After a decade of limited technology innovation, the office of finance computing landscape now is experiencing significant transformation. This shift can be seen in areas including ERP, accounting and financial performance management applications like budgeting, closing and planning applications that now are readily available for licensing through subscription and in the cloud. In-memory computing and big data infrastructure make it easier to process larger volumes of data as well as identify risk and opportunities to improve results. “We’ve always done it this way” won’t do anymore. Finance organizations must adapt to the expanding potential from what technology is making practical.
Ventana Research offers fact-based strategic advisory services to the Office of Finance that are designed to resolve process and people issues by addressing the underlying defects in technology (software) and information (data). Through its understanding of the vendor landscape and technology trends, Ventana Research enables it clients to maximize their substantial investment in technology for ERP, financial consolidation and reporting, budgeting and planning, price and revenue management, subscription management and finance analytics.
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Completing the accounting close quickly has been a longstanding objective for finance departments. Among those participants in our benchmark research whose departments take more than a business week to close; most (69%) said they want to shorten th
By itself data isn't useful for business. It requires analytics to transform data into actionable information. Analytics of one sort or another has long been a core competence of finance departments; applied to balance sheets; income statements or c
Numbers are the raw material for everything finance departments do. That�s why it�s essential that they have all the data they need and that it be of the highest quality. Without a guarantee of data availability and quality;
In order for an organization to run efficiently and effectively it must actively manage its performance. Corporations; small businesses; government entities and nonprofits all must be able to set objectives; plan and budget; and review and evaluate
Companies routinely collaborate in creating; editing; updating; proofreading; and approving composite documents. These documents have common characteristics: They combine text and numerical data; Present numerical data in
Over the past decade; senior executives have increasingly demanded more from financial planning and analysis (FP&A) professionals. Corporate leaders who once might have been satisfied with assessments informed by intuition now demand data-driven gui
The number of days it takes it to close the company�s books � that is; the number of days into the following month required to completed all the activities associated with the financial close � is a reliable way to gauge the effectiveness of a finan
Businesses collect; track and analyze data from a wider and deeper set of sources than ever before. They use these analytics-based insights increasingly in every aspect of their business � to assess financial performance; process quality; operational
Planning is a key component to all businesses; but often; the reality does not go according to plans. In businesses; this discrepancy can increase costs and waste time. But with the right tools; organizations can more closely align their plans to the
Realizing an appropriate return on capital spending is critical. Poor allocation of investment funds can impair the competitiveness and profitability of a corporation, which is why well-run organizations have a disciplined methodology for making these decisions. Using the right framework and measuring the potential return is the first step in ensuring that a company considers all relevant factors and weights them appropriately in evaluating investment opportunities.
Today�s CFO knows that human capital is an organization�s most valuable asset; but in practice most organizations rarely connect their investments in people to their overall financial performance. A primary reason for this gap is that business proce
Many discussions of cloud computing concern how cloud-based software and services enable small and midsize businesses to acquire many of the same capabilities as large ones. In fact; though; large companies have been adopting the cloud; too � and wi
Ventana Research coined the term continuous accounting� to describe how recent advances in information technology can help finance organizations to fundamentally restructure their departmental operations to transform their function.
