Once again, Gartner released its Magic Quadrants for Financial Corporate Performance Management Applications, and once again, our friends at Host Analytics scored highly on the list—a who’s who of vendors in the space. While long considered a visionary, the changing market for applications has pushed the company higher, allowing it to become a leader for the first time. Learn more about the market and the Magic Quadrant below.
Cloud Financial Corporate Performance Management Solutions
Gartner defines Cloud Financial Performance Management Solutions (FCPM) as solutions that help the office of finance manage the financial close and apply appropriate controls throughout the accounting cycle.
The Move to Cloud
Gartner made the move to cover cloud-first solutions as a response to the market forces pushing more and more organizations to choose cloud for business-critical applications:
“The financial corporate performance management (FCPM) market has shifted from mature on-premises offerings to cloud solutions as finance application leaders have sought improvements in financial close capabilities, enhanced cost control and efficiencies, greater application flexibility and shorter time to value. In addition to providing these advantages, cloud FCPM solutions are typically easier to use and manage than the previous generation of on-premises offerings. Topics such as the timing of cloud conversions, cloud vendors’ product roadmaps and cloud product selection now account for nearly all of Gartner’s client advisory conversations about FCPM.”
In the Magic Quadrant, Gartner only selected cloud-first solutions, on-premises applications built to run in the cloud, and on-premises solutions who have made their software available as a cloud service.
What Is a FCPM Solution?
An FCPM solution—contrasted to an SCPM solution—is designed to support financial accounting processes, speed up the financial close, improve management reporting and more:
- Financial consolidation: The ability to bring together financial information from multiple GL sources, while providing for eliminations for intercompany accounting and booking for joint-venture and non-GL businesses.
- Financial reporting: This component provides financial accounting-based reporting to meet the demands of regulators, investors and tax authorities, and to inform the organization’s operational and strategic financial management.
- Management reporting, costing and forecasting: This component provides responsibility reporting and cost accounting reports to the enterprise’s managers, as well as inputs to disclosure reporting for investors.
- Reconciliation and close management: This component confers the ability to manage the financial close, including activities spanning accounting cycles.
- Intercompany transactions: This component, which is also an EFCA function, confers the abilities to approve at a voucher level and to handle accounting transactions across multiple GLs and companies.
- Disclosure management: Another EFCA function, this component confers the ability to support multiple regulatory requirements for disclosure reporting, including eXtensible Business Reporting Language (XBRL) and inline XBRL (iXBRL) tagging. It may also provide board book capability and form the foundation for performance reporting within SCPM.
For full descriptions of each of the categories of a capable FCPM, read the Magic Quadrant, provided free courtesy of Host Analytics.
The Gartner Magic Quadrant
As discussed in our recent blog touting Host Analytics appearance on both FCPM and SCPM Magic Quadrants, we explored some of the differences in vendors, but today, we would like to look at how the vendors stacked up. As mentioned, vendors are judged on completeness of vision and ability to execute, broken down into leaders, visionaries, niche players, and challengers.
Host Analytics Makes Strong Showing on FCPM Magic Quadrant
Long considered a visionary, Host Analytics benefited from the shift to cloud-focused applications, joining three other vendors in receiving leader status for high ability to execute and completeness of vision.
Discussed in the Magic Quadrant, Gartner notes:
Host Analytics is a Leader, due to its maturity in the cloud-only market, its high customer satisfaction scores, and the ability of its products and consulting teams to support the more complex use cases. It received above-average scores from its reference customers for product strategy and customer experience.
Reference customers for Host Analytics reported that their top-three product selection criteria were functional capability, ease of use and analytics.
For full analysis on Host Analytics and other vendors, please download the Gartner FCPM Magic Quadrant here.
Learn More: Finance’s EPM Playbook
Financial management is a monumental task itself, and when you couple all of the internal pressures combined with the ever-present forces like sourcing good talent and putting defendable corporate numbers before the board, the pressures on Finance are nearly unbearable. If Finance is going to embrace the challenges of 2017 and beyond, it will have to do it with a solid strategy and understanding about the environment, along with opportunities both inside and outside of the department.
To enable Finance to meet these challenges, and propel itself forward, a finance organization playbook is intuitively appealing. To that end, we have identified six components of a finance organization playbook, along with a solution that can manage the process—enterprise performance management (EPM). Download the entire guide to EPM here.