Infosys’ blog on industry solutions, trends, business process transformation and global implementation in Oracle.

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October 19, 2011

International Financial Reporting Standards (IFRS): Looking beyond compliance

Guest post by
Kamaljeet Singh Bhatia, Lead Consultant, Infosys

 

On 26-May-2011 the Securities and Exchange Commission, U.S. (SEC) issued staff paper associated with 'Work plan for consideration of incorporating IFRS' in which it outlines incorporating IFRS into U.S. GAAP after a certain period of 5 to 7 years. In Japan the ministry in charge of financial affairs announced that decision regarding IFRS adoption may not be made until 2012, thereafter at least 5 years would be needed to make preparations. There seems to be no decision on mandatory IFRS adaptation timelines and so far it seems to remain indecisive until FY2012-2013. However over the period there has been a growing acceptance from a number of other countries.

Though companies may have escaped compliance in the near term, there is a need to look at IFRS beyond compliance in the long term, In terms of benefits the obvious one, being a globally standard accounting method, is globally standardized financial statements making comparisons easier. This in turn would help companies reduce cost of borrowing if they wish to raise capital overseas. The most important benefit however, for larger companies having foreign subsidies, is internal consistency that IFRS adoption would bring. It will allow them to standardize, streamline their operation, auditing, training and thus speak a common accounting language across the board.

In reality the benefits stretch beyond accounting, Unification of accounting system would bring in usual benefits achieved through consolidation.

A) Implementation of shared services
B) Global visibility thorough establishment of management database
C) Information streamline & visualization thus improving cash flow management.

For a fairly large company moving to IFRS would take around 3-4 years of transition period, Even if mandatory IFRS adoption is postponed, it makes sense for the companies to start the unification project; this would not only bring in the benefits listed above but also give them a head start to become familiar to a new accounting system. Eventually the movement from GAAP to IFRS is inevitable.

October 10, 2011

Video: Social CRM - Delivering the Next Generation Customer Experience

Guest post by
Rakesh Kumar, Industry Principal, Service Innovation Strategy, Infosys

 

Transcript

If we look at the scenario in many of the industries today carefully, we will find that enterprise are in a very peculiar situation. On one hand the global economic uncertainties are continuously challenging the in-flight business strategies, on the other hand, services or product differentiation has become extremely difficult to maintain. In such a situation today, a very significant force that enterprises will need to negotiate -  willingly or  out of surprise - is the "customer orientation".

How enterprises visualized and type casted their customers traditionally doesn't seem to be valid anymore. We all realize that we as customers today don't really want products to be quote unquote Sold to us. And look at what Internet and social media is doing to customers - a revolution in a true sense - it is making the consumer community grow up, grow up to get more responsibly and actively engaged in the consumerization value chain. And it clearly implies that the enterprises need to recognize the up rise of this new class of customer community. Customers ARE going to demand the enterprise to REDISCOVER the ways in which they are treated, engaged and managed. In other words, if I were to say, age of customer-experience based differentiation is already here and it is here to stay. CRM of tomorrow no doubt is going to be far more social, far more integrated and much more innovative than what we have ever witnessed.

Social CRM is not just about aligning to a technology innovation, it is about grabbing the opportunity to deepen the value system of the customer relationships, it is about creating the excitement of whole new range of customer experience, it is about customer loving your business relationships, not just buying your products out of their necessity. That's what the social CRM is, a choice that enterprises make for their future.

October 5, 2011

Impediments to supply chain integration: An SME perspective

Guest post by
Kamaljeet Singh Bhatia, Lead Consultant, Infosys

 

The last few decades has witnessed numerous examples of significant competitive advantages through supply chain integration. Information sharing through superior technology is making enterprises capable to innovate and integrate in the complex networked environment. However information integration in supply chains is limited to large enterprises and small to medium scale enterprises (SME's) significantly lag to leverage technology for supply chain integration.