Finance organizations; especially those in growing midsize companies; often find their workloads overwhelming. They�d like to find ways to operate more efficiently but think they�re too busy to look for ways to save time. As our research makes clear
Over the past decade; markets have grown increasingly global; especially for technology companies. Rising incomes in underdeveloped countries have led to increased demand for a wide range of products. However; this opportunity also brings with it a
It�s generally accepted that companies should be able to close their books within a week of the period end; whether monthly; quarterly or semiannually. Yet our recent benchmark research shows that only half of participating organizations accomplish
Organizations are maturing slowly; the research found; because the focus is on traditional finance-related metrics and too little attention is paid to new; more advanced techniques such as predictive analytics and employing leading indicators (35%);
Ventana Research is the first research company to benchmark organizations use of information and technology to employ analytics in finance organizations. The research assessed the maturity by examining the people; process; information and technology
The research assessed the maturity by examining the people; process; information and technology competencies required to make the most effective and efficient use of analytics. The research reveals that organizations are aware of the value analytics
Information plays a critical role in managing a company; and IT systems enable companies to work with this information. Your responses to this survey will help us understand the extent to which The information you get to do your job is timely a
Financial performance management software plays a critical role in organizations. These tools deal with the full cycle of the finance department; including planning and budgeting; analysis; assessment and review; closing and consolidation; and intern
Many organizations fail to optimize performance because they remain focused on solving yesterday�s problems. For many years; proponents of information technology have promised great benefits to business; typically far in advance of actual products be
Managing performance effectively requires that a company be able to provide executives; managers and employees with accurate; timely information and make it possible for them to work interactively with that information
Governance is essential to the management of a corporation. Without it there can be no reliable way to guide the actions of individuals to align them to corporate objectives and requirements. Risk; for its part; comes in many forms; including interna
The business activities known as governance; risk and compliance (GRC) are tightly linked. Governance; risk management and compliance management are separate but closely related activities that take place in any organization. Governance is essential
The business activities known as governance; risk and compliance (GRC) are tightly linked. Governance; risk management and compliance management are separate but closely related activities that take place in any organization. Governance is essential
In today�s intensely competitive markets; managers can�t rely on decisions based completely on gut feelings without running the risk of making wrong decisions that are costly in terms of both money and expertise. Instead they need high-quality infor
A continuous planning approach that uses frequent portfolio analyses to evaluate new project demand against in-progress work will help organizations achieve greater agility; flexibility; coordination and accountability in their operations and project
Closing the books and reporting financial results are core functions of the finance department. Not only is the close essential for fiscal governance; executives and managers use these quantitative business results to assess performance and identify
Dedicated planning software has existed in relatively sophisticated forms for more than a decade. Yet our research shows that almost half of all large global companies prepare plans and budgets in time-consuming primarily using spreadsheets. Spreadsh
Long range planning (LRP) is a process and discipline that companies use to determine the best strategy for succeeding in the markets they serve. These initiatives when done well; supports strategic goals and objectives and allow organizations to all
Long-range planning (LRP) is a process and discipline that companies use to determine the best strategy for succeeding in the markets they serve and to ensure they have the capabilities needed to support their strategic objectives; they also must pla
There�s longstanding agreement that it�s important for a company to close its books as quickly as possible: Doing so allows it to accelerate financial and management reporting and gives it more time to prepare analyses. In our research on the financ
The role of the controller is a demanding one. To be successful in this position; an individual must possess strong interpersonal and communications skills. He or she also must be superbly well organized and an expert at multitasking and have a keen
Finance organizations find it difficult to assume a more strategic role in their company when they are bogged down by inefficient processes. Yet; many think that enterprise software automation projects are too difficult and time consuming. The answer
The enterprise resource planning (ERP) system is a pillar of nearly every company�s record-keeping and management of business processes. It is essential to the smooth functioning of a business�s accounting and finance functions. In manufacturing and distribution; ERP also can manage inventory and logistics. Some companies use it to handle human resources functions like tracking employees; payroll and related costs.
The enterprise resource planning (ERP) system is a pillar of nearly every company�s record-keeping and management of business processes. It is essential to the smooth functioning of a business�s accounting and finance functions. In manufacturing and distribution; ERP also can manage inventory and logistics. Some companies use it to handle human resources functions like tracking employees; payroll and related costs.
Software vendors have begun to introduce new; more advanced analytic applications that are more accessible and no longer require a trained statistician. This next-generation of finance analytics capabilities may make it possible to access and analyze
Software vendors have begun to introduce new; more advanced analytic applications that are more accessible and no longer require a trained statistician. This next-generation of finance analytics capabilities may make it possible to access and analyze
Today; budgeting and operational planning effrots are typically only loosely connected. In contrast; Next-Generation Business Planning closely integrates unit-level operational plans with financial planning. Relying on information technology; it enab
Next-generation business planning closely integrates individual operational plans with financial plans. Supported by dedicated software; it enables companies to plan faster with less effort to achieve greater accuracy and agility.
