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OneWorld – Selling to the Finance Function
© NetSuite Inc. 2013 Confidential 2
© NetSuite Inc. 2013 Confidential 3
Our Mission as we Move Upmarket in ERP
To win the hearts and minds of the Finance Department . . .
Customer Experience &
Alignment
Brand Strategy
Demand Generation
Sales Engagement
Roadmap / Product
Enhancements
Partner Solutions
Implementations Success
To win the hearts and minds of the
finance department
Our Strategy Moving Forward
© NetSuite Inc. 2013 Confidential 5
Key Success Factor for Strategy
Have we engaged the Controller function appropriately?
© NetSuite Inc. 2013 Confidential 6
Our Mission as we Move Upmarket in ERP
To win the hearts and minds of the Finance Department . . .
© NetSuite Inc. 2013 Confidential 7
654321
Engage with
Finance
Winning the Hearts and Minds
Understand the Unique Role of the Controller
NetSuite’sValue
Proposition for Controllers
Present NetSuite in
Context
Tools to Build Credibility
Case Study of ClearChoice
© NetSuite Inc. 2013 Confidential 8
1
Engage with Finance
© NetSuite Inc. 2013 Confidential 9
© NetSuite Inc. 2013 Confidential 10
Why Does the Controller Have Power?
Situational KnowledgeWill this work for us?
Will it fit in to our culture?
Will this make the department better?
Will this add value to the company?
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Influence is Created from Trust Relationship
More than any other business relationship, the CFO must trust the Controller
© NetSuite Inc. 2013 Confidential 12
How is Trust Defined?
Character
Competence
Trust
© NetSuite Inc. 2013 Confidential 13
Trust Can Be Shared
If I trust you, and you trust them then I will trust them because of you.
Solve the controller’s problems in such a way that lets him envision how to solve the CFO’s problems.
© NetSuite Inc. 2013 Confidential 14
2
Understand the Unique Role of the Controller
© NetSuite Inc. 2013 Confidential 15
A Day in the Life of a Controller
© NetSuite Inc. 2013 Confidential 16
Why Do They Feel So Much Pressure?
Unrelenting Time
Pressure
Increased Responsibilities
Reduced
Budgets
© NetSuite Inc. 2013 Confidential 17
Controller key responsibilities “Oversees the “nuts and bolts” of the finance
org.”
Maintain a strong control environment to ensure the integrity of transactions and reporting data
Preparation of Accurate and Timely Financial Statements
Accounting teams and financial processes
Audit
FP&A (in smaller organizations)
Policy and procedures
Compliance
Treasury (in smaller organizations)
© NetSuite Inc. 2013 Confidential 18
Contrast to CFO responsibilities
Strategy
Forecasting
Operations
Board Relations
Risk Management
Capital Structure
© NetSuite Inc. 2013 Confidential 19
Controller Focus
Integrity of data
Accurate and efficient processing of transactions
Account reconciliations
Timely closing of books
Meet reporting deadlines
Short-term cash management of the organization
© NetSuite Inc. 2013 Confidential 20
Controller Concerns
Financial statements fairly represent the financial position and operations of the company
Maintain an adequate control structure and procedures for financial reporting
Efficiency and integrity of systems, processes
Multiple Reporting requirements/obligations
Audit
Compliance
Cash Flow
Accounting Team
© NetSuite Inc. 2013 Confidential 21
Controller Vision
Accelerate the “close process” – Closing the books
Seamless flow of accurate, relevant, timely and meaningful data across the organization
Business advisor across the organization – Strategic Partner
22
Finance Department Long-Term Objectives
Strategic Business PartnerDecision Support
PlanningControl & Submission
ForecastingP/L, BS & Cash flow
Variance Reporting Departmental Analysis
Core
Valu
e A
dd
ed
22
Basic Reporting
Transaction Processing & Journals
Internal Controls and Security
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“NetSuite Removes the pain, it is scalable and decreases risk” Rearden Commerce Controller
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3
NetSuite’sValue Proposition for
Controllers
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NetSuite Technologies Strengthen Competence
Internal Controls
Closing the books
Reporting
Audit and Regulatory Compliance
Global and Local Compliance
© NetSuite Inc. 2013 Confidential 26
NetSuite Strengths – Internal Control
COSO define Internal Control as:
“ … as a process …effected by management ….designed to provide reasonable assurance regarding the achievement of objectives
in the following categories:
- Operational / Strategy
- Reliability of reporting
- Compliance
“provide thought leadership on the development of frameworks and guidance on enterprise risk management, internal controls and fraud deterrence”
© NetSuite Inc. 2013 Confidential 27
NetSuite Strengths – internal controls
Five components of Internal Control
Control Environment
Risk Assessment
Control Activities
Information and Communication
Monitoring Activities
Examples of Transactional Control activities
Verifications
Reconciliations
Authorizations and Approvals
Physical Controls
Controls over standing data
Supervisory Controls
© NetSuite Inc. 2013 Confidential 28
Controller Comments – Internal Controls
“Increased confidence with controls and the integrity of the data in the system” Rearden Commerce Controller
“Inventory management critical in the business and NetSuite has allowed for the management of Orders, Sales and Inventory in real time” Miche Bags Controller
“Audit Trail – is GREAT! Who performed what transaction & when” Mike Foreman, NetSuite Controller
“Netsuite Removes the pain, it is scalable and decreases risk” Rearden Commerce Controller
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Controllers and our competitors talk Internal Control
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NetSuite Technologies Strengthen Competence
Internal Controls …. Complete
Closing the books .......
