Robert Kugel's Analyst Perspectives

Tagetik Advances Disclosure Management for Office of Finance

Posted by Robert Kugel on Jul 16, 2014 9:05:58 AM

Tagetik provides financial performance management software. One particularly useful aspect of its suite is the Collaborative Disclosure Management (CDM). CDM addresses an important need in finance departments, which routinely generate highly formatted documents that combine words and numbers. Often these documents are assembled by contributors outside of the finance department; human resources, facilities, legal and corporate groups are the most common. The data used in these reports almost always come from multiple sources – not just enterprise systems such as ERP and financial consolidation software but also individual spreadsheets and databases that collect and store nonfinancial data (such as information about leased facilities, executive compensation, fixed assets, acquisitions and corporate actions). Until recently, these reports were almost always cobbled together manually – a painstaking process made even more time-consuming by the need to double-check the documents for accuracy and consistency. The adoption of a more automated approach was driven by the requirement imposed several years ago by United States Securities and Exchange Commission (SEC) that companies tag their required periodic disclosure filings using eXtensible Business Reporting Language (XBRL), which I have written about. This mandate created a tipping point in the workload, making the manual approach infeasible for a large number of companies and motivating them to adopt tools to automate the process. Although disclosure filings were the initial impetus to acquire collaborative disclosure management software, companies have found it useful for generating a range of formatted periodic reports that combine text and data, including board books (internal documents for senior executives and members of the board of directors), highly formatted periodic internal reports and filings with nonfinancial regulators or lien holders.

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Topics: Mobile, ERP, forecasting, Modeling, Reporting, Budgeting, close, closing, Consolidation, Controller, Finance Financial Applications Financial Close, IFRS, multinational Tagetik, process management, report, strategy, XBRL, Analytics, Business Analytics, Business Intelligence, Governance, Risk & Compliance (GRC), Accounting, Business Performance Management (BPM), CFO, Chief Financial Officer, compliance, Data, Financial Performance Management (FPM), benchmark, Financial Performance Management, financial reporting, FPM, GAAP, Integrated Business Planning, Profitability, SEC Software, spreadsheet

Oracle Hyperion Products Challenged by New Generation of Expectations

Posted by Robert Kugel on Oct 16, 2013 7:23:32 AM

Oracle continues to enrich the capabilities of its Hyperion suite of applications that support the finance function, but I wonder if that will be enough to sustain its market share and new generation of expectations. At the recent Oracle OpenWorld these new features were on display, and spokespeople described how the company will be transitioning its software to cloud deployment. Our 2013 Financial Performance Management Value (FPM) Index rates Oracle Hyperion a Warm vendor in my analysis, ranking eighth out of nine vendors. Our Value Index is informed by more than a decade of analysis of technology suppliers and their products and how well they satisfy specific business and IT needs. We perform a detailed evaluation of product functionality and suitability-to-task as well as the effectiveness of vendor support for the buying process and customer assurance. Our assessment reflects two disparate sets of factors. On one hand, the Hyperion FPM suite offers a broad set of software that automates, streamlines and supports a range of finance department functions. It includes sophisticated analytical applications. Used to full effect, Hyperion can eliminate many manual steps and speed execution of routine work. It also can enhance accuracy, ensure tasks are completed on a timely basis, foster coordination between Finance and the rest of the organization and generate insights into corporate performance. For this, the software gets high marks.

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Topics: Mobile, Planning, Social Media, ERP, forecasting, Modeling, Reporting, Budgeting, close, closing, Consolidation, Controller, driver-based, Finance Financial Applications Financial Close, Hyperion, IFRS, multinational Oracle, process management, report, strategy, Tax, tax department, tax optimization, tax planning, XBRL, Analytics, Business Analytics, Business Intelligence, CIO, Cloud Computing, In-memory, Oracle, Accounting, Business Performance Management (BPM), CFO, Chief Financial Officer, compliance, Data, Financial Performance Management (FPM), benchmark, Financial Performance Management, financial reporting, FPM, GAAP, Integrated Business Planning, Price optimization, Profitability, SEC Software, spreadsheet

Eliminating the Strategy/Execution Disconnect

Posted by Robert Kugel on Aug 19, 2013 8:23:32 AM

This is the beginning of the season when companies that are on a calendar year begin their strategic and long-term planning. Ventana Research performed an extensive investigation in this area with our long-range planning benchmark research. Strategic and long-range planning is a process and discipline that companies use to determine the best strategy for succeeding in the markets they serve and then ensure they have the capabilities and resources needed to support their strategic objectives.

