Thinking of changing your TMS?

Transcription

1 Thinking of changing your TMS? Tips, tricks and some advice ERNST & YOUNG LLP 1

2 Disclaimer EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US. This presentation is 2018 Ernst & Young LLP. All rights reserved. No part of this document may be reproduced, transmitted or otherwise distributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Any reproduction, transmission or distribution of this form or any of the material herein is prohibited and is in violation of US and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or its contents by any third party. Views expressed in this presentation are those of the speakers and do not necessarily represent the views of Ernst & Young LLP. These slides are for educational purposes only and are not intended, and should not be relied upon, as accounting advice. 2

3 Agenda Technology landscape Treasury management system (TMS) rationalization Building the business case Suggested project approach 3

4 Technology landscape TMS news 4

5 Technology landscape TMS trends Six current technology trends to consider during the selection process that have been making significant impacts in businesses globally: Market consolidation Convergence of technology vendors and development of web based solutions offer a wide range of solution choices but also require significant analysis and research to determine the best fit for buyer Factors such as vendor viability, commitment to the market and reputation have become more important Data security Cyber attacks continue to increase in number and creativity. Even small breaches can cause significant reputational damage Emergence of generally accepted security certification and encryption standards (e.g. SSAE 16) Mobility More agile and flexible technology infrastructure to meet growing treasury responsibilities Dynamic, near real-time data to enable less time spent on creating reports and more time for actioning insights Deployment ASP and SaaS based solutions significantly reduce reliance on corporate IT for support and ease ability to upgrade in order to take advantage of fixes and new offerings The increased acceptance of SaaS based offerings and their infrastructure security allows for more commoditized capabilities within treasury technology User experience Real-time exchange of ideas, information and feedback Social platform to allow users to interact with one another to discuss system features, best practices, and troubleshooting Quicker resolution of operational problems (putting the human touch back into automated processes) Development In some instances, the functional expansion of vendor solutions has occurred through acquisition of competitors or specialty platforms on the market In other instances, this has occurred through organic development within the product 5

6 Technology landscape Future state Blockchain Robotics Business intelligence 6

7 TMS rationalization TMS satisfaction Based on a 2017 survey released by Bob s guide, 60% of Treasurers are using a TMS and of those respondents 82% are at least somewhat satisfied with the software's capabilities, citing full automation, centralization of treasury positions, efficiency and good connections to banks as reasons for their satisfaction. Does your organization use a Treasury Management System? No plans to adopt one No, but we're adopting on in the next 12 months Yes 7

8 TMS rationalization Common reasons projects fail Lack of full-time employee (FTE) dedication, focus and momentum Lack of communication across internal and external dependencies Change management should ensure the business case for the new technology is socialized and the platform is being leveraged and integrated properly Client reliance on vendor-communicated specifications Improper budget expectations Development and prioritization of business requirements based on technology limitations rather than business needs focusing on future state Automation of outdated or broken workflow and processes Lack of defined goals and objectives related to the investment in the platform 8

9 TMS rationalization Critical success factors Project management Use to plan and manage people, resources and activities to ensure that the program of work is delivered to scope, budget and on time Delivering on all the key focus areas in the required timeframe is likely to require additional capacity and/or capability to supplement current resources in critical areas Continuous project management effort required to drive adoption and enable sustainability until future state becomes the way of doing things Business process design Detailed, end-to-end business process design that aligns with the scope, business objectives and the long-term strategy for its treasury function and industry best practices Involvement of treasury process owners in redesign and recommendation process, which can lead to more thorough, accurate and effective training materials Treasury participation Program governance provides framework for accountabilities and responsibilities associated with the transformation Framework should incorporate governance committee structure, membership and decision making authority Technology rationalization requires buy-in and full support from executive leadership (unwavering commitment and focus) TMS configuration Information provided to configure TMS implementation is accurate and complete in all material respects Strike a balance between meeting current and anticipated business requirements and create sufficient flexibility to address future business needs Key resources dedicated to configuration will be necessary to avoid the overall program being compromised by operational incidents and issues Project resources Participate in kick-off meeting and support ongoing PMO Provide input related to their specific functional area to help project team understand current state and develop future state design Participate in detailed design workshops to assist with development and validation of detailed treasury processes Participate in training pilots, data validation and end user acceptance training Change management Seeks to achieve people s acceptance and commitment and transitions them through a transformation program to embed and sustain performance improvement Effective change management reinforces core messages through regular, timely advice Communications should flow in from the bottom and out from the top, providing employees with the right information at the right time and allowing their input and feedback 9

10 Building the business case TMS rationalization TMS rationalization should address not only current, but future considerations, otherwise the final product can become outdated soon after Go Live. It s also important to dedicate ongoing initiatives to address enabling technology gaps in use and functionality. Technology inefficiencies Regulatory changes Global exposure Treasury innovation Company development and growth Tax initiatives Evolving business requirements 10

11 Project approach Document and prioritize requirements Evaluate based on cost, risk and efficiency across all treasury areas Treasury organization and governance Bank management Intercompany transactions Cash and liquidity management Financial risk management Debt, investments, equity management Payments and receipts Treasury accounting 11

12 Project approach Define future state treasury vision and strategy Treasury strategy Execution layer Organization layer Resource layer Policy Data Process Agility People Performance measurement Technology Technology integration is a key enabler of achieving business objectives across all layers of treasury strategy Define leading practice Basic Strong Leading 12

13 Project approach Evaluate current technology Determine satisfaction of current technology based on the following: Design Ability to meet planned requirements Supplier support and service Organizational needs Efficiency Enhancements required to meet needs Leveraging where possible versus building from scratch 13

14 Summary Top tips Prioritize and design for the future Define desired level of leading practice by function Minimize customization Change for the right reason Document design decisions 14

15 Questions? 15

16 Contact information Ehren Moeller, CTP Manager, Global Treasury Services Ernst & Young LLP Tel: