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Host Analytics Achieves Leader Status for Strategic Corporate Performance Management

Host Analytics Achieves Leader Status for Strategic Corporate Performance Management

Once again, Gartner released its Magic Quadrants for Strategic 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.

You can download the entire SCPM Magic Quadrant here, or read about it below.

Understanding the Market for SCPM

Strategic corporate performance management solutions support the office of finance’s efforts to manage organizational performance and strategy. Application leaders should use this Magic Quadrant to identify vendors that are a good match for their business needs.

Future Predictions for SCPM

One of the biggest reasons Gartner split the CPM Suite into two categories—Financial and Strategic Corporate Performance Management—was to address the two different needs that organizations face and create a field guide for organizations looking at options. Most notably, the SCPM market was driven by three cloud and software trends that will change the way organizations operate. Gartner finds that by 2020:

  • By 2020, at least 75% of organizations will seek to improve the accuracy and actionability of financial planning and analysis by using operational data from multiple business domains.
  • By 2020, at least 25% of organizations will achieve more collaborative, continuous and consistent financial planning and performance management by closely linking key operational and financial planning processes

This is why, as discussed in a recent blog, that Gartner moved to focus on Cloud Solutions, as opposed to on-premises offerings of yore.

Differences from FCPM

While FCPM focuses on making the day easier for finance leaders, simplifying reporting, consolidation, and disclosures, SCPM looks at the bigger picture, focusing on planning, modeling, and performance reporting.

We looked at the market for Cloud FCPM and the related Magic Quadrant in an article last Friday. You can view the analysis of FCPM here, and look at the overview of the CPM marketplace here.

What Goes into a SCPM Solution?

Gartner compares solutions based on the following core functions, as well as the vendor’s aptitude in selling the software, as discussed below.

  • Financial budgeting: The financial-budgeting process sets short-term targets for revenue, expenditure and cash generation, usually with a one-year horizon. It typically uses financial classifications found in the general ledger to classify financial goals and targets.
  • Financial Planning: Planning generally differs from budgeting in two ways. First, the time periods involved can be longer (three to five years is common). Second, the focus is less on budget line items and more on business drivers that impact the financial line items. Long-term financial plans are used by executives to evaluate the effects of alternative strategies, such as a strategy of pursuing acquisitions. They typically represent a high-level perspective of revenue, expenses, balance sheet items and cash flows.
  • Integrated financial planning (IFP): This area joins the financial-planning components of other business domains, such as workforce and sales, with those of corporate finance..
  • Strategy management: Capabilities in this area are enabled through corporate planning and modeling applications and specialized applications.
  • Financial modeling: Capabilities in this area are enabled through corporate planning and modeling and “point” solutions that provide best-practice capabilities, especially for the more flexible, end-user-driven corporate planning and modeling initiatives.
  • Performance reporting: Spanning both financial CPM (FCPM) and SCPM processes, performance reporting takes management reporting to a new level of inclusion and ease of use. Its collaboration capabilities transform traditional management accounting reports into “performance playbooks” that take a more inclusive approach to explaining results.

Gartner Magic Quadrant for SCPM

So where does everyone stand? See below:

SCPM Magic Quadrant

Host Analytics Gets High Marks on SCPM

After spending years as a ‘visionary,’ Host Analytics found itself moving up on the list and achieving ‘leader’ status.

Host Analytics is a Leader in this market, due to its level of cloud experience and high customer satisfaction, relative to its ability to support complex processes. It received above-average scores 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.

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.

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