Ventana Research defines financial performance management (FPM) as the process of addressing often overlapping issues involving people, process, information and technology that affect how well finance organizations operate and support the activities of the rest of their organization. FPM software supports and automates the full cycle of finance department activities, which include planning and budgeting, analysis, assessment and review, closing and consolidation, internal financial reporting and external financial reporting, as well as the underlying information technology systems that support them.
The ERP market is set to undergo a significant transformation over the next five years. At the heart of this transformation is the decade-long evolution of a set of technologies that are enabling a major shift in the design of ERP systems – the most significant change since the introduction of client/server systems in the 1990s. Some ERP software vendors increasingly are utilizing in-memory computing, mobility, in-context collaboration and user interface design to differentiate their applications from rivals and potentially accelerate replacement of existing systems (as I noted in an earlier analyst perspective). ERP vendors with software-as-a-service (SaaS) subscription offerings are investing to make their software suitable for a broader variety of users in multitenant clouds. And some vendors will be able to develop lower-cost business systems to broaden the appeal of single-tenant hosted cloud deployments for companies that cannot adapt their businesses to share with other tenants or prefer not to.
Topics: Performance Management, ERP, FP&A, Reporting, Consolidation, Human Capital, reconciliations, Business Analytics, Uncategorized, Accounting, Business Performance Management (BPM), Financial Performance Management (FPM), Financial Performance Management, FPM
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: Microsoft, SAP, ERP, FP&A, Mobile Technology, NetSuite, Operational Performance Management (OPM), Reporting, close, closing, Controller, dashboard, Human Capital, reconciliations, report, Tax, Analytics, Business Collaboration, Business Intelligence, Cloud, Cloud Computing, Collaboration, IBM, Oracle, Accounting, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), Data, finance, Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Amazon, BI, Financial Performance Management, FPM, Intacct, Predictive Analytics, scorecard, Spreadsheets, treasury
Many senior finance executives say they want their department to play a more strategic role in the management and operations of their company. They want Finance to shift its focus from processing transactions to higher-value functions in order to make more substantial contributions to the success of the organization. I use the term “continuous accounting” to represent an approach to managing the accounting cycle that can facilitate the shift by improving the performance of the accounting function. Continuous accounting embraces three main principles:
Topics: ERP, FP&A, Reporting, close, closing, Controller, dashboard, reconciliations, report, Tax, Analytics, Business Intelligence, Cloud, Collaboration, Accounting, Business Performance Management (BPM), CFO, Data, finance, Financial Performance Management (FPM), BI, Financial Performance Management, FPM, 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