Reporting
Audit
Global and Local Compliance
© NetSuite Inc. 2013 Confidential 31
Controller – Close the books
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Closing the books with NetSuite
Accelerate the monthly close process, eliminate multiple off line versions
Everything in the one system and controller controls the entire close process from within the system.
Flexible to meet the multiple and changing reporting needs
Automates consolidation of all entities with automatic conversion of foreign currencies
Real time access that delivers relevant current information to dept. heads directly to their dashboards
Analytical review and variance analysis
Period close controls
Greater Visibility and Transparency across organization
© NetSuite Inc. 2013 Confidential 33
Controller – Closing the Books
“Period Close Checklist” Enables Controller to Control the Close Process
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Controller Comments – Closing books
“Switched from Quickbooks and significantly accelerated Close to 5 regular business days” Rearden Commerce Controller
“Rapidly growing and evolving business. Information is critical. Already has accelerated the close process by 65%” Miche Bags Controller
“NetSuite Consolidation functionality powerful. Rely on the Audit trail functionality when determining what has changed during the close process. Prior to NetSuite we downloaded information into excel and consolidated off line. Numbers frequently changing so data was out of date before consolidation complete.” Rearden Commerce Controller
“One system and seamless, Reconciling is easy” Mike Foreman, NetSuite Controller
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Key Takeaway
TIME
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NetSuite Technologies Strengthen Competence
Internal Controls …. Complete
Closing the books ....... Complete
Reporting ……
Audit
Global and Local Compliance
© NetSuite Inc. 2013 Confidential 37
Reporting
It’s EASY
NetSuite becomes the reporting source of record
Real Time -“one version of the truth”
Eliminate off-line reporting pain
Access Controls
Robust and flexible COA and Segmental Structure
Demo to controller saved search and can still export to excel
© NetSuite Inc. 2013 Confidential 38
Controller Comments - Reporting
“We can build reports that we were never able to build before. This really changed things for us” Miche Bags Controller
“Cultural move away from excel … Now If the data is not coming from NetSuite then it lacks credibility” Gawker Media Controller
“Significantly more robust then prior reporting” Rearden Commerce – Controller
Now our reporting structures allow people across the organization access information that is critical to them but deny access to non relevant information.” Miche Bags Controller
© NetSuite Inc. 2013 Confidential 39
NetSuite Technologies Strengthen Competence
Internal Controls …. Complete
Closing the books ....... Complete
Reporting ....... Complete
Audit …….
Global and Local Compliance
© NetSuite Inc. 2013 Confidential 40
Controller and Audit using NetSuite
Virtual Audit - Auditors can be given “tailored” inquiry access – work remotely review documentation online
Auditors Offsite = REDUCED COSTS
Increased Transparency and Seamless (one integrated System)
SSAE 16 (Audit/Certification of “NetSuite Software” that Auditors rely on – E.G. Data warehouse Security, Code, ETC.)
Auditors easily review control environment by reviewing roles, permissions and restrictions, audit tool and system notes tracks all transactions and changes in system
System generated supporting schedules
Perfect for Interim Audits
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NetSuite Technologies Strengthen Competence
Internal Controls …. Complete
Closing the books ....... Complete
Reporting ....... Complete
Audit ……. Complete
Global and Local Compliance …..
