TMANE Conference 2014: "Nightmares in Finance - How to sleep tight again"

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TMANE - 29th Annual Conference for the Treasury & Finance Professional, 23rd May, 2014

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TMANE Conference 2014: "Nightmares in Finance - How to sleep tight again"

  1. 1. Nightmares in Finance How to sleep tight again TREASURY INTELLIGENCE SOLUTIONS | SMART PAYMENTS – BETTER DECISIONS Leading cloud platform for managing corporate payments, liquidity and bank relations
  2. 2. Who is TIS? 227/05/2014 TIS© | Classification: confidential | www.tis.biz • 50 Employees • 8 Nationalities • 3 Locations …and counting
  3. 3. TIS Snapshot Overview Key Facts • Founded in 2010, based in Walldorf, Germany • Leading cloud platform for managing corporate payments, liquidity and bank relations • Quick and easy implementation with SaaS • Solution for midsize and blue-chip Corporations • Rapid growth with excellent customer feedback • Highest security standards: ISO 27001 certified SOFTWARE AS A SERVICE: FAST, SCALABLE, SECURE 327/05/2014 TIS© | Classification: confidential | www.tis.biz ERP INTEGRATION & SAP CERTIFIED MULTIERP SaaS MULTIBANK 0.2 TO 1.0+ M DIRECT CONNECTIVITY IMMEDIATE COST SAVINGS • Wytze Rijkmans, EVP Sales & Marketing; VP Central Europe Software SaaS vendors, global sales expert • Dr. Wolfgang Kalthoff, COO & co- founder; VP Program Management at SAP; SaaS operations expert • Erol Bozak, CTO & co-founder; Director of Development at SAP, cloud expert, holds 33 patents • Jörg Wiemer, CEO & co-founder; Head of Global Treasury at SAP; 20 years of treasury experience Built by Experts
  4. 4. Cloud Innovation 527/05/2014 TIS© | Classification: confidential | www.tis.biz Giancarlo Laudini, responsible for Pre-Sales Operations at TIS, is a domain and product expert in the Payments, Bank Connectivity, Bank Account Management arenas as well as the SaaS (on-demand) Services. With a strong multi-cultural knowledge, he has been in the IT industry for over 15 years gaining international experience in Cash Management, Electronic Banking and strategic involvement in Global Payment Factory projects for large multinational clients. Email: Giancarlo.laudini@tis.biz Giancarlo Laudini VP Presales Martin Postweiler VP Product & Client Services Martin Postweiler, VP Product & Client Services, joined TIS in 2013. He previously was the Head of Financial and Liquidity Planning at Deutsche Lufthansa AG. Martin is well known in the treasury community in the D-A-CH-Region (Germany, Austria, Switzerland), having played an important role in establishing the TWIST Initiative (Transaction Workflow Innovation Standards Team) in this area. With TIS, he is constantly trying to make the lives of Treasurers easier, enabling them to contribute strategically to their company’s success. Email: martin.postweiler@tis.biz Presenting:
  5. 5. Agenda 627/05/2014 TIS© | Classification: confidential | www.tis.biz I. Business Risks II. Reasons III. Remedies IV. Return on Compliance
  6. 6. 727/05/2014 TIS© | Classification: confidential | www.tis.biz EBAM – THE PATH TO EFFICIENCY Oct. 2, 2001: Entire Swissair fleet (“Flying Bank”) grounded, due to cash shortage passengers stranded worldwide Takeover by Lufthansa in 2005 → I. Business Risk - Liquidity 36,000
  7. 7. II. Reason – Grounding for nothing? 827/05/2014 TIS© | Classification: confidential | www.tis.biz EBAM – THE PATH TO EFFICIENCY “Management had no full visibility on its cash. Swissair actually had a total of SFr 50m at its disposal on the morning of Oct. 2nd “ Ernst & Young
  8. 8. I. Business Risk - Bribery 927/05/2014 TIS© | Classification: confidential | www.tis.biz EBAM – THE PATH TO EFFICIENCY Violation of the Foreign Corrupt Practices act Siemens was found guilty, CEO fired damage$3-4bn
  9. 9. II. Reason – Why was Bribery so Easy? 1027/05/2014 TIS© | Classification: confidential | www.tis.biz “To avoid getting caught, Siemens used secret bank accounts in places like Switzerland and front companies“ Reinhard Siekaczek, Sr. Mgmt.
