financial performance management

Two New Performance Apps from UNIT4 Encourage Finance to Embrace Change

Simplicity and Automation Put Analysis In and Take the Fear Out

Best Independent ERP Blog

Best Independent ERP Blog

It has been said time and again, “Nothing is constant but change.” And yet many Chief Financial Officers (CFOs) and Treasurers live in fear of change, and as a result, they resist it. Whether resulting from new regulations and reporting requirements, a merger or acquisition, organizational restructuring, or new or revised business processes, change can wreak havoc on the finance department’s ability to manage the cash flow, prepare financial statements, close the books and provide transparency to the business.

While all businesses face change, the typical UNIT4 customer faces frequent and/or massive changes. For years now UNIT4’s unique VITA architecture has been the key to helping its customers respond quickly when forced to navigate the sea of change. With two new financial performance management applications, UNIT4 goes one step further: to enable its customers to not only accept change but to seek it out, not for the sake of change itself, but for the growth and performance of the business.

Cash Flow and Consolidation

So, what’s new? In December 2013 UNIT4 introduced two new financial performance applications to the North American market: UNIT4 Cash Flow Planning and UNIT4 Consolidation. These new products will be available in the United States and Canada starting January 1, 2014, but were previously test-marketed on a limited basis in Europe. The pre-launch in selected European markets was successful and yielded 22 net new deals in the past year.

The products themselves stem from acquisition of OCRA, which enjoys 75% market share in financial performance management software on its home turf in Sweden. The acquisition of UK-based Coda and its suite of financial applications have also influenced these new offerings. Both acquisitions occurred in 2008. Since then OCRA has increasingly gone toe-to-toe in competition against the “big three” in financial reporting and financial performance management: Hyperion (now owned by Oracle), Cognos (now owned by IBM) and Business Objects (now owned by SAP).

According to Alar Lange, Managing Director UNIT4 OCRA, his team competes against at least one of these “top three” in 80% of new deals and one of these three products is already installed in about 40% of the companies that invite UNIT4 OCRA into the evaluation for a possible replacement.

One customer, a privately held Scandinavian media group of 175 companies operating in 20 countries, was one such company. Mr. Lange said, “This firm invested first in Cognos in the year 2001; they replaced it with Hyperion in 2005 and after four years were still not up running. They signed with OCRA in late 2009, and went live in the beginning of 2011. Since they went live our overall close rate in competitive deals rose from 60% to 73%.”

Part of the reason for this improvement: Since the acquisition, OCRA has been updated with a new user interface, as well as social and mobile capabilities. OCRA was originally created as a stand-alone application (and can still operate as such), with the ability to unite disparate data sources. But today the integration with UNIT4’s Agresso ERP and Coda Financials is optimized to give these new applications an added advantage, one that is particularly significant for those operating in volatile markets where change is simply a way of life. This is UNIT4’s target market, particularly for its Agresso Business World ERP. Through this seamless integration, the new financial performance applications inherit the ability to deal with change quickly and efficiently. The UNIT4 existing customer base is therefore the initial target.

Why is embracing change so important?

These new solutions fall under the category of performance management. As a result, both are designed to provide visibility to the business, add a level of control and support clear communication. The ability to analyze and compare against plan, as well as answer the ever-present questions of “what if?” are integral to improving performance. But unless this added visibility simply tells you what a good job you are doing, then you need to take corrective action. And taking action means making some changes yourself, in addition to those imposed on you. Any resistance to change will limit your ability to respond, improve performance and perhaps even grow the business.

Yet companies resist change because change is hard. People resist, which makes it harder to make improvements to processes and to the organizational structure itself. And if the enterprise software solutions you are using to run your business are rigid and hard or expensive to change, the tendency is to minimize the impact, which also minimizes any improvement sought.

Those that can react quickly and effectively can better keep pace with necessary changes. Those that actively seek out new ways to change in order to improve and grow, even before change is necessary, can gain a significant competitive advantage. Change seekers do take some risk, but the risk/reward ratio can produce game-changing results.

Change seekers need to start with performance management solutions that help identify risk and opportunity before executing those changes and reflecting them in their enterprise solutions. That is the job of UNIT4 Cash Flow and UNIT4 Consolidation. Here are some of the features built into each.

UNIT4 Cash Flow Planning

UNIT4 Cash Flow Planning uses a simple cash report builder to produce a single-screen environment for analysis and reporting. Finance managers (not technical IT staff) use standard templates and wizards to create charts and graphs to expose liquidity forecasts, net cash position and currency exposure, automating the input of bank balances and other cash planning data.  These decision makers can drag and drop data and drill down by currency and bank account, directly to invoices and other transactions. Visit and get more details.

