Case for the Cloud How SaaS Solutions Can Help Transform Finance Keith Mattioli Principal, Advisory, KPMG LLP Calvin Liu Managing Director, KPMG LLP March 18, 2013 Hello. I’m Keith Mattioli, and I’m a principal with KPMG’s Advisory Practice. I’m delighted to be with you today. And happy to share some thoughts about Cloud computing, Saas (software as a service) and how these new technologies can help with the transformation in Finance that we all know is well under way. Finance has moved from a pure reporting function to a strategic business partner that helps drive company growth and profitability. And as CFOs, you are becoming increasingly aware that you can’t be an effective strategic business partner using yesterday’s reporting systems. © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

Your new computing challenges A Case for the Cloud Your new computing challenges What CFO’s are saying: “We anticipate doubling our size, and we need sustainable processes to support growth.” “It’s taking too long for IT to implement new capabilities into our ERP system.” “We’re expanding into new businesses and countries, how do I make my finance infrastructure ready?” “My accounting close is too long, and our financial information may be compromised.” Here's what we hear CFOs say about their ERP challenges: "We anticipate doubling our size, and we need sustainable processes to support our growth." "It's taking too long for IT to implement new capabilities into our ERP system." "We're expanding into new businesses and countries, how do I make my finance infrastructure ready?" "My accounting close is too long, and our financial information may be compromised." "How do I address and automate changing revenue recognition rules?" “How do I address and automate changing revenue recognition rules?”

SaaS-enabled Finance Transformation A Case for Cloud SaaS-enabled Finance Transformation SaaS delivery models are opening the market to new solution vendors Supports a different way of looking at Finance facilitating transformation More easily adopt best of breed SaaS solutions to support specific Finance functions Its not about SaaS for SaaS sake. It is about how SaaS delivery models have opened up the finance systems market to new players who are disrupting the traditional providers who have been focused on acquisition and consolidation. Companies like NetSuite and Workday have started from the ground-up in re-inventing Finance systems. These changes, whether a platform replacement or a best-of-breed approach, are finally allowing Finance the opportunity for true transformaiton

Cloud computing gains ground A Case for the Cloud Cloud computing gains ground Nearly 57% of the CFOs surveyed say they would consider migrating some systems to the Cloud. In 2012, CFO Research, in collaboration with KPMG, conducted extensive research to find out how CFOs at large companies are planning to use technology to further their strategic initiatives over the next two years. The results showed that many CFOs now understand Cloud computing quite well and view it as an acceptable option for many IT applications. In fact, nearly 57 percent of respondents said they would consider migrating some systems to the Cloud. They also view the Cloud not so much as a game-changer, but rather as another tool in the technology toolkit.

Keeping Fido on a Leash Moving to the Cloud Reason 1: Process Case for the Cloud: Keeping Fido on a leash Reason one for moving to the Cloud is process. You may have inefficient or ineffective processes that require significant manual intervention and workarounds. Or your company may have a growth strategy that means Finance needs more agile processes to support it. This was the "case for the Cloud" for a major telecommunications company -- supporting new business ventures. They are a world leader in next-generation mobile technologies. And they might become the next big thing in finding Fido with the GPS-enabled dog collars. The company works continually to bring new products and services to market, and they want these new ventures to operate nimbly and in ways that made sense for the individual business model. But they still needed to keep the start-ups "within the fold" for financial reporting. For these new businesses, KPMG helped them define a 100-percent Cloud-based SaaS architecture leveraging a variety of vendors. The architecture was designed to be modular so an emerging business could “activate” different components when business needs or maturity warrant. For example, CRM (customer relationship management) capabilities and campaign management at the onset, followed later by an e-commerce storefront and finally, back-end order processing, fulfillment, and financial reporting. Now, the company has a blueprint for rapidly enabling its emerging businesses to get to market faster and at a lower cost. It also has a library of business processes that enable new businesses to operate efficiently and effectively and a cloud-based SaaS architecture that is modular and scalable. © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

A Case for the Cloud – Key Take-aways Offering a new model Delivering new efficiency Providing new ease Best-of-Breed Offering a new model The SaaS model is important because it addresses some of the challenges with today’s financial systems: their lack of agility and dependence on back-office IT for basic or complex changes. Solutions built on the SaaS model take advantage of the new computing paradigms that have arisen over the last few years. These include new user interfaces, better collaboration through social interactions, new technology platforms increasing access to data and performance. All of these offer you an opportunity to ‘outsource’ the back-office IT functions of the solution without giving up control of front office, value-added components.

Something to think about A Case for the Cloud Something to think about Something to think about Transforming your financial processes by moving to the Cloud and SaaS may seem challenging. But with planning, communication, and strong organizational change capabilities, it just might result in break-through accomplishments for your company. We think it's a good time to investigate and perhaps begin to make decisions that can help answer the key question, "How can the Cloud and SaaS make our Finance operation better and more strategic?" © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

Learn how to make your own case A Case for the Cloud Learn how to make your own case Visit: http://www.kpmg.com/ US/en/services/Advisory/ management-consulting/Pages/default.aspx   Contact: Keith Mattioli at kmattioli@kpmg.com Calvin Liu at cliu@kpmg.com Learn how to make your own case Visit: http://www.kpmg.com/ US/en/services/Advisory/management-consulting/ Pages/default.aspx   Contact: Keith Mattioli at kmattioli@kpmg.com Calvin Liu at cliu@kpmg.com Thank you. © 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.