tmane conference 2014: "cloud innovation - how cfos and treasurers can profit"

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?

2 27/05/2014 TIS© | Classification: confidential | www.tis.biz

• 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


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


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:

mailto:[email protected]


Compliance

Agenda


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


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?


Source: Mary Meeker’s Internet Trend

Need for Innovation


† Over 50% of the Fortune 500 firms

since 2000

Out-Innovated.

Could not Simplify.

Source: Gartner

Need for Innovation


• 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…


• Processes are ad-hoc

• Systems are fragmented

• Data creates chaos

• Expertise is disconnected

…because they simply copied the analogue world!

Financial Services – US Example


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


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


Source: Oracle, Accenture

Cloud Innovation


What about Payments & Banking?

Cloud Innovation


Source: Oracle/Accenture Study 2014

Cloud verus On-Premise


• 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?


ASP

SaaS

IaaS Public

Private Hybrid PaaS

What does „CLOUD“ mean…


Companies that outsource save an average of 11% the first year, 19% the second year and 24% by the fifth year.

…for IT?



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!



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?


• 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


• 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


Lack of Transparency

Compliance Risks

Manage Costs

Manual Processes

Corporate Treasury

Challenges for CFOs and Treasurers


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


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…


• 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


A Nice Bouquet of Flowers?

Payment Challenges

Banking Formats, Protocolls and Security


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.

Co

mp

lexi

ty a

t al

l Lev

els

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


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


One Token – All Banks

27.05.2014 31

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


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


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


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


c. Transparency – Visibility – Flexibility


EBAM – THE PATH TO EFFICIENCY Best Practice (Lessons Learned)

Please contact:

Question and Contact

How can TIS meet your needs?


Treasury Intelligence Solutions GmbH

Industriestraße 39c D-69190 Walldorf

T +49 6227 69824-0 F +49 6227 69824-97

[email protected]


tmane conference 2014: "cloud innovation - how cfos and treasurers can profit"

Business

treasury intelligence

vp product

twist bsb

managing corporate

application

master data

tis business

cash management