Analyst Perspectives

I recently had a briefing from Vertex on its tax data warehouse (TDW), a key component of its tax technology platform Vertex Enterprise. The TDW concept has been around for decades, but the earliest versions were custom-built and hampered by the technology limitations of their day. This made them expensive to deploy and maintain and constrained their ability to adapt to changing corporate requirements. The basic idea behind a TDW is straightforward: a data store that makes all tax data readily...

Risk has always been an integral part of business, but as I’ve noted, companies deal with risk with varying degrees of effectiveness. A complex, ongoing process, operational risk management identifies risks to support successful operations of an organization, estimates the monetary and other measurable impacts if a risk event occurs, establishes methods for mitigating the severity of impacts should they occur, continuously measures the probability of a risk occurring within a relevant period of...

Management decision-making typically involves a three-step process of inform, analyze and act. In the earliest days of what came to be known as business intelligence, developers created decision support systems that provided information and analytics to help executives and high-level managers choose the best course of action. Working with numbers rather than gut instinct still is viewed as a best practice. After all, a pilot who doesn’t trust his or her instruments is heading for an accident.

At its annual Influencer’s Summit in Boston, SAP offered multiple perspectives on where the company’s strategy and products are heading. Overall, I was struck by the essential similarities to its message on its strategic direction a decade ago. The overarching objective in its roadmap now, as then, is to have information technology increasingly adapt to the needs of individual users and how they choose to execute established/repetitive or ad-hoc processes, rather than forcing them to adapt to...

ERP systems not only collect information about transactions, they also automate processes. The latter includes managing the handoffs between roles and enabling electronic document creation and management associated with that. Indeed, it was the promise of improving process management and process execution that spurred companies to adopt ERP in the 1990s.

I thought of writing a note on this topic when multinational corporations started to withdraw their deposits from eurozone banks, but the pessimism that event engendered was short-lived. Now, as the monetary crisis deepens in Europe, it’s perhaps time to ask what your company would do if parts of its financial system implodes. You may think that your company will not be affected because it doesn’t do business with the eurozone. Or you may believe that it’s unlikely to happen and therefore not...

Doing one’s homework is vital in buying business software. However, unless you’re replacing a relatively simple application, it’s hard to know exactly what to evaluate. Indeed, if people in a company given this task don’t have experience in using a specific type of business application or don’t understand how new or improved functionality will help execute business processes better, they may do a poor job of assessing the available alternatives. Third-party consultants may be helpful, but their...

I believe that one of the more important analytical applications that a company can implement is profitability management. IBM Cognos offers Profitability Modeling and Optimization as part of its Cognos 10 offering that my colleague has assessed. As I’ve noted, most people in a corporation are focused on profitability, but not necessarily in a way that optimizes results across the organization in a day-to-day, consistent fashion. Those responsible for each component piece that contributes to...

Right after I posted my blog about the dearth of useful content for the line-of-business and finance audience at this year’s Oracle Open World, I attended a truly useful session. (Of course, it had been shunted to the next-to-last time slot on the final day of the event.) It was a case study presented by AT&T’s tax group, discussing its use of Oracle Hyperion Financial Management to manage the corporation’s tax data.

Risk has always been an integral part of business, but dealing effectively with risk is a progression. Indeed, history shows businesses adapting and coping better with risk through innovation. The importance of using information technology to manage risk is growing because today’s systems can automatically measure and analyze a much broader set of risk factors than individuals can, and do so more reliably. But a key challenge companies face in implementing enterprise risk management is...