Profitability & Cost Management Software Vendors

 

PCS Consulting maintains an intelligence knowledge base of the top Profitability & Costing software solutions and vendors. This software intelligence and vast experience implementing these software solutions, allow PCS Consulting to provide clients with critical insight for making informed profitability software selection decisions and provide the implementation assistance expertise required for success. Learn about our Software Intelligence Briefings. Software Briefings


Profitability & Cost Management Software Vendors

A brief introduction of the most prominent Profitability & Cost Management software vendors is provided below. Click on logo or link to learn more about each vendor.  To obtain a software briefing for one or more of these vendors Go To Briefings

 

SAP

With the acquisition of BusinessObjects in February 2008, 16 months after BusinessObjects acquired ALG Software in October 2006, SAP now provides one of the leading “Best of Breed” activity-based Profitability & Cost Management (PCM) modeling and reporting solutions.PCM is the stand-alone SAP BusinessObjects Profitability & Cost Management activity-based modeling solution, with optional linkage to SAP Business Warehouse (BW) and BusinessObjects Business Intelligence (BI) reporting and analysis.  It supports activity-based customer, product, and channel profitability reporting and analysis, time-based ABC, transaction costing, "what-if" analysis, and driver-based planning.

SAP provides the Profitability & Cost Management (PCM) solution within the Enterprise Performance Management (EPM) solution suite, and as part of its BusinessObjects offerings.  It provides activity-based costing and profitability modeling capabilities through a multi-dimensional calculation and reporting engine, providing cost and profitability information of customers, products, and channels, etc. by activity and resource.  It supports both traditional cost allocation and consumption-based resource capacity modeling, including time-based transaction costing.  SAP obtained PCM with the acquisition of BusinessObjects in 2008, who had acquired it from ALG Software in 2006.  Since the acquisitions, integration interfaces have been added for BusinessObjects BI and SAP BW, and use of the EPM Excel Add-In.

 

Acorn Systems was acquired by Ignite Technologies in July 2014.  Ignite, who was purchased by Versata the year prior, specializes in Video Content Delivery and Human Capital Management.  After the Acorn acquisition Ignite significantly reduced the Acorn development and support staff, eliminating a large portion of Acorn expertise.

The specialty of the Acorn solution is providing activity costing at the transaction record level with Time-Based activity equations that recognize how different services, products, customers and channels consume activities differently. Professor Kaplan has written much about the "Time-Based" methodology, but it is the  transaction costing and cost object data structures that provide the most unique characteristics of this solution. Organizations  who want to determine customer and product costs through use of transaction level activity, will be most attracted to this solution.

 

SAS Acquired ABC Technologies in 2002, who had OROS, then the top selling ABC software. The current product is SAS Cost and Profitability Management and continues to provide the traditional activity based costing along with complimentary SAS OLAP and SAS ETL products, often sold as a bundled solution. Sometimes referred to as traditional ABC, SAS ABM provides the classic resource to activity to cost object cost assignments through resource and activity drivers. The basic cost architecture remains the same from the Oros days, with the exception of dimensionality. Unlimited user defined dimensions, used predominately for reporting, are leveraged through the SAS OLAP solution or by other third party reporting tools.

 

Oracle’s activity-based costing and profitability application, Hyperion Profitability and Cost Management (HPCM) was announced in July 2008.  HPCM is part of Oracle's Enterprise Performance Management (EPM) suite.  The application leverages Essbase, their industry leading OLAP (Online Analytical Processing) server, for multidimensional calculation, reporting, analysis and scenario modeling.

With the HPCM release, Oracle retired two “old” Activity Based Costing solutions Oracle ABM and HBM, which they obtained through acquisitions.  Oracle ABM (originally developed in the 80s and known as Activa) was acquired from Price Waterhouse in 1998.  Hyperion Business Modeling (HBM) came with the 2007 Hyperion acquisition (which came from Hyperion's acquisition of Sapling in 1999).  The PeopleSoft ABM, that came with the PeopleSoft acquisition in 2004, is still available but is not a leading ABC solution in today’s market.

 

QPR CostControl is a Netherlands based software vendor with offices and alliance partners throughout Europe, North America, Australia, Asia, Africa and South America.  The company is dedicated to their single activity-based costing & profitability solution “CostPerform”.  Originally a cost management consulting firm successfully implementing the CostPerform solution for several years, in 2001 purchased the business from QPR Software Plc, a Finish software company.

CostPerform supports all of the activity based costing functions and features expected with modern ABC software. Some unique features include; robust multi-level resource and activity cost assignments for waterfall and shared-service cost allocations, strong resource capacity consumption modeling, flexible cost assignments from and to folder levels in hierarchical structures, and visual business process modeling of the model structure and calculated results. The solution is proven with many customers, mostly in Europe, and now growing in the U.S., Australia and beyond.  It is very reasonably priced, offering most of the functions, features and technology provided by the larger vendors for a fraction of their price. The solution is sold globally through its Netherlands, U.S., and Australia offices, and through distribution partners in the rest of Europe, Asia, Africa and South America.

 

proDacapo is a Sweden based vendor, with service offices throughout the world, providing Activity Based Costing software across many countries around the world since 1994. The ABC software is only one part of an overall Performance Management suite of products, including Scorecard, Business Planning and Process Management. The ABC tool has many strong features with like capabilities provided by the above top vendors on this list, with an attractive price range. Building on their success  in Europe, Prodacapo now provides their solution in North America.

 

MyABC/M is one of the newest players in the North American ABC market. The Brazilian based company, with offices now also in the U.S. and Mexico, was founded in 1993 as a reseller of the ABC Technologies' Oros software in Brazil until ABC Technologies was acquired by SAS in 2002. MyABC/M is pretty much a clone of Oros (now SASABM) software, with several functional and ease of use enhancements, but also some of the things we never liked about Oros. For example, the three modules (resource, activity and cost objects) structure, lack of bi-directional web-based user interface, single period centric, and limited "what-if" and planning capabilities. However, the primary ABC functionality is provided at an attractive price point, compared to the other major vendors.

 

 
 
 

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