Video & Slides: http://www.proformative.com/events/raking-revenue-optimizing-order-cash-cycle-o2c-automating-accounts-receivable For most organizations, the Order-to-Cash (O2C) cycle is a complex, multi-step process that involves order creation, fulfillment, shipping & distribution, invoice generation, payment collection, receipt and finally, closing the books. AR automation not only helps shorten the cash conversion cycle and improve operational excellence, it allows finance executives to build a solid foundation for a holistic, sustainable O2C cycle. Join us as Aberdeen Group and Transverse discuss how leading organizations are leveraging AR leverage automation to fuel business growth. Content will focus on actionable advice and best practices for improving AR efficiency as well as real-world examples illustrating how manual processes can impede response time (and customer service).

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

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Understand key attributes of a successful Accounts Receivable
department
•
Understand the market drivers compelling organizations to improve
current billing and payment processing systems
•
Identify key challenges faced and benefits realized in automating AR
•
Understand key Order-to-Cash Cycle performance benchmarks

4. Leveraging AR Automation to
Optimize Order-to-Cash:
Featuring Aberdeen Group
Ankita Tyagi
Research Analyst
Financial Management & GRC
Aberdeen Group

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7. Aberdeen’s Methodology
External and internal forces that impact an organization’s
ressures: market position, competitiveness, or business operations.
P
Actions:
C
The 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
organization’s business practices.

8. Aberdeen’s Methodology
Best-in-Class
Percentage of AR past due
Number of days to clear A/R ledger
Total
Respondents:
Industry
Average
Extent of manual intervention
Respondents are scored
individually across KPI
Laggard

9. Aberdeen’s Methodology
What are Best-in-Class companies
doing differently?
What pitfalls are they avoiding?
Pressures:
External and internal forces that impact an organization’s
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
organization’s business practices.

10. Pressure to reduce Days Sales Outstanding
(DSO)
59%
Pressure to reduce overall costs
45%
Customer pressure to extend payment terms
19%
Risk of customer non-payment or default
19%
Customer demand to improve service levels
19%
0%
10%
20% 30% 40% 50% 60%
Percent of Respondents n=75
70%

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12. 57%
Increase the usage of electronic invoicing
25%
Streamline administrative processes to
43%
49%
remove non-value-added steps
35%
Invest in automation of A/R processes
39%
0%
Leaders
17%
Harmonize A/R processes
Followers
16%
10%
20%
30%
40%
50%
Percent of Respondents, n=75
60%

13. Leaders
Process
Organization
Knowledge
Technology
Followers
Billing 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
Class
Mean Class Performance
Leaders:
Top 30%
of aggregate performance
scorers
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6.1% of A/R past due
1.1 days for payments to clear A/R ledger
11.7% of require manual intervention
Followers:
Remaining 70%
of aggregate
performance scorers
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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

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18. Leveraging AR Automation to
Optimize Order-to-Cash:
Featuring Aberdeen Group
CFO 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
Management
Auditing
You are here.
Order
Management
Product Catalog
General
Ledger
Payment and
Collections
Revenue Assurance
ERP
Reporting
Business
Assurance
Order
Management
Revenue
Recognition
Billing and
Invoicing
Taxation
Business
Analytics

22. Self Signup
Self Service Orders
Invoices
Payment
ERP Integration
CRM / Order Systems
AR Automation
FULFILLMENT
Activities Notifications
Balances Events
SERVICE
USAGE
© 2013 Proformative. Proprietary and confidential
Your Service
or Application

23. Digital Security Company with
High Volume of Usage Data
Manual AR:
•
60,000+ row spreadsheet
•
Lost Orders
•
Revenue Leakage from lost “re-ups”
Invoices
Payment
ERP Integration
Automated AR:
•
Order Management
•
Usage Collection and Rating
•
Action Framework
•
Agreement Management
AR Automation
FULFILLMENT
Activities Notifications
Balances Events
© 2013 Proformative. Proprietary and confidential
SERVICE
USAGE
Your Service
or Application

24. Manual AR:
Automated AR:
•
3.5 weeks to close billing period
•
Usage Collection and Rating
•
6 Individual Spreadsheets
•
Order Management
•
Complex Orders and Revenue
Recognition
•
Revenue Recognition
•
Compliance Reporting
•
Invoices
Payment
ERP Integration
High Audit Costs
CRM / Order Systems
AR Automation
FULFILLMENT
Your Service
or Application
Activities Notifications
Balances Events
SERVICE
USAGE
© 2013 Proformative. Proprietary and confidential

25. Improves Cash Flow
Reduces Revenue Leakage
Manages Revenue Recognition
Increases Customer Satisfaction
Boosts Profitability
Speeds Time-to-Market
Increases Business Assurance
Frees 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

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