Financial Services: Navigating the Next Generation of Cloud ERP

Financial Services: Navigating the next generation of cloud ERP Banking & Capital Markets

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With you today

Financial Services: Navigating the next generation of cloud ERP

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Robin SmithManaging DirectorPwC

Robert RossPartnerPwC

Raphael BresVP Financial Management Product StrategyWorkday

Geoff RhodesFinancial Sales ConsultingWorkday

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Agenda

1. Banking 2020 trends – intersection with the cloud

2. What is cloud computing

3. Cloud computing risks and challenges

4. Why cloud computing for financial institutions

5. The cloud frontier for financial institutions

6. ERP transformation – putting ERP in the cloud

7. Workday Financials – a cloud transformation story

8. Cloud readiness

9. Summary


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Banking 2020 trends – intersection with the cloud

Powerful forces are reshaping the financial services industry

• Regulations

• Business models

• Competition

• Changing demographics

Six fundamental priorities for financial institutions are evolving against this landscape

• Building a customer centric business model

• Optimizing distribution

• Creating an information advantage

• Simplifying the operating model

• Fostering agility and innovation

• Proactive regulatory, risk and capital management


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ERP applications in the cloud – hold the potential to meet many of these challenges

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What is cloud computing


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Financial institution

Public

Community

Infrastructure as a Service(IaaS)

Hosting services

Private

Hybrid

Cloud types Cloud offerings

Platform as a Service(PaaS)

Software as a Service(SaaS)

Examples

Service bureaus

EFT/Debit payment networks

Information services

Specialized software

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Why cloud computing for financial institutions

Cloud computing can help financial institutions improve performance in a number of ways.


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Cost controlEstablish cost controls over IT expenditures through “pay for consumption” pricing model.

Capacity on demandCloud solutions allow a financial institution to only use what they need when they need it.

Dynamic reconfiguration

The constant need to balance and re-balance IT configurations based on business variables is eliminated.

Internal efficiencyLower overall technology expense, optimize human capital expense and reduce operating cost over comparable in-house systems.

Defense against obsolescence

Costly upgrades, new releases and new software acquisitions to stay “current” with industry demands are eliminated.

Capital managementCloud based solutions can help channel much needed capital away from non-earning IT assets.

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Cloud computing risks and challenges

Moving to the cloud means several responsibilities are shared with the cloud provider.


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Overlapping trust boundaries

Overlapping trust boundaries from different cloud consumers due to the fact that cloud based IT resources are commonly shared.

Operational governance

control

Risks associated with how the cloud provider operates its cloud, and all external connections that are required for communication between the cloud and the financial institution.

Portability between cloud providers

Public clouds are typically proprietary, dependencies on these environments can be challenging when moving from one cloud provider to another.

Multi-regional compliance and

legal issues

Cloud providers will typically establish data centers in affordable or convenient locations, this can pose legal/regulatory concerns.

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Cloud computing risk mitigation

A cyclically executed process used to enhance strategic and tactical security, risk management is comprised of a set of coordinated activities for overseeing and controlling risk.


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Risk assessment

Threats

Risk identification

Risk evaluation

Risk treatment

Risk mitigation policy

Risk mitigation actions

Risk control

Risk review

Risk monitoring

Establishing benchmarks: Quantifiable Repeatable Comparable Easily obtainable

Establishing service quality metrics: Availability Reliability Performance Scalability Resiliency

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The cloud frontier for financial institutions

REAL opportunities abound for financial institutions to transform their business through cloud based solutions.


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Account processing

Business development

Asset origination

Human capital management

Financial management

Regulatory compliance

Cloud

Solutions

SPG Business

Process Execution

Playbook

Financial

Statement

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ERP transformation – putting it in the cloud

ERP transformation is more than just re-platforming traditional systems in a different environment:

• It’s re-imagining traditional processes such as statutory reporting, regulatory reporting and management reporting to realize dynamic, rolling processes and performance management.

• Implementing lean principles to eliminate non value-add activities and drive continuous improvement.

