You probably know Gartner’s famous two-by-matrix, the Magic Quadrant. It’s a great piece of research if you are looking for a new Core financial management suite. But did you ever take the time to read the 30 or so pages underpinning this graphic? Probably not and that is why you might be missing out on crucial insights.
Because a lot of us are too busy to read the full report, we dug into the details. We spelled out all the 33 pages of this year’s edition. And by doing this, we found 5 crucial insights that you miss when you limit yourself to the two-by-two-matrix. Let’s dive into the details of these 5 hidden insights.
Financial systems typically did not support FP&A processes. A separate solution was needed to cover FP&A requirements. This is more and more a thing of the past. Modern cloud-based solutions not only offer sufficient functionalities. Next to that the real-time integration is also a great plus compared to separate solutions. Gartner expects that by 2023, 50% of the enterprises to use these build-in modules rather than a separate solution. More about this subject in our blog: “will the new generation of ERP kill EPM solutions?”
Cloud solutions are frequently updated. This offers new options to improve finance processes on a continuous basis. But continuous improvement is not a skill that we see broadly developed in more traditional finance teams. Improvements in the front end, new more advanced functionalities using artificial intelligence or machine learning, are not always used and a lot of value stays hidden in the solution. To support finance teams to use new functionalities on a regular basis, we believe digital adoption platforms can play a crucial role. More on this subject in our blog: “how to run your digital transformation smoothly“
Just like FP&A, accounting hubs and consolidation is another area that used to be covered by a separate solution. Gartner expects that accounting hubs and consolidation functionality will move more and more to integrated cloud solutions. This way the new solutions offer the possibility to create a unified single-vendor financial management platform. In “Prepare Now for the Future of Financial Planning and Analysis and Financial Close,” Gartner argues that this will bring value that is not possible in a best-of-breed setup.
The COVID-19 pandemic made clear that inflexible on-premise solutions need to be replaced. This insight will inspire more organizations to move to a cloud-based financial system. Cloud-based solutions natively support remote collaboration. Gartner expects that by 2024, 70% of all new midsized core financial management suite projects will be deployed in the public cloud.
Gartner has clear criteria for which vendor is included and which is not. Luckily Gartner also shares a shortlist of honorable mentions. If you are a real visionary and want to anticipate future developments then this is a list you need to check. This year’s honorable mentions are Acumatica, Infor, Ramco Systems, and Unit 4. Especially Infor CloudSuite Financials & Supply Management is a solution we expect to gain momentum and surface in a future edition of the Magic Quadrant.
The Magic Quadrant is much more than just a two-by-two matrix. For enthusiasts like us the insights hidden in this report help us to see the big picture and discover trends. These insights help us to guide your digitalization efforts. If you want to brainstorm about your digitalization efforts just reach out to us for a free online meeting. We love to discuss your challenges and help you with your next steps. Book your free meeting via this link. If you want to keep up to date, just follow us on LinkedIn using the button below.
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