Accelerating Finance Transformation

Sponsored by Acterys

  • By staging the project and selecting rapid-deployment software, the benefits of finance transformation can be realized more rapidly.
  • Author: BPM Partners
  • Date: May 2021
  • Pages: 15
  • Request your copy today by completing the White Papers Request form.

Executive Summary:

There are ways to accelerate the benefits of finance transformation: take it in stages, with rapid reforecasting and analysis as a first priority. Choose software that has proven it can be deployed and implemented rapidly, and specifically a unified platform where integration with source systems is streamlined. Look for features that will entice Operations to adopt and use the new software readily and without a learning curve.

The Performance Management Gold Rush

Craig Schiff , President and CEO, BPM Partners

Updated July 2021

Overview

Casual observers have probably noticed some of the new investments made in the performance management space this year. As dedicated followers of the space we have tracked almost all of them, and the volume (both number of deals and total dollars) in such a short period of time is truly astonishing. This is nothing new for performance management as we have seen similar hot streaks in the past, but the number of vendors involved, the deal size, and the valuations take it to a new level.

Deals

Let’s start by summarizing the deals and their key attributes.

 

Vendor (links to PerformancePlace)  Date of Deal (links to announcement)  Dollars (* our estimate)  Type    Notes
Jedox January 2021 $100 million + Private equity
Prophix January 2021 $400-$500 million* Majority investment
Board March 2021 Not disclosed Ownership expansion Added new CEO
Cube March 2021 $10 million Series A New Vendor
Unit4 March 2021 $2.1 billion Buyout ERP/FP&A vendor
DataRails April 2021 $18.5 million Series A New vendor
OneStream April 2021 $200 million Series B $6 billion valuation
Vena April 2021 $300 million Series C
Fluence May 2021 $10 million Series A Added new CEO
insightsoftware July 2021 $1 billion Minority investment $4 billion valuation

That’s over $4 billion invested in performance management vendors in just the first 7 months of the year! While the big dollars went to established vendors, there are a number of newer vendors getting funded as well. One of the most interesting things to note here is that OneStream’s latest round values it at $6 billion dollars. The acquisitions of two major vendors I was part of didn’t come close to that valuation. Oracle picked up Hyperion for a little more than half that amount, and SAP’s purchase of OutlookSoft was significantly less.

Analysis

So, what’s driving this ‘gold rush’ in the performance management space? Success. This is not some buzzy new technology, although the fact that all of these vendors started in the cloud or have moved their product and market focus there certainly helps. Performance management systems are mission-critical front office business software solutions. They have benefited from two major trends: Finance transformation, and the need for greater agility necessitated by the challenging business climate caused by the pandemic. While many businesses struggled this past year, just about every performance management vendor we have spoken with achieved or exceeded their pre-pandemic budget targets.

With money flowing and demand increasing many new vendors have recently entered the space. In addition, existing vendors around the periphery have rebranded and repositioned to take advantage of the opportunities related to performance management. Some of these newer or relaunched vendors include the already mentioned Cube, Fluence, and DataRails, as well as Acterys, Place, OnPlan, MYGIDE, BankBI, Synario, Quantrix, Limelight, and Jirav.

What does this all mean for prospective purchasers of these products? The larger vendors will use their new investments to expand their offerings as well as their geographic reach. The newer vendors will build out their product suites and invest in sales and marketing. This will result in a great selection of solutions to choose from, in fact possibly the widest range of options that has ever existed in this space. While it all sounds wonderful, not all is rosy. We have recently met with every vendor mentioned here and more. For established vendors who haven’t’ recently raised funds it may get more challenging to compete with vendors flush with cash. For some of the newer vendors, as you might expect, their marketing messages are a little ahead of their current product realities. Hopefully it will all settle out over time. With great choices, comes great responsibility: it is more important than ever to do your homework and make sure you choose the best solution for your organization.

 

The Pulse of Performance Management 2022 – Transform, Extend, Evolve

  • Now in its 19th year, this annual web event will quickly get you and your team up to speed on everything important happening in budgeting, planning, forecasting, consolidation, reporting, and analytics.
  • See the 2022 BPM Partners’ Core Vendor list, Best New Vendor for 2022, BPM Pulse customer satisfaction ratings, and the 5th Annual BPM Pulse Awards.
  • Speaker(s): Craig Schiff, CEO, BPM Partners
  • Two live webcast attendees will be selected to receive a NETGEAR Orbi Tri-band Whole Home Mesh WiFi System
  • Live Broadcast: June 8, 2022 2:00 pm EDT
  • Duration: 60 minutes
  • Register or Learn More

Executive Summary:

Today almost all FP&A groups are making significant changes, but each at their own pace.  Some are part of a broad finance transformation initiative, others are focused on extending planning and analysis into operations, still others are simply evolving from static FP&A processes to more dynamic ones. How do you decide which approach is right for you? In addition, consolidation capabilities are growing in importance and showing up everywhere. Is it time for your organization to modernize your consolidation approach? Also included:

  • New for 2022: An expanded analysis of operational planning – what companies are specifically looking for, and what the vendors are actually offering
  • New for 2022: How to tell consolidation solutions apart – focused vs. comprehensive vs. non-existent
  • New for 2022: Customer interest and vendor support for new areas of focus such as ESG reporting and analysis
  • As always, the key vendors to consider for your performance management project will be identified and reviewed based on their core, specialized, and advanced functionality, latest enhancements, market success, and customer satisfaction

Fluence Raises $10 Million, Adds Industry Veteran as CEO