accounting technology and systems selection

Phil Taphouse FCCADate: 13th October 2011

Accounting Technology and Systems Selection

Introduction

• The ‘Go to Whoa’ of a systems selection project

• Business Case and investment analysis• Preparedness to ‘Go to market’• Technology/Solution focus• Insight into the Vendor mindset• Tips to success

What is Success?

Getting what you want.

• Greater need for awareness of systems selection in Finance.– Trends for finance to be involved in vendor

selection and selection criteria.

• ‘…most companies realized benefits 50% below what they expected…”

CFO RESEARCH BRIEFING 2011THE SENIOR FINANCE TEAM AND CORPORATE PURCHASING DECISIONS

PANORAMA CONSULTING GROUP2010 ERP REPORT

Topics

• What makes accounting environment complex• Value/Benefits realisation of your solution• Case Studies – Full accounting, credit card• Investment decision – Is the ROI overused?• Business Case – work out WHY you are doing this

project – develop a vision.• How to determine your cost/budget.• Defining your requirements – importance - complexities• Why all GL’s are not the same.• Vendor Management

The solution ‘sweet spot’

• Operational focus• Services focus• Line of Business focus

• ERP ‘All In One’ and Best of Breed plus LOB system.– Financial services, Service, Oil &

Gas/NFP, Construction/Distribution

– Issues of letting the operations guys loose.

Complex Accounting Environments

• Oil & Gas – Joint Venture

• Property development - Projects

• Not For Profits – Projects, allocations

• Financial Services – Multi department

Case Study

• Mid sized financial services company.

• Outgrown MYOB accounts.• Severe spreadsheet

overload.• 4 divisions operating

finance independently• Diverse operations causing

issues.

A ‘Good’ objective:The vision of the project is to determine the most efficient and cost effective solution, for implementation, in relation to the XXX’s accounting and management reporting function.

The key objectives of implementing a new solution are to:• Introduce a single source accounting and reporting system, where possible, that is fit for purpose and can handle core accounting transactions in a uniform and consistent manner;

• Standardise accounting and reporting processes associated with the new IT solution across all divisions to achieve operational efficiencies;

• Improve the automation of data input and streamline transaction processing to help reduce time consuming and overly manual processes currently performed while greatly improving the integrity and reliability of financial information reported;

• Create additional efficiencies by evaluating the potential to integrate the new solution with other business systems holding financial information within the business.

Case Study – Credit Cards

• Mid sized financial services company,

• 50 Corporate credit cards,• Issues – inefficiency, double

handling.

• Resolution – 2 solutions. Which worked?– Cloud based commoditised solution,– On premise solution.

Value/Benefits Realisation(Or developing your vision).

• What outcomes are you seeking? • Identify your POPs (Point of Pains)? • “So What!” analysis.

Vision.Specific

Root Cause

ROI – Hard

• Hard ROI– Labour saving reducing

FTEs• Deadly sins of financial

inefficiency

ROI - Soft

• Intangible ROI– Blunt instrument– Decision making– Compliance– Quality– You don’t know what you don’t know

Providing Decision Support

Supporting the business

Transaction processing

Finance – a valuable asset?

Current? To Be

Vendor Management

Sorting out the wheat from the chaff

• Treats as a technology sale not a solution.

• Why asking for demos sucks!

• “Oh Yeah – it can do that…”• Speaks too much about

their product (Blah, Blah, Blah).

First meeting with Vendor

• Set the agenda.• Be clear about POP’s and

Implications.• Insist they do NOT

demonstrate product.• Understand if they have

industry specific knowledge.

Prospect Qualification

• Budget• Authority• Need• Timescale

How much!

3 Quotes?

Save today, Pay tomorrow!

Future proof

SOMETHING BETTER.“IT’S UNWISE TO PAY TOO MUCH, BUT IT’S UNWISE TO PAY TOO LITTLE. WHEN YOU PAY TOO MUCH, YOU LOSE A LITTLE MONEY, THAT IS ALL. WHEN YOU PAY TOO LITTLE, YOU SOMETIMES LOSE EVERYTHING,

BECAUSE THE THING YOU BOUGHT WAS INCAPABLE OF DOING THE THING YOU BOUGHT IT TO DO.

THE COMMON LAW OF BUSINESS BALANCE PROHIBITS PAYING A LITTLE

AND GETTING A LOT – IT CAN’T BE DONE. IF YOU DEAL WITH THE LOWEST BIDDER, IT’S WELL TO ADD SOMETHING

FO THE RISK YOU RUN – AND IF YOU DO THAT YOU WILL HAVE ENOUGH TO PAY FOR SOMETHING BETTER…”

Questions. Next Steps?

Philip_taphouse@pa.com.au

www.pa.com.au