Robert Kugel's Analyst Perspectives

Supply Chain Management and Sourcing in a New Era of Trade

Posted by Robert Kugel on Feb 22, 2019 6:00:00 AM

We’re in a new era of trade, the result of converging issues that have been building for at least a decade. Structurally and politically, the liberal ethos that drove the trade environment through the second half of the 20th century and into the 21st has changed. There will be a new equilibrium in the future; getting there, though, will be a bumpy ride. Adding to the challenges posed by a shifting trade environment are commodity and currency market volatility and the impacts of ongoing legal, regulatory and taxation changes.

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Topics: Office of Finance, Continuous Planning, ERP and Continuous Accounting, Financial Performance Management, Recurring Revenue, Price and Revenue Management, revenue recognition, Operations & Supply Chain, Enterprise Resource Planning, Inventory Optimization, Sales and Operations Planning, Sales Planning and Analytics

Revenue Recognition Standards Pose Planning Challenges

Posted by Robert Kugel on Feb 18, 2019 6:00:00 AM

New rules governing revenue recognition for contracts have gone into effect for larger companies and are about to go into effect for smaller ones. The Financial Accounting Standards Board (FASB), which administers Generally Accepted Accounting Principles in the U.S. (US-GAAP), has issued ASC 606 and the International Accounting Standards Board (IASB), which administers International Financial Reporting Standards (IFRS) used in most other countries, has issued IFRS 15. The two standards are very similar and will require fundamental changes in revenue recognition for companies that use even moderately complex contracts in their dealings with customers. These include, for example, contracts that are structured using tiered pricing or volume discounts or ones that routinely involve modifications, such as subscriptions that add or drop users and services or allow seasonal changes or promotional discounts.

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Topics: Billing and Recurring Revenue, Office of Finance, Continuous Planning, ERP and Continuous Accounting, Financial Performance Management, Recurring Revenue, revenue recognition, Sales Performance Management, Sales Planning and Analytics

Straight-Through Processing for Business and Commerce

Posted by Robert Kugel on Jan 31, 2019 6:00:00 AM

“Straight-through processing” (STP) is a business process and data architecture methodology. Technology advances have made STP increasingly feasible for any business process, allowing companies to design and execute them from inception to completion in a more automated fashion, minimizing or eliminating human intervention in the process. The associated data also progresses automatically end-to-end through the process, preserving its integrity. Because there is no human intervention, data is more accurate and less prone to manipulation.

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Topics: Data Governance, Customer Experience, Billing and Recurring Revenue, Office of Finance, ERP and Continuous Accounting, Financial Performance Management, Recurring Revenue, Sales, Digital Commerce

Wdata Puts the “A” back in FP&A

Posted by Robert Kugel on Dec 13, 2018 6:00:00 AM

Workiva recently introduced Wdata, a cloud facility for centralizing financial and non-financial information from multiple sources. It frees up time for finance organizations, especially financial planning and analysis (FP&A) groups, to explore conditions and trends in their business because they need to spend less of it gathering data and preparing it for analysis and reporting. Ventana Research recently awarded Workiva our Digital Innovation award for Wdata because of its transformative potential.

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Topics: Data Governance, Data Preparation, Office of Finance, Continuous Planning, ERP and Continuous Accounting, Financial Performance Management, Recurring Revenue, Price and Revenue Management, revenue recognition, Enterprise Resource Planning, Sales Planning and Analytics

FinancialForce Serves the Modern Service Business

Posted by Robert Kugel on Dec 10, 2018 6:00:00 AM

FinancialForce offers cloud-based ERP and professional services automation (PSA) software. The company targets midsize and larger services companies, especially those that provide professional services (such as consultants or field service organizations), subscription-based or recurring revenue services. FinancialForce’s key point of differentiation is that it is built natively on the Salesforce platform. Thus, CRM data is already located on the same platform as accounting and back-office data so organizations can orchestrate end-to-end front-office to back-office processes without having to integrate different systems.

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Topics: Cloud Computing, Office of Finance, ERP and Continuous Accounting, Financial Performance Management, Recurring Revenue, revenue recognition, Sales, Billing and Recurring Revenue

Workday Supports the Finance Department of the Future

Posted by Robert Kugel on Nov 29, 2018 6:00:00 AM

This year’s Workday Rising, the company’s annual user group meeting, offered details of the company’s latest release, Workday 31, and provided a roadmap for the next several semiannual releases. To put these plans into a broader context, I’ve commented before that information technology is on the verge of delivering capabilities that will enable finance and accounting organizations to transform how they work. Technology will have a more profound impact on accounting and finance over the coming decade than it has over the past 50 years. Workday Financial Management, along with the company’s Prism Analytics and recently acquired Adaptive Insights, is evolving to provide to finance and accounting departments the technology underpinnings that can help them redefine how they do their work.

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Topics: Office of Finance, Continuous Planning, ERP and Continuous Accounting, Financial Performance Management, Recurring Revenue, Price and Revenue Management, revenue recognition

OneStream XF: A Finance Department Platform

Posted by Robert Kugel on Aug 27, 2018 8:42:32 AM

OneStream XF from OneStream is a financial performance management (FPM) platform offering planning, budgeting and forecasting, statutory consolidations and reporting. The company was founded in 2010 and has been self-funded, which means that until recently its marketing and brand recognition efforts have been limited. I reviewed the company’s statutory consolidation capabilities earlier this year.

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

Oracle Demonstrates ERP Cloud Progress at OpenWorld

Posted by Robert Kugel on Nov 30, 2017 6:27:07 AM

Oracle OpenWorld is a fall event that sprawls over a lot of territory – figuratively in terms of the IT landscape and, if you’re in San Francisco, literally. My focus here is on the ERP portion of the company’s software portfolio.

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Topics: Office of Finance, ERP and Continuous Accounting, Recurring Revenue, revenue recognition, Enterprise Resource Planning, Cloud Computing, asc 606

Intacct is a Sage Investment

Posted by Robert Kugel on Nov 14, 2017 8:54:36 AM

Sage Intacct recently held its annual user group meeting. The cloud financial management software service provider targets rapidly growing small- and midsize services companies. Within this broad category, Sage Intacct focuses on verticals including software, financial services, healthcare, nonprofits, wholesale and franchisers.

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Topics: Office of Finance, ERP and Continuous Accounting, Recurring Revenue, revenue recognition, Enterprise Resource Planning, Cloud Computing, asc 606

Longview Solidifies Tidemark for Cloud-Based Planning

Posted by Robert Kugel on Jul 10, 2017 6:43:35 AM

Longview recently completed the acquisition of Tidemark Systems, a planning software vendor. Longview Plan powered by Tidemark is a suite of cloud-based applications that enable corporations to plan, assess performance and communicate results more effectively. The software facilitates what Ventana Research calls “continuous planning.” This is a highly collaborative, action-oriented approach to planning that relies on frequent, short cycles to rapidly create and update integrated company-wide operational and financial plans. This structural approach makes it easy for individual business functions to create their own plans while enabling headquarters to connect those plans to create a unified view. Viewed in the long term, this acquisition provides Longview with a platform that will enable it to apply its existing on-premises intellectual property to a broader suite of web-based performance management and tax applications.

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Topics: Analytics, Business Intelligence, Mobile, Office of Finance, Continuous Planning, ERP and Continuous Accounting, Financial Performance Management, Recurring Revenue, Price and Revenue Management, revenue recognition, Sales Planning and Analytics