Oracle Enterprise Performance Management (EPM) Wins 2016 CFO Readers’ Choice Award



Directly on the heels of being named a leader in two of Gartner’s magic quadrants for the ability to execute – the first for Strategic Corporate Performance Management (Strategic CPM or EPM in our terms) and the second Financial Corporate Performance Management – Oracle Enterprise Performance Management (EPM) has now also received a prestigious 2016 CFO Readers’ Choice Award.


CFO Magazine Logo

CFO Magazine conducted their inaugural survey of readers to determine their preferred financial software products and service providers. Readers of the magazine were given the opportunity to vote for their favorite accounting firm, bank, consulting firm, 401(k) recordkeeper, insurer, EPM provider, and more.

Whether the reader has worked directly with the products or providers in a category or not, they were encouraged to vote for nominees based on their perception of how well they satisfy customers’ needs. The survey started in March 2016, and Chief Financial Officers and other finance executives were invited to cast their votes via email. The returned ballots listed more than 250 nominees in 20 categories.

“This is the first year of our awards program, and we are pleased by the response from our readers,” said CFO editor-in-chief Edward Teach. “The winners are all outstanding companies, but the vote was close in several categories, which speaks to the overall quality of the nominees.”

Oracle Enterprise Performance Management (EPM) is a constantly evolving group of solutions for budgeting, planning, and forecasting; financial close and consolidation; financial and management reporting and disclosure; profitability modeling; and strategic planning and forecasting, and now, with the advantage of also being available in the cloud, are even more convenient, secure and cost effective.

According to Gartner, Oracle’s EPM suite provides all this and more, in on-premises, software-as-a-service, and hybrid cloud versions, and according to CFO Magazine, “it won our readers’ nod, too”.

For more information on Oracle Enterprise Performance Management (EPM), click here.

If you’re interested in learning about the latest in EPM trends, we invite you to read our paper, Enterprise Performance Management Top Trends for 2016.

Disclaimer:
1)Oracle, Oracle Hyperion, Hyperion and Java are registered trademarks of Oracle and / or its Affiliates
2)Microsoft is a registered trademark of Microsoft and / or its affiliates
3)Any other trademark, name, logo, images, etc. are copyright and trademark of its respective owner which also includes Innov8 Infinite Technology Pvt.Ltd.

Oracle Enterprise Performance Management (EPM) Wins 2016 CFO Readers’ Choice Award



Directly on the heels of being named a leader in two of Gartner’s magic quadrants for the ability to execute – the first for Strategic Corporate Performance Management (Strategic CPM or EPM in our terms) and the second Financial Corporate Performance Management – Oracle Enterprise Performance Management (EPM) has now also received a prestigious 2016 CFO Readers’ Choice Award.


CFO Magazine Logo

CFO Magazine conducted their inaugural survey of readers to determine their preferred financial software products and service providers. Readers of the magazine were given the opportunity to vote for their favorite accounting firm, bank, consulting firm, 401(k) recordkeeper, insurer, EPM provider, and more.

Whether the reader has worked directly with the products or providers in a category or not, they were encouraged to vote for nominees based on their perception of how well they satisfy customers’ needs. The survey started in March 2016, and Chief Financial Officers and other finance executives were invited to cast their votes via email. The returned ballots listed more than 250 nominees in 20 categories.

“This is the first year of our awards program, and we are pleased by the response from our readers,” said CFO editor-in-chief Edward Teach. “The winners are all outstanding companies, but the vote was close in several categories, which speaks to the overall quality of the nominees.”

Oracle Enterprise Performance Management (EPM) is a constantly evolving group of solutions for budgeting, planning, and forecasting; financial close and consolidation; financial and management reporting and disclosure; profitability modeling; and strategic planning and forecasting, and now, with the advantage of also being available in the cloud, are even more convenient, secure and cost effective.

According to Gartner, Oracle’s EPM suite provides all this and more, in on-premises, software-as-a-service, and hybrid cloud versions, and according to CFO Magazine, “it won our readers’ nod, too”.

For more information on Oracle Enterprise Performance Management (EPM), click here.

If you’re interested in learning about the latest in EPM trends, we invite you to read our paper, Enterprise Performance Management Top Trends for 2016.

