1. Ask, Share, Learn Within the Largest Community of Corporate Finance ProfessionalsRaking in Revenue: Optimizing Order-to-Cash Cycle (O2C) by Automating Accounts Receivable Chris Couch, Chief Operations Officer, Transverse Ankita Tyagi, Research Analyst, Aberdeen Group

2. 3. Understand key attributes of a successful Accounts Receivable departmentUnderstand the market drivers compelling organizations to improve current billing and payment processing systemsIdentify key challenges faced and benefits realized in automating ARUnderstand key Order-to-Cash Cycle performance benchmarks 4. Leveraging AR Automation to Optimize Order-to-Cash: Featuring Aberdeen GroupAnkita Tyagi Research Analyst Financial Management & GRCAberdeen Group 5. 6. 7. Aberdeens MethodologyExternal and internal forces that impact an organizations ressures: market position, competitiveness, or business operations.PActions: CThe strategic approaches that an organization takes in response to industry pressures.The business competencies (organization, process, etc) apabilities: required to execute corporate strategy.Enablers:The key technology solutions required to support the organizations business practices. 8. Aberdeens MethodologyBest-in-ClassPercentage of AR past due Number of days to clear A/R ledgerTotal Respondents:Industry AverageExtent of manual interventionRespondents are scored individually across KPILaggard 9. Aberdeens MethodologyWhat are Best-in-Class companies doing differently? What pitfalls are they avoiding?Pressures:External and internal forces that impact an organizations market position, competitiveness, or business operations.Actions:The strategic approaches that an organization takes in response to industry pressures.Why are they achieving greater success?Capabilities: required to execute corporate strategy.What technologies and services are enabling them to succeed?Enablers:The business competencies (organization, process, etc)The key technology solutions required to support the organizations business practices. 10. Pressure to reduce Days Sales Outstanding (DSO)59%Pressure to reduce overall costs45%Customer pressure to extend payment terms19%Risk of customer non-payment or default19%Customer demand to improve service levels19% 0%10%20% 30% 40% 50% 60% Percent of Respondents n=7570% 11. 12. 57%Increase the usage of electronic invoicing25%Streamline administrative processes to43% 49%remove non-value-added steps35%Invest in automation of A/R processes39%0%Leaders17%Harmonize A/R processesFollowers16% 10%20%30%40%50%Percent of Respondents, n=7560% 13. LeadersProcessOrganizationKnowledgeTechnologyFollowersBilling and collections are integrated with order entry and credit with no duplicate data entry 70% 37% Standardized enterprise-wide procedures for order fulfillment, delivery, and shipment 64% 43% Centralized A/R in corporate HQ or shared services center 67% 47% Real-time visibility into outstanding invoice volumes and status 82% 31% Real-time visibility into current exceptions by customer, problem type, etc. 68% 21% Electronic interfaces to banks 82% 58% Performance dashboards 68% 31% Electronic workflow automation 59% 30% 14. Definition of Maturity ClassMean Class PerformanceLeaders: Top 30% of aggregate performance scorers 6.1% of A/R past due 1.1 days for payments to clear A/R ledger 11.7% of require manual interventionFollowers: Remaining 70% of aggregate performance scorers 8.8% of A/R past due 6.9 days for payments to clear A/R ledger 30.1% of invoices require manual intervention 15. Source: Integrated Accounting Platform: Achieving Accuracy and Efficiency at a Lower Cost, September 2013 16. Source: Integrated Accounting Platform: Achieving Accuracy and Efficiency at a Lower Cost, September 2013 17. 18. Leveraging AR Automation to Optimize Order-to-Cash: Featuring Aberdeen GroupCFO as a Catalyst for Change COO and Co-founder Chris Couch 19. Co-founded in 2008 by finance technology veterans with extensive experience solving the toughest order-to-cash challenges A corporate finance solutions company, not an IT vendor 20. -The Salesforce.com shake up: CIO is no longer the gate keeper in major IT buying decisions Innovations in Cloud technology aligns buying decisions with broader business goals Decisions are being made at the line-of-business level Technology viewed as an investment in the business 21. Product ManagementAuditingYou are here.Order ManagementProduct CatalogGeneral LedgerPayment and CollectionsRevenue AssuranceERP Reporting Business AssuranceOrder Management Revenue RecognitionBilling and Invoicing TaxationBusiness Analytics 22. Self Signup Self Service OrdersInvoices Payment ERP IntegrationCRM / Order Systems AR AutomationFULFILLMENTActivities Notifications Balances EventsSERVICE USAGE 2013 Proformative. Proprietary and confidentialYour Service or Application 23. Digital Security Company with High Volume of Usage Data Manual AR: 60,000+ row spreadsheetLost OrdersRevenue Leakage from lost re-ups Invoices Payment ERP IntegrationAutomated AR: Order ManagementUsage Collection and RatingAction FrameworkAgreement ManagementAR AutomationFULFILLMENTActivities Notifications Balances Events 2013 Proformative. Proprietary and confidentialSERVICE USAGEYour Service or Application 24. Manual AR:Automated AR:3.5 weeks to close billing periodUsage Collection and Rating6 Individual SpreadsheetsOrder ManagementComplex Orders and Revenue RecognitionRevenue RecognitionCompliance ReportingInvoices Payment ERP IntegrationHigh Audit Costs CRM / Order SystemsAR AutomationFULFILLMENTYour Service or ApplicationActivities Notifications Balances Events SERVICE USAGE 2013 Proformative. Proprietary and confidential 25. Improves Cash FlowReduces Revenue Leakage Manages Revenue Recognition Increases Customer Satisfaction Boosts Profitability Speeds Time-to-Market Increases Business AssuranceFrees Valuable Resources Minimizes Instances of Human Error 26. THANK YOU 27. Please join us at www.proformative.com to ask any additional questions you may have and to continue this conversation with your peers and the experts you heard from today. If you have questions about CPE Credit, please send an email to cpe@proformative.com 28. Sponsor