There has been abundance of research to identify and analyze the impediments to supply chain integration for SME's. The significant barriers indicated are:

  1. Lack of Strategic focus: SME's often lack a long term business and IT strategy, The management focus in often on short term gains. Business growth is limited to business manager's capacity to manage growth and ability to discover and exploit new growth opportunities and are often less aware of the full potential benefit of technology.
  2. Organizational capability and readiness: It is often difficult for SME's to garner funds to support dedicated technological innovation projects. Most small firms do not have funds to hire consultants. Less costly, Informal contacts can result in poor/Limited advice.
  3. Lack of external pressure (by suppliers or customers): External pressure to integration from supply chain partners like supplier or customer has been cited as one of the main reasons/motivation by SME's to adopt supply chain integration. External environment like industry, Region, Competition etc might lack thrust for SME's to adopt technology.
  4. Limited knowledge and expertise in IS: Lack for training in the rapidly changing technological environment often leaves the firm way behind the market. Lack of knowledge results in lack of vision within the management.

Despite the technological barriers, SME's have and would continue to play significant role in increasing global economy, SME's drive economic development by creating valuable source of employment specially the developing countries. It is hence important to remove these impediments and enable these enterprises to compete and connect to the global supply chain.

The onus lies not only on the enterprise itself but also on the consulting and Technology companies to be enabler and help small to medium size firm innovate. The next part of the blog would evaluate the options available, specifically technological products and tools provided by Oracle (Oracle EBS for SME's) that can be adopted with fewer resources in terms of capital and time.

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Meet Infosys experts at Oracle OpenWorld 2011, Booth No. 1813, Moscone South

Explore more at  http://www.infosys.com/Oracle/news-events/Pages/oracle-openworld-sanfrancisco11.aspx

Follow us on Twitter -  http://twitter.com/infosysoracle

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October 4, 2011

Leveraging Fusion Business Process Model Methodology in Project Portfolio Management (PPM)

Guest post by
Sandeep Suresh Deshpande, Principal Consultant, Infosys

 

In today's world, business is exposed to a constantly changing environment where organizations face the most challenging situations -

  • Information silos across the value chain
  • Parallel processing amongst distributed systems
  • Mismatched products to support complex end-to-end business processes
  • Complex and long-running projects
  • Real-time project consolidation and budgeting

Oracle has done an extensive internal and external research, took the best practices from Oracle E-Business Suite, Oracle PeopleSoft, Oracle JD Edwards, Oracle Siebel and all other acquisitions to come up with a number of industry business process areas with multiple levels of decomposition. These world class business processes can be leveraged to deliver in the complex and challenging environment.

The business process model consists of multiple levels which are numbered as L0, L1, L2, L3 and L4. The top Level 0 is industry level. So that's all of the business process areas for a given industry. Level 1 is the business process area. It includes all of the business processes for that business process area. Level 2 is the business process, and includes all the activities for that business process. The Level 3 activity is a logical level.

 PPM blog.jpg

Level 4 tasks on the respective activity models are associated with application functions, which represent the physical parts within the application.

Oracle Fusion Project Portfolio Management business process model is a result of such extensive research, which brings to you the best in class Project Management business processes. These business processes equip you to put in place the appropriate project governance structure so as to ensure a better project success and business success.
The Oracle Project Portfolio Management Business Process Area (L1) is a collection of several Project Management Business Processes (L2) which consist of functional areas viz. project initiation, project planning, project execution, project control, managing project cost, managing project resources, analyzing projects, managing multiple projects and programs in a portfolio, managing project contracts and finally closing a project.

Each of the business process at the L2 level has a set of logical activities which are categorized as L3 activities for the respective business process. To elaborate this further, the Control Project business process performs a set of logical activities viz. Managing Project Forecast, Managing Project Performance and Tracking the Project Progress. Each of these L3 activities is finally associated with Fusion PPM functionality to be performed physically within the applications, which are represented as L4 tasks.

Thus, Application and Process Leadership of Oracle Fusion's PPM Business Process Model brings to the table below mentioned and many more business benefits -

  • Solution that automates and streamlines all of the processes around PPM function
  • Comprehensive and near real-time view of projects, the project health and its performance
  • Unified project planning, resourcing, project control and financial management in a single repository with 3600 view to all the stakeholders
  • Detailed project analysis based on pre-delivered industry best KPIs

___________________________________________________________________________________________

Meet Infosys experts at Oracle OpenWorld 2011, Booth No. 1813, Moscone South

Explore more at  http://www.infosys.com/Oracle/news-events/Pages/oracle-openworld-sanfrancisco11.aspx

Follow us on Twitter -  http://twitter.com/infosysoracle

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