Disclaimer:
1)Oracle, Oracle Hyperion, Hyperion and Java are registered trademarks of Oracle and / or its Affiliates
2)Microsoft is a registered trademark of Microsoft and / or its affiliates
3)Any other trademark, name, logo, images, etc. are copyright and trademark of its respective owner which also includes Innov8 Infinite Technology Pvt.Ltd.

Gartner Positions Oracle as a Leader in Both Gartner Magic Quadrants for Financial and Strategic EPM

On May 31, Gartner released its 2016 Magic Quadrant for Corporate Performance Management Suites reports. This year, Gartner split the CPM MQ into two parts: The first one, Strategic CPM (SCPM), is primarily focused on planning, budgeting and forecasting. Also included are solutions for strategy management, profitability modeling, and performance reporting. The second MQ, Financial CPM (FCPM), covers financial consolidation, financial and management reporting and disclosures, financial close management and account reconciliations. Oracle was one of two vendors recognized as a Leader in both reports.

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 reports, Oracle is positioned with the highest ability to execute over all other vendors.

Gartner has the following observations about the SCPM and FCPM spaces this year:

Demand in the SCPM market is continuing to shift to cloud-based solutions. The ability to provide and support these has become a requirement. The availability of cloud-based options is not as visionary a phenomenon as it was, but instead has become necessary. It is critical for small and midsize organizations with fewer IT resources, and very important for large organizations needing to reduce their support costs and requiring more flexible solutions. This flexibility is necessary to support certain use cases and the functional needs of diverse business units.

FCPM offerings continue to shift toward cloud-based solutions that deliver a shorter time to value and improved ease of use while improving agility. The ability to provide cloud-based solutions and demonstrate experience with supporting these solutions is now a generally accepted requirement in this market. The availability of a cloud-based option is no longer visionary, but a necessity. It is necessary for SMBs with fewer IT resources for ongoing support, and for large organizations that require more flexible solution options — especially for certain use cases or for business units or departments requiring specific domain relevance, functional innovation, ease of use and agility.

Oracle’s enterprise performance management cloud and on-premises applications help connect organizations, drive predictable performance and confident reporting.

Click here to learn more:

Magic Quadrant for Strategic Corporate Performance Management Solution Report
Magic Quadrant for Financial Corporate Performance Management Solutions Report

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

Disclaimer:
1)Oracle, Oracle Hyperion, Hyperion and Java are registered trademarks of Oracle and / or its Affiliates
2)Microsoft is a registered trademark of Microsoft and / or its affiliates
3)Any other trademark, name, logo, images, etc. are copyright and trademark of its respective owner which also includes Innov8 Infinite Technology Pvt.Ltd.

Part A: New Revenue Recognition–Disclosure, the Forgotten Implication

Part A – Overview

I was speaking with Mike Malwitz, Principal Solutions Consultant at Oracle, and I asked him about concerns that he has heard from organizations recently around the new revenue recognition guidelines. His responses were illuminating. 



Nigel Youell: “Organizations have been busy figuring out how to recognize and measure revenue under the new guidelines set out by FASB and IASB, but are there other impacts they should be considering?”

Mike Malwitz: “I’m hearing a lot of concerns, from the people with whom I am talking, about the level of contract revenue detail that is to be disclosed. That shouldn’t be a big surprise since investors and other users of financial statements have consistently indicated that revenue disclosure requirements in both the existing U.S. GAAP and IFRS were insufficient for analyzing an entity’s revenue.”

NY: “So what are the intentions for disclosure under the new revenue recognition guidelines?”

MM: “Disclosure requirements under the new revenue guidelines are intended to provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the entity’s contracts. Affected organizations are expected to provide information about: 



  • Revenue recognized from contracts with customers, including the disaggregation of revenue into appropriate categories; 

  • Contract balances, including the opening and closing balances of receivables, contract assets, and contract liabilities;

  • Performance obligations, including when the entity typically satisfies its performance obligations and the transaction price that is allocated to the remaining performance obligations in a contract;

  • Significant judgments, and changes in judgments, made in applying the requirements to those contracts. In many cases, organizations will be required to report information that they may not have previously monitored.”



NY: “Is this a major shift in thinking from the current guidelines?”

