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 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.

SAP has introduced a new product called SAP Performance Management for Financial Services (FS-PER) also known as “Cost and Revenue Allocation for Financial Products”, its original name.  As the names suggest, it is targeted to financial services companies but there isn’t anything that limits it to that industry.  FS-PER runs on HANA and handles huge data volumes for allocating costs down to the lowest cost object level (i.e. individual customer account level).  No predefined allocation methodology is provided and users need to define their own tables and allocation paths.  In this way, the tool is very flexible, but may require more time to design and build.  It is still a a relatively immature product and lacks some of the features of other more mature solutions in this space, but the power of HANA provides significant opportunity for organizations with large volumes.

While maintenance for PCM is scheduled to end 2020, it is possible that SAP will extend mainstream maintenance if enough customers paying maintenance demand it and there is no real practical replacement for them to migrate to.

SAS Acquired ABC Technologies in 2002, who had OROS, then the top selling ABC software. The current product is SAS Cost and Profitability Management (CPM) and continues to provide the proven cost modeling capabilities, plus many enhancements over the years.

The latest versions of CPM provide improved flexibility and performance.  The basic cost architecture remains the same from the Oros days, with some key improvements such as unlimited user defined dimensionality, up to 10 user defined cost modules, and running on the SAS calculation engine. CPM is often sold as a bundled solution along with complimentary SAS Profitability Management, SAS Visual Analytics (utilizing SAS LASR Analytic Serve) and SAS Data Integration studio (an ETL tool) products. Pricing is annual subscription based. Leveraging the SAS technology, Profitability Management provides the ability to leverage cost rates calculated in CPM to calculate large volumes of transaction data, for example at the customer account or transaction level.

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.

CostPerform is provided by QPR CostControl BV, headquartered in Vianen, Netherlands with offices and alliance partners throughout Europe, North America, Australia, Asia, Africa and South America.  The company is dedicated to their single costing & profitability solution “CostPerform”.  Beginning as a cost management consulting firm in successfully implementing the QPR ABM solution for several years, in 2001 the firm purchased the business from QPR Software Plc, a Finish software company to form QPR CostControl BV.  The US sales office and support is in Baltimore, MD.

CostPerform supports all of the activity based costing functions and features expected with modern cost modeling 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. Most recently a “Big Data” layer has been added for higher volume transaction models.  The solution is proven with over 500 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 has been a Stockholm Sweden based software vendor providing activity-based costing software across multiple industries and countries around the world since 1994. The costing has many strong features with like capabilities provided by the top vendors on this list, with an attractive price point. While costing is the primary focus, the suite of products also provide Scorecard, Business Planning and Process Management solutions. The North American office is located in Seattle, WA.

In 2017 Prodacapo was acquired by FCG Finnish Consulting Group and merged with FCG Datawell to form the FCG Prodacapo Group.  FCG is a Finish consultancy headquartered in Helsinki, Finland, providing consultancy services for organizational development predominately in the public sector. The company is owned by Kuntaliitto Holding Ltd in Finland. FCG acquired Datawell in 2015.  Datawell specializes in providing software for the health care industry.  The merger provides ability to provide the Prodacapo costing solution to Datawell customers and Datawell customers to Prodacapo.

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 SAS CPM) 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. Cloud and on premise purchase options.

3C Software provides its single solution ImpactECS platform for cost and profitability management.  The company was founded in 1989 with the initial costing system for the pulp and paper industry.  The solution has evolved to serving multiple industries including the semiconductors and electronics, chemicals and pharmaceuticals, distribution, food and beverage, forest products, metals, project-based manufacturing, plastics, rubber, glass, pulp and paper, textiles and apparel industries.

ImpactECS  is very different than the other solutions on this list.  It is a platform to build costing and profitability, planning and budgeting, pricing, etc. solutions customized to meet the specific needs of each customer. It is more like an application development tool for costing and profitability systems then it is a packaged application.  No predefined allocation calculation methodologies are provided.  The model builder must prescribe the specific math calculations for each allocation result from a set of math equation options. The user interface to manage resources, activities and cost objects data typically prescribed and set with most other costing applications does not exist with ImpactECS. They are designed and created as part of the implementation project within the tools' model development functions and features.

The ImpactECS approach provides greatest flexibility with the ability to incorporate unique user interfaces and functionality that is not in other applications.  That flexibility comes with the cost to design, build and maintain the specific logic to be used for the costing and profitability calculations.

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 activity equations that recognize how different services, products, customers and channels consume activities differently.

 
 
 

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