THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS

Reducing Risk in a Dynamic
Environment with the C...
Welcome to Proformative
Proformative is the largest and fastest growing online resource
for senior level corporate finance...
Learning Objectives
After participating in this event you will be able to:
 Understand the risk areas exposed in a rapidl...
THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS

Reducing Risk in a Dynamic
Environment with the C...
What We Worry About

• Risk

• Surprises
• Cost

5

© 2013 Proformative. Proprietary and confidential
What We Do
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

6

© 2013 Proformative. Proprietary and confidential

Accounting/reporting
Plan...
Risk Areas Exposed by Rapid Change

• Control risk
– Inflexible, antiquated systems
– Inadequate audit trails

• Misstatem...
What A CFO Needs
What a CFO Needs
• Efficient and effective processes and systems
• The right, accurate metrics on demand
...
Excel And Email Is Risky

© 2013 Proformative. Proprietary and confidential
What Is Enterprise Performance Management?

Enterprise Performance Management
(EPM = CPM = FPM ≠ BI ≠ ERP)
Planning

To im...
How Does EPM Reduce Risk?
• Strengthens Control Environment
– Controlled financial consolidations
– Built-in audit trails
...
But EPM Projects Introduce Different Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software

Missed ta...
The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Cloud: Missed targ...
The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target date...
The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target date...
The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target date...
The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target date...
The Cloud Lowers EPM Project Risks
EPM Project Risks
Doesn't meet expectations
Budget overruns software

Missed target dat...
The Cloud Lowers EPM Project Risks
Doesn't meet expectations
Budget overruns software
Missed target dates

Lack of end-use...
Why Software Buyers Choose The Cloud
Why Did You Choose Cloud?
Improved business agility

Improved focus
Speed of implemen...
Is The Cloud Secure?
• Security, privacy
–
–
–
–
–

No more Excel security risks
No more out-of-date/un-patched software –...
Consider Platform Risk
“We expect SaaS to become the primary FPM deployment model within three to five years.”
- Paul Hame...
Summary
• Excel and email are not ERP/BI/EPM solutions
• Extensive historic EPM deployment
• All enterprise applications a...
Thank You

© 2012 Proformative. Proprietary and confidential
THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS

Reducing Risk in a Dynamic
Environment with the C...
Introduction to Planar
Planar is your choice for Premier
Display Solutions
From desktop monitors to video walls. From
info...
Introduction to Planar

© 2011 Proformative. Proprietary and confidential
Planar Products

ARCHITECTURAL DISPLAYS

LCD VIDEO WALLS

LARGE FORMAT LCDS
REAR PROJECTION VIDEO WALLS
AND IMAGE PROCESSI...
Planar Products
Clarity Matrix LCD Video Wall
Chesapeake Energy Arena
Home of the NBA’s Oklahoma City Thunder

© 2011 Prof...
Planar Products
Clarity Matrix LCD Video Wall
Pavillon De L’ Arsenal — Museum in Paris, France

30

Confidential | Planar ...
Three Buckets Of Risks

Financial Risk

Technology Risk

Team Risk

• Missing plan
• Compliance risk
• Confidentiality ris...
Turn To EPM Solution To Minimize Plan Risk

Challenge

Solution

• Missing plan
• Surprise miss
• Currency risks

•
•
•
•
...
Turn To Cloud-based EPM To Minimize
Compliance Risk

Challenge

Solution

•
•
•
•
•

• “Audit-as-a-Service”
– SOX complian...
Turn To Cloud-based EPM To Minimize
Confidentiality Risk

Challenge

Solution

• Keep HR and comp info private
• Weak priv...
Turn To Cloud-based EPM Solution To
Minimize Service-level Risk

Challenge
• Long ERP implementation
• Units flying blind
...
Turn To Cloud-based EPM To Minimize
System Failure Risk

Challenge

Solution

•
•
•
•

• Cloud infrastructure
– World-clas...
Turn To Cloud-based EPM To Minimize
Complexity Risk
Challenge

Solution

• Managing too many systems
• Requires more IT st...
Turn To Cloud-based EPM To Minimize
Team Retention Risk

Challenge

Solution

• Exit interviews revealed that
• Provide mo...
Turn To Cloud-based EPM To Minimize
Key-man Risk

Challenge

Solution

• If I get hit by a bus, can someone
pick-it up
• T...
Thank You

© 2012 Proformative. Proprietary and confidential
Make Note…

Please join us at www.proformative.com to ask any
additional questions and to continue this conversation
with ...
Sponsor

