tmane conference 2014: "nightmares in finance - how to sleep tight again"
Post on 28-Nov-2014
206 Views
Preview:
DESCRIPTION
TRANSCRIPT
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
Who is TIS?
2 27/05/2014 TIS© | Classification: confidential | www.tis.biz
• 50 Employees
• 8 Nationalities
• 3 Locations
…and counting
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
3 27/05/2014 TIS© | Classification: confidential | www.tis.biz
ERP INTEGRATION & SAP CERTIFIED
MULTI ERP 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
Cloud Innovation
5 27/05/2014 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:
Agenda
6 27/05/2014 TIS© | Classification: confidential | www.tis.biz
I. Business Risks
II. Reasons
III. Remedies
IV. Return on Compliance
7 27/05/2014 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
II. Reason – Grounding for nothing?
8 27/05/2014 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
I. Business Risk - Bribery
9 27/05/2014 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
II. Reason – Why was Bribery so Easy?
10 27/05/2014 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.
I. Business Risk – No Flexibility
11 27/05/2014 TIS© | Classification: confidential | www.tis.biz
EBAM – THE PATH TO EFFICIENCY
Sept. 15, 2008: Police raid at KfW bank over an automated payment of $500m to Lehman
PR Nightmare (“Germany’s dumbest bank”)
Two Board members fired
II. Reason – Why did they not act?
12 27/05/2014 TIS© | Classification: confidential | www.tis.biz
EBAM – THE PATH TO EFFICIENCY
“Lehman quickly needs further liquidity and equity. This is of vital importance for their existence.” Internal memo, Friday Sep 12, 2008 On Monday Sep 15, 8:37 local time, the transfer was released. One hour after Lehman had filed for Chapter 11.
III. Remedies
13 27/05/2014 TIS© | Classification: confidential | www.tis.biz
a. Visibility
b. Transparency
c. Flexibility
a. Visibility
14 27/05/2014 TIS© | Classification: confidential | www.tis.biz
Get the full Picture
Subsidiary
Subsidiary
Head Office
JV
Subsidiary
12 b$
Supplier Supplier
Supplier
Supplier
Customer
Customer
Customer
3 b€
3 b$
0,1 b$
1 b$ Supplier
Supplier
a. Visibility
15 27/05/2014 TIS© | Classification: confidential | www.tis.biz
a. Visibility – Lift the fog
16 27/05/2014 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
b. Transparency – Key Questions
17 27/05/2014 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?
Compliance in Cloud? – What we often find @ Corporates
18 27/05/2014 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
How to get Transparency throughout the Entire Group
19 27/05/2014 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
Transparency – The Full-blown Solution
20 27/05/2014 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
c. Flexibility – Ability to react fast
21 27/05/2014 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
22 27/05/2014 TIS© | Classification: confidential | www.tis.biz
A Nice Bouquet of Flowers?
Payment Challenges
Banking Formats, Protocolls and Security
23 27/05/2014 TIS© | Classification: confidential | www.tis.biz
Customer IT
ERP Complex Landscape
Banks
Legacy / TMS / HR
Manual Payments Fax 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.
Co
mp
lexi
ty a
t al
l Lev
els
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
Smart Payments
Innovation Across Banking Formats, Protocolls and Security
24 27/05/2014 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 Model Formats
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
25 27/05/2014 TIS© | Classification: confidential | www.tis.biz
One Token – All Banks
What some of our customers say
26 27/05/2014 TIS© | Classification: confidential | www.tis.biz
What some of our customers say
27 27/05/2014 TIS© | Classification: confidential | www.tis.biz
c. Transparency – Visibility – Flexibility
28 27/05/2014 TIS© | Classification: confidential | www.tis.biz
EBAM – THE PATH TO EFFICIENCY Best Practice (Lessons Learned)
4. Return on Compliance
29 27/05/2014 TIS© | Classification: confidential | www.tis.biz
Compliance and Efficiency as Drivers to Bundle Treasury Activities
30 27/05/2014 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
Compliance and Efficiency as Drivers to Bundle Treasury Activities
31 27/05/2014 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!
Please contact:
Question and Contact
How can TIS meet your needs?
32 27/05/2014 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
top related