Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Raking in Revenue: Optimizing Order-t...
•

•
•
•

Understand key attributes of a successful Accounts Receivable
department

•

Understand the market drivers compelling o...
Leveraging AR Automation to
Optimize Order-to-Cash:
Featuring Aberdeen Group

Ankita Tyagi
Research Analyst
Financial Mana...
–

–

–

–

–
•
•
•

•
•
Aberdeen’s Methodology

External and internal forces that impact an organization’s
ressures: market position, competitiven...
Aberdeen’s Methodology

Best-in-Class

Percentage of AR past due
Number of days to clear A/R ledger

Total
Respondents:

I...
Aberdeen’s Methodology

What are Best-in-Class companies
doing differently?
What pitfalls are they avoiding?

Pressures:

...
Pressure to reduce Days Sales Outstanding
(DSO)

59%

Pressure to reduce overall costs

45%

Customer pressure to extend p...
•
•
•

•
•
–
–
57%

Increase the usage of electronic invoicing

25%

Streamline administrative processes to

43%
49%

remove non-value-ad...
Leaders

Process

Organization

Knowledge

Technology

Followers

Billing and collections are integrated with order entry ...
Definition of Maturity
Class

Mean Class Performance

Leaders:
Top 30%
of aggregate performance
scorers





6.1% of A/...
Source: Integrated Accounting Platform: Achieving Accuracy and Efficiency at a Lower Cost, September 2013
Source: Integrated Accounting Platform: Achieving Accuracy and Efficiency at a Lower Cost, September 2013
•
•

•
•
Leveraging AR Automation to
Optimize Order-to-Cash:
Featuring Aberdeen Group

CFO as a Catalyst for Change
COO and Co-foun...
• Co-founded in 2008 by finance technology veterans with extensive experience solving
the toughest order-to-cash challenge...
-

The Salesforce.com shake up: CIO is no longer the gate keeper in major IT buying decisions
Innovations in Cloud technol...
Product
Management

Auditing

You are here.

Order
Management

Product Catalog

General
Ledger

Payment and
Collections

R...
Self Signup
Self Service Orders

Invoices
Payment
ERP Integration

CRM / Order Systems
AR Automation

FULFILLMENT

Activit...
Digital Security Company with
High Volume of Usage Data
Manual AR:
•

60,000+ row spreadsheet

•

Lost Orders

•

Revenue ...
Manual AR:

Automated AR:

•

3.5 weeks to close billing period

•

Usage Collection and Rating

•

6 Individual Spreadshe...
Improves Cash Flow

Reduces Revenue Leakage
Manages Revenue Recognition
Increases Customer Satisfaction
Boosts Profitabili...
THANK YOU
Please join us at www.proformative.com to ask any
additional questions you may have and to continue this
conversation with...
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Raking in Revenue: Optimizing Order-to-Cash Cycle (O2C) by Automating Accounts Receivable

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For most organizations, the Order-to-Cash (O2C) cycle is a complex, multi-step process that involves order creation, fulfillment, shipping & distribution, invoice generation, payment collection, receipt and finally, closing the books. AR automation not only helps shorten the cash conversion cycle and improve operational excellence, it allows finance executives to build a solid foundation for a holistic, sustainable O2C cycle.

Join us as Aberdeen Group and Transverse discuss how leading organizations are leveraging AR leverage automation to fuel business growth. Content will focus on actionable advice and best practices for improving AR efficiency as well as real-world examples illustrating how manual processes can impede response time (and customer service).

Published in: Business, Economy & Finance
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  • Tools to automate the entire order-to-cash process. Revenue recognitionBilling and invoicing AutomationPayment and collectionsProduct catalogOrder managementReportingERPGLSupportCore productProduct/pricing/order mgmt.Revenue assurance Audit & complianceProduct / Offer ManagementBilling / InvoicingRevenue RecognitionOrder Management and FulfillmentTaxationPayment ProcessingCollectionsBusiness AnalyticsAudit and Compliance Reporting
  • Improves customer-to-resources ratioAudits/complianceDecreases instance of human errorReduces risk of losing IP or critical info when employees leaveSpeeds time-to-market for new productImproves customer satisfaction by eliminating under/overbilling
  • Raking in Revenue: Optimizing Order-to-Cash Cycle (O2C) by Automating Accounts Receivable