  10. 10. I. Business Risk – No Flexibility 1127/05/2014 TIS© | Classification: confidential | www.tis.biz EBAM – THE PATH TO EFFICIENCY Sept. 15, 2008: Police raid at KfW bank over an automated payment of $500m to Lehman PR Nightmare (“Germany’s dumbest bank”) Two Board members fired
  11. 11. II. Reason – Why did they not act? 1227/05/2014 TIS© | Classification: confidential | www.tis.biz EBAM – THE PATH TO EFFICIENCY “Lehman quickly needs further liquidity and equity. This is of vital importance for their existence.” Internal memo, Friday Sep 12, 2008 On Monday Sep 15, 8:37 local time, the transfer was released. One hour after Lehman had filed for Chapter 11.
  12. 12. III. Remedies 1327/05/2014 TIS© | Classification: confidential | www.tis.biz a. Visibility b. Transparency c. Flexibility
  13. 13. a. Visibility 1427/05/2014 TIS© | Classification: confidential | www.tis.biz Get the full Picture Subsidiary Subsidiary Head Office JV Subsidiary 12 b$ Supplier Supplier Supplier Supplier Customer Customer Customer 3 b€ 3 b$ 0,1 b$ 1 b$ Supplier Supplier
  14. 14. a. Visibility 1527/05/2014 TIS© | Classification: confidential | www.tis.biz
  15. 15. a. Visibility – Lift the fog 1627/05/2014 TIS© | Classification: confidential | www.tis.biz • How much cash is on which account? • Investment/Debt? • Total cash inflow from all customers - across all entities? • What is the payment behavior? • How much money is paid to which supplier? • Working Capital • Total net USD cash flow to be used as natural hedge? • Interest Rates Liquidity Management Supplier Relations Risk Management Customer Relations
  16. 16. b. Transparency – Key Questions 1727/05/2014 TIS© | Classification: confidential | www.tis.biz  Which employee is allowed to sign off?  What is the specific limit per signee?  What are the exceptions?  How can you be sure that Accounting knows all bank accounts?  How can you guarantee that the visibility and transparency worldwide will be regularly maintained?
  17. 17. Compliance in Cloud? – What we often find @ Corporates 1827/05/2014 TIS© | Classification: confidential | www.tis.biz Process Landscape Branches Joint Ventures Head Office Subsidiaries Banks Shared Service Center - No single “Source of Truth” - Manual, paper based and decentralized processes → No bank relationship overview → Potential compliance issues → Highly inefficient
  18. 18. How to get Transparency throughout the Entire Group 1927/05/2014 TIS© | Classification: confidential | www.tis.biz Centralized Bank Account Management - Central repository - Cleaned up data - Audit-proof & streamlined processes - Semi-automated workflows externally → Bank Relationship overview → Compliance → Efficiency Corporation Banks Master Data & Documents Signatories & Workflow Reporting & Audit Trail
  19. 19. Transparency – The Full-blown Solution 2027/05/2014 TIS© | Classification: confidential | www.tis.biz Adding two “e” to BAM → Use of 15 XML messages → STP internally + externally → SWIFT, EBICS, H2H Workflow & Inventory Reporting & Audit Trails Master Data & Documents Electronic Communication ERP Integration → One single “Source of Truth” → Multi ERP → No IT-Project (with SaaS) Corporation XML XML XML Banks
  20. 20. c. Flexibility – Ability to react fast 2127/05/2014 TIS© | Classification: confidential | www.tis.biz  Transparency and Visibility  Insights (in Real Time)  Stop payments last minute or switch to another bank at short notice  T  I  S
  21. 21. 2227/05/2014 TIS© | Classification: confidential | www.tis.biz A Nice Bouquet of Flowers?
