1. technology and computing
2. enterprise technology
3. enterprise resource planning

Nightmares in Finance
How to sleep tight again
TREASURY INTELLIGENCE SOLUTIONS | SMART PAYMENTS – BETTER DECISIONS
Leading cloud platform for managing corporate payments, liquidity and bank relations
Who is TIS?
• 50 Employees
• 8 Nationalities
• 3 Locations
…and counting
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TIS© | Classification: confidential | www.tis.biz
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TIS Snapshot
Overview
Key Facts
• Founded in 2010, based in Walldorf, Germany
• Leading cloud platform for managing corporate
payments, liquidity and bank relations
•
•
•
•
MULTI ERP
SaaS
ERP INTEGRATION
& SAP CERTIFIED
SOFTWARE AS A SERVICE:
FAST, SCALABLE, SECURE
Quick and easy implementation with SaaS
Solution for midsize and blue-chip Corporations
BANK
Rapid growth with excellent customer feedback
MULTI
Highest security standards: ISO 27001 certified
DIRECT CONNECTIVITY
0.2 TO 1.0+ M
IMMEDIATE COST SAVINGS
Built by Experts
• Jörg Wiemer, CEO & co-founder;
Head of Global Treasury at SAP;
20 years of treasury experience
• Dr. Wolfgang Kalthoff, COO & cofounder;
VP Program Management at SAP;
SaaS operations expert
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TIS© | Classification: confidential | www.tis.biz
• Erol Bozak, CTO & co-founder;
Director of Development at SAP,
cloud expert, holds 33 patents
• Wytze Rijkmans, EVP Sales &
Marketing;
VP Central Europe Software SaaS
vendors, global sales expert
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Cloud Innovation
Presenting:
Giancarlo Laudini
VP Presales
Martin Postweiler
VP Product & Client Services
Giancarlo Laudini, responsible for Pre-Sales Operations at
TIS, is a domain and product expert in the Payments, Bank
Connectivity, Bank Account Management arenas as well as
the SaaS (on-demand) Services.
With a strong multi-cultural knowledge, he has been in the IT
industry for over 15 years gaining international experience in
Cash Management, Electronic Banking and strategic
involvement in Global Payment Factory projects for large
multinational clients.
Email: [email protected]
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Martin Postweiler, VP Product & Client Services, joined TIS
in 2013. He previously was the Head of Financial and
Liquidity Planning at Deutsche Lufthansa AG.
Martin is well known in the treasury community in the
D-A-CH-Region (Germany, Austria, Switzerland), having
played an important role in establishing the TWIST Initiative
(Transaction Workflow Innovation Standards Team) in this area.
With TIS, he is constantly trying to make the lives of
Treasurers easier, enabling them to contribute strategically
to their company’s success.
Email: [email protected]
TIS© | Classification: confidential | www.tis.biz
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Agenda
I. Business Risks
II. Reasons
III. Remedies
IV. Return on Compliance
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I. Business Risk - Liquidity
EBAM – THE PATH TO EFFICIENCY
Oct. 2, 2001:
Entire Swissair fleet (“Flying Bank”) grounded, due to
cash shortage
36,000 passengers stranded worldwide
Takeover by Lufthansa in 2005
→
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II. Reason – Grounding for nothing?
EBAM – THE PATH TO EFFICIENCY
“Management had no full visibility on its cash.
Swissair actually had a total of SFr 50m at its
disposal on the morning of Oct. 2nd “
Ernst & Young
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I. Business Risk - Bribery
EBAM – THE PATH TO EFFICIENCY
Violation of the Foreign Corrupt Practices act
Siemens was found guilty, CEO fired
$3-4bn damage
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II. Reason – Why was Bribery so Easy?
“To avoid getting caught, Siemens used secret bank
accounts in places like Switzerland and front companies“
Reinhard Siekaczek, Sr. Mgmt.
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I. Business Risk – No Flexibility
EBAM – THE PATH TO EFFICIENCY
Sept. 15, 2008:
Police raid at KfW bank over an
automated payment of $500m
to Lehman
PR Nightmare (“Germany’s
dumbest bank”)
Two Board members fired
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II. Reason – Why did they not act?
EBAM – THE PATH TO EFFICIENCY
“Lehman quickly needs further liquidity
and equity. This is of vital importance for
their existence.”
Internal memo, Friday Sep 12, 2008
On Monday Sep 15, 8:37 local time, the transfer
was released. One hour after Lehman had filed
for Chapter 11.
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III. Remedies
a. Visibility
b. Transparency
c. Flexibility
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a. Visibility
Get the full Picture
Supplier
12 b$
Head Office
3 b$
Subsidiary
JV
Subsidiary
3 b€
Supplier
Customer
Supplier
1 b$
Supplier
Subsidiary
Customer
Customer
0,1 b$
Supplier
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Supplier
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a. Visibility
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a. Visibility – Lift the fog
Customer Relations
Risk Management
•
Total net USD cash flow to be
used as natural hedge?
• Total cash inflow from all
customers - across all entities?
•
Interest Rates
• What is the payment behavior?
Liquidity Management
Supplier Relations
• How much cash is on which
account?
•
How much money is paid to
which supplier?
• Investment/Debt?