Compensation management used to address a very specific need; managing compensation. But as the information age has transformed how businesses utilize and leverage analytics; compensation management has grown in scale. While the main function is the
Ventana Research undertook this Benchmark Research into the Next Generation of Business Planning to examine systems and tools that operate across business processes; influencing the optimal use of information and technology to manage performance. Thi
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 research confirms that most executives want their finance depar
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 research confirms that most executives want their finance depar
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 research confirms that most executives want their finance depart
Payroll management has traditionally been in a domain of its own; occupied solely with ensuring correct and timely payment along with compliance with relevant regulations. As a narrowly focused and transaction-oriented process; payroll management has
In many organizations; routine functions can be overlooked as places for improvement; and payroll management is one of those areas. With the growth of integrated systems in human capital management; the once stand-alone function of payroll is being b
Performance management is a strategy and a set of methodologies and processes that can be used for managing performance in financial services organizations. Its purpose is to achieve a common set of goals and objectives in the most efficient manner.
Performance management is a strategy and a set of methodologies and processes for managing the performance of the organization and its business network; its purpose is to achieve a common set of goals and objectives. At its core; then; performance m
Budgeting and planning is an area of finance that is long-established yet ripe for change. There is widespread dissatisfaction with the budgeting process. Nearly all business people regard it as a waste of time and resources. Typically; it eats up 10
Budgeting and planning is an area of finance that is long-established yet ripe for change. There is widespread dissatisfaction with the budgeting process. Nearly all business people regard it as a waste of time and resources. Typically; it eats up 10
The Product and Services Analytics Benchmark confirms that metrics and key indicators are important; and are used most often to evaluate cost- and budget-related factors. And they show that analytics processes are not very effective in most organizat
The term recurring revenue refers to models for selling and billing typically based on a combination of initial fees and periodic charges. In recent years; it has gained popularity in a variety of industries.
The term recurring revenue refers to models for selling and billing typically based on a combination of initial fees and periodic charges. In recent years; it has gained popularity in a variety of industries.
The term recurring revenue refers to models for selling and billing typically based on a combination of initial fees and periodic charges. In recent years; it has gained popularity in a variety of industries.
Ventana Research undertook this first independent; rigorous primary research in Recurring Revenue makes clear that organizations increasingly are choosing to adopt this model to increase revenue and improve their customers� experience. Pioneered by t
Robotic process automation (RPA) is a relatively new concept in the software industry. It involves the use of programming or analytical algorithms to execute the most appropriate action in an automated workflow without human intervention.
Product Information Management (PIM) is essential to business processes; the customer experience; and ultimately financial performance. It is shared among business units; customers; partners and distributors and may take many forms; including text; v
Explore important questions about Strategic Financial Planning and Management in this Ventana Research Q&A. Questions Include: What are the most important trends in financial planning? What new technology trends are most likely to impact fin
The subscription business model has grown in popularity with providers of services or products because it establishes a regular; predictable income stream. This is particularly true for technology companies. However; the subscription model poses challenges; primarily in handling the accounting and billing for subscriptions.
Product Information Management (PIM) is essential to business processes; the customer experience; and ultimately financial performance. It is shared among business units; customers; partners and distributors and may take many forms; including text; v
As organizational spend continues to evolve; key expenses such as business travel and employee spend are becoming increasingly difficult to control. Organizations that have deployed separate manual processes to manage aspects of spending often continue to use
There has long been a desire on the part of CFOs to have their departments play a more strategic and active role in the management of their organization. Many envision moving Finance from a backward-looking stance of bean counting� to an action-oriented business unit.
