The Sky’s the Limit: Finance is Moving to the Cloud

Introductions

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Jeannie Martinez Director, MorganFranklin Consulting

Jeannie serves as a Director within MorganFranklin’s

Performance Improvement practice, bringing more

than 13 years of experience working with some of the

world’s largest corporations. She has spent her career

working with client CFOs and finance executives to

transform and redesign their organizations, processes,

and tools, enabling finance to better serve as a valued

business partner. Jeannie has experience leading

process improvement, close optimization, planning

and forecasting redesign, consolidation, planning and

reporting tool implementations, finance transformation,

operating model design, shared services

implementations, mergers, divestitures, and

integrations across the Americas and in Europe.

Brad Rhoderick Director, MorganFranklin Consulting

Brad serves as a Director within MorganFranklin’s

Performance Improvement practice and has advised

executives on a variety of strategic initiatives, including

business process redesign, management reporting,

and strategic planning. Brad has a well-rounded

finance functional background and has successfully

led accounting and management reporting system

implementations. He has deep experience in all stages

of the project life cycle and has served both public and

private companies in a variety of industries, including

consumer products, government contracting, financial

services, and manufacturing.

For more information contact info@morganfranklin.com

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MorganFranklin is an execution-oriented business consulting and technology solutions company.

We deliver financial management, performance improvement, and technology enablement solutions to

industry and government clients.

Business Facts

• Founded in 1998

• Headquartered in Washington, D.C.

• European operations established in London in 2007

• National presence and international reach

• Diverse full-time workforce comprised of industry, global consulting, Big Four,

and government professionals

• Technical excellence: CPA, CIA, CISA, CISSP, MCSE, RCDD, MBA, Ph.D., PMP

• Fast access to a powerful network of trusted partners with solid industry experience

• Unique blend of industry and government clients

• Industry recognition as a top consulting firm in the U.S.

• Recognized for industry-leading workplace best practices

About MorganFranklin

Agenda

4

• Overview of “on-premise” and “cloud”

• Marketplace trends

• Evaluating on-premise versus cloud-based solutions

• Value of an implementation partner

• Next steps

• Q&A

Finance solutions are now available in both traditional on-premise and cloud-based

applications

5

On-Premise

Cloud-Based

Solution that resides and is maintained

on-site for an organization

Solution supported by resources that

resides off-site and is accessible via a

network

Cloud-based solutions can be made up of any combination of environments and services

6

En

vir

on

men

t

Private/

Single Tenant

Public/ Multi-Tenant

• Cloud computing is highly secured and used by a single

organization

• Cloud computing is highly scalable and used by multiple

organizations to achieve economies of scale

Hybrid • Cloud solution utilizes a combination of private and public

environments (e.g., public for a collaboration tool but private

for a finance application)

Cloud-based solutions can be made up of any combination of environments and services

(continued)

7

Serv

ices

Software as a

Service (SaaS) • Subscription-based applications for functional users that

are owned and maintained by a third-party provider (e.g.,

SharePoint)

Platform as a

Service (PaaS)

Infrastructure as a

Service (IaaS)

• Subscription-based or on-demand application infrastructure

(e.g., operating system)

• Subscription-based or on-demand network and storage

services (e.g., virtual machines)

The remainder of the presentation will focus on SaaS, as this is the primary

service to consider when looking at finance solutions (e.g., Corporate Performance

Management)

A recent survey by the Everest Group on SaaS revealed unique trends in finance

solutions

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• 78% of respondents have adopted or plan to adopt SaaS

• 70% of respondents prefer a private cloud environment for finance applications versus

48% for collaboration applications

• The top three considerations for a cloud strategy were:

• Data security

• Application performance

• Infrastructure variability/resilience

Source: Everest Group, Enterprise Cloud Adoption Survey, March 2013

“2013 will be the year that we start addressing the real drawbacks of cloud computing—the

challenges of scale, complexity, and change—rather than fixating on its supposed

drawbacks such as security, compliance, and SLAs.”

– Bernard Golden, CIO.com

According to Korn/Ferry Institute’s 2013 CFO Pulse Survey, CFOs overwhelming state

interest in big data and predictive analytics, yet list their organizations’ talent as a top

challenge

Source: Korn/Ferry Institute, 2013 CFO Pulse Survey

0%

10%

20%

30%

40%

50%

49%

8% 8%

2%

32%

INC

RE

AS

E

CFOs Plan to Increase the Use of Predictive Analytics & Big Data

0%

20%

40%

60%

5%

38%

19%

52%

25% 25%

47%

SA

LE

S

Many Restless Nights From...

Cloud-based solutions for finance can bridge the talent gap and reduce IT administrative

costs

Almost all of the most reputable providers of finance solutions now play in the cloud

Source: Gartner Magic Quadrant for Corporate Performance Management, February 2013

“There has been increased traction for

SaaS-based applications within mid-market

organizations and, more recently, for larger

Tier 1 organizations. Gartner expects this

trend to continue and has elevated the

importance of CPM cloud capabilities for CPM

suite vendors.”

– Gartner Report

Completeness of Vision

Ab

ility

to

Exe

cu

te

Niche Players Visionaries

Challengers Leaders

SaaS only provider

On-premise only provider

On- and off-premise provider

Oracle SAP

IBM

Host Analytics

Tagetik Longview

SAS

Infor

Prophix Software

Board International

prevero

KCI Computing

Bitam

When deciding between on-premise and SaaS for a finance solution, there are several

characteristics to consider:

Cost-Effectiveness

Data Security

Scalability

Access to

Community

Ability to

Customize

Maintenance-Free

High Medium Low

Scale and complexity are two criteria that often dictate whether organizations choose

on-premise versus SaaS solutions

Scale C

om

ple

xit

y

Lower Risk Higher Risk

Two different organizational profiles:

1. Large Multinational Organization:

Traditionally more likely to consider an on-

premise solution, given the customization

required to address highly complex business

processes.

2. Mid-Market Service Provider: Likely to

consider SaaS, given a more standard

business model and desire to take advantage

of economies of scale.

An implementation partner can drive critical, value-add activities beyond technical

configuration and documentation

Design & Build Test & Deploy Deliver

• Current-State Technical

Assessment

• Technical Project Plan

• Business Requirements

Definition

• Configure and/or Tailor

Solution

Plan & Analyze

• Test Execution and Issue

Resolution

• Knowledge Transfer

• Current-State Process

Assessment

• Industry and Solution

Expertise

• Implementation Roadmap

Development

• Quality Improvement

• Data Migration Planning

• Focus on End-User

Impact

• End-User Training

Development

• Change Management

and Stakeholder

Communication

• User Acceptance Testing

• Readiness and

Deployment Planning

Core

Configuration

Implementation

Partner Focus

• Software Handoff and

Activation

• Project Readiness

Documentation

If I’m interested in a cloud-based finance solution, what do I do next?

It is important that every organization think through the following questions before determining

if a cloud-based finance solution is right for them:

1. Cost—What is the true cost of moving to a cloud-based solution?

2. Process Standardization—Has your organization standardized core finance processes?

If not, a cloud-based solution will escalate this need.

3. IT Capabilities—Is your IT function equipped with the necessary resources and skill sets

to manage an on-site, owned solution? If not, a cloud-based solution can alleviate that

concern.

4. 5-Year Outlook—Do you expect major changes to your business model or the necessary

finance support within the next 5 years? If so, it may not be worth the expense of migrating

to a cloud-based solution.