Cloud Innovation How CFOs and Treasurers Can Profit TREASURY INTELLIGENCE SOLUTIONS | SMART PAYMENTS – BETTER DECISIONS Leading cloud platform for managing corporate payments, liquidity and bank relations
Oct 20, 2014
Cloud Innovation
How CFOs and Treasurers Can Profit
TREASURY INTELLIGENCE SOLUTIONS | SMART PAYMENTS – BETTER DECISIONS Leading cloud platform for managing corporate payments, liquidity and bank relations
Who is TIS?
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• 50 Employees
• 8 Nationalities
• 3 Locations
…and counting
TIS Snapshot
Overview Key Facts
• Founded in 2010, based in Walldorf, Germany
• Leading cloud platform for managing corporate payments, liquidity and bank relations
• Quick and easy implementation with SaaS
• Solution for midsize and blue-chip Corporations
• Rapid growth with excellent customer feedback
• Highest security standards: ISO 27001 certified
SOFTWARE AS A SERVICE: FAST, SCALABLE, SECURE
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ERP INTEGRATION & SAP CERTIFIED
MULTI ERP SaaS
MULTIBANK 0.2 TO 1.0+ M DIRECT CONNECTIVITY IMMEDIATE COST SAVINGS
• Wytze Rijkmans, EVP Sales & Marketing; VP Central Europe Software SaaS vendors, global sales expert
• Dr. Wolfgang Kalthoff, COO & co-founder; VP Program Management at SAP; SaaS operations expert
• Erol Bozak, CTO & co-founder; Director of Development at SAP, cloud expert, holds 33 patents
• Jörg Wiemer, CEO & co-founder; Head of Global Treasury at SAP; 20 years of treasury experience
Built by Experts
Cloud Innovation
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Giancarlo Laudini, responsible for Pre-Sales Operations at TIS, is a domain and product expert in the Payments, Bank Connectivity, Bank Account Management arenas as well as the SaaS (on-demand) Services. With a strong multi-cultural knowledge, he has been in the IT industry for over 15 years gaining international experience in Cash Management, Electronic Banking and strategic involvement in Global Payment Factory projects for large multinational clients. Email: [email protected]
Giancarlo Laudini
VP Presales
Martin Postweiler
VP Product & Client Services
Martin Postweiler, VP Product & Client Services, joined TIS in 2013. He previously was the Head of Financial and Liquidity Planning at Deutsche Lufthansa AG. Martin is well known in the treasury community in the D-A-CH-Region (Germany, Austria, Switzerland), having played an important role in establishing the TWIST Initiative (Transaction Workflow Innovation Standards Team) in this area. With TIS, he is constantly trying to make the lives of Treasurers easier, enabling them to contribute strategically to their company’s success. Email: [email protected]
Presenting:
Compliance
Agenda
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TWIST BSB SWIFT
Cost reduction
TIS
Data Security
Dilbert
What does Cloud mean? SaaS
Application Service Providers
First steps
CFO Market trends ISO 20022
eBAM
Bank Authorization
Banking
Trust
Efficiency
Cost reduction
Optimized processes
Reporting
Cultural change
Better decisions
Balance confirmation
Accounting
FBAR
Treasury Intelligence Solutions
Changes MT 940
Banking strategy
Governance
Old world
xml
Visibility
Signatories
Financial Audits Shared Service Center
FINCEN 144 camt.086
Treasurers
AFP Global Service Codes™
Accounting Global Account Analysis
IT
TIS Business Intelligence
SMART payments
Cloud Innovation
Best Practice
Benefits
Compliance
Agenda
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TWIST BSB SWIFT
Cost reduction
TIS
Data Security
Dilbert
What does Cloud mean?
Best Practice
SaaS
Application Service Providers
First steps
CFO Market trends ISO 20022
eBAM
Bank Authorization
Banking
Trust
Efficiency
Cost reduction
Optimized processes
Reporting
Cultural change
Better decisions
Balance confirmation
Accounting
FBAR
Treasury Intelligence Solutions
Changes MT 940
Banking strategy
Governance
Old world
xml
Visibility
Signatories
Financial Audits Shared Service Center
FINCEN 144 camt.086
Treasurers
AFP Global Service Codes™
Accounting Global Account Analysis
IT
TIS Business Intelligence
SMART payments
Cloud Innovation
Benefits
What Happened in the Last 20 Years?
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Source: Mary Meeker’s Internet Trend
Need for Innovation
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† Over 50% of the Fortune 500 firms
since 2000
Out-Innovated.
Could not Simplify.
Source: Gartner
Need for Innovation
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• Smart data: volume doubles every 18 months
• Millennials: about 50% of the workforce born after 1980
• Average 75% of new IT budget in the Cloud by 2016
• Reach: 30B devices online by 2020
• Transformation: New business models accelerate innovation
Source: Gartner, ABI research
• S
• M
• A
• R
• T
Companies are struggling to find their patterns because…
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• Processes are ad-hoc
• Systems are fragmented
• Data creates chaos
• Expertise is disconnected
…because they simply copied the analogue world!
Financial Services – US Example
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How many paper bills are sent in the US per year ?
How many bills are paid by check In the US per year ?
ca. 16,000,000,000
ca. 4,300,000,000
Financial Services – Global Example
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30% of finance and executives agree that their processes are still paperbased
Source: Oracle/Accenture Study 2014
How long to provide the business with a snapshot of overall performance
Cloud Innovation
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Source: Oracle, Accenture
Cloud Innovation
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What about Payments & Banking?
Cloud Innovation
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Source: Oracle/Accenture Study 2014
Cloud verus On-Premise
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• Company Culture Culture
• Hesitant (perceived lack of Control)
• “Already have IT”
• Old Tradition
• Security concerns
Why Do Businesses Stay On-Premise?
• C
• H
• “A
• O
• S
What does „CLOUD“ mean?
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ASP
SaaS
IaaS Public
Private Hybrid PaaS
What does „CLOUD“ mean…
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Companies that outsource save an average of 11% the first year, 19% the second year and 24% by the fifth year.
…for IT?
What does „CLOUD“ mean…
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Companies that outsource save an average of 11% the first year, 19% the second year and 24% by the fifth year.
…for IT?
Treasury is in control now!
What does „CLOUD“ mean…
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No more spreadsheets
Flexible system
Streamlined processes
New Way of Working
• Success relies on data analytics and mobile technology
• “Big data” from a wide range of sources for
planning and predictive analysis.
…for CFOs and Treasurers?
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• CFO as Technology Evangelist
• Provide more predictive analysis, real-time insight
• Automate low value activities
• Enhance analysis and planning
• Be a service-oriented and strategic business partner
• Deliver value to the rest of the business
(→ Smart Payments)
(→ Better Decisions)
The Role of the Finance Executive Is Transforming
Potential Obstacles
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• Economic turbulences
• Increased global competitiveness
• Changing regulations
→ Impact on
– Processes
– Technology
– Talent
Drivers
Add the business discontinuities of
• M&A, spin-offs
• 20-year-old ERP systems
• Antiquated IT infrastructure
• Shifting business requirements 38%
see lack of internal skills
as a key barrier Oracle/Accenture Study 2014
Challenges for CFOs and Treasurers
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Lack of Transparency
Compliance Risks
Manage Costs
Manual Processes
Corporate Treasury
Challenges for CFOs and Treasurers
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Manual Processes
• Manual data collection and reporting (meanwhile the cash position has changed…)
• Manual files (import, conversion, upload)
• Bag full of tokens
Lack of Transparency
• How much cash on all accounts today?
• What is the company’s net US-Dollar cash flow that can be used as a natural hedge?
• How much money paid to which supplier?
Manage Cost
• Maintain 100s of formats, software and hardware for bank connectivity
• Costly set-up of new banks
• Hard to check banking fees against actual transactions
Compliance Risks
• Who can sign for which account? Who can approve payments?