Summary: Managing Tax & Compliance
– Controller Focus Recap: Integrity, Accuracy, Timely – Trust
– Actively seeking to reduce / avoid ‘risk’
– Tax & Compliance burden increasing Globally
– Traditional ERP solutions cause Compliance Challenges
– Transparency, Systems, Process, Controls
– Ability to meet Tax & Compliance needs absolutely a driver (and consideration) for a new ERP system from Controller’s perspective
© NetSuite 2013
Sarbanes Oxley Act
“Senior Accounting Officer”
rules
increased "mutual
cooperation"
between authoritie
s
more sophisticated audits
more aggressive
tax authoritie
s
pace & quantum
of tax changes
Complexity & Cost of
Reporting Obligations
Controller’s Focus: Common Questions
– What Countries does NetSuite support for Local Tax & Compliance?– NetSuite provides the broadest and deepest pre-configured Tax & Compliance solution of
any ERP vendor
– We are deployed in over 110 countries
– We have 51 countries available ‘out-of-the-cloud’
– Local partner engagement required for Brazil, China, Israel & Russia (MSA + License)
– Is NetSuite certified in those Countries?– We are certified in those countries where it is mandatory for the SW vendor
– We work with customers and local partners to achieve certification in other countries
– Does NetSuite support eFiling?– We support eFiling where it is mandatory
– We are proactively adding additional countries ahead of local government schedules
– How do I Audit / Verify our Tax Reports?
– Full Drill-down from Summary Tax Report to underlying Transaction Detail
– Confidence provided by Single System / Audit Trail / System Notes / Etc.
Note: More content is currently available on Sales Tools. Deeper training of global taxation will be provided on an ongoing basis.
Tax Reporting - Supported Countries
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01 Australia 18 India* 35 Russia*
02 Argentina* 19 Indonesia 36 Serbia
03 Austria 20 Ireland 37 Singapore
04 Belgium 21 Israel* 38 Slovakia
05 Brazil* 22 Italy 39 Slovenia
06 Bulgaria 23 Japan 40 South Africa
07 Canada 24 Kenya 41 South Korea
08 Chile 25 Mexico 42 Spain
09 China* 26 Netherlands 43 Sweden
10 Columbia 27 New Zealand 44 Switzerland
11 Costa Rica* 28 Norway 45 Taiwan
12 Cyprus 29 Panama* 46 Turkey
13 Czech Republic 30 Peru 47 Thailand
14 Denmark 31 Philippines 48 Uruguay
15 Finland 32 Poland 49 UK
16 France 33 Portugal 50 Ukraine
17 Germany 34 Romania 51 USA
* NetSuite Partner solution
Countries in green = Online filing ready
Audit Transparency – Blow Their Minds!
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How To Incorporate in Sales Discussions– Identify Country Footprint & Dominant/Influential Subsidiaries
– Cross-Reference with Portal, Country Matrix & Sales Tools Materials
– Learn (and Use) the Lingo in Discussions and Demos
– Help the Local/Regional Controller (FD) check the box
– E.g. For Germany reference MWst, Ust, GDPdU, Elster
– Leverage discovery of existing systems to represent NetSuite as a superior tool for addressing Tax & Compliance challenges
– Proactively seek assistance where International markets are involved
– The right accent / location is more important than you think
– Partner Engagement boosts credibility & may be necessary
– Be confident – our approach and solution is better than any competitor and way ahead of what they have today
© NetSuite 2013
© NetSuite Inc. 2013 Confidential 47
4
Present NetSuite In Context
© NetSuite Inc. 2013 Confidential 48
Engineer a Vision
49
Controller’s Want to Add Value
Strategic Business PartnerDecision Support
PlanningControl & Submission
ForecastingP/L, BS & Cash flow
Variance Reporting Departmental Analysis
Core
Valu
e A
dd
ed
49
Basic Reporting
Transaction Processing & Journals
Internal Controls and Security
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Without the core, there is no value
There are unlimited opportunities to close gaps in value
NetSuite is the tool that can support the entire pyramid
© NetSuite Inc. 2013 Confidential 51
Everything Impacts the Financials
© NetSuite Inc. 2013 Confidential 52
Frame Non-Financial Aspects to Value
Sales Force
Automation
Improved
Transaction
Processing
Case Manage
ment
Days Sales
Outstanding
(DSO)
Role Security
/ Dashboarding
Self Service Reporti
ng
The Opportunity Gap
© NetSuite Inc. 2013 Confidential 53
NetSuite can Extend Finance’s Influence and
Leadership
© NetSuite Inc. 2013 Confidential 54
© NetSuite Inc. 2013 Confidential 55
When there are Common Facts Communication Improves
Communication Effectiveness
© NetSuite Inc. 2013 Confidential 56
5
Tools to Build Credibility
© NetSuite Inc. 2013 Confidential 57
Tools for Selling to the Controller
© NetSuite Inc. 2013 Confidential 58
We’re Tools, but not that kind of Tool
© NetSuite Inc. 2013 Confidential 59
SLIDE DECKS
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Demo Sets & Scripts
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Education Tracks
Diagnostic Packets
Accounting Use Cases
Scripts
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Customer References
© NetSuite Inc. 2013 Confidential 63
6
A Case StudyClearChoice Dental Implants
Who is ClearChoice?
