Tuesday May 28, 2013

Unlocking Business Potential with Enterprise Performance Management

As we look at the enterprise performance management (EPM) market, it’s clear that the fundamentals of EPM haven’t changed in the last 5 – 10 years.  EPM is still about linking strategies to plans and execution, monitoring financial and operational results against goals, and applying analytics to understand key trends, make better decisions and drive enterprise-wide performance.

What has changed is the world that we operate in. Although economic growth is slow, business cycles are faster so planning and forecasting needs to be more frequent.  There’s more data available to analyze and leverage for planning and reporting – both internally and externally generated.  Stakeholders have higher expectations.  That includes external stakeholders who want more quantitative and qualitative disclosures about the organizations they are investing in, as well as internal management stakeholders who are demanding more frequent insights into financial and operating results.  Even the workforce has changed, for instance Millennials (those born between 1980 and 2000) were raised on technology and have less patience for systems that are outdated or don’t respond quickly.  In addition, technology is changing with the shift to Cloud, Mobile and Social computing.  These new technology enablers that are available today create many opportunities to drive innovation and improve efficiency if leveraged correctly.  

So while today’s market presents a number of challenges to achieving the goals of CEOs and CFOs, there are also opportunities to unlock the potential of their organizations to drive profitable growth. These include:

-
Eliminating or investing more in under-performing products
- Putting more focus on under-served customer segments
- Better utilizing existing staff and capacity
- Putting the excess cash on the balance sheet to work – investing in new markets, products, and services
- Creating more efficient business processes and reducing IT complexity to reduce costs

Many organizations are finding that an integrated EPM platform can help them break down the barriers to success, linking business goals to results and unlocking business potential.  With a world class EPM platform organizations can deliver the desired outcomes needed to succeed in today’s market; Aligned Objectives, Accurate Forecasts, Confident Close and a more Accountable Enterprise.  Plus they can address the needs of Finance, IT, as well as line of business managers to ensure more consistent decision-making.

To learn more about how an integrated EPM platform can help your organization unlock its business potential,
download our new white paper:  Enterprise Performance Management – Unlocking Business Potential. 

Also, learn how the latest release of Oracle Hyperion EPM helps organizations unlock their business potential, here’s a link to the
press release.

And for more general information about Oracle Hyperion EPM please go to www.oracle.com/epm.



Thursday May 23, 2013

The CFO as Catalyst for Change - Part 2


In Part 1 of this series, I talked about some of the factors that are changing the role of the CFO.  But exactly how much has the CFO role changed and what’s in store for the future? To shed more light on the subject, Oracle partnered with Accenture to conduct a global research study. The study "The CFO as Catalyst for Change", includes insights from 930 CFOs from organizations of varying sizes and from different continents. In other words, it's quite comprehensive.

The study highlights the evolution of the CFO’s role from financial overseer to corporate strategist and change agent. Specifically, there are a few key takeaways I wanted to highlight:

The CFO role is becoming more strategic and influential:

- More than 70% of respondents said their overall level of strategic influence has increased over the past three years
- Respondents said their role is increasing in setting and determining strategy (65%) and business transformation (47%).

Internal and external challenges are hindering CFOs from reaching their full strategic potential:

- Only 33% of CFOs surveyed play a leading role in strategy formulation; an even smaller proportion (24%) play a leading role in strategy execution
- The challenging economic environment was identified as the largest barrier (37%), followed by a shortage of time (35%) and lack of integration between the finance function and other parts of the business (31%).

CFOs recognize technology is critical to helping:

- 84% of respondents said co-operation between the finance leader and CIO has increased during the past three years.
- 79% listed access to information as a key factor to making their organization more agile
- 57% of respondents viewed investments in disruptive technology, such as big data and analytics, as key source of competitive advantage.

Maintenance and integration issues are still the biggest technology concerns for CFOs:

- Cost of maintenance, cost of integration and lack of integration between systems were listed as the top three concerns of CFO respondents.

For more information, you can find the press release and links to the full report here.  If you’d like to hear the findings discussed in more detail make sure to tune into the CFO.com webcast on May 30th at 12PM EDT.  More information on the webcast and registration is available here.








