ISG Software Research Analyst Perspectives

Global Tax Optimization Is Worth the Effort

Posted by Robert Kugel on 09 September 2011

The globalization of business is having a profound impact on corporate taxation worldwide, which shouldn’t surprise anyone who covers international tax laws. The impacts on corporations operating in multiple national jurisdictions (which today, especially in Europe, includes a large number of midsize companies) are both positive and negative. Positive in the sense that corporate tax rates, tax...

Topics: Office of Finance, Tax, Business Analytics, Business Performance, Financial Performance, CFO

Rolling Forecasts Are a Good First Step toward Smarter Financial Planning

Posted by Robert Kugel on 06 September 2011

I recently participated in a panel discussion about the rise in the use of rolling forecasts in corporate planning. I’m not surprised by this trend; I have encouraged it. Ever since the financial crisis started three years ago, I’ve been writing that companies should rethink how they plan and budget to respond to increasing business volatility. Rolling forecasts are useful because they...

Topics: Big Data, Performance Management, Planning, Sales Performance, Social Media, Supply Chain Performance, Office of Finance, Budgeting, IBP, Operational Performance, Business Analytics, Business Collaboration, Business Mobility, Business Performance, Cloud Computing, Customer & Contact Center, Financial Performance, Workforce Performance, CFO, COO, Integrated Business Planning

Algorithmics Acquisition Deepens IBM Software for Financial Services

Posted by Robert Kugel on 03 September 2011

IBM’s announced pending acquisition of Algorithmics is an important addition to the company’s portfolio of business applications aimed at financial services companies, and it is thematically consistent with its other acquisitions in risk management and analytics such as IBM’s OpenPages risk management documentation that I have already assessed. It’s also a good fit for IBM’s professional services...

Topics: GRC, Office of Finance, Dodd-Frank, Business Performance, Financial Performance, compliance, capital adequacy, financial regulation, Financial Services

Finance Now Lives in the Cloud

Posted by Robert Kugel on 01 September 2011

This year’s Dreamforce is likely include a focus on the value of moving a company’s accounting systems and related record management processes (for instance, invoicing and ordering) to the cloud. Salesforce.com’s annual conference is never short on hyperbole and promotion of everything cloud, which can be off-putting to staid finance department types (like me). And while some departments (notably...

Topics: Office of Finance, finance cloud, Business Performance, Cloud Computing, Financial Performance, finance, accounting software, financial systems

Finance Analytics Innovation

Posted by Robert Kugel on 21 July 2011

Our recently completed benchmark research on how finance departments use analytics makes clear that while they have a distinct competence in this area and execute the basics well, a majority of companies are immature in their use of advanced finance analytics. Regardless of industry or geography, few finance departments use predictive analytics or delve into important areas such as strategic...

Topics: Predictive Analytics, Office of Finance, Finance Analytics, Analytics, Business Analytics, Business Performance, Financial Performance, CFO

IFRS for the U.S.? Yes – But When and How Are Still Iffy

Posted by Robert Kugel on 18 July 2011

Hans Hoogervorst, who just succeeded Sir David Tweedie as the chairman of the International Accounting Standards Board (IASB), recently said he is “optimistic the SEC will move to fully incorporate IFRS [International Financial Reporting Standards] shortly.” I find it hard to see why, unless one has a fairly elastic definition of “fully,” “incorporate” and “shortly” (or at least two out of...

Topics: Office of Finance, Reporting, Consolidation, FASB, IASB, IFRS, Business Analytics, Business Collaboration, Business Performance, Financial Performance, GAAP, SEC

Analytics Can Make Finance More Relevant

Posted by Robert Kugel on 07 July 2011

Ventana Research recently completed groundbreaking benchmark research on how finance organizations use analytics these days. Of course, analytics have been a mainstay of finance organizations since people started using accounting ratios to assess the health and performance of a business. Yet perhaps because traditional analytics are so deeply entrenched, finance departments execute the basics...