    1. 1. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals Raking in Revenue: Optimizing Order-to-Cash Cycle (O2C) by Automating Accounts Receivable Chris Couch, Chief Operations Officer, Transverse Ankita Tyagi, Research Analyst, Aberdeen Group
    2. 2. • • •
    3. 3. • Understand key attributes of a successful Accounts Receivable department • Understand the market drivers compelling organizations to improve current billing and payment processing systems • Identify key challenges faced and benefits realized in automating AR • Understand key Order-to-Cash Cycle performance benchmarks
    4. 4. Leveraging AR Automation to Optimize Order-to-Cash: Featuring Aberdeen Group Ankita Tyagi Research Analyst Financial Management & GRC Aberdeen Group
    5. 5. – – – – –
    6. 6. • • • • •
    7. 7. Aberdeen’s Methodology External and internal forces that impact an organization’s ressures: market position, competitiveness, or business operations. P Actions: C The strategic approaches that an organization takes in response to industry pressures. The business competencies (organization, process, etc…) apabilities: required to execute corporate strategy. Enablers: The key technology solutions required to support the organization’s business practices.
    8. 8. Aberdeen’s Methodology Best-in-Class Percentage of AR past due Number of days to clear A/R ledger Total Respondents: Industry Average Extent of manual intervention Respondents are scored individually across KPI Laggard
    9. 9. Aberdeen’s Methodology What are Best-in-Class companies doing differently? What pitfalls are they avoiding? Pressures: External and internal forces that impact an organization’s market position, competitiveness, or business operations. Actions: The strategic approaches that an organization takes in response to industry pressures. Why are they achieving greater success? Capabilities: required to execute corporate strategy. What technologies and services are enabling them to succeed? Enablers: The business competencies (organization, process, etc…) The key technology solutions required to support the organization’s business practices.
    10. 10. Pressure to reduce Days Sales Outstanding (DSO) 59% Pressure to reduce overall costs 45% Customer pressure to extend payment terms 19% Risk of customer non-payment or default 19% Customer demand to improve service levels 19% 0% 10% 20% 30% 40% 50% 60% Percent of Respondents n=75 70%
    11. 11. • • • • • – –
    12. 12. 57% Increase the usage of electronic invoicing 25% Streamline administrative processes to 43% 49% remove non-value-added steps 35% Invest in automation of A/R processes 39% 0% Leaders 17% Harmonize A/R processes Followers 16% 10% 20% 30% 40% 50% Percent of Respondents, n=75 60%
    13. 13. Leaders Process Organization Knowledge Technology Followers Billing and collections are integrated with order entry and credit with no duplicate data entry 70% 37% Standardized enterprise-wide procedures for order fulfillment, delivery, and shipment 64% 43% Centralized A/R in corporate HQ or shared services center 67% 47% Real-time visibility into outstanding invoice volumes and status 82% 31% Real-time visibility into current exceptions by customer, problem type, etc. 68% 21% Electronic interfaces to banks 82% 58% Performance dashboards 68% 31% Electronic workflow automation 59% 30%
    14. 14. Definition of Maturity Class Mean Class Performance Leaders: Top 30% of aggregate performance scorers    6.1% of A/R past due 1.1 days for payments to clear A/R ledger 11.7% of require manual intervention Followers: Remaining 70% of aggregate performance scorers    8.8% of A/R past due 6.9 days for payments to clear A/R ledger 30.1% of invoices require manual intervention
    15. 15. Source: Integrated Accounting Platform: Achieving Accuracy and Efficiency at a Lower Cost, September 2013
    16. 16. Source: Integrated Accounting Platform: Achieving Accuracy and Efficiency at a Lower Cost, September 2013
    17. 17. • • • •
    18. 18. Leveraging AR Automation to Optimize Order-to-Cash: Featuring Aberdeen Group CFO as a Catalyst for Change COO and Co-founder Chris Couch
    19. 19. • Co-founded in 2008 by finance technology veterans with extensive experience solving the toughest order-to-cash challenges • A corporate finance solutions company, not an IT vendor
    20. 20. - The Salesforce.com shake up: CIO is no longer the gate keeper in major IT buying decisions Innovations in Cloud technology aligns buying decisions with broader business goals Decisions are being made at the line-of-business level Technology viewed as an investment in the business
    21. 21. Product Management Auditing You are here. Order Management Product Catalog General Ledger Payment and Collections Revenue Assurance ERP Reporting Business Assurance Order Management Revenue Recognition Billing and Invoicing Taxation Business Analytics
    22. 22. Self Signup Self Service Orders Invoices Payment ERP Integration CRM / Order Systems AR Automation FULFILLMENT Activities Notifications Balances Events SERVICE USAGE © 2013 Proformative. Proprietary and confidential Your Service or Application
    23. 23. Digital Security Company with High Volume of Usage Data Manual AR: • 60,000+ row spreadsheet • Lost Orders • Revenue Leakage from lost “re-ups” Invoices Payment ERP Integration Automated AR: • Order Management • Usage Collection and Rating • Action Framework • Agreement Management AR Automation FULFILLMENT Activities Notifications Balances Events © 2013 Proformative. Proprietary and confidential SERVICE USAGE Your Service or Application
    24. 24. Manual AR: Automated AR: • 3.5 weeks to close billing period • Usage Collection and Rating • 6 Individual Spreadsheets • Order Management • Complex Orders and Revenue Recognition • Revenue Recognition • Compliance Reporting • Invoices Payment ERP Integration High Audit Costs CRM / Order Systems AR Automation FULFILLMENT Your Service or Application Activities Notifications Balances Events SERVICE USAGE © 2013 Proformative. Proprietary and confidential
    25. 25. Improves Cash Flow Reduces Revenue Leakage Manages Revenue Recognition Increases Customer Satisfaction Boosts Profitability Speeds Time-to-Market Increases Business Assurance Frees Valuable Resources Minimizes Instances of Human Error
    26. 26. THANK YOU
    27. 27. Please join us at www.proformative.com to ask any additional questions you may have and to continue this conversation with your peers and the experts you heard from today. If you have questions about CPE Credit, please send an email to cpe@proformative.com
    28. 28. Sponsor

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