•
Working Capital
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b. Transparency – Key Questions
 Which employee is allowed to sign off?
 What is the specific limit per signee?
 What are the exceptions?
 How can you be sure that Accounting knows all bank accounts?
 How can you guarantee that the visibility and transparency
worldwide will be regularly maintained?
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Compliance in Cloud? – What we often find @ Corporates
Process Landscape
Head Office
Joint Ventures
Subsidiaries
Branches
Shared Service Center
Banks
- No single “Source of Truth”
- Manual, paper based and
decentralized processes
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→ No bank relationship overview
→ Potential compliance issues
→ Highly inefficient
TIS© | Classification: confidential | www.tis.biz
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How to get Transparency throughout the Entire Group
Centralized Bank Account Management
Corporation
Master Data & Documents
Signatories & Workflow
Reporting & Audit Trail
Banks
-
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Central repository
Cleaned up data
Audit-proof & streamlined processes
Semi-automated workflows externally
→ Bank Relationship overview
→ Compliance
→ Efficiency
TIS© | Classification: confidential | www.tis.biz
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Transparency – The Full-blown Solution
Adding two “e” to BAM
Corporation
ERP Integration
Master Data & Documents
Workflow & Inventory
Reporting & Audit Trails
Electronic Communication
XML
XML
XML
Banks
→ Use of 15 XML messages
→ STP internally + externally
→ SWIFT, EBICS, H2H
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→ One single “Source of Truth”
→ Multi ERP
→ No IT-Project (with SaaS)
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c. Flexibility – Ability to react fast
 TTransparency and Visibility
 IInsights (in Real Time)
 SStop payments last minute or switch to another
bank at short notice
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A Nice Bouquet of Flowers?
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Payment Challenges
Banking Formats, Protocolls and Security
Situation
Customer IT
International expansion results
in decentralized cash
management and payment
processes as well as individual
bank relations.
ERP Complex Landscape
Fax Banking
Manual On-premise integration solution and payment
Payments
systems
Complexity at all Levels
Legacy / TMS / HR
Various information systems
are involved in cash
management.
Various payment procedures
and systems.
Challenges
Lack of standardization and
manual processing as well as the
complexity of end-to-end
integration and centralization
result in…
reduced visibility into
corporate cash-flow and
liquidity
increased process- and IT
costs
increased risk of fraud
difficulties to comply with
changing regulatory
requirements (e.g. SEPA)
Various e-banking payment
formats, protocols, channels
and security measures.
Banks
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Smart Payments
Innovation Across Banking Formats, Protocolls and Security
Solution
Customer IT
Format
ERP
Protocol
Security
Other ERP
and TMS
SAP ERP
Plugin
Agent
Implementation
ERP-Integration
Incoming
Channel
Processing
Engine
Outgoing
Channels
…
Customer/Partner
Formats
Meta Model
Communication
Protocol
Security
H2H, EBICS, SWIFT
…
3DES
SWIFT-MT
…
DTAUS
H2H-FTPS
ISO XML
H2H-HTTPS
IDOC PEXR2002
SWIFTNET
CSB34
EBICS
BACS
Web Service
…
…
PGP
SAML
SSL v. 3.0
…
Banks
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One Token – All Banks
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What some of our customers say
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What some of our customers say
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c. Transparency – Visibility – Flexibility
Best Practice (Lessons Learned)
EBAM – THE PATH TO EFFICIENCY
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4. Return on Compliance
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Compliance and Efficiency as Drivers to Bundle Treasury Activities
Ability to React Fast
STANDARDISATION
CENTRALIZATION
AUTOMATION
•
Standardized processes
•
Centralized Treasury
•
Paper to electronic
•
Harmonized (IT) systems
•
Payment Factory
•
Straight-Through-Processing
•
Standardized payment
methods and formats
•
Platform for global
cash mgmt.
•
Unified bank connectivity
•
Bank relationship
consolidation
•
Central bank account
repository
TARGET EFFICIENCY LEVEL:
TARGET COMPLIANCE LEVEL:
FOCUS ON COST REDUCTION AND VALUE CREATION
FOCUS ON RISK MANAGEMENT AND CONTROL PROCESS
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Compliance and Efficiency as Drivers to Bundle Treasury Activities
Good Night, and Good Luck!
Ability to React Fast
TARGET EFFICIENCY LEVEL
TARGET COMPLIANCE LEVEL
FOCUS ON COST REDUCTION AND VALUE
CREATION
FOCUS ON RISK MANAGEMENT AND CONTROL
PROCESS
STANDARDISATION
CENTRALIZATION
AUTOMATION
•
Standardized processes
•
Centralized Treasury
•
Paper to electronic
•
Harmonized (IT)
systems
•
Payment Factory
•
•
Standardized payment
methods and formats
Platform for global
cash mgmt.
Straight-ThroughProcessing
•
Unified bank
connectivity
Bank relationship
consolidation
•
Central bank account
repository
•
•
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TIS© | Classification: confidential | www.tis.biz
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Question and Contact
How can TIS meet your needs?
Please contact:
Treasury Intelligence Solutions
GmbH
Industriestraße 39c
D-69190 Walldorf
T +49 6227 69824-0
F +49 6227 69824-97
[email protected]
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