Monday Feb 25, 2013

Gartner Positions Oracle as a Leader in CPM Suites

On February 14th Gartner released their 2013 Magic Quadrant for Corporate Performance Management Suites report. In the report, Oracle was recognized as a Market Leader for the sixth consecutive year.


Gartner’s Magic Quadrant reports position vendors within a particular quadrant based on their completeness of vision and ability to execute. In this year’s report, among the market leaders, Oracle is positioned with the highest ability to execute and the strongest in completeness of vision.


Here’s an excerpt from the report with some comments about Oracle from Gartner:


“Oracle is a Leader in CPM suites, and the Hyperion brand is respected by finance executives worldwide. Oracle has a very broad and deep CPM product suite, which employs a multiproduct approach with different applications for each of the major CPM processes; however, these products employ a common foundation and administrative components. The vendor has a well-established partner channel and Hyperion skills are plentiful among the consultant community, given the well-established products.”


Oracle Hyperion Performance Management Applications are part of Oracle Business Analytics, which combine market-leading enterprise performance management applications with business intelligence tools and technology and analytic applications to help organizations strategize, plan and optimize business operations and achieve better business outcomes.


Click here to learn more:  reportpress release


For more information about Oracle’s Hyperion Performance Management Applications please go to www.oracle.com/epm.

Wednesday Feb 13, 2013

Tax Provisioning: Simplify, Standardize then Automate

Tax provisioning is a process that has become increasingly more complex to perform, but increasingly more important to do well. I recently interviewed Andy Oliver, a PWC Director in their Tax Practice and an expert in Tax Provisioning, in a Podcast which I feel sheds some light on this increasingly complex matter. To listen to the Podcast, click here.


Tax provisioning is the process of reporting current and deferred income taxes in a company’s financial statements – tax on current profits and estimated future tax on future profits. There are a myriad of rules and requirements for calculations and disclosure that apply to different companies and countries and they are changing all the time. It is extremely important to have accurate, transparent calculations as when and what to pay and defer can make a huge difference to a company’s bottom line.


How do most tax accountants and departments manage this process? Andy indicated that a majority of companies pull this information together through numerous and large spreadsheets with complex and convoluted calculations. And although these spreadsheets offer flexibility – to keep up with the ever changing rules – they do not provide consistency in calculations, standardization of the process, or data security. This means that the calculations and resulting reports are error prone and can cause countless hours of work to find and correct the errors.


Ideally, the tax provisioning process should be performed early in the financial close process to get a really good picture of the end result. However, inevitably being early in the process means the financial results will change and the provision or estimation will have to be recalculated. Having the tax provisioning process integrated with the financial close process and systems makes a lot of sense, from an efficiency standpoint, to reduce the amount of work required each time there is a change to the financial results. We also discussed how important it is to SIMPLIFY the tax provisioning process and then standardize and automate the process before integrating with the financial close process to be truly effective and world-class.


Oracle’s Hyperion Tax Provision solution was designed to provide this integration with the financial close process and drive efficiency into the tax provisioning and disclosure process.


Finally, Andy had this advice for the listeners, “If you can align the tax reporting process with the financial close process – eliminating much of the manual, spreadsheet-based calculations, you will get the job done quicker, experience fewer mistakes, and be able to spend more time doing the important part of your job as a tax accountant; analyzing the numbers, and providing insight on the results such as WHY the numbers are different from forecast or from last year.


For more information on the Oracle Hyperion Tax Provision solution, click here.


To listen to the podcast, click here.


 

Tuesday Feb 05, 2013

How Corporate Culture Affects Performance Management

Good news – now there is research to support the idea that corporate culture really does impact corporate performance management!

A new article by the Business Research and Analysis Group (BRAG) was published in the January 2013 issue of Strategic Finance called "How Corporate Culture Affects Performance Management". Click here to read the article. It is an interesting piece that focuses on two main things:

1) An original bit of research on the attributes of effective CPM systems (EPM in Oracle vernacular) and

2) How/if those criteria support Howard Dresner’s Performance Culture Maturity Model. This model tracks 6 critical measurement criteria through four levels of maturity therefore highlighting the status of any company in fostering a performance directed culture. 

The article starts off listing strategic and operational benefits that can result from having an effective EPM system, and then goes on to investigate how significant Dresner’s six criteria of a performance directed culture are to the organizations in the survey that had achieved significant strategic and operational benefits – with a view of the level of maturity organizations reached with respect to these criteria. In the end, we can see which factors impact the achievement of benefits from an EPM system.