Business benchmarking is a decades-old practice that now is entering a new era. Providers of today�s cloud-based business systems can create process benchmarks quickly and efficiently by monitoring and measuring how customers use their service. The
Digital transformation is a popular term that encompasses a range of fundamental changes caused or catalyzed by modern information technology. The internet and intelligent mobile devices have changed how people live; work; shop and communicate. Wh
CFOs are looking for ways to close their books faster. Completing the accounting cycle quickly and accurately is a good indicator of efficiency in a finance organization. In most organizations; though; a complex set of issues impedes achieving a fast
CFOs are looking for ways to close their books faster. Completing the accounting cycle quickly and accurately is a good indicator of efficiency in a finance organization. In most organizations; though; a complex set of issues impedes achieving a fast
CFOs are looking for ways to close their books faster. Completing the accounting cycle quickly and accurately is a good indicator of efficiency in a finance organization. In most organizations; though; a complex set of issues impedes achieving a fast
Many CFOs and controllers find themselves in a bind. They look for ways to give the finance department a more strategic role in their company; yet they cannot provide the resources Finance would need to be able to handle core functions quickly and e
Many senior finance executives want their department to play a more strategic role in the management and operations of their company. They believe there is value in shifting their focus from processing transactions to higher-value functions in order
Compensation management used to address a very specific need; managing compensation. But as the information age has transformed how businesses utilize and leverage analytics; compensation management has grown in scale. While the main function is the
There is general agreement that it is good practice for companies to close their books within one business week. Our benchmark research on the Office of Finance confirms that; finding that on average executives and managers in midsize and larger com
Most companies need to accelerate their close-to-report cycle � the periodic process of closing the ledgers; consolidating the financial data and then reporting results both internally and externally to third parties such as shareholders; lenders an
Managing profitability effectively is especially important in today�s constrained pricing environment. Shifts in market structures; including globalization and better informed customers; have made it difficult to raise prices.
To achieve success in today�s intensely competitive market environment; businesses must take all steps possible to enable their employees to perform at their best and must allocate their workforce as effectively as possible. In Ventana Research�s vi
Performance management consists of the strategy; methodologies and processes to manage the performance of an organization and its business network to achieve an agreed-upon set of goals and objectives. It is an undertaking that returns significant v
Many Organizations today are applying predictive analytics. 83% of participants in our research said that predictive analytics is important to their organization, and nearly all executives said they consider predictive analytics important.
CIOs and senior IT leaders such as directors of global applications and enterprise architects constantly face the challenge of reducing technology costs while continuing to deliver consistent value to the business. The IT organization must always be seeking opportunities to automate the infrastructure and processes used throughout the enterprise to improve efficiency.
Continuous improvement is a pillar of continuous accounting – an approach to managing finance and accounting organizations that makes improving the department’s effectiveness practical by increasing its efficiency. A business culture that has embraced and internalized continuous improvement sets increasingly rigorous objectives, reviews performance vis-a-vis those objectives and makes addressing shortcomings a departmental priority.
Despite widespread agreement that shortening the monthly and quarterly close is important, over the past decade our research has found no progress toward achieving this objective. Perhaps one reason is the available technology, which some companies have found too expensive, too cumbersome and too inflexible for their needs.
Today’s corporate planning is flawed. For example, our benchmark research finds that companies often react too slowly to changing market conditions. They miss opportunities to sell more and wind up allocating resources to less productive or less profitable activities.
he challenges facing tax departments are mounting. Governments worldwide are scrutinizing companies’ reporting more closely in an attempt to raise revenue. In response, corporate boards and executives increasingly are demanding greater visibility into direct (income) tax positions and their implications.
Performance management is a strategy and a set of methodologies and processes for managing the performance of the organization and its business network; its purpose is to achieve a common set of goals and objectives. At its core, then, performance management is about aligning day-to-day processes and activities with organizational strategy. This makes it of obvious value to savvy executives and finance professionals: It communicates to all stakeholders an agreed-upon strategy and helps align the organization around it.
New rules governing revenue recognition for contracts will go into effect for publicly held companies in 2018 and for private ones in 2019. The Financial Accounting Standards Board, which administers Generally Accepted Accounting Principles in the U.S.
Human capital is a business’s most important asset. Most of the time it also is the largest operating expense, and thus can have a major impact on profitability and overall success. To keep employees engaged and productive, companies must of course compensate them appropriately – while not overpaying them and running the risk of eroding the bottom line.
Robots are not about to take over finance and accounting, but a set of emerging technologies will enable any department to finally redefine itself as a forward-looking strategic partner to the rest of the company. This webinar, aimed at finance and accounting professionals, presents a concise assessment of the direction of four key technologies that together constitute robotic finance: artificial intelligence and machine learning, robotic process automation, bots and natural language processing, and blockchain distributed ledger technology. Robotic finance hasn’t arrived with a bang, but it will have an impact and will evolve rapidly over the next five years. CFOs are generally right to avoid the bleeding edge of technology. However, they should prepare their department to be a “fast follower” of this technology innovation to ensure their company’s continued competitiveness as well as to move Finance to a more strategic role.
