Cloud Agenda for Finance
35
The Cloud Agenda for Finance The Evolving Market for Core Financial Applications & Technologies September 13, 2012
-
Upload
workday -
Category
Technology
-
view
1.350 -
download
0
description
Watch the Webinar >> http://bit.ly/QlKgU0 The Cloud Agenda for Finance: The Evolving Market for Core Financial Applications & Technologies Join guest speaker Paul Hamerman of Forrester Research, Inc., for this special webinar as he discusses the key trends and challenges for core Financial Management applications and technologies, and the accelerating shift from traditional ERP financials to cloud-based alternatives. Attendees will learn about the following: - Key trends and challenges for 2012 in the Financial Management technology market. - Recent accelerating shift from traditional ERP financials to cloud-based alternatives. - Barriers companies typically face when thinking about the cloud/SaaS and how they are being mitigated. - Financial Management innovation and technologies offered by Workday for enabling increased agility, insight, and control. About Workday Workday is the leader in enterprise-class, Software-as-a-Service (SaaS) solutions for managing global businesses, combining a lower cost of ownership with an innovative approach to business applications. Founded by PeopleSoft veterans Dave Duffield and Aneel Bhusri, Workday delivers unified Human Capital Management, Payroll, and Financial Management solutions designed for today's organizations and the way people work. Delivered in the cloud leveraging a modern technology platform, Workday offers a fresh alternative to legacy ERP. More than 280 customers, spanning medium-sized organizations to Fortune 50 businesses, have selected Workday. Visit us at www.workday.com.
Transcript of Cloud Agenda for Finance
The Cloud Agenda for Finance The Evolving Market for Core Financial Applications &
Technologies September 13, 2012
Today’s Presenters
Mark Nittler VP Financial
Applications Strategy, Workday
Paul Hamerman VP & Principal Analyst,
Forrester Research
Dave Blanchard Editorial Director, Business Finance
Laurie Wood Director of Financials Product Marketing,
Workday
The Cloud Agenda for Finance: The Evolving Market for Core Financial Applications & Technologies Workday Webinar
Paul Hamerman, Vice President, Principal Analyst
Forrester Research, Inc.
September 13, 2012
© 2012 Forrester Research, Inc. Reproduction Prohibited
Agenda
Trends and challenges in financial management processes and systems The impact of the cloud on Finance, and drivers for adoption Conclusions
4
With cloud-based technology, Finance can accelerate accounting/reporting processes and improve business flexibility without the burdens of costly IT infrastructure
Financial business process challenges
• Fragmented and inflexible transactional systems, which companies struggle to keep up-to-date
• Lengthy process to close the books › Complex procedures and batch interfaces
• Increasing compliance burdens (e.g., SOX, XBRL, IFRS) • A volatile global economy complicates planning and forecasting efforts
• Labor-intensive efforts to assemble external financial reporting and regulatory filings
• Senior executives need relevant and timely information on financial and business performance
Technical debt builds up on traditional finance and ERP applications
July 2012 “Measure The Business Impact Of Improved App Strategy”
Finance adds value in 3 key areas… but struggles with processes and data
Sales Human Resources Manufacturing Research & Development
System integration, automation, and
process efficiency 1
2 Productivity and operational
insight
Consolidated view of impact on business
objectives 3
Finance
Executive Team
Capital planning, budgeting Accounting and financial reporting Treasury and cash management
Risk and compliance
Cost reduction and efficiency
Measuring business performance Managing 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
The Financial Process Life Cycle (FPLC): Finance processes are conceptually linked across the time dimensions of past, present and future…
August 2011 “Align Financial Processes And Systems For Better Business Value And Compliance”
© 2012 Forrester Research, Inc. Reproduction Prohibited
Agenda
Trends and challenges in financial management processes and systems The impact of the cloud on Finance, and drivers for adoption Conclusions
10
Key trends for 2012 and beyond: Financial management systems
• SaaS financial solution adoption will grow at an accelerated pace in the next 3 years, following in the footsteps of CRM and HRM cloud apps • Planning, core financials, and disclosure management are
showing high growth already • Regulatory compliance will drive higher levels of investment in
financial reporting systems • “Close to Disclose” is an end-to-end process that calls for better
automated support and integration • Selection of technology to support financial processes will place
increasing emphasis on business flexibility, cloud deployment, and mobile solutions.
• Finance assumes a higher level of involvement in selecting, configuring and managing business technology solutions
Business application priorities focus on renewal and rationalization, but SaaS is moving up the list
June 2012 “Optimize Your Business Applications For Value And Flexibility”
+10% yoy
Technology reshapes the business application value proposition
May 2012 “Increase Business Flexibility By Embracing Future Trends”
Perceptions of SaaS are changing: It’s about flexibility more than costs
April 2012 “The Changing Cloud Agenda”
Companies look to cloud computing to improve agility and speed
April 2012 “The Changing Cloud Agenda”
© 2012 Forrester Research, Inc. Reproduction Prohibited 16
Source: Forrsights Software Survey, Q4 2011
Some firms remain wary of deploying SaaS apps, but concerns are losing steam
Base: 556 North American and European software decision-makers in enterprise organizations
“4” or “5” on a scale of 1 to 5 where 1= not at all concerned and 5= very concerned.