MM: “Current revenue recognition guidance under both IFRS and US GAAP is limited. The new disclosure requirements reflect the belief that disclosure should be more than just a compliance exercise. Companies need to apply a thought process to disclosure and disclose sufficient information about their judgments and their approach to help users gain an accurate understanding of the numbers in the financial statements. This means qualitative information is just as important as quantitative information for helping the reviewer better understand the nature of the organization’s contract revenue.”

To read part 2 and part 3, click on the respective title.

Part 2: New Revenue Recognition – Disclosure, the Forgotten Implication
Part 3: New Revenue Recognition – Disclosure, the Forgotten Implication

To learn more about Enterprise Performance Management, click
here.

Disclaimer:
1)Oracle, Oracle Hyperion, Hyperion and Java are registered trademarks of Oracle and / or its Affiliates
2)Microsoft is a registered trademark of Microsoft and / or its affiliates
3)Any other trademark, name, logo, images, etc. are copyright and trademark of its respective owner which also includes Innov8 Infinite Technology Pvt.Ltd.

New Revenue Recognition Guidelines: For Some, it’s New; for Oracle, it’s Déjà Vu

Part six of a 6-part series on new revenue recognition guidelines.

So now you’re faced with the challenge of introducing new revenue recognition guidelines to your organization. You realize that changes to your ERP systems are required, but you may not be quite sure what the final rules and procedures will look like. And, in any case, it’s going to take some time to make the required system changes. Are you at a standstill?


Good news! There is a way to get ahead of your ERP implementation of Oracle Revenue Management Cloud Service, while evaluating the impact of the new revenue guidelines. First, it’s important to validate the new accounting rules to prepare external stakeholders with new revenue comparisons as soon as possible. The trick, then, is to use a multidimensional consolidation tool during stage 2 of the implementation to prepare reports that illustrate and differentiate revenue under new and existing revenue reconciliation methods. 

Am I sure this will help? Yes. In fact, we’ve already helped many organizations successfully address a similar situation. In 2007, new revenue recognition rules set out by IFRS presented this exact challenge to many organizations (especially in Europe). Here’s what the head of Financial Reporting for a large book publisher said at the time about this transition, “…the group was able to quickly establish a unified chart of accounts in Oracle Hyperion Financial Management (HFM) covering UK GAAP, U.S. GAAP, and IFRS. It was then a simple matter to post the adjustments against these accounts as required.” 


The use of a multidimensional consolidation tool, like HFM, significantly simplified the ability to report the difference in revenue results between existing methods and the new IFRS rules. And it prepared external stakeholders to understand the impact of the new IFRS framework. But it also eased the transition required for ERP updates, since the many of accounting rules were defined early in the implementation of the new IFRS revenue recognition rules. 


Similarly, the task of updating your ERP systems to reflect the new FASB/IASB revenue recognition guidelines may appear daunting, but using multidimensional consolidation tools has been proven to be instrumental during the transitional stages. Once again, the impact studies created with HFM act as a control for the implementation of Oracle Revenue Management Cloud Service (RMCS) on your EBS, Fusion or other ERP.   RMCS uses rules engines to:



Identify accounting contracts, 


Identify distinct performance obligations, and classify them as over-time or point-in-time, 


Allocate the transaction price to the performance obligations in your Oracle or non-Oracle ordering, fulfillment, receivable, and other relevant systems. 



Also, RMCS serves as a customer liability and asset subledger to EBS and Cloud Service General Ledgers. 


Of course, as you deploy it, your detail rule setting will be subject to revision as you work on interpreting the standard.  You will be able to use its iterative modeling capabilities in conjunction with HFM to analyze the impact of the guidelines on your fiscal and management reporting.


Other articles in the New Revenue Recognition Guideline series can be reviewed by clicking the respective title: 



FAQs:



To learn more about Enterprise Performance Management, click here.

Disclaimer:
1)Oracle, Oracle Hyperion, Hyperion and Java are registered trademarks of Oracle and / or its Affiliates
2)Microsoft is a registered trademark of Microsoft and / or its affiliates
3)Any other trademark, name, logo, images, etc. are copyright and trademark of its respective owner which also includes Innov8 Infinite Technology Pvt.Ltd.