Finance organizations will be putting systems in place for operationalizing lease accounting as they prepare to comply with the new standards. I recommend they have a dedicated system for lease management and accounting if their existing software cannot handle the full scope of compliance.
As organizations work to master the complexities of the new lease-accounting standards (ASC 842 and IFRS 16) it’s important they not overlook the importance of having the right systems and software to make operationalizing compliance as easy as possible. Otherwise, three aspects of the new standards may create burdensome accounting workloads. First, under the new standards leases must be reviewed regularly.
People have been complaining about budgeting forever. Technology helps the CFO and finance organization produce a detailed budget and analyze “the numbers” with less effort than was required in the past. Dissatisfaction remains, however, because technology hasn’t addressed the challenge of increasing the business value of budgeting, especially to the budget owners. It hasn’t changed the conversation to a dialog centered on the business plan first rather than concentrating on the financial outcomes of that plan.
Ventana Research uses the term predictive planning to describe an agile, high-participation process that builds on innovative technology to achieve business objectives. Predictive planning uses a shared computing environment to enable cross-functional collaboration and rapid planning cycles. It takes advantage of technologies such as in-memory computing to make interactive planning and budgeting feasible and advanced analytics to provide deeper insights into results and more accurate forecasts.
The tax provision and tax reporting processes being used by organizations are receiving greater attention from CFOs and audit committees for two important reasons. One is an intensified determination to shorten the accounting close. The other is to address the need for greater transparency in tax planning, provision, disclosure and compliance. For decades, spreadsheets were the tool of choice for managing tax provision because they were the most practical option available.
Continuous improvement is a pillar of continuous accounting – an approach to managing finance and accounting organizations that makes improving the department’s effectiveness practical by increasing its efficiency. How well are you doing? Take the self-assessment and find out.
Companies do a lot of planning: They plan sales, determine what products and services they will offer, decide what they will charge and what these will cost. They plan the headcount they’ll need to run the business and how to organize distribution and their supply chain. They also produce a budget, which is a financial plan.
More effective management of pricing usually is the biggest profitability lever available to corporations. Yet, senior executives often cannot manage pricing effectively because they encounter five common obstacles. First, they lack visibility into actual pricing performance and the analytics to identify issues and opportunities. Second, their organization is unable to implement pricing decisions quickly and consistently. Third, the pricing approval process takes too long and is inconsistent, leading to lost business. Fourth, their sales organization lacks the process and tools to limit margin leakage. Fifth, they lack the process and tools to optimize pricing for individual customers and products. Technology can be the catalyst that enables senior executives to achieve higher profitability through more effective management of their organization’s pricing.
Technology has steadily advanced the analytic techniques that enable businesses to undertake the challenge of supply chain optimization. These have evolved from basic inventory optimization routines to more complex algorithms that address multiple objectives and constraints simultaneously. Analytics facilitate even complex scenario analyses to provide a more complete picture of the future. They have moved beyond merely being descriptive, explaining what just happened, to being able to prescribe one or more options. Prescriptive analytics suggest decision options and calculate the consequences that follow from each. This allows executives and managers to accelerate decision-making cycles because they can rapidly explore alternative courses of action and identify the best options because they understand the impacts of each. Being able to speed up decision cycles by quickly getting answers to “what if” questions can give companies a competitive advantage in today’s dynamic markets.
A majority of companies take more than six business days to complete their accounting close. Taking more than one business week to close the books prevents companies’ decision-makers from being able to act promptly on critical information. It shortens the time available for a more thorough analysis of results and, especially for public companies, crafting narratives for external financial reporting.
Close automation software designed for midsize companies is relatively new. Successful midsize companies may find they need to automate their close when it takes longer to close, when mistakes, dropped balls and preventable delays increase, or if errors show up in financial statements or in an audit. Close automation software eliminates the disparate systems and informal processes that might have worked in a small business and puts everyone on the same page.
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