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Topics: Master Data Management, Performance Management, Planning, forecasting, Operational Performance Management (OPM), Reporting, Budgeting, dashboard, long-range planning, strategic, strategy, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), Data, Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), BI, CEO, Financial Performance Management, FPM, scorecard

Getting to the Next Generation of Finance Analytics

Posted by Robert Kugel on Mar 19, 2013 11:12:55 AM

One of the most important IT trends over the past decade has been the proliferation of ever wider and deeper sets of information sources that businesses use to collect, track and analyze data. While structured numerical data remains the most common category, organizations are also learning to exploit semistructured data (text, for example) as well as more complex data types such as voice and image files. They use these analytics increasingly in every aspect of their business – to assess financial performance, process quality, operational status, risk and even governance and compliance. Properly applied, business analytics can deliver significant value by deepening insight, supporting better decision-making and providing alerts when situations require attention from managers or executives.

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Topics: Planning, Predictive Analytics, Customer, Operational Performance Management (OPM), ABC, Budgeting, close, closing, Finance Analytics, plan, PRO, strategy, Analytics, Business Analytics, Business Collaboration, Cloud Computing, Accounting, Business Performance Management (BPM), CFO, Financial Performance Management (FPM), pricing, Risk, risk management, costing, FPM, price optimizaiton, Profitability

Profit Velocity’s New Dimension in Managing Profitability

Posted by Robert Kugel on Feb 20, 2013 10:15:58 AM

Profit Velocity Solutions’ PV Accelerator is an analytic application designed to enable capital-intensive companies to consistently achieve substantially wider margins and higher return on assets (ROA). Companies in industries such as specialty chemicals, building materials, integrated steel mills and silicon chip fabrication (to name just four) routinely fail to make the right decisions about pricing, production and sales management because they use analytic methods that, from an economic perspective, present a distorted measure of profitability. Profit Velocity’s approach is to use profit contribution per unit of time as the core principle for driving decisions about production, pricing and CRM-related issues, including compensation-, customer- and account management.

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Topics: Performance Management, Operational Performance Management (OPM), PV Accelerator, sales incentives, strategy, Analytics, Business Analytics, Cloud Computing, Business Performance Management (BPM), Financial Performance Management (FPM), pricing, Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), incentive management, Price optimization, Profit Velocity, Profitability, Software, S&OP

What Every CEO Should Know About Software for Finance and Sales

Posted by Robert Kugel on Dec 26, 2012 7:11:51 AM

This is the third in a series of blog posts on what CEOs (and for that matter, all senior corporate executives) need to know about IT and its impact on running a business. The first covered the high-level issues. As I noted, it’s not necessary for a CEO to be able to write Java code or master the intricacies of an ERP or sales compensation application. However, CEOs must grasp the basics of IT just as they must understand basic corporate finance, the production process and – at least at a high level – the technologies that support that process. My second post was about four supporting technologies that will drive change in business computing over the next five years. It relates examples of how applications can help every part of a business operate more effectively, not just efficiently. Now let’s turn our attention to finance and sales – and as I’ve noted in the previous posts, what follows is an “elevator pitch” treatment of what could be a much longer discussion.