Oracle EPM Cloud is on a Roll – Introducing 3 New Services

Oracle EPM Cloud is on a roll.  With more than 1200 customers and nearly 70,000 users gained over the last two years with our Planning and Budgeting Cloud and Enterprise Performance Reporting Cloud solutions, we are continuing the momentum with the availability of 3 new EPM Cloud offerings  –  Enterprise Planning Cloud, Account Reconciliation Cloud, and Financial Consolidation and Close Cloud.

What do Oracle Cloud customers think of our solutions?
                            "Oracle Planning and Budgeting Cloud Service is the gold standard of
                            cloud-based planning solutions.We wanted a rapidly deployable system
                            to improve our planning systems and forecasting accuracy during
                            a period of ambitious global expansion." – Elaine McKechnie,
                           Head of Group Management Information Systems, Baxters Food Group

Customers now have the option to deploy cloud-based EPM solutions across their entire Finance function and even beyond Finance.  Why is this important?

Offering a complete suite of EPM solutions in the cloud enables our customers to move away from the disconnected spreadsheets they have traditionally used for EPM processes toward more “enterprise” applications.  Cloud makes it easier and feasible to deploy applications across a wider audience throughout the organization, which can lead to higher forecast accuracy, better decisions, and more reliable results.

In a recent EPM Cloud Trends survey, over 50% of the organizations that have EPM applications in the Cloud today did not have these applications previously on-premises.  Moreover, EPM in the Cloud delivers a better experience all around, with more than 50% indicating that EPM Cloud applications deliver better functionality, scalability, performance, implementation time and less complexity, and the ability to make the solutions available to a wider audience.

So what are the new Oracle EPM Cloud solutions that our customers can now take advantage of?

•    Enterprise Planning Cloud enables business owners to maintain independent plans while aligning planning processes across the enterprise —all with the ease and simplicity of the cloud—and without heavy reliance on IT.  Pre-built business process frameworks for Workforce Planning, Project Planning, Capital Asset Planning, and Financial Statements can be used by both financial and operational planners.

•    Account Reconciliation Cloud enables you to automate reconciliation tasks, support risk-based cycles, and gain real-time visibility into reconciliation performance.

•    Financial Consolidation and Close Cloud helps customers optimize the close with best practice consolidation out-of-the box, functionality to comprehensively address the extended close, and accurate and transparent reporting.

Stay tuned as we continue to add to our portfolio of EPM Cloud offerings and customer successes!

To learn more about EPM Cloud, click here

Listen and read about more EPM Cloud customer successes here


Disclaimer:
1)Oracle, Oracle Hyperion, Hyperion and Java are registered trademarks of Oracle and / or its Affiliates
2)Microsoft is a registered trademark of Microsoft and / or its affiliates
3)Any other trademark, name, logo, images, etc. are copyright and trademark of its respective owner which also includes Innov8 Infinite Technology Pvt.Ltd.

New Revenue Recognition Guidelines: What Should I be Doing?

Part 5 of a 6-part series on new revenue recognition guidelines.

When considering the introduction of the revenue recognition guidelines, begin as soon as possible. Don’t wait until the “mandatory” date to address the new guidelines; it will be too late. Here are the typical stages that we see organizations going through as they prepare for the new revenue recognition guidelines:

Stage 1: Study the impact and determine strategy
     •    Define the procedures for assigning value to a contract’s performance objectives
     •    Realistically analyze your accounting subsystems
          o    Can they easily be tweaked to accommodate the new revenue recognition guidelines?
          o    Will major systems need heavy modification or replacement? If so, what are the options?
          o    Do you have the resources to retrofit  on-premises systems? Will it require outsourcing?
          o    Would a cloud implementation provide a quicker and more financially prudent solution? 

Stage 2: Identify the reporting information required by external and internal stakeholders
     •    Determine the impact that the new guidance will have on existing contracts
     •    Consolidate the historic impact under new guidance
     •    Prepare reports to illustrate and differentiate revenue under new and prior revenue reconciliation methods

Stage 3: Implement the required accounting subsystems changes
     •    Configure accounting rules and set up ledgers
     •    Modify or install the accounting subsystems
     •    Process and report using dual accounting

Stage 4: Transform the business
     •    Communicate the impact of the changes to the business
     •    Train the organization to apply the new revenue recognition guidelines
     •    Report using new revenue recognition guidelines

But how are you going to manage these stages? How do you begin? Part 6 of this series, “How will Oracle’s experience help?” provides some advice. Other articles in the New Revenue Recognition Guideline series can be reviewed by clicking the respective title:

Part one: Like it or not, they’re on the way

FAQs:
Part two: What are the new guidelines? Can you provide a simple example?
Part three: Who is affected?
Part four: What are the challenges for affected organizations?
Part six: How will Oracle’s experience help?

