Failure to take advantage of systems’ capabilities costs companies money and blunts strategic effectiveness two or three, but that’s exactly what most of them are doing with their ERP systems without even realizing it,” observed Robert Kugel, who directs Ventana Research’s Financial Performance Management practice.
Benchmarking data shows that in the 1990s, companies cut the cost of their finance operations significantly. Ventana Research’s work points to ERP systems as the source of much of this efficiency. However, little progress has been made recently. Ventana Research estimates the Fortune 500® is currently saving $60 billion annually because of these investments. ”Finance executives often are unaware of the impact ERP has had on efficiency, so they have been overlooking opportunities to use the full capabilities of the software to generate further savings,” Mr. Kugel noted.
Ventana Research, the leading provider of Performance Management research and advisory services, will expand on the key findings of the research study ERP Innovation at a live interactive webinar on Thursday, June 1, 2006 at 9am PDT. Sign up for the webinar now!
The research, sponsored by technology providers Cognos and SAP, investigated companies’ attitudes and actions toward ERP and innovation. The findings are based on an analysis of 391 validated respondents. The survey was conducted with the assistance of media partners that included CMP’s Intelligent Enterprise, GDS International’s CXO Magazine and Business Management US, IT BusinessEdge, Montgomery Research’s CFO Project, Penton Media’s Business Finance, Reed Business’ Manufacturing.net, and TechTarget’s SearchOracle.com and SearchSAP.com.
Among the key research findings, Ventana Research determined that:
- A majority of respondents believe ERP can drive and support innovation in 11 of 12 key functional process areas such as financial and managerial reporting, purchasing and compliance and risk management.
- Process automation and integration are a proven ways to cut operating expense, increase cash flow and reduce error and fraud. Yet only half of the study’s participants have implemented an “order-to-cash” system that can accelerate cash collections. Only 30% are using image capture which can improve customer satisfaction by cutting the time to respond to inquiries and reducing costs by eliminating unnecessary paperwork.
- Enhancing company performance requires companies use both financial and non-financial metrics to set objectives. Most modern ERP systems are capable of tracking much more than just accounting data but only 11 percent thought their ERP system captured all or most of the non-financial information they need to monitor employees’ key performance indicators.
Additional Performance Management education will be offered at Ventana Research’s upcoming analyst summit, Connections 2006, this June 11-14 in San Francisco. To learn more, visit www.ventanaresearch.com/connections2006.
About Ventana Research
Ventana Research is the leading Performance Management research and advisory services firm. By providing expert insight and detailed guidance, Ventana Research helps clients operate their companies more efficiently and effectively. These business improvements are delivered through a top-down approach that connects people, process, information and technology. What makes Ventana Research different from other analyst firms is a focus on Performance Management for finance, operations and IT. This focus, plus research as a foundation and reach into a community of over two million corporate executives through extensive media partnerships, allows Ventana Research to deliver a high-value, low-risk method for achieving optimal business performance. To learn how Ventana Research Performance Management workshops, assessments and advisory services can impact your bottom line, visit www.ventanaresearch.com.
Media Contact: Marisela Reynoso
(925) 242-2579 marketing@ventanaresearch.com
© 2006 Ventana Research