• Connecting transformation efforts with cost reduction, strategic expense management, cost-capture, allocation methodology design and financial system implementation.

• Removing the CoA design constraint facilitates integration and flexibility.


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Putting your ERP systems in the cloud offers many advantages to traditional on-premise solutions…


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Organizations must identify strategic solutions to respond to regulatory reporting requirements and address current and future business challenges

Reporting requirements

Quickly respond to new and changing regulatory requirements

Flexible system to support various reporting requirements (SEC, statutory, etc.)

Real-time data and analytics to support decisions and drive performance

Convenience and adaptability

Connected finance personnel across the globe leveraging a common platform

Incorporates the latest technology and adapts to ever-changing business requirements

High data quality through an integrated system enabling transparent and timely reconciliation

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Workday Financial Management

Transactions Analytics

GovernanceRisk

Compliance

ACTIONABLE

ANALYTICS

MOBILE

COLLABORATIONCONSUMER UI GLOBAL

AT THE CORE

ADAPTIVE FOUNDATION

TECHNOLOGY FOUNDATION EMBEDDED SERVICES

MULTI-TENANT

OBJECT STORE

IN MEMORY

SECURITY

INTEGRATION CLOUD

NATIVE CLOUD

CONFIGURABLE BUSINESS PROCESSES

REPORTING & WORKTAGS

SETTLEMENT ENGINE

GOVERNANCE & COMPLIANCE

ASSETS

PROJECTS

PROCUREMENT

CASH

GENERAL LEDGER

EXPENSES

SUPPLIER

CONTRACTS

REPORTING

BIG DATA

Workday Financial Management

Cloud Computing with Workday Economical

– No upfront capital expenditures

– Subscription-based pricing model

– Liberate IT resources

Always current

– Multi-tenant, single code line

– Continuous product innovation, twice a year

– Lower financial & regulatory risk

Enterprise-grade security

– Multiple layers of security & encryption

– ISO27001, SOC-1 & Safe Harbor certification

Global consistency

– Single, global source of truth

– Real time visibility

– Better compliance & controls

Collaboration

– Anytime, anywhere access

– Strong eco-system of partners

– Workday Community

http://businessfinancemag.com/technology/five-key-reasons-why-financial-management-better-cloud

http://businessfinancemag.com/technology/five-key-reasons-why-financial-management-better-cloud

User Experience

Delivered in Workday 23 – August 2014

Composite Reporting

Reporting & Analytics

Workday Reporting & Insights

Combined HCM and Financial Reporting



Embedded Analytics on Live Data



Enabled for external data incl. BDA






Multi-devices, same UX and Security



Native Cloud and In Memory Computing



Multi-devices, same UX and Security

Workday Financials Demonstration

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• Prepare a business case that includes Total Cost of Ownership (TCO), benefits you can achieve by moving to the cloud, critical success factors, and a deployment roadmap

+ Pros

– Cons

Considerations

• Conduct an organizationalreadiness assessment

• Complete a fit gap analysis/evaluation on how the cloud vendor’s meet your business requirements

Cloud readiness


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PwC

Summary

• Macro-economic conditions are driving the financial services industry to examine every aspect of their business to remain competitive and profitable.

• Using cloud based services for mission critical functions and processes offers a financial institution dramatic opportunities to improve capabilities in a highly cost-efficient manner.

• Mitigating risk and get ready to implement cloud based ERP solutions is a highly manageable effort with well defined mechanisms in place to assist the process.

• As demonstrated, Workday Financials represent an excellent solution for an organization to explore in it’s efforts to drive ERP transformation.


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Contacts

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reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network.

Each member firm is a separate legal entity. Please see www.pwc.com/structure for further

details. This content is for general information purposes only, and should not be used as a

substitute for consultation with professional advisors.

Robin SmithManaging [email protected]

Robert [email protected]

Raphael BresVP Financial Management, Product [email protected]

Steve HansonVP Sales, Financial [email protected]

mailto:[email protected]




Technology

Financial Services: Navigating the Next Generation of Cloud ERP