Rising Importance of Treasury Solutions in the Recovering Economy & What New Technologies Bring

• 1. 1 The Rising Importance of Treasury Solutions in the Recovering Economy & What New Technologies Bring March 26, 2014 11 a.m. ET Brian Sommer, President, Vital Analysis Julie Roy, CMO, Kyriba

2. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 2 Speakers Brian Sommer, CEO, TechVentive, Inc. Brian is a ZDNet contributor and renowned accounting software expert. Prior to his current role at Vital Analysis, Brian served as a senior partner at Accenture. Brian has sold, designed and implemented massive financial and HR solutions around the world and has been active on the industry speaking circuit on most every continent. Brian has written extensively on business value and ROI for prestigious publications like Optimize and the Wall Street Journal Europe. He has advised over 100 of the Fortune 500 on financial software selections and continues to advise a wide array of high technology firms globally. Julie Roy, CMO, Kyriba Julie has over 20 years experience working with fast-growth software organizations. Prior to Kyriba, Julie served as VP of marketing and was an executive team member at Cornerstone OnDemand, a SaaS talent management vendor. She built its marketing department from the ground up and contributed to the fifteenfold growth that led to the companys successful IPO in 2011. Before Cornerstone, as employee #6, Julie built and ran EMEA marketing at InStranet, a spin-off of Business Objects that was acquired by Salesforce.com in 2008. 3. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 3 Topic Overview Two forces converging on treasury: resurgent economy and new technology The evolving treasury software market Yesterdays solutions are poorly equipped to address todays challenges, leaving finance organizations less productive and reactive The value-add dilemma and why spreadsheets limit it How software-as-a-service treasury solutions deliver a very different business value than prior generations of solutions The power of one - why cloud has become a better delivery model for treasury solutions 4. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 4 TALC Buyer Classifications Innovators the first companies to experiment with new technologies. These firms are willing to take risks Early adopters the next wave of firms to adopt a new technology Early majority buy from established vendors and are less apt to take significant technology risks Late majority wait for markets to settle and only buy from established leaders. Primarily, these firms are not looking for competitive advantage in software selection -- rather, they want competitive parity Laggards the last to buy a given technology and are very cheap 5. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 5 Cloud Adoption Path Cloud financial applications Cloud HR applications Cloud CRM applications 6. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 6 Resurgent Economy The economy, credit lines and business spending collapsed significantly in 2008. A recovery is slowly underway but are corporate finance and treasury groups ready for eminent changes? What happened to treasury software these last six years? Source:http://www.aei-ideas.org/2013/08/updating-the-us- economy/real-gdp-growth-2008-2013/ 7. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 7 Deflation or Inflation? So which is it? Either way, treasurers must assess impact on cost of capital, procurement policies, etc. Source: Bloomberg Businessweek, February 24 March 2, 2014 pg. 10-11 8. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 8 Currency Concerns All-new currencies Increasing volatility More raw materials / components sourced offshore More customers offshore Appropriate hedges needed more often Manage cash requirements within subsidiaries countries Interface with country and bank specific solutions Source Source: http://www.pcworld.com/article/2096060/bitcoin-price-plunges-as-mt-gox-says-flaw-in-protocol-allows-fraud.html http://www.reuters.com/article/2014/03/03/us-ukraine-hryvnia-idUSBREA220NB20140303 9. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 9 Inflation Concerns Inflation concerns arent restricted to the United States Source: http://www.usinflationcalculator.com/ http://research.nordeamarkets.com/en/files/Feds-inflation-quest.pdf 10. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 10 Growing Treasury Complexity Basic Treasury Interfaces Functionality Complexity Accounts Payable Accounts Receivable Payroll Bank Interfaces Intermediate Treasury Systems Complex Treasury Systems Complex Global Treasury Systems Hedging Risk Mgmt FX exposure Debt & Investment Mgmt Offshore Cash Mgmt Min Max Accounts Payable Accounts Receivable Payroll Bank Interfaces Divisional Cash Management Cash & Liquidity Mgmt Accounts Payable Accounts Receivable Payroll Bank Interfaces Low High Accounts Payable Accounts Receivable Payroll Bank Interfaces Divisional Cash Management Cash & Liquidity Mgmt Divisional Cash Management Cash & Liquidity Mgmt Debt & Investment Mgmt Offshore Cash Mgmt And Maybe: Dividend payments Capital Projects Etc.. 11. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 11 Polling Question 1 How dependent is your treasury organization on spreadsheets? 1. Not at all 2. Minimally 3. Quite a bit 4. Entirely 12. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 12 The Best of Breed Nightmare Forecasting Bank Software ERP software ERM Budgeting Software Spreadsheets Hedging Bank Software Bank Software Payroll Capital Projects General Ledger Accts Rec Accts Payable Credit & Collections A A A 13. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 13 The Problem Data often out-of-date: doesnt flow in real-time Differences in data meanings Single, unified view hard to get Fragile interfaces Smallest errors hard to pinpoint or correct 14. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 14 The Problem Data often limited to internal information Usual content: accounting transactions Spreadsheet reliance: high 15. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 15 New Treasury Information Sources Massive new data sources arriving Forecasts must be built on more than prior historical accounting transactions Limitations of older technology readily apparent Data is being shoehorned into systems never designed for this information Channel Data Internet of Things Data Big Data CRM Sales Pipeline Data Macro Economic Data Third Party Data Bases POS Data From Key Customers Integrated Supplier Data Marketing Automation Pipeline Data E-Commerce Data Social Sentiment Data Internal Collaboration Content/Insights Just look at the impact on revenues and cash receipts for major retailers and airlines due to the extreme winter weather this year. Source http://newyork.cbslocal.com/2014/02/15/report-snow-ice-responsible-for- staggering-number-of-flight-cancellations/ 16. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 16 How Well Do Your Treasury Systems Handle Trade promotions, seasonal sales and other factors that impact purchases of raw materials and / or customer payments Data from a variety of different, disjointed banking technologies Data from all of your Accounts Payable and Accounts Receivable systems to see what upcoming payments are planned, which checks have recently cleared, what payments are in arrears, etc. Collapsing this data into a timely, visible, singular solution 17. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 17 The Modern Treasurer Many have a television on in their office. Why? To immediately react to changing business events They dont get their news from their ERP solutions Will their ERP tell them about interest rate increases, inflation news, competitor moves, etc.? Even if it did, how would current solutions (designed for accounting activity) deal with these events? The treasurers job is now more real-time than ever 18. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 18 The Treasurers Mandate Treasurers are now under (more) pressure to: Reduce exposure to FX fluctuations Hold headcount constant Perform more what-if scenarios Adjust operational, procurement, etc. policies in light of changing inflation and cost of capital rates Introduce new technology without large IT investment Reduce systems complexity 19. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 19 And It Gets Worse Business Intelligence Tools Corporate Performance Mgmt Tools Planning Tools Reporting Tools Cloud analytics 20. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 20 Polling Question 2 Whats the single largest issue facing your treasury systems environment today? 1. Time it takes to get data or reports prepared 2. Inaccuracies or disagreements about the data 3. Lack of clear audit trail 4. Too many tools 5. Other 21. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 21 The Technology Market Moved End of incremental changes were in an era of transformational re-imagination A couple of critical developments In-memory database power Cloud computing Large financial planning suites Bolt-on thinking not appropriate City of Toronto archives. Used with permission 22. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 22 The Technology Market Moved New possibilities: Near instantaneous what-if scenarios / modeling across massive datasets Ability to model against financial and non-financial data (consumer sentiment, weather, etc.) Scalability at point of need Analytics to spot anomalies and opportunities in real-time 23. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 23 The New Financial Environment General Ledger Subsidiary Ledgers Subsidiary Ledgers Subsidiary Ledgers Management Reports ERP Software Operations Software Runs in a cloud environment and uses in-memory database technology Financial Accounting Software Custom Software Integrated Treasury and Financial Planning Suite 24. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 24 The New Financial Environment Macro Economic Data Channel Data CRM Sales Pipeline Data Integrated Supplier Data Marketing Automation Pipeline Data Internet of Things Data POS Data From Key Customers E-Commerce Data Big Data Third Party Data Bases Social Sentiment Data Internal Collaboration Content/Insights General Ledger Subsidiary Ledgers Subsidiary Ledgers Subsidiary Ledgers Management Reports ERP Software Operations Software Financial Accounting Software Custom Software Integrated Treasury and Financial Planning Suite 25. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 25 Polling Question 3 Does your organization have a mandate for moving enterprise systems to the cloud? 1. Yes, IT wants us to migrate all systems to SaaS 2. IT wants web-enabled systems, but they need to be hosted in-house (i.e. ASP) 3. We have been told to keep all systems hosted in-house 4. Im not aware of any policy that dictates one way or another. 26. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 26 The Treasurers New Mandate Growing volume and types of data to review Increasing velocity of change Increasing international footprint Increasing technology diversity (and integration challenges) Reaction times Computing constraints 27. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 27 Why This New Environment? Quantity of data needed to manage a firm is growing at an explosive clip New generation of solutions needed to handle different kinds of business data spreadsheets wont cut it Speed of deployment Ease of marrying operational, external and transactional data Computational speed Few/no disputes about data single data source 28. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 28 Summary Proliferation of new data types (and sizes for each) dictating a different set of tools needed for Financial/Accounting organizations Time to rein some of the overuse/abuse of spreadsheets Integrated tools (vs. lots of point solutions) needed to improve quality and velocity of data This begins the re-imagining of what treasury will be 29. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 29 Additional Resources SaaS vs. ASP: Beware of the Wolf in Sheep's Clothing While many ASP software vendors have perfected (to the extent they can) the upgrade and support process, the fact remains that an ASP is still an application that used to be installed on-premise. http://www.kyriba.com/solutions/why-go-saas Re-Imagining Treasury by Brian Sommer This white paper, developed exclusively for Kyriba by analyst and ZDNet contributor Brian Sommer, helps treasury teams learn how new technology and approaches can help treasury teams navigate the new economy. http://info.kyriba.com/reimagine-treasury/source=ss 30. Contents 2014 Kyriba Corporation or TechVentive, Inc. All rights reserved.. 30 Contact us twitter.com/BrianSSommer twitter.com/kyribacorp zdnet.com/blog/sommer/ kyriba.com/blog vitalanalysis.com kyriba.com 31. Thank You for Viewing Our Webinar!