Topics: Predictive Analytics, Sales Performance, SAP, SAS, Office of Finance, Operational Performance, Analytics, Business Intelligence, Business Performance, Financial Performance, IBM, Oracle, Cognos, Financial Performance Management

Taxes on Internet Sales Would Drive Software Adoption

Posted by Robert Kugel on 03 July 2011

Many companies have automated their sales and use tax processes to cut the effort required to execute them and to reduce the number of errors and their cost in dealing with a fiendishly complex set of rules and rates. This is one step in bringing tax into the mainstream of finance, which we advocate. Most people are familiar with sales tax; a “use tax” is a form of excise tax assessed on...

Topics: Sales, Office of Finance, Tax, Business Performance, Financial Performance

Price Optimization and Sales Incentives Deliver Profitability

Posted by Robert Kugel on 24 June 2011

Two software applications I follow, price and revenue optimization (PRO) and sales compensation and incentives, can be highly complementary when used together. Unfortunately, since they typically are developed and sold by different kinds of software vendors, scant attention has been paid to the value of using them in tandem. I advise companies that have adopted a PRO strategy to use an incentive...

Topics: Predictive Analytics, Sales, Sales Performance, Human Capital Management, Office of Finance, Operational Performance, Business Analytics, Business Performance, Financial Performance, Workforce Performance, Price Optimization, Profitability

Budgeting Is So Unimportant

Posted by Robert Kugel on 08 June 2011

I think one of best epigrams attributed to Mark Twain is, “Everyone talks about the weather but nobody ever does something about it.” This also has relevance to the situation with corporate planning and budgeting. Bemoaning its lack of value and calling for some sort of change goes back a long way, but few companies have matured their process. In the 1970s something called “zero-based budgeting”...

Topics: Planning, Predictive Analytics, Sales, Sales Performance, Supply Chain Performance, Office of Finance, Budgeting, contingency planning, Operational Performance, Business Analytics, Business Collaboration, Business Performance, Financial Performance, CFO, finance, Financial Performance Management, Integrated Business Planning

Workday Will Help Business Manage Payroll Efficiently

Posted by ISG Research on 02 June 2011

Last week I attended the HRO Today Forum an annual event that brings HR and recruiting professionals together with business executives to discuss and define the future of HR services and technology. Also last week Workday announced an expanded set of payroll applications. In addition to its core human capital management products, Workday also offers financial management and payroll. During...

Topics: Performance Management, SAP, HCM, Human Capital Management, Office of Finance, SuccessFactors, business process outsourcing, NuView Systems, Patersons, Ultimate Software, Business Collaboration, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), Oracle, Workforce Performance, Compensation, Talent Management, Workday

SAP Advances Enterprise Performance Management in Version 10

Posted by Robert Kugel on 21 May 2011

SAP announced the release of version 10 of its SAP BusinessObjects Enterprise Performance Management (EPM) Solutions suite, an enhanced and updated set of applications and capabilities for executives and managers. In our Value Index assessment of financial performance management suites and my analysis of it last year, Ventana Research gave SAP’s offering the highest score, and this new release...

Topics: Planning, Sales Performance, SAP, Supply Chain Performance, Sustainability, Forecast, Office of Finance, budget, Budgeting, XBRL, Operational Performance, Business Intelligence, Business Performance, Customer & Contact Center, Financial Performance, Governance, Risk & Compliance (GRC), Information Management, Workforce Performance, CFO, agile, budgeting software, CEO, Corporate Finance, Financial Performance Management, Integrated Business Planning

Prospects for Ending Forklift Migrations of ERP

Posted by ISG Research on 03 May 2011

Back in the old days (20 years ago or so) companies that wanted to expand or update their telephone systems had to do what was called a “forklift migration.” In other words, they had to remove big, heavy and very expensive boxes of electronics from an equipment room and replace them with newer big, heavy and very expensive boxes. The process of adding, deleting or changing people, offices and...

