ISG Software Research Analyst Perspectives | ERP and Continuous Accounting (7)

The Central Ledger: Restructuring Accounting with Technology

Posted by Robert Kugel on 22 May 2020

Sometimes it takes a while for technology to fundamentally change how work is done. That’s because several innovations usually have to come together before a transformation can occur. For instance, Karl Benz created the first practical motorcar in 1885, but consumers would have to wait until the 1920s for the modern automobile. Computerized accounting systems originated in the 1950s but it’s only...

Topics: ERP, Office of Finance, close, closing, CFO, controller, Financial Performance Management, ERP and Continuous Accounting

Make Automating Finance and Accounting a Priority

Posted by Robert Kugel on 01 April 2020

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...

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

Workday Does Source-to-Pay

Posted by Robert Kugel on 19 March 2020

In late February I attended Spark, the Scout annual user group meeting. This was the third and likely the last such meeting, as Scout was recently acquired by Workday. Scout’s users represent a new breed of purchasing managers and executives looking to change the role of the purchasing department. This change is critical for businesses. Saving money is the essential job of sourcing and purchasing...

Topics: Office of Finance, Financial Performance Management, Digital Technology, Digital Commerce, Operations & Supply Chain, Enterprise Resource Planning, ERP and Continuous Accounting, purchasing, procurement, sourcing

Three Essentials for a Digital Office of Finance

Posted by Robert Kugel on 03 March 2020

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...

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 24 February 2020

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...

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 14 February 2020

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...

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 is a Numbers Factory

Posted by Robert Kugel on 04 February 2020

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...

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

Sage Intacct Looks to the Future of Finance

Posted by Robert Kugel on 23 December 2019

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...

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

Cutting Audit Costs Significantly? It’s Actually Possible

Posted by Robert Kugel on 03 December 2019

For years I’ve viewed with skepticism the claim that one technology or another will reduce audit costs. For one, there’s rarely a silver bullet. An array of moving parts drive audit fees. For example, the complexity of the corporation, accounting data management and the audit staff’s familiarity with the industry and the company all affect the time auditors must spend. Also, most of the time I’ve...

Topics: Office of Finance, Analytics, Business Intelligence, Financial Performance Management, ERP and Continuous Accounting, robotic finance, AI and Machine Learning

CFOs in Midsize Companies Face Challenges

Posted by Robert Kugel on 25 November 2019

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.

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

Be FIT: Modern Finance Needs Finance IT

Posted by Robert Kugel on 17 October 2019

The traditional office of finance has five main organs: accounting keeps the books; financial planning and analysis (FP&A) analyzes performance and manages the forward-looking activities of the company such as planning, budgeting and forecasting; corporate finance raises outside money; treasury takes care of the cash and bank accounts, and tax. The modern office of finance requires a sixth:...

Topics: Office of Finance, Analytics, Financial Performance Management, Price and Revenue Management, Digital Technology, Operations & Supply Chain, ERP and Continuous Accounting, blockchain, robotic finance, Predictive Planning, Conversational Computing, revenue and lease accounting, collaborative computing, Subscription Management, AI and Machine Learning

Finally, a Faster Close

Posted by Robert Kugel on 07 October 2019

A quarter century ago the “fast, clean close” became a key measure of a finance and accounting department’s effectiveness. Since then there has been general agreement that companies should be able to close their books within a business week. Our research on the accounting close has consistently shown that companies with very similar characteristics (measured in terms of revenue, number of...

Topics: Office of Finance, Financial Performance Management, ERP and Continuous Accounting, robotic finance

Dynamic Insights from Research on Finance Analytics

Posted by Robert Kugel on 19 September 2019

By itself, data isn’t useful for business; the application of analytics is necessary to transform data into actionable information. Data analysis of one sort or another has long been a core competence of finance departments, applied to balance sheets, income statements or cash flow statements. Today, however, Finance must go beyond these basics by expanding the scope of the data being examined to...

Topics: Customer Experience, Human Capital Management, Voice of the Customer, embedded analytics, Learning Management, Analytics, Business Intelligence, Collaboration, Data Governance, Data Lake, Data Preparation, Information Management, Internet of Things, Contact Center, Data, Product Information Management, Sales Performance Management, Workforce Management, Financial Performance Management, Price and Revenue Management, Digital Technology, Digital Marketing, Digital Commerce, ERP and Continuous Accounting, blockchain, natural language processing, robotic finance, Predictive Planning, candidate engagement, Intelligent CX, Conversational Computing, Continuous Payroll, revenue and lease accounting, collaborative computing, mobile computing, Subscription Management, total rewards management, intelligent marketing, intelligent sales, AI and Machine Learning

The Promise and Perils of a Platform Strategy

Posted by Robert Kugel on 06 August 2019

“Platform,” as used in the world of technology, originally referred to an operating system on which one could construct software applications. More recently, its usage has been expanded to apply to two types of business models. One enables third parties to create products and services that are complementary to a company’s core technology. For instance, both Apple and Salesforce have attracted a...

Topics: Human Capital Management, Marketing, Office of Finance, Voice of the Customer, Continuous Planning, Information Management, Internet of Things, Workforce Management, Financial Performance Management, Price and Revenue Management, Digital Marketing, Digital Commerce, Operations & Supply Chain, Enterprise Resource Planning, ERP and Continuous Accounting, robotic finance, Predictive Planning, revenue and lease accounting, collaborative computing, mobile computing, Subscription Management

How to Prove You Aren’t a Dog: Blockchains For Identity Management and Certification

Posted by Robert Kugel on 22 May 2019

Identity management is an old problem that has taken on new dimensions in the digital world. In 1993, at the dawn of the World Wide Web (WWW), The New Yorker ran a cartoon featuring two dogs talking, one perched in front of a computer. The caption reads: “On the Internet, nobody knows you’re a dog.” The phrase quickly evolved into a meme highlighting the issue of identity uncertainty in the new...

Topics: Human Capital Management, Office of Finance, Learning Management, Internet of Things, Data, Workforce Management, Digital Technology, ERP and Continuous Accounting, blockchain, candidate engagement, collaborative computing

Business Planning: Establish a Continuous and More Effective Path to Planning

Posted by Robert Kugel on 17 May 2019

Business planning in most companies is a relic, a process hemmed in by obsolete conceptions of what it can be. “Business planning” encompasses all of the forward-looking activities in which companies routinely engage, including marketing, sales, customer, supply chain and workforce planning as well as budgeting. In our view companies today can fundamentally change how they plan thanks to the...

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

Oracle NetSuite: Steady as She Goes

Posted by Robert Kugel on 10 May 2019

From my perspective there were two significant takeaways from this year’s SuiteWorld. The first is that, almost two years on from the announced acquisition of NetSuite by Oracle, the combination has achieved its immediate objectives in growing NetSuite’s business, especially in Europe and Asia, and accelerating product development efforts. The second takeaway is that, at least for now, the unit...

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

Supply Chain Management and Sourcing in a New Era of Trade

Posted by Robert Kugel on 22 February 2019

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...

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

Revenue Recognition Standards Pose Planning Challenges

Posted by Robert Kugel on 18 February 2019

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...

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

Straight-Through Processing for Business and Commerce

Posted by Robert Kugel on 31 January 2019

“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...

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