Where did we need
improvement?
What happened?
How does this apply to you?
Why stay awake for 10 minutes?
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Actual Photo of Me Before Great Plains
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Why am I Here?
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True Believer
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Who is ClearChoice?
© NetSuite Inc. 2013 Confidential 69
What was driving our decision?
500+ employees
32 centers
92 instances of Great Plains
20072008
20092010
20112012
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
$200,000,000
Annual Sales by Year
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Where did we need
improvement?
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ClearChoice’s Reasons for Change
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Core
Simple Reporting
Transaction Processing & Journal Entries
Security & Internal Controls
Average for industry
No Trust
PlanningControl & Submission
ForecastingP/L, BS & Cash flow
Variance Reporting Departmental AnalysisV
alu
e A
dd
ed
Minimal variance reporting
No influence
Strategic Business PartnerDecision Support No leadershipNo value added
insight
© NetSuite Inc. 2013 Confidential 72
The Call to Action
Doctors worried about accounting and not patient care
A private equity merger held up because of the diagnosis
No TrustNo Influence
No Leadership
© NetSuite Inc. 2013 Confidential 73
What happened?
© NetSuite Inc. 2013 Confidential 74
The Cure Resolved the Symptoms
Cloud technology
provided key transparency to investors
Closing reduced 80% to three days
Actionable business
intelligence provided to
board
By golly, Jim, I'm beginning to think I can cure a rainy day!
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Our Private Equity Merger Was Complete
“If we’d put NetSuite in 6 months earlier, doing the deal with Catterton would
have been so much easier”.
Jeff Adams, CFO
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We Moved Up the Food Chain of Value
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Simple Reporting
Transaction Processing & Journal Entries
Security & Internal Controls
PlanningControl & Submission
ForecastingP/L, BS & Cash flow
Variance Reporting Departmental Analysis
Strategic Business PartnerDecision Support
© NetSuite Inc. 2013 Confidential 77
Examples of Added Value
• 2013 departmental budgets
• Procurement against budget
• Marketing spend analysis
• Implant rebate recovery
• Weekly cash flow reporting
• 13 week cash forecast
• Bank covenants• New line approved
Confidence of our bankers
Private Equity reporting
Departmental planning/control
Understanding our cost structure
© NetSuite Inc. 2013 Confidential 78
How Does This Apply to You?
© NetSuite Inc. 2013 Confidential 79
ENGAGED EARLY
Chief Finance OfficerVP FinanceControllerDirector of Accounting
© NetSuite Inc. 2013 Confidential 80
Connected Benefits to Emotional Drivers
Drill Down Availability Trust
Simple Reporting
Transaction Processing & Journal Entries
Security & Internal Controls
© NetSuite Inc. 2013 Confidential 81
We used to argue about if the numbers were right.
Now we argue about what the numbers mean!
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Benefits when put in Context are Powerful
Customizable One Source
of Truth
Data Driven Flexible
ReportingInfluence
PlanningControl & Submission
ForecastingP/L, BS & Cash flow
Variance Reporting Departmental Analysis
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Department heads came to us for help designing budgets and improving operations
© NetSuite Inc. 2013 Confidential 84
Fast Close Actionable Insight Leadership
Strategic Business PartnerDecision Support
© NetSuite Inc. 2013 Confidential 85
Data Driven Strategy
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The Takeaways from Our Presentation
Engage Early
Understand the Controller’s Needs
Take Advantage of our Role
© NetSuite Inc. 2013 Confidential 87
Thank You!
Albert Ryan, Chris Miller & Craig Sullivan
www.curiousrubik.com@curiousrubik