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Topics: Planning, Predictive Analytics, Sales, Customer, Operational Performance Management (OPM), Budgeting, close, closing, plan, PRO, sales management, strategy, Analytics, Business Analytics, Accounting, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), Financial Performance Management (FPM), Information Management (IM), pricing, Sales Performance Management (SPM), CEO, FPM, Profitability, SPM

What Every CEO Needs to Know About IT

Posted by Robert Kugel on Nov 16, 2012 12:04:20 PM

The business/IT divide is a barrier that prevents most companies from achieving their true performance potential. The divide has remained a constant impediment since the dawn of business computing six decades ago. It’s not necessary for a CEO of a company to be able to write Java code or master the intricacies of an ERP or sales compensation application. However, that CEO must master the basics of IT just as he must understand basic corporate finance, the production process and – at least at a high level – the technologies that support that process. Only a handful of business schools give prospective MBAs a good grounding in the practical elements of information technology or preach the necessity of mastering an understanding of IT as they would, say, the efficient market hypothesis.

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Topics: Big Data, Performance Management, Operational Performance Management (OPM), competition, executive, strategic, strategy, CIO, Cloud, In-memory, Business Performance Management (BPM), CFO, Customer Performance Management (CPM), IT, Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), CEO, FPM

Infor Presents Itself as a Large Software Startup

Posted by Robert Kugel on Apr 30, 2012 11:28:33 AM

Infor described this year’s Inforum user group meeting as a coming-out party for a large startup company. Such a debut was necessary because Infor had been operating in something of a stealth mode for the past three years: a limited marketing presence, no unified message and a weak, sometimes inconsistent brand identity. It also needed to formally introduce Infor to customers of Lawson, the ERP supplier it acquired last year. The “startup” designation is meant to signal that Infor has been able to render a decade-long consolidation of dozens of smaller companies into one cohesive entity.

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Topics: Performance Management, Salesforce.com, SAP, Social Media, Sustainability, ERP, Human Capital Management, Marketing, Operational Performance Management (OPM), Epiphany, expense management, Lawson, strategy, Business Analytics, Business Collaboration, Business Mobility, Cloud Computing, Governance, Risk & Compliance (GRC), IBM, Operational Intelligence, Oracle, Business Intelligence (BI), CRM, Customer Performance Management (CPM), finance, Financial Performance Management (FPM), Infor, Information Applications (IA), Information Management (IM), IT Performance Management (ITPM), Sales Performance Management (SPM), Supply Chain, Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), Financial Performance Management

Patent Documents Useful for Buyers of Price Optimization Software

Posted by Robert Kugel on Nov 30, 2011 8:03:55 AM

Doing one’s homework is vital in buying business software. However, unless you’re replacing a relatively simple application, it’s hard to know exactly what to evaluate. Indeed, if people in a company given this task don’t have experience in using a specific type of business application or don’t understand how new or improved functionality will help execute business processes better, they may do a poor job of assessing the available alternatives. Third-party consultants may be helpful, but their prejudices and familiarity with a vendor’s products may cloud their objectivity. In the end, a buyer might agree with their point of view, but this agreement should be an informed decision.

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Topics: Performance Management, Operational Performance Management (OPM), Zilliant, Model N, Navetti, Nomis Solutions, process automation, PROS Pricing, sales incentives, Servigistics, Signal Demand, strategy, Analytics, Business Analytics, Oracle, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), pricing, Sales Performance Management (SPM), Vendavo, incentive management, patent, Price optimization, Profitability, Software, Vistaar Technologies

Successful Price Optimization Has Multiple Dimensions

Posted by Robert Kugel on Oct 28, 2011 9:54:18 AM

As its name suggests, demand-based pricing is a method that uses the buyer’s demand, based on an estimate of a good’s or service’s perceived value to the buyer, as the central element in setting price. Pricing strategies are most important because they can have a disproportionate impact (positive and negative) on a company’s bottom line. Managing prices has always been an activity of keen interest, but it has become even more so over the past decade as a result of the constrained pricing environment.

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Topics: Performance Management, Operational Performance Management (OPM), sales incentives, strategy, Analytics, Business Analytics, Business Performance Management (BPM), Financial Performance Management (FPM), pricing, Sales Performance Management (SPM), incentive management, Price optimization, Profitability, Software