Post on 13-Jul-2015
Financial Services: Navigating the next generation of cloud ERP Banking & Capital Markets
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With you today
Financial Services: Navigating the next generation of cloud ERP
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Robin SmithManaging DirectorPwC
Robert RossPartnerPwC
Raphael BresVP Financial Management Product StrategyWorkday
Geoff RhodesFinancial Sales ConsultingWorkday
PwC
Agenda
1. Banking 2020 trends – intersection with the cloud
2. What is cloud computing
3. Cloud computing risks and challenges
4. Why cloud computing for financial institutions
5. The cloud frontier for financial institutions
6. ERP transformation – putting ERP in the cloud
7. Workday Financials – a cloud transformation story
8. Cloud readiness
9. Summary
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Banking 2020 trends – intersection with the cloud
Powerful forces are reshaping the financial services industry
• Regulations
• Business models
• Competition
• Changing demographics
Six fundamental priorities for financial institutions are evolving against this landscape
• Building a customer centric business model
• Optimizing distribution
• Creating an information advantage
• Simplifying the operating model
• Fostering agility and innovation
• Proactive regulatory, risk and capital management
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ERP applications in the cloud – hold the potential to meet many of these challenges
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What is cloud computing
Financial Services: Navigating the next generation of cloud ERP
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Financial institution
Public
Community
Infrastructure as a Service(IaaS)
Hosting services
Private
Hybrid
Cloud types Cloud offerings
Platform as a Service(PaaS)
Software as a Service(SaaS)
Examples
Service bureaus
EFT/Debit payment networks
Information services
Specialized software
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Why cloud computing for financial institutions
Cloud computing can help financial institutions improve performance in a number of ways.
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Cost controlEstablish cost controls over IT expenditures through “pay for consumption” pricing model.
Capacity on demandCloud solutions allow a financial institution to only use what they need when they need it.
Dynamic reconfiguration
The constant need to balance and re-balance IT configurations based on business variables is eliminated.
Internal efficiencyLower overall technology expense, optimize human capital expense and reduce operating cost over comparable in-house systems.
Defense against obsolescence
Costly upgrades, new releases and new software acquisitions to stay “current” with industry demands are eliminated.
Capital managementCloud based solutions can help channel much needed capital away from non-earning IT assets.
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Cloud computing risks and challenges
Moving to the cloud means several responsibilities are shared with the cloud provider.
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Overlapping trust boundaries
Overlapping trust boundaries from different cloud consumers due to the fact that cloud based IT resources are commonly shared.
Operational governance
control
Risks associated with how the cloud provider operates its cloud, and all external connections that are required for communication between the cloud and the financial institution.
Portability between cloud providers
Public clouds are typically proprietary, dependencies on these environments can be challenging when moving from one cloud provider to another.
Multi-regional compliance and
legal issues
Cloud providers will typically establish data centers in affordable or convenient locations, this can pose legal/regulatory concerns.
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Cloud computing risk mitigation
A cyclically executed process used to enhance strategic and tactical security, risk management is comprised of a set of coordinated activities for overseeing and controlling risk.
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Risk assessment
Threats
Risk identification
Risk evaluation
Risk treatment
Risk mitigation policy
Risk mitigation actions
Risk control
Risk review
Risk monitoring
Establishing benchmarks: Quantifiable Repeatable Comparable Easily obtainable
Establishing service quality metrics: Availability Reliability Performance Scalability Resiliency
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The cloud frontier for financial institutions
REAL opportunities abound for financial institutions to transform their business through cloud based solutions.
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Account processing
Business development
Asset origination
Human capital management
Financial management
Regulatory compliance
Cloud
Solutions
SPG Business
Process Execution
Playbook
Financial
Statement
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ERP transformation – putting it in the cloud
ERP transformation is more than just re-platforming traditional systems in a different environment:
• It’s re-imagining traditional processes such as statutory reporting, regulatory reporting and management reporting to realize dynamic, rolling processes and performance management.
• Implementing lean principles to eliminate non value-add activities and drive continuous improvement.
