggard. Our recent Office of Finance benchmark research finds that half (49%) of organizations are at the lowest level of performance in utilizing technology. We also find a meaningful correlation between that level of performance and how well a department performs core processes.

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Topics: Office of Finance, Price and Revenue Management, ERP and Continuous Accounting, robotic finance, Predictive Planning, revenue and lease accounting

The Office of Finance is a Numbers Factory

Posted by Robert Kugel on Feb 4, 2020 6:00:00 AM

Yes, it’s an easy metaphor, but a worthwhile one to consider. For the Office of Finance, figures are its raw material. They are transformed and assembled into financial statements, forecasts and reports. Like a factory, there are blueprints (accounting standards, models and forms) that show how the parts are to be pieced together. There’s quality control in the form of internal audit. And there are final inspections — external audits — to ensure the end product has been assembled properly.

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Topics: Office of Finance, Financial Performance Management, Price and Revenue Management, ERP and Continuous Accounting, robotic finance, Predictive Planning, revenue and lease accounting

Host Analytics Becomes Planful

Posted by Robert Kugel on Jan 29, 2020 6:00:00 AM

Host Analytics recently announced it will now go by the name Planful. The change formally signifies a new chapter in an evolution that began with the company’s acquisition by Vector Capital a year ago and the accession of a new CEO, Grant Halloran. Planful executives say the new name better represents its focus, which is on what Ventana Research calls continuous planning, as well as its focus on the associated processes of forecasting, analysis, consolidation and reporting. 

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Topics: Office of Finance, Continuous Planning, Financial Performance Management (FPM), robotic finance, Predictive Planning

Sage Intacct Looks to the Future of Finance

Posted by Robert Kugel on Dec 23, 2019 12:00:00 PM

Sage Intacct recently hosted its annual user group meeting, Advantage, and earlier this year met with industry analysts. Both meetings shed light on how the company is addressing two key opportunities. One is building a robust offering to address rapidly evolving technology requirements for the Office of Finance. The other is broadening the scope of its offering to address the financial management and administration needs of its customers.

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Topics: Office of Finance, business intelligence, Financial Performance Management, ERP and Continuous Accounting, robotic finance, Predictive Planning, AI and Machine Learning, revenue and lease accounting

CFOs in Midsize Companies Face Challenges

Posted by Robert Kugel on Nov 25, 2019 7:00:00 AM

Ventana Research recently published benchmark research findings on the Office of Finance, many of which show a trend in the right direction. Organizations are closing the books sooner; financial planning and analysis has improved; and companies are more frequently establishing Finance IT groups to manage the increasingly technological requirements for effectiveness.

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Topics: Office of Finance, Financial Performance Management, Price and Revenue Management, ERP and Continuous Accounting, robotic finance, Predictive Planning