  22. 22. Payment Challenges Banking Formats, Protocolls and Security 2327/05/2014 TIS© | Classification: confidential | www.tis.biz Customer IT ERP Complex Landscape Banks Legacy / TMS / HR Manual PaymentsFax Banking On-premise integration solution and payment systems Various payment procedures and systems. Various information systems are involved in cash management. Various e-banking payment formats, protocols, channels and security measures. International expansion results in decentralized cash management and payment processes as well as individual bank relations. ComplexityatallLevels Situation Lack of standardization and manual processing as well as the complexity of end-to-end integration and centralization result in… reduced visibility into corporate cash-flow and liquidity increased process- and IT costs increased risk of fraud difficulties to comply with changing regulatory requirements (e.g. SEPA) Challenges
  23. 23. Smart Payments Innovation Across Banking Formats, Protocolls and Security 2427/05/2014 TIS© | Classification: confidential | www.tis.biz Customer IT Agent Customer/Partner Implementation SAP ERP Plugin ERP-Integration Other ERP and TMS ERP H2H, EBICS, SWIFT Outgoing Channels Incoming Channel Processing Engine Meta ModelFormats Communication Protocol Security IDOC PEXR2002 CSB34 BACS SWIFT-MT DTAUS Format Web Service EBICS SWIFTNET … H2H-FTPS Protocol SAML PGP … … 3DES Security … … … ISO XML H2H-HTTPS SSL v. 3.0 Banks Solution
  24. 24. 2527/05/2014 TIS© | Classification: confidential | www.tis.biz One Token – All Banks
  25. 25. What some of our customers say 2627/05/2014 TIS© | Classification: confidential | www.tis.biz
  26. 26. What some of our customers say 2727/05/2014 TIS© | Classification: confidential | www.tis.biz
  27. 27. c. Transparency – Visibility – Flexibility 2827/05/2014 TIS© | Classification: confidential | www.tis.biz EBAM – THE PATH TO EFFICIENCY Best Practice (Lessons Learned)
  28. 28. 4. Return on Compliance 2927/05/2014 TIS© | Classification: confidential | www.tis.biz
  29. 29. Compliance and Efficiency as Drivers to Bundle Treasury Activities 3027/05/2014 TIS© | Classification: confidential | www.tis.biz Ability to React Fast TARGET COMPLIANCE LEVEL: FOCUS ON RISK MANAGEMENT AND CONTROL PROCESS TARGET EFFICIENCY LEVEL: FOCUS ON COST REDUCTION AND VALUE CREATION STANDARDISATION • Standardized processes • Harmonized (IT) systems • Standardized payment methods and formats • Unified bank connectivity CENTRALIZATION • Centralized Treasury • Payment Factory • Platform for global cash mgmt. • Bank relationship consolidation • Central bank account repository AUTOMATION • Paper to electronic • Straight-Through-Processing
  30. 30. Compliance and Efficiency as Drivers to Bundle Treasury Activities 3127/05/2014 TIS© | Classification: confidential | www.tis.biz Ability to React Fast FOCUS ON RISK MANAGEMENT AND CONTROL PROCESS TARGET COMPLIANCE LEVEL FOCUS ON COST REDUCTION AND VALUE CREATION TARGET EFFICIENCY LEVEL STANDARDISATION • Standardized processes • Harmonized (IT) systems • Standardized payment methods and formats • Unified bank connectivity CENTRALIZATION • Centralized Treasury • Payment Factory • Platform for global cash mgmt. • Bank relationship consolidation • Central bank account repository AUTOMATION • Paper to electronic • Straight-Through- Processing Good Night, and Good Luck!
  31. 31. Please contact: Question and Contact How can TIS meet your needs? 3227/05/2014 TIS© | Classification: confidential | www.tis.biz Treasury Intelligence Solutions GmbH Industriestraße 39c D-69190 Walldorf T +49 6227 69824-0 F +49 6227 69824-97 info@tis.biz

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