© 2011 Proformative. Proprietary and confidential
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Reducing Risk in a Dynamic Environment with the Cloud

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Understanding and effectively managing financial and operational risk exposures is a challenge faced by companies of all sizes. Finance leaders are increasing taking ownership of risk management at their companies in addition to taking on more direct leadership of company growth initiatives. Discover how Finance leaders from fast-growing start-ups to the Fortune 500 are turning to the Cloud to help them identify, mitigate, and manage dynamic risk exposures across the enterprise, and allowing them to focus more on driving company growth and shareholder value. This webinar will feature a case study detailing how one company has successfully leveraged the cloud in elevating the effectiveness of its risk management programs while subsequently driving successful growth initiatives.

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  • Conducted January 2013 – April 2013 226 valid responses Across all geographies, largest group of respondents (88%) in North America Across all industries, largest group of respondents (≈11-16% each) in manufacturing, healthcare, financial services, and service organizations Company size: 8% small, 63% midmarket, 29% large/enterprise Mix of finance, IT, and operations respondents with largest group (57%) finance manager/VP/Controller/CFO
  • Conducted January 2013 – April 2013 226 valid responses Across all geographies, largest group of respondents (88%) in North America Across all industries, largest group of respondents (≈11-16% each) in manufacturing, healthcare, financial services, and service organizations Company size: 8% small, 63% midmarket, 29% large/enterprise Mix of finance, IT, and operations respondents with largest group (57%) finance manager/VP/Controller/CFO
  • Conducted January 2013 – April 2013 226 valid responses Across all geographies, largest group of respondents (88%) in North America Across all industries, largest group of respondents (≈11-16% each) in manufacturing, healthcare, financial services, and service organizations Company size: 8% small, 63% midmarket, 29% large/enterprise Mix of finance, IT, and operations respondents with largest group (57%) finance manager/VP/Controller/CFO
  • Conducted January 2013 – April 2013 226 valid responses Across all geographies, largest group of respondents (88%) in North America Across all industries, largest group of respondents (≈11-16% each) in manufacturing, healthcare, financial services, and service organizations Company size: 8% small, 63% midmarket, 29% large/enterprise Mix of finance, IT, and operations respondents with largest group (57%) finance manager/VP/Controller/CFO
  • Conducted January 2013 – April 2013 226 valid responses Across all geographies, largest group of respondents (88%) in North America Across all industries, largest group of respondents (≈11-16% each) in manufacturing, healthcare, financial services, and service organizations Company size: 8% small, 63% midmarket, 29% large/enterprise Mix of finance, IT, and operations respondents with largest group (57%) finance manager/VP/Controller/CFO
  • Conducted January 2013 – April 2013 226 valid responses Across all geographies, largest group of respondents (88%) in North America Across all industries, largest group of respondents (≈11-16% each) in manufacturing, healthcare, financial services, and service organizations Company size: 8% small, 63% midmarket, 29% large/enterprise Mix of finance, IT, and operations respondents with largest group (57%) finance manager/VP/Controller/CFO
  • Conducted January 2013 – April 2013 226 valid responses Across all geographies, largest group of respondents (88%) in North America Across all industries, largest group of respondents (≈11-16% each) in manufacturing, healthcare, financial services, and service organizations Company size: 8% small, 63% midmarket, 29% large/enterprise Mix of finance, IT, and operations respondents with largest group (57%) finance manager/VP/Controller/CFO
  • Conducted January 2013 – April 2013 226 valid responses Across all geographies, largest group of respondents (88%) in North America Across all industries, largest group of respondents (≈11-16% each) in manufacturing, healthcare, financial services, and service organizations Company size: 8% small, 63% midmarket, 29% large/enterprise Mix of finance, IT, and operations respondents with largest group (57%) finance manager/VP/Controller/CFO
  • Instructions:Pitch Forrester, as an independent research firm. The data is their insight on customer buying criteria. Don’t pitch Host Analytics yet. Use this slide as a way to introduce cloud benefits then re-enforce them with our story.Talk track:Why are companies choosing the cloud? Here are the top six reasons from Forrester, a technology research firm. They surveyed 920 software decision makers at firms that are using or planning to use software as a service. What’s interesting is that they uncovered that companies are not just valuing the lower overall cost of the Cloud. Companies are also choosing the Cloud for business value.Discovery questions:Open: What do you think the benefits of the cloud are for your organization?Probe: Of these 6 benefits of cloud computing, which one is most important to you?Confirm:
  • Conducted January 2013 – April 2013 226 valid responses Across all geographies, largest group of respondents (88%) in North America Across all industries, largest group of respondents (≈11-16% each) in manufacturing, healthcare, financial services, and service organizations Company size: 8% small, 63% midmarket, 29% large/enterprise Mix of finance, IT, and operations respondents with largest group (57%) finance manager/VP/Controller/CFO
  • Reducing Risk in a Dynamic Environment with the Cloud

