Revenue Operations Management: Building a Finance Technology Strategy to Optimize Your Cash Flow

Revenue Operations Management: Building a Finance Technology Strategy to Optimize Your Cash Flow

Chris Couch

Co-Founder and COO, Transverse LLC

© 2014 Proformative

Headquartered in Austin, TX

Founded in 2008

$40M+ in private funding

Leading provider of cloud-based Revenue Operations solutions for mid and large enterprises

Over 50 customers

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Transverse

Agenda

Define Revenue Operations

Survey of challenges, barriers and priorities

Three principals of Revenue Operations innovation

Innovation strategies

Innovation examples

Q&A


What is Revenue Operations?

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Holistic view of end-to-end revenue management across multiple parts of an organization

Spans all data, systems and resources necessary to produce and account for revenue

Complex, multi-step cycle usually with cumbersome, manual processes, disparate technologies

Revenue Operations

Sales

Customer Management

Finance

Billing and Collections


What Activities Are Involved With Revenue Operations?

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Order to cash processes Booking execution

Billing and collections

Revenue recognition

Assurance and compliance

Revenue accounting

Sales reporting

Revenue forecasting

Survey Of Challenges, Barriers and Priorities


Aberdeen Survey Methodology

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Best-in-Class

Industry Average

Laggard

Total Respondents:

239 respondents across multiple industries are scored individually across standard

KPIs

Survey Questions


Barriers and Challenges to Finance Departments

• Majority are hamstrung by manual processes and disparate technologies

• 93 percent use spreadsheets for critical revenue processes

• Majority perform nearly 85 percent of internal controls manually

• Almost 50 percent reconcile their revenue accounts manually

• 40 percent can only accurately forecast three months in advance

• 82 percent lack full visibility into areas of profit and loss

• Business processes most vulnerable to fraud, leakage and error are in procurement and revenue reporting

• 41 percent cite a lack of staff resources and headcount necessary to scale

• 28 percent have difficulty consolidating information from multiple data sources

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Common Concerns

• More data and higher demands are increasing volatility and risk. There is simply more for organizations to see, understand and react to.

• To compete, organizations must be flexible and fast, able to adapt and respond to market conditions as they shift and change.

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Priorities / Themes of Success in Revenue Operations

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Better, Faster Decisions: Company wide access to accurate real-time information in a usable form.

Responding to Change: Meet dynamic demands and solve problems as they emerge without being limited by resource constraints.

Accelerate Innovation: Remove friction in the introduction of new products, services, and business capabilities.

Maximize Revenue: By capturing value from every opportunity.

Drive Efficiency Up & Costs Down: Drive out waste and increase performance of systems, processes and people across the entire organization.

Mitigate Risk: By providing visibility across revenue impacting operations to get ahead of risks before they materialize.


Three Principals of Revenue Operations Innovation

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Automation

Integration

Insight


The Common Revenue Operations Environment

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People

Data

Processes

Systems


Applying the Principals of Automation, Integration and Insight

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Automated Processes

Common Reports

Common Alerts

Constant Monitoring

Innovation Strategy

© 2014 Proformative© 2014 Proformative

Revenue Operations Innovation in Market Leaders

Leaders Followers

Billing and collections integrated with order entry and credit with no duplicate data entry

70% 37%

Standardized / automated enterprise-wide procedures for order fulfillment

64% 43%

Automated A/R and revenue recognition 67% 47%

Real-time visibility into outstanding invoices and related customer information

82% 31%

Real-time visibility into current revenue exceptions by customer, problem type, etc.

68% 21%

Electronic interfaces to banks and trading partners 82% 58%

Revenue performance dashboards 68% 31%

Order flow automation 59% 30%

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Mean Class Performance

Leaders Followers

6.1% of A/R past due 8.8% of A/R past due

1.1 days for payments to clear A/R ledger

6.9 days for payments to clear A/R ledger

11.7% of require manual intervention 30.1% of invoices require manual intervention

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Making the Case for Integration

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Example Innovations


Example 1 - Prepurchased Volume of Transactions

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Resulted in a 20%+ increase in month over month revenueEnterprise wide real-time visibility into customer consumption


Example 2 - Publicly Traded eCommerce Company (Sales Based on Revenue Share)

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Reduced bill period close to 2 daysDSO by a significant number of daysCut audit costs and time by 15%


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Q&A

Revenue Operations Management: Building a Finance Technology Strategy to Optimize Your Cash Flow

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