• How many company accounts do we have across all offices and subsidiaries?
• Non-secure payment file handling (e.g. HR)
Better Decisions
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Devens used the term “Business Intelligence” to describe how the banker Henry
Furnese, gained profit by receiving and acting upon information about his
environment, prior to his competitors.
Business Intelligence
1865 Trends
Data is everywhere. Yet, divided.
Data is big. And messy
Real time insight is crucial for agile decisions
The pace of innovation is increasing
Finally, what does „CLOUD“ mean…
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• Simplify decision making processes
• Minimize infrastructure and operation costs
• Automate ERP integration
• Reduce complexity
• Thorough Security (ISO)
…from our customer experience?
• S
• M
• A
• R
• T
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A Nice Bouquet of Flowers?
Payment Challenges
Banking Formats, Protocolls and Security
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Customer IT
ERP Complex Landscape
Banks
Legacy / TMS / HR
Manual Payments Fax Banking
On-premise integration solution and payment systems
Various payment procedures and systems.
Various information systems are involved in cash management.
Various e-banking payment formats, protocols, channels and security measures.
International expansion results in decentralized cash management and payment processes as well as individual bank relations.
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Situation
Lack of standardization and manual processing as well as the complexity of end-to-end integration and centralization result in…
reduced visibility into corporate cash-flow and liquidity increased process- and IT costs increased risk of fraud difficulties to comply with changing regulatory requirements (e.g. SEPA)
Challenges
Smart Payments
Innovation Across Banking Formats, Protocolls and Security
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Customer IT
Agent Customer/Partner
Implementation SAP ERP Plugin
ERP-Integration
Other ERP &TMS
ERP
H2H, EBICS, SWIFT
Outgoing Channels
Incoming Channel
Processing Engine
Meta Model Formats
Communication Protocol
Security IDOC PEXR2002
CSB34
BACS
SWIFT-MT
DTAUS
Format
Web Service
EBICS
SWIFTNET
…
H2H-FTPS
Protocol
SAML
PGP
…
…
3DES
Security
…
…
…
ISO XML H2H-HTTPS SSL v. 3.0
Banks
Solution
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One Token – All Banks
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Tenant Secure Store
• Tenant specific password
• Only known by the customers
• Stored in main memory
• Encryption of sensitive data
Security
Entity Signature API
• Entity specific signature
• Instance cannot be changed from outside the application
• Different cryptographic functions
Compliance in Cloud? – What we often find @ Corporates
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Process Landscape
Branches
Joint Ventures
Head Office
Subsidiaries
Banks
Shared Service Center
- No single “Source of Truth” - Manual, paper based and
decentralized processes
→ No bank relationship overview → Potential compliance issues → Highly inefficient
How to get Transparency throughout the Entire Group
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Centralized Bank Account Management
- Central repository - Cleaned up data - Audit-proof & streamlined processes - Semi-automated workflows externally
→ Bank Relationship overview → Compliance → Efficiency
Corporation
Banks
Master Data & Documents
Signatories & Workflow
Reporting & Audit Trail
Transparency – The Full-blown Solution
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Adding two “e” to BAM
→ Use of 15 XML messages → STP internally + externally → SWIFT, EBICS, H2H
Workflow & Inventory
Reporting & Audit Trails
Master Data & Documents
Electronic Communication
ERP Integration
→ One single “Source of Truth” → Multi ERP → No IT-Project (with SaaS)
Corporation
XML XML XML
Banks
What some of our Customers say
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What some of our Customers say
c. Transparency – Visibility – Flexibility
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EBAM – THE PATH TO EFFICIENCY Best Practice (Lessons Learned)
Please contact:
Question and Contact
How can TIS meet your needs?
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Treasury Intelligence Solutions GmbH
Industriestraße 39c D-69190 Walldorf
T +49 6227 69824-0 F +49 6227 69824-97