    1. 1. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS Reducing Risk in a Dynamic Environment with the Cloud
    2. 2. Welcome to Proformative Proformative is the largest and fastest growing online resource for senior level corporate finance, treasury, and accounting professionals. A resource where corporate finance and related professionals excel in their careers through:  Uniquely valuable, online Peer Network  Direct subject-matter-expert advice  Valuable Features and Resources All of it completely noise-free Check it out at www.proformative.com © 2013 Proformative. Proprietary and confidential
    3. 3. Learning Objectives After participating in this event you will be able to:  Understand the risk areas exposed in a rapidly changing economic and business environment.  Recognize the Finance business goals impacted by change and risk management  Identify areas that cloud-based financial applications can help manage change and risk © 2013 Proformative. Proprietary and confidential
    4. 4. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS Reducing Risk in a Dynamic Environment with the Cloud Ian Halifax, CMA, CPA Chief Financial Officer Host Analytics
    5. 5. What We Worry About • Risk • Surprises • Cost 5 © 2013 Proformative. Proprietary and confidential
    6. 6. What We Do 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 6 © 2013 Proformative. Proprietary and confidential Accounting/reporting Planning/forecasting Analytics/intelligence Regulatory requirements (SEC, SOX) Taxation Treasury/cash management External /internal audit Investor/BOD relations Mergers and acquisitions Systems infrastructure
    7. 7. Risk Areas Exposed by Rapid Change • Control risk – Inflexible, antiquated systems – Inadequate audit trails • Misstatement risk – Multiple data sources – Manual process mean higher risk of errors • Forecast risk – Data accuracy – Timeliness – data aggregation versus data analysis 7 © 2013 Proformative. Proprietary and confidential
    8. 8. What A CFO Needs What a CFO Needs • Efficient and effective processes and systems • The right, accurate metrics on demand • Run rapid forecast scenarios • Flexibility to manage change (e.g. M&A) • Credible voice • Ability to move very quickly • Rapid enterprise application deployment What Best-In-Class Means • No surprises • Right performance on demand • Powerful early warning system for the organization • Happy auditors • CFO sleeps at night © 2013 Proformative. Proprietary and confidential
    9. 9. Excel And Email Is Risky © 2013 Proformative. Proprietary and confidential
    10. 10. What Is Enterprise Performance Management? Enterprise Performance Management (EPM = CPM = FPM ≠ BI ≠ ERP) Planning To improve Insight Actionable Analytics Close Accountability Across the org Speed Faster processes Reporting © 2013 Proformative. Proprietary and confidential
    11. 11. How Does EPM Reduce Risk? • Strengthens Control Environment – Controlled financial consolidations – Built-in audit trails • Improves Data Integrity – Central source of truth – Lower chance of manual errors • Enhances Forecasting Capability – More time for analysis and scenario modeling – Early warning system: faster and broader visibility of key metrics © 2011 Proformative. Proprietary and confidential
    12. 12. But EPM Projects Introduce Different Risks EPM Project Risks Doesn't meet expectations Budget overruns software Missed target dates Lack of end-user acceptance Project stalls Selecting wrong vendor Budget overruns services 0 10 20 30 40 50 60 70 Percent of total respondents N=226 Source: BPM Partners “The Pulse of Performance Management 2013” © 2013 Proformative. Proprietary and confidential 80
    13. 13. The Cloud Lowers EPM Project Risks EPM Project Risks Doesn't meet expectations Budget overruns software Cloud: Missed target dates • No more drive-by software selling of large up-front software and hardware Lack of end-user acceptance purchases • Lack of infrastructure means you can start-small, then phase in additional Project stalls processes, departments, and users • Cloud vendors must win your business every year. They are more aligned to Selecting wrong vendor meet customer expectations. Budget overruns services 0 10 20 30 40 50 60 70 Percent of total respondents N=226 Source: BPM Partners “The Pulse of Performance Management 2013” © 2013 Proformative. Proprietary and confidential 80
