The Cloud, CPM and the CFO
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Transcript of The Cloud, CPM and the CFO
Decisions Slide 1
The Cloud, CPM and the CFO
Decisions Slide 2
Agenda
• Priorities in finance and best practices • History of financial applications • Bringing Value • Customer success through the cloud • Wrap up
Decisions Slide 3
What is Driving Change?
Decisions Slide 4
The Evolving Role of Finance
Bean Counter Reac-ve
“2000 and late” Rigid Data
Report Business Results
Business Partner Pro ac-ve Real -me Flexible
Informa-on
DRIVE BUSINESS RESULTS
Technology is a key enabler
Decisions Slide 5
Spreadsheets
Decisions Slide 6
What’s Wrong With Spreadsheets?
• Not built for a process • Prone to error • Not built for collaboration • Unstructured documentation • Invisible dependencies • Lack of flexibility • Little modularity support • No separation of data to end-user interface • Changing is major surgery • Too much time! • …The list goes on... ….Too much time on non value
added activities"
Decisions Slide 7
Priorities
• Drive Decision-making • Elevate the Role of Finance • Visibility and Performance Management • Buy from vendors who know finance
Decisions Slide 8
What We Are Hearing
• Need functional decisions to incorporate financial implications
• Strategic plan is not driven into operations
• Difficulty with scenario modeling
• Need for variance analysis, ad hoc reports and dashboards
• Reporting deficiencies, lack of out of the box finance support
• No version control, broken links, errors and long nights
Better Performance
Process Efficiency
Decisions Slide 9
Bringing value – Data and Process &Technology
Decisions Slide 10
Getting the process right
Adjust Currency, Intercompany, Journals
Close
Collect
Report Management, Legal, External
Average World class
Time spen
t on close ac>vi>es
12 days
6 days
2 days
Analyze
Adjust
Close
Collect
Report
Analyze and
Forecast
More >me for analysis
Less >me on
mechanics
Freeing up -me for beGer planning
Decisions Slide 11
Enhanced visibility starts with better data
Your Company
Exchange Rates
Operational Data
Financial Data
Industry Benchmarks
Leading Indicators
Decisions Slide 12
Corporate Metrics
Weekly Monthly Quarterly
Functional Metrics
vs. Budget
vs. Benchm
arks
Bookings, MRR Pipeline Customer Count Cash, CF, AR, AP Headcount
Trends/Time
Responses Opportunities Website hits Customer Portal Activity Support tickets Customer usage
Summary GAAP Financials Customer Churn DSO
Detailed GAAP Financials NPS Partner Count
Time to Activate Employee Retention Win/Loss Rates Product Mix
Uptime PM Utilization Ticket resolution time Bug count
Frequency C
ontext
Drive decision making with broader access to data
Decisions Slide 13
Result of implementing new technology
Decisions Slide 14
Result of using SaaS technology
Decisions Slide 15
What new Technology Brings
Performance
Right features
Driven by vendor Technology agnos-c
Customiza-on
Ease Of Use
Benchmarks
Best people on the right problems
Integra-on of efforts and avoid silos
Vendor agnos-c
Enabled by cloud
Low ongoing costs
Low ini-al costs
Driven by vendor Helped by cloud Access to latest func-onality
Decisions Slide 16
Basic
Customization
Discrete
Simple
Finance
Soloed data
Separate apps
Upfront $$$$$
Sophisticated
Configuration
Integrated
Multidimensional
Cross Functional
Collaborative
Integrated
Features
Process
Data
People
Effort
Architecture
Flexibility
Economics Pay As You Grow
Love ‘em and
leave ‘em
Busine
ss Partner
Effect of new technology
Decisions Slide 17
Putting This into Practice Realizing the Value
Cervello
Decisions Slide 18
Introduction to Cervello
Cervello helps companies improve their analytics and planning capabilities. We take an innovative approach to making complex solutions simple so our clients can focus on running their businesses and serving their customers. Our services and applications enable our mid-market, enterprise, and business services clients to gain the benefits of a world class analytics and planning without the headaches. Cervello is one of Host Analytics’ premiere partners and was recognized as Partner of the Year for 2010.
Decisions Slide 19
A model for better management - CPM
Decisions Slide 20
On-Premise SaaS*
Two major categories of solutions that enable CPM on a sustainable basis
* attributes of SaaS • Multi-tenant • No hardware • Lower implementation costs • Upgrades part of subscription • Predictable cost structure • Scalable
Decisions Slide 21
Why SaaS?
• The cloud (and SaaS) is a significant macro trend in enterprise software for both startups and existing players
• SaaS offers a more compelling value proposition
Decisions Slide 22
Why SaaS? – in line with macro trends
• nearly every business application start-up in the past 10 years is principally offered as SaaS
• all of the large, on-premise software companies acknowledge this trend are are attempting to get there
• there are 13 public SaaS companies with a combined market cap of over $35B and the SaaS category is growing at a 20% CAGR
• according to Gartner Group estimates, SaaS applications accounted for a little more than 10% of total enterprise software market last year and should reach at least 16% by 2014
Decisions Slide 23
Why SaaS? – better value proposition
1. Lower TCO and faster ROI o Predictable and comprehensive cost structure o Faster application development o Less application maintenance
2. World class environment owned by finance o Very little support needed from IT o Maintenance and upgrades owned by vendor o Rapid product innovation and top tier security
3. Focus on the business solution o Technology platform owned by vendor o Will scale with you as you grow
4. Value added services o Benchmarking and external data o Application modules and templates
Decisions Slide 24
Common issues raised in buying process
• Security of the data – everyone
• General awareness of the solution category – specialty manufacturing company
• Finance control – national restaurant chain
• IT control – media company
Decisions Slide 25
Common reasons people adopt SaaS
• Innovative thinkers (probably are already using other SaaS apps)
• Recognize cost vs. value and time to value are big benefits
• Don’t have the bandwidth to support complicated on-premise apps
• Want significantly less dependence on IT
Decisions Slide 26
Case Study: Public Medical Device Company
• The Business Challenge – Finance team wanted to get
control of operational data – Struggling with too much time
spent on budget, forecast, and variance reporting
– Goal: Better integration of financial and operational data
– Goal: Executive reporting (e.g., through dashboards) including the sales pipeline
• The Company – Medical device manufacturer – Over $160mm in revenues – 3 different markets – Rapidly growing revenues – 30%+ improvement in gross
margins in last year – Acquisition of competitor in
last year
Decisions Slide 27
Data Warehouse
GL1 Inventory
Export
Data Management Layer (Trusted Network)
SaaS Layer (CPM, BI and CRM)
Data Source Layer (ERP)
Planning (Bud, Fcst, Reporting, Variance Analysis)
Dashboards & Analytics (Ad Hoc Analysis, Time Series, KPIs)
Import
GL2
Case Study: cloud based integrated CPM
Decisions Slide 28
Conclusion
• Promoting fact-based decisions throughout the corporation is key
• The cloud will help you realize the value with less investment
• SaaS financial applications can – Elevate the role of finance quickly – Add rigor into financial processes without increased overhead – Expand collaboration across the corporation without increasing
associated infrastructure
Decisions Slide 29
Thank You