To learn more about Enterprise Performance Management, click here.

Disclaimer:
1)Oracle, Oracle Hyperion, Hyperion and Java are registered trademarks of Oracle and / or its Affiliates
2)Microsoft is a registered trademark of Microsoft and / or its affiliates
3)Any other trademark, name, logo, images, etc. are copyright and trademark of its respective owner which also includes Innov8 Infinite Technology Pvt.Ltd.

New Revenue Recognition Guidelines: What Challenges Do the New Rules Present?

Part four of a 6-part series on new revenue recognition guidelines.

The new revenue recognition guidelines, proposed jointly by FASB and IASB, will impact multiple areas of affected organizations. They are likely to affect IT systems, internal processes and controls. For many organizations, changes in the way revenue is recognized and reported will generate questions from external stakeholders and concerns from the organization’s staff. 


With the new revenue recognition guidelines, expect IT systems to be impacted: 


Enterprise resource planning (ERP) systems may need to be upgraded or modified to capture additional data to support the necessary accounting and disclosures. How and when does your ERP system allocate prices for products and services? Does it have the capabilities to accrue for liabilities of goods and services to customers by performance obligation? Is it capable of recognizing transfers to customers of the performance obligations over time using the seven new tests of GAAP, rather than the old four? 


There will likely be a need to report revenue under new and existing guidelines. It will take some time for external stakeholders to get adjusted to the new results being reported and understand how the new reports map to the old way of doing things. In an effort to ease this transition, many organizations will want to report using both guidelines for a pre-determined period of time.  


Since the new guidelines often require judgment and use of estimates (both estimated selling prices and variable considerations) to value the performance obligations, internal controls and accounting procedures will need to be reviewed and, in many cases, revised. Do you have a pre-accrual estimation process in place?  Do you have post-accrual revision of estimation process in place?


Anticipate external questions. Key financial measures and ratios may change, which could affect analyst expectations. 


Expect internal concerns. The new rules may impact sales commissions, bonuses, budgeting, and compliance with contractual covenants. For example, the revenue recognition guidelines are likely to trigger reviews and changes to organizational sales and contracting processes. Additional thought will need to be given to contract language and sales compensation plans.

How do I go about introducing the new revenue recognition guidelines to my organization? See part 5 of this series, “What should I be doing?” for some guidance. Other articles in the New Revenue Recognition Guideline series can be reviewed by clicking the respective title: 



FAQs:


Disclaimer:
1)Oracle, Oracle Hyperion, Hyperion and Java are registered trademarks of Oracle and / or its Affiliates
2)Microsoft is a registered trademark of Microsoft and / or its affiliates
3)Any other trademark, name, logo, images, etc. are copyright and trademark of its respective owner which also includes Innov8 Infinite Technology Pvt.Ltd.

New Revenue Recognition Guidelines: Who is Affected?

Part three of a 6-part series on new revenue recognition guidelines.


The new revenue recognition guidelines redefines “revenue” for every US GAAP and IFRS company.  But, its impact is more severe for companies who offer discounted goods and services alongside fully-priced goods or services, and for those who deliver to customers over extended time periods, or both simultaneously. 


There are exceptions; the guidelines do not apply to organizations covered by other standards (e.g., insurance or leasing contracts).


All companies need to review their revenue for hidden bundling and implicit performance obligations. These guidelines are likely to impact pharmaceutical companies, telecoms, construction contractors, real estate developers, auto companies, and other firms with multiple sources of revenue.


Organizations – Examples



1. A software company ships a new game, but some missions or episodes are missing: 



Under today’s GAAP, they would defer all the revenue until the missing episodes were published. 

Under the new guidelines, they recognize revenue that relates to the delivery they performed, and postpone recognizing the remainder of the revenue until the delayed missions are delivered. A key question is how to identify and value a performance obligation of this nature, especially since this company doesn’t sell missions separately.



