Revenue Operations Management: Building a Finance Technology Strategy to Optimize Your Cash Flow


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Learn how to deliver effective revenue operations management, critical to the success of the entire enterprise, via this recorded session from Transverse. Effective revenue operations management is critical to the success of the entire enterprise, but it can be inhibited by complex sets of manual processes and systems, numerous stakeholders and the need to collect and manage vast amounts of information. Join finance and technology leaders to hear how they are eliminating barriers and challenges to revenue operations management and prioritizing Finance Technology investments to support and influence cross-functional alignment around revenue strategy.

Speaker: Chris Couch, COO and Co-Founder, Transverse

Presentation delivered at ProformaTECH 2014 -
Track: Finance Technology Landscape | Session: 3

Published in: Business
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Revenue Operations Management: Building a Finance Technology Strategy to Optimize Your Cash Flow

  1. 1. Revenue Operations Management: Building a Finance Technology Strategy to Optimize Your Cash Flow Chris Couch Co-Founder and COO, Transverse LLC
  2. 2. Transverse Headquartered in Austin, TX Founded in 2008 $40M+ in private funding Leading provider of cloudbased Revenue Operations solutions for mid and large enterprises Over 50 customers 2 © 2014 Proformative
  3. 3. Agenda Define Revenue Operations Survey of challenges, barriers and priorities Three principals of Revenue Operations innovation Innovation strategies Innovation examples Q&A
  4. 4. What is Revenue Operations? Billing and Collections Sales Holistic view of end-to-end revenue management across multiple parts of an organization Spans all data, systems and resources necessary to produce and account for revenue Complex, multi-step cycle usually with cumbersome, manual processes, disparate technologies 4 © 2014 Proformative Revenue Operations Customer Management Finance
  5. 5. What Activities Are Involved With Revenue Operations? Order to cash processes Revenue recognition Sales reporting Revenue accounting Revenue forecasting Assurance and compliance 5 Booking execution Billing and collections © 2014 Proformative
  6. 6. Survey Of Challenges, Barriers and Priorities
  7. 7. Aberdeen Survey Methodology Best-in-Class Survey Questions Total Respondents: 239 respondents across multiple industries are scored individually across standard KPIs 7 © 2014 Proformative Industry Average Laggard
  8. 8. Barriers and Challenges to Finance Departments • Majority are hamstrung by manual processes and disparate technologies • 93 percent use spreadsheets for critical revenue processes • Majority perform nearly 85 percent of internal controls manually • Almost 50 percent reconcile their revenue accounts manually • 40 percent can only accurately forecast three months in advance • 82 percent lack full visibility into areas of profit and loss • Business processes most vulnerable to fraud, leakage and error are in procurement and revenue reporting • 41 percent cite a lack of staff resources and headcount necessary to scale • 28 percent have difficulty consolidating information from multiple data sources 8 © 2014 Proformative
  9. 9. Common Concerns • More data and higher demands are increasing volatility and risk. There is simply more for organizations to see, understand and react to. • To compete, organizations must be flexible and fast, able to adapt and respond to market conditions as they shift and change. 9 © 2014 Proformative
  10. 10. Priorities / Themes of Success in Revenue Operations Maximize Revenue: By capturing value from every opportunity. Better, Faster Decisions: Company wide access to accurate real-time information in a usable form. Drive Efficiency Up & Costs Down: Drive out waste and increase performance of systems, processes and people across the entire organization. Responding to Change: Meet dynamic demands and solve problems as they emerge without being limited by resource constraints. Mitigate Risk: By providing visibility across revenue impacting operations to get ahead of risks before they materialize. Accelerate Innovation: Remove friction in the introduction of new products, services, and business capabilities. 10 © 2014 Proformative
  11. 11. Three Principals of Revenue Operations Innovation Automation Integration Insight 11 © 2014 Proformative
  12. 12. The Common Revenue Operations Environment People Processes Systems 12 © 2014 Proformative Data
  13. 13. Applying the Principals of Automation, Integration and Insight Common Alerts 13 © 2014 Proformative Common Reports Automated Processes Constant Monitoring
  14. 14. Innovation Strategy
  15. 15. Revenue Operations Innovation in Market Leaders Leaders Followers Billing and collections integrated with order entry and credit with no duplicate data entry 70% 37% Standardized / automated enterprise-wide procedures for order fulfillment 64% 43% Automated A/R and revenue recognition 67% 47% Real-time visibility into outstanding invoices and related customer information 82% 31% Real-time visibility into current revenue exceptions by customer, problem type, etc. 68% 21% Electronic interfaces to banks and trading partners 82% 58% Revenue performance dashboards 68% 31% Order flow automation 59% 30% 15 © 2014 Proformative
  16. 16. Mean Class Performance Leaders 6.1% of A/R past due 1.1 days for payments to clear A/R ledger 11.7% of require manual intervention 16 © 2014 Proformative Followers 8.8% of A/R past due 6.9 days for payments to clear A/R ledger 30.1% of invoices require manual intervention
  17. 17. Making the Case for Integration 17 © 2014 Proformative
  18. 18. Example Innovations
  19. 19. Example 1 - Prepurchased Volume of Transactions Resulted in a 20%+ increase in month over month revenue Enterprise wide real-time visibility into customer consumption 19 © 2014 Proformative
  20. 20. Example 2 - Publicly Traded eCommerce Company (Sales Based on Revenue Share) Reduced bill period close to 2 days DSO by a significant number of days Cut audit costs and time by 15% 20 © 2014 Proformative
  21. 21. Q& A 21 © 2014 Proformative
  22. 22. Thank You For Attending Revenue Operations Management: Building a Finance Technology Strategy to Optimize Your Cash Flow