33%
33%
37%
41%
42%
48%
50%
53%
66%
72%
SaaS technology is technically immature
We can't find the specific SaaS applications we need
Pricing is unclear or complicated
SaaS is not customizable
Transition and migration toward SaaS is complex and risky
Application performance (e.g., downtime, speed) are…
The total cost will be higher
SaaS can financially lock us into staying with the same…
Integration with other applications is a challenge
Security and privacy issues are difficult to control
‘What are your firm’s concerns about using SaaS?’
Comparing deployment models: Hosted Cloud versus SaaS Deployment characteristic Hosted Cloud SaaS
Tenancy Single tenant – each customer has own version of the app
Multitenant – all customers on the same software instance
Software technology Mature Embracing new technologies
Hosting model Dedicated application
instance, shared computing resources
Shared application and infrastructure
Payment model Upfront license, recurring sw
maintenance and managed services fees
Subscription, all-in
Updates and upgrades Vendor-managed, but
customer chooses upgrade timing
Vendor-determined, more frequent, less effort for customers
Customization Configure and customize Configure only in metadata
© 2012 Forrester Research, Inc. Reproduction Prohibited
Agenda
Trends and challenges in financial management processes and systems The impact of the cloud on Finance, and drivers for adoption Conclusions
18
Summary: Drivers of adoption for cloud financial systems • Systems are upgraded and updated regularly – reduced
obsolescence • Faster deployment times • Business agility, and less dependence on internal IT for systems
support • Transparent cost of ownership via subscription model • Business insight delivered quickly and in context • Business people manage the system, including processes,
business rules, and reporting structures
Opportunities for Finance: optimize your applications for insight, flexibility, and sustainability
May 2012 “Optimize Application Strategy To Generate Business Value”
Workday Financial Management Mark Nittler – VP Financial Solution Strategy
Stuff Happens
…Can’t get There From Here
Traditional ERP
Heavy Complex Expensive Rigid Irrelevant
Market Ideal
Light Simple Economical Agile Relevant
The significant problems we face today cannot be solved at the same level of thinking we were at when we created them. ”
“
26
A New Level of Thinking
New Delivery New Technology New Approach
Other Systems
Accounting Centric Architecture – Today
AP Journal Entry
AR Journal Entry
Pay Journal Entry
HR
Business Intelligence System
Data Warehouse
Financial & Statutory Reporting
Data Mart
Dashboards, Scorecards & Spreadsheets
Summary Lines
Accounts
Journals
Workflow
Segregation of Duties
Security
Unified Finance
WORKDAY CONFIDENTIAL
Governance, Risk & Compliance
Transaction Processing
Reporting & Analysis
Transactions Efficient & Accurate Accounting
Governance Effective, Proactive Controls
Analysis Actionable Business Insight
New Assumptions
• Business is about commerce
• Business is about commerce
• The whole business wants good information
• Business is about commerce
• The whole business wants good information
• Assume you have a computer
Workday Business First Architecture
Workflow
Segregation of Duties
Security
Other Systems
HR
Business Intelligence System
Financial & Statutory Reporting
Data Mart
Dashboards, Scorecards & Spreadsheets
Summary Lines
Accounts
Journals
Data Warehouse
Buy Sell Receive Pay
Financial & Statutory Reporting
Dashboards, Scorecards & Spreadsheets
Summary Lines
Accounts
Journals
Data Warehouse
AP Journal Entry
AR Journal Entry
Pay Journal Entry
Security Segregation of Duties
Workflow
Workday Business First Architecture
Summary Lines
Accounts
Journals
Event Repository
Buy Sell Receive Pay
Financial & Statutory Reporting
Dashboards, Scorecards & Spreadsheets
Agility
Organization • Org Model
Process • Business
Process Framework
Information • Worktags
Integration • Studio
Workday Financials Demo Laurie Wood
Director of Product Marketing, Workday Financials
Key Takeaways
ERP Financial Management Systems have become costly and complex
The cloud offers finance agility and faster accounting/reporting processes without the burdens of costly IT infrastructure
Workday is taking a leadership position in the market by offering a unified, world class, Financial Management solution (HR-Payroll-Financials-Expenses-Procurement)
WORKDAY CONFIDENTIAL
Thank You!
For More Information:
Email/Follow Paul Hamerman:
[email protected] Twitter: @paulhamerman
Meet Workday Financials: http://www.workday.com/applications/financial_management.php
Attend a Workday Live Demo: http://www.workday.com/resources/workday_live.php
Contact Workday: +1.925.951.9000