2.

a. A cellular telephone sold under contract that includes automatic software upgrades for one year is considered a single performance obligation.
b. A phone with a list price of $600 is sold to a customer under a service contract for $200. The cell bandwidth revenue for that client must be recognized to include a “claw back” of the difference of the list and selling price of the device.

3. An auto dealer that includes maintenance services with the sale of a car can only recognize the service revenue once the owner of the car brings it in for maintenance.

4. Similarly, high-tech companies that include software licenses, consulting, and support services on sales contracts determined to be related will recognize service revenue once the services are delivered.

How will the new revenue recognition guidelines affect my organization? Look at part 4 of this series, “What are the challenges for affected organizations?” to answer this question. Other articles in the New Revenue Recognition Guideline series can be reviewed by clicking the respective title: 



FAQs:



To learn more about Enterprise Performance Management, click here

Disclaimer:
1)Oracle, Oracle Hyperion, Hyperion and Java are registered trademarks of Oracle and / or its Affiliates
2)Microsoft is a registered trademark of Microsoft and / or its affiliates
3)Any other trademark, name, logo, images, etc. are copyright and trademark of its respective owner which also includes Innov8 Infinite Technology Pvt.Ltd.

The Impact of Not Changing

Guest Blogger Richard  Harsevoort

How the World is Evolving

As a consumer, we have acknowledged that we are living in the digital era. There are roughly 1 billion active websites and 2 billion smartphone users worldwide; meanwhile the number of fixed telephone lines has decreased over the last 9 years. 


The impact of not changing.png


Companies may not see today how they will enact change tomorrow. According to Forrester: ‘only 27% of today’s businesses have a coherent digital strategy, which determines how the firm will create customer value as a digital business.’ Instead, more focus is spent on keeping the lights on rather than innovation.

To stay relevant, organizations, business units, and individuals need to know where business technology is headed, and be sure to remain up to date with the ever shifting digital trend. It is time to take action: make digital transformation your key strategic thrust.


https://www.oracle.com/assets/cw31-cloud-solutions-2-2577646.jpg
Yes, most of us are too limited in our thinking. By simply changing the processes, we can be more successful with disruptive transformation. The digital era is asking to widen our horizon and adapt modern technology and new business models.

With ample possibilities today, there is no need to own the equipment to run your business. Lease it for the duration of a contract and put the responsibilities down to your suppliers, allows focus on your core business and respond effectively on chances.

We are all familiar with Uber and AirBnB, but startups have been making waves across all industries: temporary office spaces1, self-service bikes2 and food box delivery services3. Another shift that we are seeing is the introduction of Light as a Service from Philips to service Schiphol Airport in the Netherlands. The light as a service means that, Schiphol pays for the light it uses (pay-as-you go), while Philips remains the owner of all fixtures and installations.


Lighting fixtures were specially developed for Amsterdam Airport Schiphol that will last 75% longer, as the design of the fixtures improved the serviceability.


The Growing Use of Technology in the Finance Function

As business models change, the systems has to change alongside. Nowadays, Financial Controllers (FCs) prefer to have more insights and an increased focus on financial planning. Thus, better understanding of the income, cashflow and assets help determine the financial goals. Having real-time insights and adapting new business models are driving more and more financial departments to the cloud.

Similarly, Forrester states, systems are integrated and cloud-based to create a connected and dynamic ecosystem. The reasons for making the move are many, nonetheless the results are typically the same: faster innovation, greater scale, lower costs, and operational excellence.

If you are still concerned about the risks of changing finance, keep in mind the risks of not moving on.

To learn more about Oracle EPM Cloud, click here

—————–
1  https://liquidspace.com/
2 http://www.jcdecaux-oneworld.com/jcdecaux-products/bike-hire/
3 https://www.hellofresh.com/


Disclaimer:
1)Oracle, Oracle Hyperion, Hyperion and Java are registered trademarks of Oracle and / or its Affiliates
2)Microsoft is a registered trademark of Microsoft and / or its affiliates
3)Any other trademark, name, logo, images, etc. are copyright and trademark of its respective owner which also includes Innov8 Infinite Technology Pvt.Ltd.