• Connecting transformation efforts with cost reduction, strategic expense management, cost-capture, allocation methodology design and financial system implementation.
• Removing the CoA design constraint facilitates integration and flexibility.
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Putting your ERP systems in the cloud offers many advantages to traditional on-premise solutions…
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Organizations must identify strategic solutions to respond to regulatory reporting requirements and address current and future business challenges
Reporting requirements
Quickly respond to new and changing regulatory requirements
Flexible system to support various reporting requirements (SEC, statutory, etc.)
Real-time data and analytics to support decisions and drive performance
Convenience and adaptability
Connected finance personnel across the globe leveraging a common platform
Incorporates the latest technology and adapts to ever-changing business requirements
High data quality through an integrated system enabling transparent and timely reconciliation
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ACTIONABLE
ANALYTICS
MOBILE
COLLABORATIONCONSUMER UI GLOBAL
AT THE CORE
ADAPTIVE FOUNDATION
TECHNOLOGY FOUNDATION EMBEDDED SERVICES
MULTI-TENANT
OBJECT STORE
IN MEMORY
SECURITY
INTEGRATION CLOUD
NATIVE CLOUD
CONFIGURABLE BUSINESS PROCESSES
REPORTING & WORKTAGS
SETTLEMENT ENGINE
GOVERNANCE & COMPLIANCE
ASSETS
PROJECTS
PROCUREMENT
CASH
GENERAL LEDGER
EXPENSES
SUPPLIER
CONTRACTS
REPORTING
BIG DATA
Workday Financial Management
Cloud Computing with Workday Economical
– No upfront capital expenditures
– Subscription-based pricing model
– Liberate IT resources
Always current
– Multi-tenant, single code line
– Continuous product innovation, twice a year
– Lower financial & regulatory risk
Enterprise-grade security
– Multiple layers of security & encryption
– ISO27001, SOC-1 & Safe Harbor certification
Global consistency
– Single, global source of truth
– Real time visibility
– Better compliance & controls
Collaboration
– Anytime, anywhere access
– Strong eco-system of partners
– Workday Community
Workday Reporting & Insights
Combined HCM and Financial Reporting
Enabled for external data incl. BDA
Embedded Analytics on Live Data
Workday Reporting & Insights
Combined HCM and Financial Reporting
Enabled for external data incl. BDA
Embedded Analytics on Live Data
Multi-devices, same UX and Security
Workday Reporting & Insights
Combined HCM and Financial Reporting
Native Cloud and In Memory Computing
Enabled for external data incl. BDA
Embedded Analytics on Live Data
Multi-devices, same UX and Security
PwC
• Prepare a business case that includes Total Cost of Ownership (TCO), benefits you can achieve by moving to the cloud, critical success factors, and a deployment roadmap
+ Pros
– Cons
Considerations
• Conduct an organizationalreadiness assessment
• Complete a fit gap analysis/evaluation on how the cloud vendor’s meet your business requirements
Cloud readiness
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PwC
Summary
• Macro-economic conditions are driving the financial services industry to examine every aspect of their business to remain competitive and profitable.
• Using cloud based services for mission critical functions and processes offers a financial institution dramatic opportunities to improve capabilities in a highly cost-efficient manner.
• Mitigating risk and get ready to implement cloud based ERP solutions is a highly manageable effort with well defined mechanisms in place to assist the process.
• As demonstrated, Workday Financials represent an excellent solution for an organization to explore in it’s efforts to drive ERP transformation.
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Contacts
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Each member firm is a separate legal entity. Please see www.pwc.com/structure for further
details. This content is for general information purposes only, and should not be used as a
substitute for consultation with professional advisors.
Robin SmithManaging DirectorPwCrobin.h.smith@us.pwc.com
Robert RossPartnerPwCrobert.m.ross@us.pwc.com
Raphael BresVP Financial Management, Product StrategyWorkdayraphael.bres@workday.com
Steve HansonVP Sales, Financial ManagementWorkdaysteve.hanson@workday.com