Friday Dec 20, 2013

Déjà Vu? Oracle EPM in 2013


As the year winds down, I wanted to share some of the highlights from EPM in 2013 and give a sneak peak about where we’re going next year. 2013 was a busy year with new product developments, new research studies, as well as customer events like Oracle OpenWorld. Let’s look back at some of these happenings and their associated blog posts.


New Product Developments 

Early in 2013, we announced a new release of Oracle Enterprise Performance Management with new integrations and product capabilities and updates to user experience that help companies to Unlock Business Potential – by unlocking business potential, companies are able to drive to the desired business outcomes of Aligned Objectives, Accurate Forecasts, Confident Close and a more Accountable Enterprise.

We also released new product modules, including Oracle Hyperion Tax Provision to help with aligning tax information and financial reporting, and Oracle Data Relationship Governance for improving financial master data governance and managing change.  In addition, we certified Oracle Hyperion Planning and Oracle Hyperion Profitability and Cost Management on Oracle Exalytics In-Memory Machine to help organizations Plan at the Speed of Business.  

For the sixth consecutive year, Gartner recognized Oracle as a Market Leader in its 2013 Magic Quadrant for Corporate Performance Management Suites report.  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.

New  Research

We conducted several interesting research studies in 2013.  Over the past several years, as we have gone through and emerged from the Great Recession, the role of the CFO has transitioned to one of catalyst for change.  New technologies and shifts in skill sets are also contributing to this changing role.  To understand these issues more deeply, we partnered with Accenture and released new research about the CFO’s changing role from financial overseer to corporate strategist and change agent.

To learn more about how Oracle customers perform Business Analytics processes (which includes Enterprise Performance Management, Business Intelligence and more), we launched the Oracle Business Analytics Customer Value Index (CVI) program in 2011, through which we collect valuable business process information from our customers.  The EPM Blog featured some compelling results from the CVI around Enterprise Planning, Budgeting and Forecasting Processes.

Customer Events and Videos 

One of the highlights of the year was Oracle OpenWorld, and winning the America’s Cup during that week certainly added to the excitement!  The Business Analytics program this year was our strongest ever, with over 200 EPM, BI, Analytics, Big Data and Exalytics sessions delivered by Oracle, our customers and partners.   We had the opportunity to catch up with a number of these customers and partners after their sessions, and you can view the interviews here

In one of our blogs about Scorecards, we featured forward-looking DC Courts and their process for managing strategy and KPIs.  DC Courts are making some great strides in setting strategy and executing on it, and are really setting the bar for other US Courts. 
On the topic of Profitability and Cost Management, we interviewed Ida Quamina of Oracle about the great strides being made in mastering the cost of Higher Education, and how these institutions can now address the issues of low or no visibility into individual programs, degrees and course costs, or the cost per student.
Next up – Cloud and Mobile!

As we head into 2014, there are many exciting developments in store, and you can expect to see us talk a lot about Cloud and Mobile technologies next year. Our blog called, “Taking your Business Scorecard Golfing” is just a preview.  

Wishing you a very Happy Holiday and New Year!




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 Jul 10, 2012

Challenges in Corporate Reporting - New Independent Research

Earlier this year, Oracle and Accenture sponsored a global study on trends in financial close and reporting. We surveyed 1,123 finance professionals in large organizations in 12 countries around the world during February and March.


Financial Consolidation and Reporting is the most mature aspect of Enterprise Performance Management with mainstream solutions having been around for over 30 years. But of course over this time there have been many changes and very significant increases in regulation. So just what is the current state is Financial Consolidation and Reporting in our major corporations across the world? We commissioned this independent research to find out. Highlights of the result are:


          Seeking change: Businesses recognize they need to invest in financial reporting to address the challenges they currently face. 47 percent of companies have made substantial investments over the last year to the financial close, filing, and reporting processes.


          Ineffective investments: Despite these investments, spreadsheets (72 percent) and e-mails (68 percent) are still being used daily to track and manage reporting, suggesting that new investments are falling short of expectations.


          Increased costs and uncertainty: The situation is so opaque that managers across the finance function are unable to fully understand the financial impact or cost implications of reporting, with 60 percent of respondents admitting they did not know the total cost of managing and publicizing their financial results.


          Persistent challenges: 68 percent of respondents admitted that they have inadequate visibility into reporting processes, while 84 percent of finance managers surveyed said they find it difficult to control the quality of financial data across the entire reporting process.


          Decreased effectiveness: 71 percent of finance managers feel their effectiveness is limited in some way by data-analysis–related issues, while 39 percent of C-level or VP-level respondents say their effectiveness is impaired by limited visibility.


          Missed deadlines: Due to late changes to the chart of accounts, 15 percent of global businesses have missed statutory filings, putting their companies at risk of financial penalties and potentially impacting share value.


The report makes it clear that investments made to date by these large organizations around the world have been uneven across the close, reporting, and filing processes, which has led to the challenges these organizations currently face in the overall process. Regardless of whether companies are using a variety of solutions or a single solution, the report shows they continue to witness increased costs, ineffectual data management, and missed reporting, which—in extreme circumstances—can impact a company’s corporate image and share value.


The good news is that businesses realize that these problems persist and 86 percent of companies are likely to make a significant investment during the next five years to address these issues. While they should invest, it is critical that they direct investments correctly to address the key issues this research identified:


          Improving data integrity


          Optimizing processes


          Integrating the extended financial close process


By addressing these issues and with clear guidance on how to implement the correct business processes, infrastructure, and software solutions, finance teams will find that their reporting processes are much more effective, cost-efficient, and aligned with their performance expectations.


To get a copy of the full report:


http://www.oracle.com/webapps/dialogue/ns/dlgwelcome.jsp?p_ext=Y&p_dlg_id=11747758&src=7300117&Act=92


To replay a webcast discussing the findings:


http://www.cfo.com/webcast.cfm?webcast=14639438&pcode=ORA061912_ORA

Friday Jul 15, 2011

Independent Research on 1500 Companies Reveals Challenges in Performance Visibility – Part 2

My blog article on the first part of this study focused on profitability and cost management.  In this second blog I am going to look at the findings around planning and budgeting.

Just to remind you, or if you haven’t read my first blog here is some background: At the end of May 2011 I was joined by Professor Andy Neely of Cambridge University on a webinar, with an audience of over 700, to discuss the results of this extensive study which covered 13 countries and nearly every commercial and industrial sector.  What stunned both of us was not so much the number listening but the 100 questions they asked in just 1 hour.  This certainly represents a record in my experience and for those that organized the webinar. So what was all the fuss about?  Well, to begin with this was a pretty big sample and it represented organizations with over $100m sales across the USA, Europe, Africa and the Middle East. It also delivered some pretty interesting results across a wide range of EPM subjects such as profitability management, planning and reporting.

For the planning section we started off with a question to get an idea of just how prevalent the use of spreadsheets actually is for planning and reporting. I guess we should not have been surprised when the results were consistent with what we have seen for many years with 71% - 80% (depending on company size) using spreadsheets for financial planning and budget control. There are many well documented consequences of this, one of which came through clearly in our results, with 54% of managers saying they spend more time gathering information that analyzing it. When we looked at how much of their time managers spend on spreadsheets, finance managers spent the longest at 45% but surprising the next was the CEO at 40%. Our conclusion is that organizations and more importantly their managers are still ‘drowning in spreadsheets’!

This was further confirmed when we looked specifically at ‘enterprise’ planning. Less than a third of organizations confirmed they had specialist software for any one of the specific categories of planning we defined. It gets noticeable worse when considering those that confirm they have specialized software for ‘all’ the categories, just 11%. The result is a catalogue of confirmed problems with planning that include - gaps in data, data not standardized, data being provided late and data inaccuracies.  In fact 95% of our respondents said they encountered problems of some form with their planning process. These results concur with what we hear when we talk to organizations about their planning and budgeting which are often described as a collection of ‘fragmented’ systems and processes most often stitched together with email and spreadsheets.

‘Fragmentation’ is confirmed in this study with only 16% of organizations saying their management processes are linked through specialist software and 71% actually stating that the links between strategic goals and operational plans and budgets are fragmented. This has an impact on communication and management commitment with 72% of managers criticizing communications from senior management and 89% of non-finance managers stating they would feel more committed if communication on performance were improved.

Given all of the above findings, when it came to asking about how long it takes to implement strategic change it is no wonder the average came out to 6.5 months. Fragmentation of management processes introduces time and errors that no organization can afford.  It reminds me of the situation often seen with fragmented operational processes 15 years ago before the wide adoption of ERP. It really is time organizations took a serious look at integrated Enterprise Performance Management (EPM) solutions to help them create consistent, end-to-end management processes.

If you want to read the complete report on the research go to: http://www.oracle.com/webapps/dialogue/ns/dlgwelcome.jsp?p_ext=Y&p_dlg_id=10077790&src=7038701&Act=29 Alternatively if you would like to know more about Oracle’s Enterprise Performance Management solution go to: http://www.oracle.com/us/solutions/ent-performance-bi/051191.html

About

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

Search

Categories
Archives
« April 2014
SunMonTueWedThuFriSat
  
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
   
       
Today