Once these visuals have been created, Finance and Treasury can compare and analyze forecasts, spot trends and differences by month, week or day, all managed by a rule-based alert system that logs actions and comments, bringing more participants into the conversation.

UNIT4 Consolidation

UNIT4 Consolidation brings together all the elements of your financial position, from multiple business entities across a group, in order to provide top to bottom visibility to financial performance. Unlike a traditional business intelligence (BI) tool that is only effective in the hands of an IT specialist, UNIT4 Consolidation is a tool for the Finance manager to consolidate income statements and balance sheets and produce key performance indicators (KPIs), not only for finance data, but for operational performance as well. It supports both GAAP and IFRS reporting requirements right out of the box, without extensive setup. There are user-friendly functions for input and reconciliation, a full audit trail and easy drill-down directly to the transaction level.

Logic for consolidation is pre-defined for automatic aggregation and eliminations. The consolidation flow is user-friendly, multi-dimensional and the reporting is transparent from both a legal and management perspective. It comes with pre-defined data values (e.g. monthly, accumulated, quarterly, rolling) and pre-defined flow-steps (e.g. consolidated value, group value, acquisition value), as well as cash flow statements.

But probably most important in the context of a UNIT4 customer, all these dimensions and views are easy to change. You are not locked into a single, set reporting structure and insight can be gained in a cross-dimensional manner. Look at the position of the entire business unit, or analyze sales or other areas across different units. You decide how to analyze to expose risk and opportunity.

And you also have the freedom to decide how you will respond and take action. Would you benefit from an organizational restructure? Should business processes be changed to exert more control? These are changes that need to be reflected in your ERP solution. The last thing you want is to be discouraged from making a change that could improve performance and support growth simply because it is hard to change your ERP once it has been implemented.

Play the “What If?” Game

But how do you determine the best course of action? Perhaps the most important aspect in terms of improving your financial position will be in your ability to answer the most important “What if…?” questions. How will currency fluctuations impact bitcoin profit? How will a redistribution of cash across banks, across international boundaries impact interest and investments? How will moving operations impact tax and other liabilities?

Much of this analysis is supported today through multi-dimensional online analytical processing (OLAP), allowing “what-if” functionality that can test many different financial scenarios. These “what-if” capabilities are crucial to effective cash flow planning and are also particularly useful in consolidation and reporting, and therefore UNIT4 has added this to both of these financial performance products.

UNIT4’s Vita Architecture Facilitates Change

This is where UNIT4’s Vita architecture comes in. This VITA architecture tightly integrates three layers: data management, process modeling and delivery of information (analytics and reporting). This type of component architecture is not unique. Most modern service-oriented architectures today will support a presentation layer (user interface), an object-oriented data model representing standard business objects (think of a customer or an order as a business object) and business logic. This business logic might be a combination of hard-coded programs and externally defined business rules.

To understand how UNIT4 is unique, consider what needs to happen when a business process changes. In the past IT might have been engaged to make changes to the underlying programs. This also might have taken months to implement and in the meantime the focus (and even the problem) may have changed. With UNIT4’s Vita architecture, no source code changes are required and even if it means changing the business rules, the data model and the user interface, this does not constitute three changes. With UNIT4 you make a single change and it is permeated throughout all the necessary components of the solution. All are on the same page. No delays. Nothing can be out of sync. Of course this doesn’t guarantee your organization will execute well on these changes, but if they don’t, it won’t be because of the ERP solution.

This is why the financial performance solutions alone can only take you so far. But through optimized integration back to an ERP solution that handles change easily, you not only see what you need to do, you are in a position to initiate change for the sole purpose of improvement. You can actually take action without unnecessary cost and disruption.


Change has not only become a way of life for many businesses, the pace of change is accelerating, requiring better, faster decisions. Companies require better visibility with intuitive graphical interfaces, multi-dimensional analysis and drill down capabilities, particularly when making decisions that impact financial performance. Gone are the days when decision makers could afford to wait for access to new data, or to see data in a new or different way. They need to interact dynamically with data and other individuals. And they need to interact with that data in clear, simple and intuitive ways. The data they need today will not suffice for tomorrow’s decisions.

But seeing the data and being able to analyze it only gets you half way to the goal. It keeps you afloat on the sea of change. But initiating your own changes allows you to set sail for a safe harbor in a new, exciting and perhaps distant land. Do you have confidence you have a complete picture of your business? Can you take action to improve performance, avoid risk and support growth? Can you easily reflect changes in your ERP post-implementation? Does your ERP solution put wind in your sails or send you crashing against the rocks?

For existing and potential new customers of UNIT4, having the ability to respond to change that is forced upon you is a key differentiator. Think what you could do if you could initiate action that could really change the game. Look for synergy with UNIT4 Cash Flow and UNIT4 Consolidation. They could be a force multiplier.

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