Mutations of the market of consolidation and reporting solutions
The market of consolidation and reporting solutions is constantly boiling.
In what solutions is it necessary to be interested in 2018-2019 ?
To highlight this reflexion, remind us which has been the main periods of evolution of this market.
- In 1990, some big leaders surf on the PC spread in companies and suggest to replace the pencil and the rubber by tools automating all the complex retreatments of consolidation. It is the glory hour of the 3C : Concept, Cerg Finance and Cartesis which have been sharing in France during ten years the favours of consolidation departments of large companies, obliged to consolidated.
- Beginning of 2000, the internet revolution meets an evolution inside the companies. The lattter has been starting to perceive the consolidation as a healthy exercise of management, providing internally and externally a global view on the group finacial health. Some American publishers with a strong management culture and technologically advanced on web tools, began to explore this market in Europe. Particularly Hyperion.
During the following ten years, the market is dominating in France by two actors which present two very marked approaches : Cartesis, with a financial and rather accounting culture, and Hyperion which is more part of a management culture. In ten years, each of them will be wining 30 to 40% market shares.
- 2010 : new cycle. The consolidation topic begins to interess the two "big" of the applicative market, particularly Oracle and SAP. They see in it an opportunity to enter directly into the CFO office ... throughout the acquisition of the two market leaders. Oracle buys Hyperion, SAP buys Carthesis.
Since then, the consolidation market is essentially divided between these two publishers of entreprise applications.
By this end of 2018, we have already been living again the new cycle of the market, with two main revolutions which once again bring about major change :
- A technological revolution : the cloud which allows companies to outsource at the publishers themselves all the technical issues linked to their computerization.
- A business revolution : the CFO role inside the company has been enlarged. They do not have to be anymore only the guarant of the passed numbers but also have to be able to manage the company, leaning on managing tools, and no longer only on tools of reportings standardization.
The CFOs from now need complete solutions, which still integrate the obligatory exercise which is the production of statutory accounts in multistandards, but which also allow to go futher in the analysis sharpeness, to treat previsional cycles (budgeting, forecasting, rolling forecasting), to simulate, to modelize.
These two combinated facts create a new market revolution, and opportunities for new niche players which begin to make it in more visibely. Particularly two of them :
- CCH Tagetik, European publisher lately bought by Wolters Kluwer, has been successing for more than two years a true breakdown into financial departments of French large companies. A very serious competitor for the two big historical Oracle and SAP. Maybe more particularly for SAP which has attested CCH Tagetik as an official partner of Hana. CCH Tagetik has then become the direct competitor of SAP consolidation solutions, on its own technology.
- OneStream, American publisher founded by a former Hyperion team, has been arriving on the European market more recently. However, it has been showing since a few time, in Europe and in the USA, some impressive conquests on the Oracle field, targeted more particularly because of the origin of its founders.
These two publishers present three strong points which differenciate themselves from the Oracle and SAP big competitors :
- a unique solution position for the whole performance management, from the legal consolidation to the controlling simulation, where their historical competitors offer a software suite. Indeed, a more simple approach, for these two new actors.
- A customizable deployment proposal that can be done in the public cloud, in the private cloud or on the customer site. It allows a less abrupt transition in the cloud for the large companies that are not always ready to jump in. On their side, Oracle proposes a direct jump in its public cloud, and SAP invites its customers to evolve with Hana.
- "On board" financial features packaged with their solutions, which allows to talk about "business" (allowance, elimination .. ) during the project, where often, their big competitors talk about "technic" (calculation script or SQL).
Thus, two logics are today in contradiction with each others on the market of consolidation and reporting solutions :
- Big historical, powerful and apparently durable generalists propose performance management softwares suites, deployed in their own cloud technologies or in Hana. Their actual solution are spreaded and proven. Lets hazard that their new generation cloud solutions will be able to capitalize on their actual customers issues and imperatives knowlegdes.
- Smaller performance management specialized actors offer integrated solutions whose the deployment can be progressively considered in the cloud.
They have less or no references on the French legal consolidation market but have taken significant market shares in Europe and worldwide during the last 18 months. These new solutions, and particularly Tagetik, have seduced French customers in the controlling field. French Tagetik references in the consolidation field are coming sooner.
Who will be the leaders of consolidation in ten years ? Very smart the one who would know how to predict it.
But at the hour of the choice, the financial departments win to be accompanied to decrypt the publisher strategies, evaluate the solutions in their entirety and in the light of their own corporate strategies.
👉 Discover our computer graphics on the French market of the consolidation solutions