Revenue Operations Management: Building a Finance Technology Strategy to Optimize Your Cash Flow

50 %
50 %
Information about Revenue Operations Management: Building a Finance Technology Strategy to...
Business & Mgmt

Published on February 18, 2014

Author: Proformative

Source: slideshare.net

Description

Effective revenue operations management is critical to the success of the entire enterprise, but it can be inhibited by complex sets of manual processes and systems, numerous stakeholders and the need to collect and manage vast amounts of information. Join finance and technology leaders to hear how they are eliminating barriers and challenges to revenue operations management and prioritizing Finance Technology investments to support and influence cross-functional alignment around revenue strategy.

Speaker: Chris Couch, COO and Co-Founder, Transverse

Presentation delivered at ProformaTECH 2014 - http://www.proformatech.com
Track: Finance Technology Landscape | Session: 3

Revenue Operations Management: Building a Finance Technology Strategy to Optimize Your Cash Flow Chris Couch Co-Founder and COO, Transverse LLC

Transverse Headquartered in Austin, TX Founded in 2008 $40M+ in private funding Leading provider of cloudbased Revenue Operations solutions for mid and large enterprises Over 50 customers 2 © 2014 Proformative

Agenda Define Revenue Operations Survey of challenges, barriers and priorities Three principals of Revenue Operations innovation Innovation strategies Innovation examples Q&A

What is Revenue Operations? Billing and Collections Sales Holistic view of end-to-end revenue management across multiple parts of an organization Spans all data, systems and resources necessary to produce and account for revenue Complex, multi-step cycle usually with cumbersome, manual processes, disparate technologies 4 © 2014 Proformative Revenue Operations Customer Management Finance

What Activities Are Involved With Revenue Operations? Order to cash processes Revenue recognition Sales reporting Revenue accounting Revenue forecasting Assurance and compliance 5 Booking execution Billing and collections © 2014 Proformative

Survey Of Challenges, Barriers and Priorities

Aberdeen Survey Methodology Best-in-Class Survey Questions Total Respondents: 239 respondents across multiple industries are scored individually across standard KPIs 7 © 2014 Proformative Industry Average Laggard

Barriers and Challenges to Finance Departments • Majority are hamstrung by manual processes and disparate technologies • 93 percent use spreadsheets for critical revenue processes • Majority perform nearly 85 percent of internal controls manually • Almost 50 percent reconcile their revenue accounts manually • 40 percent can only accurately forecast three months in advance • 82 percent lack full visibility into areas of profit and loss • Business processes most vulnerable to fraud, leakage and error are in procurement and revenue reporting • 41 percent cite a lack of staff resources and headcount necessary to scale • 28 percent have difficulty consolidating information from multiple data sources 8 © 2014 Proformative

Common Concerns • More data and higher demands are increasing volatility and risk. There is simply more for organizations to see, understand and react to. • To compete, organizations must be flexible and fast, able to adapt and respond to market conditions as they shift and change. 9 © 2014 Proformative

Priorities / Themes of Success in Revenue Operations Maximize Revenue: By capturing value from every opportunity. Better, Faster Decisions: Company wide access to accurate real-time information in a usable form. Drive Efficiency Up & Costs Down: Drive out waste and increase performance of systems, processes and people across the entire organization. Responding to Change: Meet dynamic demands and solve problems as they emerge without being limited by resource constraints. Mitigate Risk: By providing visibility across revenue impacting operations to get ahead of risks before they materialize. Accelerate Innovation: Remove friction in the introduction of new products, services, and business capabilities. 10 © 2014 Proformative

Three Principals of Revenue Operations Innovation Automation Integration Insight 11 © 2014 Proformative

The Common Revenue Operations Environment People Processes Systems 12 © 2014 Proformative Data

Applying the Principals of Automation, Integration and Insight Common Alerts 13 © 2014 Proformative Common Reports Automated Processes Constant Monitoring

Innovation Strategy

Revenue Operations Innovation in Market Leaders Leaders Followers Billing and collections integrated with order entry and credit with no duplicate data entry 70% 37% Standardized / automated enterprise-wide procedures for order fulfillment 64% 43% Automated A/R and revenue recognition 67% 47% Real-time visibility into outstanding invoices and related customer information 82% 31% Real-time visibility into current revenue exceptions by customer, problem type, etc. 68% 21% Electronic interfaces to banks and trading partners 82% 58% Revenue performance dashboards 68% 31% Order flow automation 59% 30% 15 © 2014 Proformative

Mean Class Performance Leaders 6.1% of A/R past due 1.1 days for payments to clear A/R ledger 11.7% of require manual intervention 16 © 2014 Proformative Followers 8.8% of A/R past due 6.9 days for payments to clear A/R ledger 30.1% of invoices require manual intervention

Making the Case for Integration 17 © 2014 Proformative

Example Innovations

Example 1 - Prepurchased Volume of Transactions Resulted in a 20%+ increase in month over month revenue Enterprise wide real-time visibility into customer consumption 19 © 2014 Proformative

Example 2 - Publicly Traded eCommerce Company (Sales Based on Revenue Share) Reduced bill period close to 2 days DSO by a significant number of days Cut audit costs and time by 15% 20 © 2014 Proformative

Q& A 21 © 2014 Proformative

Thank You For Attending Revenue Operations Management: Building a Finance Technology Strategy to Optimize Your Cash Flow

Add a comment

Related presentations

Related pages

How To Manage Cash Flow | Inc.com

Strategy; Operations; ... it may help your management of cash flow by incentivizing customers ... association for small business on how to manage cash flow.
Read more

Revenue management - Wikipedia, the free encyclopedia

Other firms dedicate a section of Finance to handle Revenue Management ... Revenue Management to optimize ... revenue or yield management strategies ...
Read more

Product Wealth Management Optimize the Revenue Potential ...

Wealth Management Optimize the Revenue ... recommendations with your bank’s strategy ... This compelling model mitigates risk by producing a cash flow ...
Read more

Cash Management | Inc.com

Cash management is important for any new or ... Strategy; Operations; Sales; ... "Understanding and Controlling Cash Flow." Financial Management Series.
Read more

Operations and Supply Chain Optimization - IBM - United States

Optimize your critical operations and ... Developing operations and supply chain strategies that ... contract management), metrics and technology ...
Read more

Working Capital Management & Cash Flow Management | The ...

Improve working capital management with cash flow analysis, better cash flow management practices, finance ... HR strategy, to optimize your ...
Read more

Yield management - Wikipedia, the free encyclopedia

... bases its revenue flow on yield management. ... yield management strategy include ... than the financial markets. Yield management ...
Read more

How to Optimize your Patient Engagement Strategies in a ...

... revenue cycle strategies implemented by leading healthcare provider and servicer operations that use process and technology ... Optimize your Patient ...
Read more

Empowering Finance for E-Business How to Exploit ...

How to Exploit Technology to Optimize Value. 2 ... few years pursuing strategies to enhance cash flow and ... Building customer value management into your
Read more