Optimize Financial Processes and Systems for Better Business Performance

Decisions© Host Analytics, Inc. 2010 Company Confidential

Today’s Agenda

Optimize Financial Processes and Systems for Better Business Performance

Kelly BattlesCFO

Host Analytics, Inc.

Paul HamermanVP, Principal Analyst

Forrester Research Inc.

Decisions© Host Analytics, Inc. 2010 Company Confidential2

• Welcome & Introduction (10 minutes)• Featured Speaker (35 minutes)

Paul Hamerman, VP Principal Analyst, Forrester Research Inc.• Q&A (15 minutes)

Register! Three Part Webinar SeriesPart I: TODAY - April 26, 2012 at 10:00PT

Optimize Financial Processes and Systems for BetterBusiness Performance

Part II: May 29, 2012 at 11:00PTUnlocking the Value of Dynamic Financial Planning

Part III: June 14, 2012 at 10:00PTFinancial Consolidation & Reporting: Optimization Across the

Enterprise

AGENDA


Host Analytics at a Glance The Only Complete and Integrated Corporate Performance Management (CPM) Suite in the Cloud

• Integrated CPM Suite Budgeting Consolidations Dashboards & Scorecards Internal & External Reporting SEC Compliance

• Cloud/SaaS Delivery Model Low Total Cost of

Ownership Fast time to value/ ROI Simpler implementations

• World-class support and services

• Most innovative products e.g. Executive Report Manager Decision Hub


FEATURED SPEAKER

Paul HamermanVP Principal AnalystForrester Research Inc.

© 2011 Forrester Research, Inc. Reproduction Prohibited5 © 2009 Forrester Research, Inc. Reproduction Prohibited

Optimize Financial Processes And Systems For Better Business Performance

Paul Hamerman, Vice President and Principal Analyst, Forrester

Research

April 26, 2012

© 2011 Forrester Research, Inc. Reproduction Prohibited6

Trends and challenges in financial management processes and technology

Aligning financial processes and information across time dimensions to optimize business value

Best practices in achieving better business performance

Technology’s role in optimizing financial business processes

Recommendations

Agenda


Technology enables finance professionals to improve efficiency, controls, and compliance throughout the entire lifecycle of financial processes.

http://upload.wikimedia.org/wikipedia/commons/5/52/Summer_Solstice_Sunrise_over_Stonehenge_2005.jpg


Financial business process challenges

Fragmented and inflexible transactional systems

Lengthy process to close the books

– Complex procedures and batch interfaces

Increasing compliance burdens (e.g., SOX, XBRL, IFRS)

An unstable and dynamic global economy complicates planning

and forecasting efforts

Labor-intensive efforts to assemble external financial reporting and

regulatory filings

Giving senior executives relevant information on financial and

business performance at the right time


Key trends for 2012: Financial management systems

Budgeting and forecasting remain top business priorities, due to economic instability

Closing to report to file is seeing more investment as an end-to-end process solution

SaaS financial solution adoption will grow rapidly Flexibility, usability, and mobility drive technology

selection more than functional requirements Regulatory compliance drives continued investment in

financial systems


Financial applications’ investment plans for 2012: There is an uptick in activity over 2011

Not interested

Interested, no plans

Planning to implement > 1 year

Planning to implement within 1 year

Implemented, not expanding

Expanding or upgrading

Don't know

0% 10% 20% 30% 40% 50% 60%

8%

7%

7%

6%

48%

22%

2%

10%

8%

8%

8%

39%

25%

2%

20122011


Financial process checklist: Do you have…

A flexible accounting platform that supports automation of financial business processes?

A mechanism in place to continuously track and report progress against defined business goals?

A planning process that supports continuous review and updating of budgets and forecasts?

A concise set of key performance indicators (KPIs) at the business unit level that correlate to process outcomes?

A commitment to continuous improvement of business performance and business process efficiency?

Technology to deliver integrated planning, accounting and performance processes in the context of time dimensions (past, present, future)?






Recommendations

Agenda


The Financial Process Life Cycle (FPLC)

► The continuum of integrated financial management activities, spanning planning, management, reporting, and control

► A concept to help to understand the relationship among key financial management processes and to move these processes toward best practices


The Financial Process Life Cycle (FPLC)

August 2011 “Align Financial Processes And Systems For Better Business Value And Compliance”


Financial Process Strategies Must Integrate Across Time Dimensions



The time value of process measurement: information value erodes at various rates



Report and comply

Challenges Batch-oriented interfaces Disparate systems Complex accounting rules Time to close the books Regulatory and internal

filing deadlines Internal controls and data

integrity International operations

Best practices Single instance, global

accounting system Automated processes and

integration Cloud-based software Accelerated closing and

reporting cycles Automated reconciliations

and controls

Past


Measure and respond

Issues

Cultural resistance to change

What to measure?

Accountability for results

Timeliness of information

Fragmented systems and data

Best practices

Performance management culture

Results-driven processes

Key performance indicators and dashboards

Real-time information

Visibility into results anytime, from anywhere

Present


Plan and predict

Issues Business and market volatility makes forecasting difficult The budget process is a time-consuming process Spreadsheets are too often the solution to system gaps Plans and budgets are not clearly linked to business

strategies

Best practices

Collaborative forecasting across business functions

Continuous planning

Reduced budgeting emphasis and effort

Spreadsheets are within the planning app

Link plans to strategies, measurements and actuals

Future






Recommendations

Agenda


How’s business? Not a simple question!

Performance information should answer the following key questions:

Which performance measures represent the true health of our business?

How are we doing now relative to the goals, objectives, and plans set forth in our corporate strategy?

How are we doing now relative to our achievements and measures in prior periods?

How are we doing now relative to our peers and competitors?

Why do our performance results differ from what we expected?

What are we going to do, in terms of corrective actions and alternative strategies to improve our performance results?


What are “good” key performance indicators (KPIs)?

Relevant: meaningful, few in number and in the right business context

Accountable: assigned to specific individuals, backed by rewards

Aligned: linked to corporate strategies and rewards Easy to use and understand: based on a formula that is

comprehensible and enhanced with visual cues and graphs Actionable: triggers a process or event to determine the

cause and correct the problem Accurate and timely: based on reliable data and delivered

in the appropriate time frame Predictive: focus on leading indicators to anticipate business

outcomes


Drive information time value based on business needs

How frequently will decision-makers look at the performance

measures?

What are the process transaction volumes, cycle times, and

frequency rates?

Do you have the technology to plumb the performance information

at high rates of frequency? Or is the cost too high in terms of

effort?

How perishable is the information?

Real-time Daily Weekly Monthly






Recommendations

Agenda


Technologies driving innovation in financial processes

Cloud/SaaS

Business-driven flexibility

Big Data platforms

Mobile apps and tablets

Interactive usability

Web services integration

Collaboration tools (e.g., social)


SaaS Buyers Cite Cost, Speed, And Better User Satisfaction As Drivers For Adoption

May 2011 “The SaaS Market Hits Mainstream: Adoption Highlights 2011”


Financial systems in the cloud – benefits

Business people manage the system, including processes, business

rules, and reporting structures

– Business flexibility improves

Systems are upgraded and updated regularly – reduced obsolescence

Less dependence on internal IT for systems support

Transparent cost of ownership via subscription model

Modern integration technology allows more frequent updates and better

connections to internal and external stakeholders

Business insight delivered quickly and in context






Recommendations

Agenda


Finance adds value in 3 key areas…but struggles with processes and data

SalesHuman Resources Manufacturing Research & Development

System integration, automation, and

process efficiency1

2 Productivity and operational

insight

Consolidated view of impact on business

objectives3

Finance

Executive Team

Capital planning, budgetingAccounting and financial reportingTreasury and cash management

Risk and compliance

Cost reduction and efficiency

Measuring business performanceManaging resources

Forecasting future outcomes

Effective operational execution

Consolidated view of cause and effects between individual functions

and how they impact financial results

Driving overall success of business


Recommendations

Assess the health of your financial systems and

processes.

Modernize your systems via cloud and mobile solutions.

Integrate processes to improve information value across

time dimensions.

Put a framework in place for performance measurement

and results accountability.

Economy & Finance

Optimize Financial Processes and Systems for Better Business Performance