Topics: SAP, ERP, Office of Finance, Business Performance, Financial Performance, Governance, Risk & Compliance (GRC), Oracle, Infor

Alight Does Agile Planning

Posted by ISG Research on 25 April 2011

Alight Planning sells planning and budgeting software mainly to midsize companies and stresses its software’s ability to support a more effective approach to corporate planning and budgeting. It calls this “agile planning,” a term used to contrast a traditional, highly deterministic method of drawing up and executing plans with an “agile” mindset that is better able to deal with the high level...

Topics: Planning, Sales Performance, Supply Chain Performance, Forecast, Office of Finance, budget, Budgeting, Business Performance, Financial Performance, Workforce Performance, CFO, agile, budgeting software, CEO, Integrated Business Planning

Total Compensation Management Research: Voice Your Needs and Opinions

Posted by ISG Research on 25 April 2011

Are you a human resources executive who’s still using spreadsheets and various database systems to track and manage compensation and incentives of your workforce? If you aren’t, then believe it or not, you’re in the minority.

Topics: Sales Performance, Human Capital Management, Office of Finance, Operational Performance, Business Analytics, Business Collaboration, Business Performance, Cloud Computing, Financial Performance, Workforce Performance, Compensation, finance, Talent Management, Workforce Performance Management

OpenPages 6.0 Enhances GRC by Integrating Data and Text

Posted by Robert Kugel on 20 April 2011

Although I continue to believe that governance, risk and compliance (GRC) is not a firm software category, software vendors continue to add depth and breadth to their offerings that support corporate governance, help manage risks systemically in business and IT and provide greater visibility into compliance efforts. For example, with its release of OpenPages 6.0 IBM had made an important...

Topics: Governance, GRC, Office of Finance, Chief Risk Officer, IT Performance, Operational Performance, Business Intelligence, Business Performance, Financial Performance, compliance, Risk, Internal Audit

Infor Helps Midsize Multinationals Manage Finance

Posted by Robert Kugel on 14 April 2011

While Europeans have long had to adapt to working in many languages, currencies and legal jurisdictions, a generation ago most midsize companies in the United States did all their business in their home country and in U.S. dollars. Today, though, the relentless globalization of the world economy means that an increasing number of midsize companies in North America are functionally multinational...

Topics: ERP, Office of Finance, Sunsystems, Business Performance, Financial Performance, CFO, Financial Management, Infor, Corporate Finance, FMS

SAP Solidifies Software Category with SAP BusinessObjects GRC 10.0

Posted by ISG Research on 05 April 2011

When the term “governance, risk and compliance” (GRC) was introduced almost 10 years ago, software for this purpose was not a real category but a loose grouping of disparate applications that had something to do with meeting the requirements of the recently passed Sarbanes-Oxley Act. (You can find my perspective on the GRC category from a couple of years ago here. Now, with the release 10.0 of ...

Topics: SAP, GRC, Office of Finance, IT Research, Operational Performance, Analytics, Business Intelligence, Business Performance, Financial Performance, Information Management, CFO, Corporate Governance, Governance Risk and Compliance

SunGard IntelliMatch: Financial Governance and Reconciliations

Posted by ISG Research on 05 April 2011

Back-office operations in commercial and investment banks are among those critical functions that are underappreciated until they stop working well. This includes transaction reconciliations and the related exceptions management. Reconciliations are necessary to achieve a reasonable assurance of complete and accurate record of trading activity. The process is especially challenging now, partly...

Topics: GRC, Office of Finance, Financial Governance, Reconciliation, Sungard, Operational Performance, Analytics, Business Analytics, Business Intelligence, Business Performance, Financial Performance, Information Management, CFO, Corporate Governance, Governance Risk and Compliance

Enterprise Risk Management Addresses the Agency Dilemma

Posted by Robert Kugel on 28 January 2011

I have written before about enterprise risk management, which is an essential piece of both performance management and corporate governance. Every aspect of business entails risk. Everyone who makes a business decision is – whether consciously or not – making trade-offs between risk and reward. Assessing risk is tricky in business because it means different things to different people depending on...

Topics: Governance, GRC, Office of Finance, Operational Performance, Business Performance, Financial Performance, CFO, compliance