    14. 14. The Cloud Lowers EPM Project Risks EPM Project Risks Doesn't meet expectations Budget overruns software Missed target dates Cloud: Lack of end-user acceptance • No hidden costs • Predictable Project stalls ongoing subscription Selecting wrong vendor Budget overruns services 0 10 20 30 40 50 60 70 Percent of total respondents N=226 Source: BPM Partners “The Pulse of Performance Management 2013” © 2013 Proformative. Proprietary and confidential 80
    15. 15. The Cloud Lowers EPM Project Risks EPM Project Risks Doesn't meet expectations Budget overruns software Missed target dates Lack of end-user acceptance Cloud: Project stalls • Faster implementation, less implementation fatigue Selecting wrong vendor Budget overruns services 0 10 20 30 40 50 60 70 Percent of total respondents N=226 Source: BPM Partners “The Pulse of Performance Management 2013” © 2013 Proformative. Proprietary and confidential 80
    16. 16. The Cloud Lowers EPM Project Risks EPM Project Risks Doesn't meet expectations Budget overruns software Missed target dates Lack of end-user acceptance Project stalls Cloud: • Only need a wrong vendor Selecting browser • No VPN interruption issues • Single-sign-on Budget overruns services • Consumer-web design • Clicks-not-code 0 • Drag-and-drop UI 10 20 40 50 60 70 Percent of total respondents N=226 Source: BPM Partners “The Pulse of Performance Management 2013” © 2013 Proformative. Proprietary and confidential 30 80
    17. 17. The Cloud Lowers EPM Project Risks EPM Project Risks Doesn't meet expectations Budget overruns software Missed target dates Lack of end-user acceptance Project stalls Selecting wrong vendor Cloud: Budget overruns services • Shorter implementation means less fatigue • Finance administered, no IT burden • Less time required of finance to deploy50 60 0 10 20 30 40 70 Percent of total respondents N=226 Source: BPM Partners “The Pulse of Performance Management 2013” © 2013 Proformative. Proprietary and confidential 80
    18. 18. The Cloud Lowers EPM Project Risks EPM Project Risks Doesn't meet expectations Budget overruns software Missed target dates Lack of end-user acceptance Project stalls Selecting wrong vendor Budget overruns services Cloud: • Fast pace of innovation0means cloud vendors can50 60 on product 10 20 30 40 catch-up 70 80 capabilities Percent on-premises systems means • Lower upfront cost as compared toof total respondents N=226 lower switching costs © 2013 Proformative. Proprietary and confidential
    19. 19. The Cloud Lowers EPM Project Risks Doesn't meet expectations Budget overruns software Missed target dates Lack of end-user acceptance Project stalls Selecting wrong vendor Budget overruns services 0 10 20 30 40 50 60 70 80 Cloud: • Lower % of software costs (typically 25-75% rather than 100%-400%) Percent of total respondents N=226 • Clicks-not-code mean no expensive consultant needed to modify application Source: BPM Partners “The Pulse of Performance Management 2013” © 2013 Proformative. Proprietary and confidential
    20. 20. Why Software Buyers Choose The Cloud Why Did You Choose Cloud? Improved business agility Improved focus Speed of implementation Faster releases Lower overall costs OpEx not CapEx Source: Forrester, April 2012, “The Changing Cloud Agenda”. Base 920 software decision-makers at firms © 2013 Proformative. Proprietary and confidential
    21. 21. Is The Cloud Secure? • Security, privacy – – – – – No more Excel security risks No more out-of-date/un-patched software – no wait for patches Granular security and privacy controls Regular penetration testing and audits Encryption • Service interruption – Service-level agreements that are typically higher than internal IT – No disruptive upgrades – Redundant, geographically distributed data centers © 2011 Proformative. Proprietary and confidential
    22. 22. Consider Platform Risk “We expect SaaS to become the primary FPM deployment model within three to five years.” - Paul Hamerman, VP Principal Analyst, Forrester Research Would you or have you considered a Cloud-based EPM solution? 2012 Cloud 57% Source: BPM Partners “The Pulse of Performance Management 2013” N=226 © 2013 Proformative. Proprietary and confidential 2013 Cloud 62%
    23. 23. Summary • Excel and email are not ERP/BI/EPM solutions • Extensive historic EPM deployment • All enterprise applications are moving to the cloud • EPM is very much part of this wave © 2013 Proformative. Proprietary and confidential
    24. 24. Thank You © 2012 Proformative. Proprietary and confidential
    25. 25. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS Reducing Risk in a Dynamic Environment with the Cloud Shane Riddle Manager FP&A Planar Systems, INC
