#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
Managing the Transformation
of Technological Change
Brian Kinion, VP Finance at Marketo
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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• Prior Experience
• SuccessFactors
o Cloud transformation
o Significant growth
o Multiple challenges
Shifting to the Cloud from On Premise
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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Move to business leadership
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
SuccessFactors From IPO (2007) to
SAP Acquisition (2012)
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
presented by The challenges………
and solutions
1. Transaction
Management
2. Controlling
the Business
4. Integrated Functional Excellence 3.
Planning and Analysis
Challenge: Number of Transactions
Challenge: Consistent process excellence
Challenge: Talent & Insightful Value Drivers
Challenge: Leadership & Performance Management
Source: slide 34
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
presented by Our business requirements continued
to exceed our technical capacity
2007 2008 2008 2009 2010 2011 2012
IPO Early Follow-on Offering Reductions in Staff
3 Acquisitions and EITF 08-01
Plateau Acquisition
Planned Growth Acquisitions and Federal
Technical Capacity
Business Requirements
People, Process, Systems
GAP to close
gap
gap
gap gap
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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IT Challenges
• CIO organization view of
departments owning,
implementing and
administrating their own
systems created “siloed
information” and master data
management issues
• Lack of integrated systems
• Lack of documented
process/policy
• Heavy reliance on Excel
Growing Pains: 2007
• IPO by “brute force” and “sheer
determination”
• Buried in transactions and
manual processes
• Significant deficiencies and
material weaknesses to
address
• Long-term under investment in
G&A functions
• Rebuilding financials while
being audited
Need to create order out of the chaos
and close the initial gaps
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
presented by
System/process improvements while nailing
Transactions/Compliance/Control and becoming more efficient
• Noise level dramatically reduced with regard to transaction errors
• Added additional technical capacity across finance organization
• Addressed and remediated significant deficiencies/material weaknesses
• Added in-house NetSuite expertise and various system/process
improvements
• Reduced reliance on Excel
• Decreased day to close
• Completed two follow-on offerings
• Completed and integrated multiple acquisitions
• Changed audit firms and navigated an SEC comment letter
Making progress (2008 to mid 2011)
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
presented by Systems improvements were helping
BUT...
• A/P workflow/process review; to reduce headcount/increase volume with Coupa
• US Concur roll-out with integrated credit card program (2010)
Procure to Pay
• Lockbox implemented for collections (2008)
• CRM transition from SFDC to Seibel to SFDC (Q209)
• Big Machines (quotes) (Q309); previously in Excel w/ manual approvals
• Avalara (sales tax) module (Q309); previously not charged/manual reserve
• Xactly (commissions) (Q109); previously in Excel
• OpenAir Implementation (Q210)
• EITF RevRec Module (Q310); support of EITF 08-01 adoption
Quote to Cash
• EquityEdge live (2007); previous in eProsper
• Switched from ADP to Ceridian payroll (2009)
Payroll and Equity
• Hyperion Planning (2008) to Host Analytics (2011)
• FAS (fixed assets) system (Q208); previously in Excel
• Netsuite cash reconciliations implemented (Q208); previously in Excel
• Clearwater (treasury analytics) system (Q308)
• Netsuite stabilization (2009-2010) and brought system administration in-house
• OneWorld (consolidation) module (2009); previously in Excel
• Consolidated # of outsourced International Accountants with Nair (2009)
Record to Report
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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New Demands + New Idea = New Organization
• All the system/process improvements were done while we were doing our
day jobs
• Rapid growth and additional acquisitions raised more infrastructure
questions and if our current system landscape would scale
• Built business case for technology transformation and focused team to
make it happen
• Had established relationships existed across the enterprise which we
leveraged for cross functional system/process improvements
• Hired “black belts” and process oriented staff who brought new skill sets
such as project management/change enablement/training
• Built key dashboards in NetSuite for increased visibility to business
• Increased efficiencies and—eliminating manual efforts
We needed to scale to support a $1B
business
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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Approach
• Defined scope and new technology landscape strategy to rip and
replace multiple systems
• 10 week implementation of all SAP OnDemand products
• Cross functional collaboration
• Re-engineered key business processes
• Clever use of interfaces and partner solutions
• Intense use of key user tools
Transformation process
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
presented by
• Approach
• Defined scope and technology landscape strategy
• 10 week implementation of all SAP OnDemand products
• Cross functional collaboration
• Re-engineered key business processes
• Clever use of interfaces and partner solutions
• Intense use of key user tools
Transformation process
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
presented by
A changed systems landscape
Prior to being acquired by SAP- 13 major systems in place
After being acquisition SAP- One Integrated System End State
SAP®
Sales OnDemand
SAP® Sourcing
OnDemand SAP® Travel
OnDemand
BIZX Platform / EC SAP® Contract
Management
Partner Solutions
BIZX Platform / EC
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
Marketo:
“I’ve seen this movie before”
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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Asked what he wishes he had three years ago to make growth easier
today, Fernandez says he wishes he’d invested more in IT systems.
“We got behind on systems and we’ve been playing catch-up,” he says.
“I had the company so dialed towards growth and interacting with
customers, that we forgot a little bit about the back office.
“All of a sudden you wake up one day, you’re a $100 million company,
you’re public, and you’re pushing people to catch up.”
“We’ve been investing like crazy on systems infrastructure in the
business, which is amazing. Companies can grow faster than IT
departments can grow software.”
Smart Company (Nov 14, 2013)
interview with Marketo CEO Phil Fernandez
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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These look very familiar…
• Heavy reliance on Excel
• Lack of system integrations
• Lack of documented process and policy
• Lack of maturity of systems needed to address being able to scale
• Impact on systems and financial modeling
• M&A execution and integration support
• Training, retention and development of key players
Marketo challenges
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
presented by Poised for growth / scaling the business
Financial
Planning
Commissions
CRM/Service Cloud
Sales Tax Engine
Professional
Services
Automation
Marketing Automation
Quoting Workflow
Core GL/RevRec/Billing/Consolidations
Customer
360 View
Accounting for Stock-Based Comp
US Payroll
M
M M
M
M
M
Foreign
Bookeeper
Records
M
Complex Billing?
Procurement
Fixed Assets
M=Manual Upload
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
presented by
• Be a champion for change and continuous improvement
• Identify gaps in both systems/skill sets and close them
• Build strong relationships throughout the organization and leverage
them
• Partnership and collaboration are critical
• Have a vision and be a leader and a cheerleader as needed
• Be relentless and push your vendors for functionality and partnership
• Network, network, network
No two system landscapes will look the same!
Transformation advice
#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
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#TECH4CFO Existing and Emerging Technology: How Strategic CFOs Are Transforming Finance
Q & A
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