Robert Kugel's Analyst Perspectives

Treasury is More Effective with Technology

Posted by Robert Kugel on Jan 2, 2017 11:09:38 PM

The treasury function in finance departments doesn’t get a lot of attention, but it’s a fundamentally important one: to ensure that all funds are accounted for and that there is sufficient cash on hand each day to meet operating requirements. Keeping track of and managing cash, especially in larger organizations, can be complicated because of multiple bank accounts, complex financing requirements and various methods of receiving and making payments; the complexity deepens when more than one currency is used across multiple jurisdictions, which also can pose regulatory issues.

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Topics: credit, debt, strategic finance, CFO, analytics, cash, controller, Financial Performance Management, Predictive Analytics, spreadsheet, treasurer, treasury

Workday Financial Management Gains Momentum

Posted by Robert Kugel on Dec 2, 2015 11:37:53 PM

Workday Financial Management (which belongs in the broader ERP software category) appears to be gaining traction in the market, having matured sufficiently to be attractive to a large audience of buyers. It was built from the ground up as a cloud application. While that gives it the advantage of a fresh approach to structuring its data and process models for the cloud, the product has had to catch up to its rivals in functionality. The company’s ERP offering has matured considerably over the past three years and now is better positioned to grow its installed base. Workday recently added Aon, the insurance and professional services company, to its customer list (becoming its largest customer to date) and reported that its annual contract value (ACV – the annualized aggregate revenue value of all subscription contracts as of the end of a quarter) has doubled since the second quarter of this year, albeit from a low base. This is an important milestone because for years the company’s growth has come from the human capital management (HCM) portion of the business, not financials. Workday has around 160 customers for its financials (more than 90 of which are live) compared to more than 1,000 customers for HCM.

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Topics: Microsoft, SAP, ERP, FP&A, NetSuite, Operational Performance Management (OPM), Reporting, close, closing, Controller, dashboard, Human Capital, Reconciliation, report, Tax, Analytics, Business Intelligence, Cloud Computing, Collaboration, IBM, Oracle, Uncategorized, Accounting, Business Performance Management (BPM), CFO, Data, finance, Financial Performance Management (FPM), Amazon, BI, Financial Performance Management, FPM, Intacct, scorecard, spreadsheet, treasury

Oracle Must Pivot to Business Applications

Posted by Ventana Research on Nov 5, 2015 10:26:32 PM

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.

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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

Continuous Accounting Enables a Strategic Finance Department

Posted by Ventana Research on Oct 29, 2015 9:51:54 PM

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:

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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

Office of Finance Research Demonstrates Importance of Using Effective Financial Software

Posted by Ventana Research on Feb 2, 2015 8:27:23 AM

Our recently published Office of Finance benchmark research assesses a broad set of functions and capabilities of finance organizations. We asked research participants to identify the most important issues for a finance department to address in a dozen functional areas: accounting, budgeting, cost accounting, customer profitability management, external financial reporting, financial analysis, financial governance and internal audit, management accounting, product profitability management, strategic and long-range planning, tax management and treasury and cash management. Among the key findings is this: Not using the most capable software is an underlying cause, often unrecognized, of process, analytics and data issues.

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Topics: Mobile, Planning, Predictive Analytics, ERP, FP&A, Reporting, Self-service, Budgeting, close, closing, computing, Controller, dashboard, planning and budgeting, report, Tax, Analytics, 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

Make Automating the Office of Finance and Accounting a Priority

Posted by Ventana Research on Jan 27, 2015 7:50:29 AM

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.

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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

Intacct Improves Cloud of Collaboration, Payments and Reporting

Posted by Ventana Research on Nov 18, 2014 8:34:48 AM

Financial management software provider Intacct recently held its seventh annual user conference. In addition to a long list of enhancements in current and upcoming product releases, the company used the occasion to announce Intacct Collaborate, a capability built into its software that enables finance and accounting organizations to work together to answer questions or resolve issues while performing a process. Our benchmark research shows that collaboration ranks second in importance behind analytics as a technology innovation priority. Collaborative capabilities in software will multiply over the next several years as software transitions from the rigid constructs established in the client/server days, which force users to adapt to the limitations of the software, to fluid and dynamic designs that mold themselves around the needs of the user. A while back, I noted that finance and accounting organizations need collaborative capabilities although they might not realize it. At the same time, finance departments have their own requirements for these systems that reflect the character and constraints of the work they do. This means narrowcast, not broadcast, feeds (Finance doesn’t want a Facebook or Twitter experience because it considers much of what it does to be confidential) and in-context collaborative capabilities to simplify the working environment.