Wednesday May 08, 2013

The CFO as Catalyst for Change - Part 1

In today’s hyper-competitive global economy, senior executives often have to wear more than one hat to help their organizations reach their full potential.   A good example is the CFO. With the constant need to drive innovation and growth, coupled with their more traditional financial responsibilities like managing costs, CFOs are under increasing pressure to take on an even broader role within their organizations. This evolving role has seen CFOs become more valued strategic and commercial partners, but has not reduced the challenges they face. From working with customers in nearly every industry and geography, a few of the challenges CFOs currently face have become clear, including:


  • The operating environment – While the economy is recovering, CFOs are still facing a low-growth external environment. The need to focus on cost management and efficiency has, in many cases, meant the difference between survival and extinction. Yet, the CFO’s role has broadened to include playing a greater role in technology and operations. Therefore, lack of time and role overstretch are key problems.

  • Skills and capabilities – As the role of the CFO expands, so must the CFO skill set. This has presented a problem for organizations with finding the right talent and capabilities that move beyond the traditional finance skills. Current CFOs also need to expand their own capabilities – particularly with technology. 

  • Technology – The CFO's role in IT investment is more apparent than ever. According to Gartner, 45 percent of IT leaders report to the CFO…that’s more than report to any other executive. While technological innovation such as big data, business analytics, cloud, mobile and social are a priority for the majority of organizations, most financial executives are unable to evaluate IT investments, making it harder for them to show the fruits of their labors. 

Despite these challenges, I know many CFOs that are taking a more strategic role, but they are also the first to admit that there is more work to be done. Over the next few months we will explore this topic in more depth and discuss how technology and other factors can help CFOs become catalysts for change and unlock the true potential within organizations around the world.

For more information about the role of the CFO and best practices in dealing with today's Finance challenges, check out Oracle CFO Central at www.oracle.com/cfo.







Gaining Strategic Alignment with Business Scorecards

Recently, I had the pleasure of interviewing Mr. Trey Robbins, Managing Director for Technolab, a Platinum Oracle Partner, for a Podcast. Trey and I discussed the implementation of Oracle Scorecard and Strategy Management (OSSM) at Technolab, and the important results they have achieved.

Trey told our listeners that Techolab wanted to translate their Balanced Scorecard framework into an online tool so that they could align their corporation in all the countries and hold people more accountable for achieving goals and corporate strategy. Managers update their measures and part of the corporate strategy manually, and then meet on a quarterly basis virtually (via phone and webcast) and in person on an annual basis. They walk through the overall corporate objectives and how they are tracking including the budgets and targets they have set.

In addition to strategic alignment, Technolab is also experiencing operational and financial benefits from OSSM. Trey told us that when he was first hired at Technolab, he saw lots of good ideas from the company brought forward in meetings and brainstorming sessions, but after the meetings were over and everyone went back to their day to day activities, the great ideas were lost. By using the scorecard tool, they document the good ideas, assign responsibility and track their progress.

An example of an operational improvement that Trey described was tracking the compliance of the entire organization around certifications that their consultants need to have for implementing software for their customers. Certification and re-certification for each region of Technolab is extremely important to the company, but difficult to monitor. Technolab now has software certification as an objective for each region and country and the company expects to see green lights on this objective at each meeting, or have a really good explanation of why they don’t. “When you go in front of your peers and management and you have certain things that you are responsible for, you are going to make sure you are executing on those. You don’t want to go into your meeting unprepared, and you definitely don’t want to go into your meeting with a bunch of red traffic lights,”said Trey.

When asked about some of the lessons learned from the initial implementation, Trey had some good advice. 

    
 1. Understand all the components needed to track strategy, measures and activities before using a tool. If you jump straight into the software, you will be missing components and that will slow you down. Understanding everything your organization wants to track and everything that your scorecard tool needs will enable you to speed through implementation.

     2. At the beginning of implementation, hold executive status meetings on a monthly basis rather than quarterly. The more visibility you have, the more consistent the message you articulate, the easier it is to execute.

    
3. Leverage the use of mobile capabilities more. Enable the executives to review the status of objectives and activities frequently and ‘on-the-go’.

Implementing Oracle Scorecard and Strategy Management (OSSM) gave Technolab a better way to manage their international business activities, align everyone around the corporate strategy and move the entire company towards achieving that strategy.

To hear the entire Podcast click here.

For more information about Oracle Scorecard and Strategy Management (OSSM) 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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