Decisions Slide 1

The Cloud, CPM and the CFO

Decisions Slide 2

Agenda

•  Priorities in finance and best practices •  History of financial applications •  Bringing Value •  Customer success through the cloud •  Wrap up

Decisions Slide 3

What is Driving Change?

Decisions Slide 4

The Evolving Role of Finance

Bean  Counter  Reac-ve  

“2000  and  late”  Rigid  Data  

Report  Business    Results  

Business  Partner  Pro  ac-ve  Real  -me  Flexible  

Informa-on  

DRIVE  BUSINESS    RESULTS  

Technology      is  a  key  enabler  

Decisions Slide 5

Spreadsheets

Decisions Slide 6

What’s Wrong With Spreadsheets?

•  Not built for a process •  Prone to error •  Not built for collaboration •  Unstructured documentation •  Invisible dependencies •  Lack of flexibility •  Little modularity support •  No separation of data to end-user interface •  Changing is major surgery •  Too much time! •  …The list goes on... ….Too much time on non value

added activities"

Decisions Slide 7

Priorities

•  Drive Decision-making •  Elevate the Role of Finance •  Visibility and Performance Management •  Buy from vendors who know finance

Decisions Slide 8

What We Are Hearing

•  Need functional decisions to incorporate financial implications

•  Strategic plan is not driven into operations

•  Difficulty with scenario modeling

•  Need for variance analysis, ad hoc reports and dashboards

•  Reporting deficiencies, lack of out of the box finance support

•  No version control, broken links, errors and long nights

Better Performance

Process Efficiency

Decisions Slide 9

Bringing value – Data and Process &Technology

Decisions Slide 10

Getting the process right

Adjust      Currency,  Intercompany,  Journals  

Close  

Collect  

Report  Management,  Legal,  External  

Average   World  class  

Time  spen

t  on  close  ac>vi>es  

12  days  

6  days  

2  days  

Analyze  

Adjust    

Close  

Collect  

Report  

Analyze  and  

Forecast  

More  >me  for  analysis  

Less    >me  on  

mechanics  

 Freeing  up  -me  for  beGer  planning  

Decisions Slide 11

Enhanced visibility starts with better data

Your Company

Exchange Rates

Operational Data

Financial Data

Industry Benchmarks

Leading Indicators

Decisions Slide 12

Corporate Metrics

Weekly Monthly Quarterly

Functional Metrics

vs. Budget

vs. Benchm

arks

Bookings, MRR Pipeline Customer Count Cash, CF, AR, AP Headcount

Trends/Time

Responses Opportunities Website hits Customer Portal Activity Support tickets Customer usage

Summary GAAP Financials Customer Churn DSO

Detailed GAAP Financials NPS Partner Count

Time to Activate Employee Retention Win/Loss Rates Product Mix

Uptime PM Utilization Ticket resolution time Bug count

Frequency C

ontext

Drive decision making with broader access to data

Decisions Slide 13

Result of implementing new technology

Decisions Slide 14

Result of using SaaS technology

Decisions Slide 15

What new Technology Brings

Performance  

Right  features  

Driven  by  vendor  Technology  agnos-c  

Customiza-on    

Ease  Of  Use  

Benchmarks    

Best  people  on  the  right  problems  

Integra-on  of  efforts  and  avoid  silos  

Vendor    agnos-c  

Enabled  by  cloud  

Low  ongoing  costs  

Low  ini-al  costs  

Driven  by  vendor  Helped  by  cloud   Access  to  latest  func-onality  

Decisions Slide 16

Basic

Customization

Discrete

Simple

Finance

Soloed data

Separate apps

Upfront $$$$$

Sophisticated

Configuration

Integrated

Multidimensional

Cross Functional

Collaborative

Integrated

Features  

Process  

Data  

People  

Effort  

Architecture  

Flexibility  

Economics   Pay As You Grow

Love  ‘em  and

 leave  ‘em  

Busine

ss  Partner  

Effect of new technology

Decisions Slide 17

Putting This into Practice Realizing the Value

Cervello

Decisions Slide 18

Introduction to Cervello

Cervello helps companies improve their analytics and planning capabilities. We take an innovative approach to making complex solutions simple so our clients can focus on running their businesses and serving their customers. Our services and applications enable our mid-market, enterprise, and business services clients to gain the benefits of a world class analytics and planning without the headaches. Cervello is one of Host Analytics’ premiere partners and was recognized as Partner of the Year for 2010.

Decisions Slide 19

A model for better management - CPM

Decisions Slide 20

On-Premise SaaS*

Two major categories of solutions that enable CPM on a sustainable basis

* attributes of SaaS •  Multi-tenant •  No hardware •  Lower implementation costs •  Upgrades part of subscription •  Predictable cost structure •  Scalable

Decisions Slide 21

Why SaaS?

•  The cloud (and SaaS) is a significant macro trend in enterprise software for both startups and existing players

•  SaaS offers a more compelling value proposition

Decisions Slide 22

Why SaaS? – in line with macro trends

•  nearly every business application start-up in the past 10 years is principally offered as SaaS

•  all of the large, on-premise software companies acknowledge this trend are are attempting to get there

•  there are 13 public SaaS companies with a combined market cap of over $35B and the SaaS category is growing at a 20% CAGR

•  according to Gartner Group estimates, SaaS applications accounted for a little more than 10% of total enterprise software market last year and should reach at least 16% by 2014

Decisions Slide 23

Why SaaS? – better value proposition

1.  Lower TCO and faster ROI o  Predictable and comprehensive cost structure o  Faster application development o  Less application maintenance

2.  World class environment owned by finance o  Very little support needed from IT o  Maintenance and upgrades owned by vendor o  Rapid product innovation and top tier security

3.  Focus on the business solution o  Technology platform owned by vendor o  Will scale with you as you grow

4.  Value added services o  Benchmarking and external data o  Application modules and templates

Decisions Slide 24

Common issues raised in buying process

•  Security of the data – everyone

•  General awareness of the solution category – specialty manufacturing company

•  Finance control – national restaurant chain

•  IT control – media company

Decisions Slide 25

Common reasons people adopt SaaS

•  Innovative thinkers (probably are already using other SaaS apps)

•  Recognize cost vs. value and time to value are big benefits

•  Don’t have the bandwidth to support complicated on-premise apps

•  Want significantly less dependence on IT

Decisions Slide 26

Case Study: Public Medical Device Company

•  The Business Challenge –  Finance team wanted to get

control of operational data –  Struggling with too much time

spent on budget, forecast, and variance reporting

–  Goal: Better integration of financial and operational data

–  Goal: Executive reporting (e.g., through dashboards) including the sales pipeline

•  The Company –  Medical device manufacturer –  Over $160mm in revenues –  3 different markets –  Rapidly growing revenues –  30%+ improvement in gross

margins in last year –  Acquisition of competitor in

last year

Decisions Slide 27

Data Warehouse

GL1 Inventory

Export  

Data Management Layer (Trusted Network)

SaaS Layer (CPM, BI and CRM)

Data Source Layer (ERP)

Planning (Bud, Fcst, Reporting, Variance Analysis)

Dashboards & Analytics (Ad Hoc Analysis, Time Series, KPIs)

Import  

GL2

Case Study: cloud based integrated CPM

Decisions Slide 28

Conclusion

•  Promoting fact-based decisions throughout the corporation is key

•  The cloud will help you realize the value with less investment

•  SaaS financial applications can –  Elevate the role of finance quickly –  Add rigor into financial processes without increased overhead –  Expand collaboration across the corporation without increasing

associated infrastructure

Decisions Slide 29

Thank You