Dresner’s six criteria from his Maturity Model are:

1) Alignment with Mission

2) Transparency and Accountability

3) Action on Insights

4) Conflict Resolution

5) Common Trust in Data

6) Availability and Currency of Information


Through a series of graphs and tables presented and an analysis performed, it was determined that three of the six criteria are very significant to achieving benefits from an EPM system, while the  other three (although still important) are less significant to the sample of organizations involved in the study. The three very significant criteria are:

a) Alignment of an organization with its mission and vision

b) The presence of transparency and accountability

c) The ability of an organization to resolve conflict effectively

An interesting detail noted in this article was that in general, organizations are doing a poor job of achieving organizational maturity in the three areas that were found to have the most significant impact on achieving benefits!  The four levels of maturity modeled were Level 1: Chaos Reigns, Level 2: Departmental Optimization, Level 3: Performance Directed Culture Emerging, Level 4 Performance-Directed Culture Realized.

Another interesting detail was that the ONE criteria that organizations have really improved upon over the years and have reached a higher degree of maturity on – was one that was considered to have less impact on achieving significant benefits (Availability and Currency of Information).

The big message here is although it is important to have good EPM information in a timely fashion upon which to base sound business decisions, corporate culture has an even bigger impact on being able to achieve significant EPM benefits.

Click here to access the article.

Friday Feb 01, 2013

Not Your Father’s Scorecard

If you are new to the world of Business Scorecards – Welcome! If you have been at it for a while, it might be time to have another look at what your scorecard is doing for you.

Jacques Vigeant, Product Strategy Director for Oracle Business Intelligence and Enterprise Performance Management, was interviewed in a podcast by Nigel Youell, Director of Product Marketing for Oracle Performance Management Applications, and had a very interesting discussion about the business value that scorecards add to dashboards. To listen to the podcast click here.

To summarize, Jacques explained that dashboards are really about monitoring organizational metrics, usually including data that has been rolled up by dimensions relative to the business. Typically they are single page dials and graphs that give you information about trends and data in a point in time. Very useful for keeping track of what has happened. Whereas scorecards can provide a huge amount of business value by supplying additional information about how those metrics are related to the business strategy, which metrics are particularly important, what impact a particular metric has on the strategy, and who is accountable for the metric. This additional information enables employees to better evaluate their own impact on strategy and effect real change based on the metrics and initiatives they can influence.

According to Jacques, not all metrics are created equal. Some have a much bigger impact on strategic outcomes than others. For example, the number of units sold is a good metric to watch, but the profit on those units sold is MORE important. Importance can be seen through weightings placed on metrics relative to the strategy, and through maps showing how each of the metrics are related – cause and effect style.

The BIG news however is how scorecard functionality is changing, and Oracle is investing here.   Oracle Scorecard and Strategy Management, or OSSM, has taken better decision making very seriously. Oracle has introduced the concept of ‘actions’ and invoking those actions based on who is viewing the scorecard (position in the organization) and which metric they are viewing. If a value has gone wrong (or very right) a list of suggestions – based on the individual viewing the metric – can be presented to the user. In some cases, it is appropriate to automatically invoke a business process, trigger a workflow or initiate a job requisition based on a metric result value. In other words, intelligence can be built in to assist employees to make better business decisions every day. In addition, employees can support each other even more in making better business decisions through written collaboration and annotations on metrics and initiatives and what is happening to improve them.

Finally, reporting has changed to improve understanding of how each metric contributes to the organizational strategy.  Strategy maps show relationships between objectives, but can also show relationships to specific metrics. The ‘contribution wheel’, a patented graphic that Jacques himself designed, beautifully depicts how each metric and initiative contributes to the overall strategy in one graphic.   





So as you can see, Oracle Scorecard and Strategy Management is not your father’s scorecard. It has moved on to enabling managers and business leaders to see the impact of initiatives and metrics on the organizational strategy and, more importantly, helping to modify the behavior of employees to make better business decisions every day. At the end of the day, Oracle Scorecard and Strategy management can help provide enough business context so that everyone can make better business decisions every day. When this happens, achieving organizational goals and strategy is possible!


To listen to the Podcast, click here.

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This blog will highlight key EPM market trends, recent events and other news of interest to our field, customers and partners.

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