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Topics: Performance Management, Salesforce.com, ERP, NetSuite, Reporting, cloud ERP, reports, Analytics, Business Analytics, Business Collaboration, Chatter, Cloud Computing, Collaboration, Dashboards, Accounting, Business Performance Management (BPM), Financial Performance Management (FPM), FinancialForce, Sales Performance Management (SPM), Intacct, payments, treasury, treasury management

Intacct Improves Cloud of Collaboration, Payments and Reporting

Posted by Ventana Research on Nov 18, 2014 8:25:27 AM

Financial management software provider Intacct recently held its fourth annual user conference. In addition to a long list of enhancements in current and upcoming product releases, the company used the occasion to announce Intacct Collaborate, a capability built into its software that enables finance and accounting organizations to work together to answer questions or resolve issues while performing a process. Our benchmark research shows that collaboration ranks second in importance behind analytics as a technology innovation priority. Collaborative capabilities in software will multiply over the next several years as software transitions from the rigid constructs established in the client/server days, which force users to adapt to the limitations of the software, to fluid and dynamic designs that mold themselves around the needs of the user. A while back, I noted that finance and accounting organizations need collaborative capabilities although they might not realize it. At the same time, finance departments have their own requirements for these systems that reflect the character and constraints of the work they do. This means narrowcast, not broadcast, feeds (Finance doesn’t want a Facebook or Twitter experience because it considers much of what it does to be confidential) and in-context collaborative capabilities to simplify the working environment.

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Topics: Performance Management, Salesforce.com, ERP, NetSuite, Reporting, cloud ERP, reports, Analytics, Business Analytics, Business Collaboration, Chatter, Cloud Computing, Collaboration, Dashboards, Accounting, Business Performance Management (BPM), Financial Performance Management (FPM), FinancialForce, Sales Performance Management (SPM), Intacct, payments, treasury, treasury management

Technology Can Enhance Performance in Finance Departments

Posted by Ventana Research on Oct 29, 2014 9:40:42 AM

Finance transformation” refers to a longstanding objective: shifting the focus of CFOs and finance departments from transaction processing to more strategic, higher-value functions. Our upcoming Office of Finance benchmark research confirms that most of organizations want their finance department to take a more strategic role in management of the company: nine in 10 participants said that it’s important or very important. (We are using “finance” in its broadest sense, including, for example, accounting, corporate finance, financial planning and analysis, treasury and tax functions.) Finance departments have the ability and at least an implicit mandate to improve business performance and enable a corporation to execute strategy more effectively. Yet the research shows that becoming strategic is a work in progress. Most departments handle the basics well, but half fall short in areas that can contribute significantly to the performance of their company. More than three-fourths of participants said they perform accounting, external financial reporting, financial analysis, budgeting and management accounting well or very well. But only half said that about their ability to do product and customer profitability management, strategic and long-range planning and business development.

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Topics: Big Data, Mobile, Performance Management, Predictive Analytics, Social Media, ERP, FP&A, Reporting, Management, close, closing, computing, Controller, planning and budgeting, Tax, Analytics, Business Analytics, Business Collaboration, Cloud, Cloud Computing, Collaboration, Accounting, Business Performance Management (BPM), CFO, finance, Financial Performance Management (FPM), Tagetik, FPM, treasury

Finance Needs Better Analytics and Analytic Skills

Posted by Ventana Research on Oct 13, 2014 11:58:44 PM

Finance and accounting departments are staffed with numbers-oriented, naturally analytical people. Strong analytic skills are essential if a finance department is to deliver deep insights into performance and visibility into emerging opportunities and challenges. The conclusions of analyses enable fast, fully informed business decisions by executives and managers. Conversely, flawed analyses undermine the performance of a company. So it was good news that in our Office of Finance benchmark research 62 percent of participants rated the analytical skills of their finance organization as above average or excellent.

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Topics: Big Data, Mobile, Planning, Predictive Analytics, ERP, FP&A, Reporting, Self-service, BizNet Software, Budgeting, close, closing, computing, Controller, dashboard, planning and budgeting, report, Tax, Analytics, Business Analytics, Business Intelligence, Cloud, Cloud Computing, Collaboration, Accounting, Business Performance Management (BPM), CFO, Data, finance, Financial Performance Management (FPM), Tagetik, BI, Financial Performance Management, FPM, Microsoft Excel, scorecard, Spreadsheets, treasury