    26. 26. Introduction to Planar Planar is your choice for Premier Display Solutions From desktop monitors to video walls. From information to inspiration. Industry leaders rely on Planar’s differentiated digital display technology for a range of applications. © 2013 Proformative. Proprietary and confidential
    27. 27. Introduction to Planar © 2011 Proformative. Proprietary and confidential
    28. 28. Planar Products ARCHITECTURAL DISPLAYS LCD VIDEO WALLS LARGE FORMAT LCDS REAR PROJECTION VIDEO WALLS AND IMAGE PROCESSING DESKTOP & TOUCH MONITORS 3D DISPLAYS TRANSPARENT DISPLAYS Planar products also include open frame and ruggedized displays and luxury home theater projectors © 2011 Proformative. Proprietary and confidential OUTDOOR DISPLAYS
    29. 29. Planar Products Clarity Matrix LCD Video Wall Chesapeake Energy Arena Home of the NBA’s Oklahoma City Thunder © 2011 Proformative. Proprietary and confidential
    30. 30. Planar Products Clarity Matrix LCD Video Wall Pavillon De L’ Arsenal — Museum in Paris, France 30 Confidential | Planar Systems 30 © 2011 Proformative. Proprietary and confidential
    31. 31. Three Buckets Of Risks Financial Risk Technology Risk Team Risk • Missing plan • Compliance risk • Confidentiality risk • Service-level risk • System failure • Complexity risk • Team retention • Key-man risk © 2011 Proformative. Proprietary and confidential
    32. 32. Turn To EPM Solution To Minimize Plan Risk Challenge Solution • Missing plan • Surprise miss • Currency risks • • • • © 2011 Proformative. Proprietary and confidential One source-of-truth Leading indicators Accountability across the org Real-time data
    33. 33. Turn To Cloud-based EPM To Minimize Compliance Risk Challenge Solution • • • • • • “Audit-as-a-Service” – SOX compliant – SSAE-16 Soc 1&2 • Audit trails minimize audit costs • Strong security • Lock-down access SEC Compliance Yearly process Audit costs Weak security with spreadsheets Highest risk is insiders who have access to data © 2011 Proformative. Proprietary and confidential
    34. 34. Turn To Cloud-based EPM To Minimize Confidentiality Risk Challenge Solution • Keep HR and comp info private • Weak privacy with spreadsheets • Risk of leakage by internals with special access • Lock-down access • Roll-up info without employee names • No internal access • Fully-encrypted at all points © 2011 Proformative. Proprietary and confidential
    35. 35. Turn To Cloud-based EPM Solution To Minimize Service-level Risk Challenge • Long ERP implementation • Units flying blind • Pressure on finance for answers • Upgrade risks • Lot of effort to manage • Quarterly patches for security updates © 2011 Proformative. Proprietary and confidential Solution • Short EPM implementation • Bridge transition • Validate ERP data • No more upgrades • No time wasted • No more patches
    36. 36. Turn To Cloud-based EPM To Minimize System Failure Risk Challenge Solution • • • • • Cloud infrastructure – World-class data-centers – Redundancy • Service level agreement • Lower total cost of ownership On-premises physical system failure Ongoing hardware requirements Lots of infrastructure to keep-up Expensive © 2011 Proformative. Proprietary and confidential
    37. 37. Turn To Cloud-based EPM To Minimize Complexity Risk Challenge Solution • Managing too many systems • Requires more IT staff • Lots of maintenance contracts • • • • © 2011 Proformative. Proprietary and confidential System rationalization Reduce headcount Save a ton of money Reduce complexity
    38. 38. Turn To Cloud-based EPM To Minimize Team Retention Risk Challenge Solution • Exit interviews revealed that • Provide modern tools and best antiquated systems contributed to practices to retain talent talent churn • Excited to be analysts again • Want to be analysts yet sucked into system dev. work © 2011 Proformative. Proprietary and confidential
    39. 39. Turn To Cloud-based EPM To Minimize Key-man Risk Challenge Solution • If I get hit by a bus, can someone pick-it up • Turn-over is a fact of life • Chose systems that are easily learnable © 2011 Proformative. Proprietary and confidential
    40. 40. Thank You © 2012 Proformative. Proprietary and confidential
    41. 41. Make Note… Please join us at www.proformative.com to ask any additional questions and to continue this conversation with your peers. If you have questions about CPE Credit, please send an email to cpe@proformative.com © 2011 Proformative. Proprietary and confidential
    42. 42. Sponsor © 2011 Proformative. Proprietary and confidential
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