IDC MarketScape: Worldwide SaaS and Cloud-enabled Enterprise Treasury and Risk Management Applications 2023 Vendor Assessment

※ 当記事記載の IDC MarketScape の抜粋レポートを PDF (英文) にてお読みいただけます。なお、当レポートは英文のみの公開です。( 関連プレスリリース ) Figure 1. IDC MarketScape Worldwide SaaS and Cloud-Enabled Enterprise Treasury and Risk Management Applications Vendor Assessment Source: IDC, 2023 IDC Opinion In times of uncertainty, businesses rely heavily on liquidity management to stay prepared for the unknown. Between global conflict, natural disasters, political unrest, and the ever-looming shadow of economic uncertainty, the ability to manage liquidity and cash is becoming a higher priority than ever. The current state of the world gives treasury management software (TMS) providers the opportunity to capitalize on an ever-growing need. Businesses use liquidity to determine how easily assets can turn into cash. A liquidity ratio shows how financially stable a business is by demonstrating what a business owes versus what it owns. With a high liquidity ratio, businesses are more prepared to pay short-term liabilities and any unexpected expenses, bills, or obligations. A low liquidity ratio shows that it may be difficult for a business to turn assets into cash within a brief period if an unanticipated situation occurs and, therefore, is at a greater risk of bankruptcy. The ability to accurately determine a business' current state of liquidity is essential for making wise business decisions. In addition, a business' liquidity ratio is usually a factor in decision making for lenders and investors looking to provide loans or funding. They want to have an idea of how easily the business could obtain cash if needed. In times of increased inflation and skyrocketing interest rates, liquidity ratios can make or break a business. For these reasons, the ability to accurately determine and manage liquidity and cash is an even greater concern to business owners now than ever. Using the proper treasury management system can assist with these liquidity concerns while guarding against error-prone manual processes, low cash flow awareness, compliance issues, and disorganized data. Key features to take under consideration when determining the best treasury management solution for a business include automation capabilities, analytics and reporting, forecasting capabilities, compliance functions, reconciliation, security and, of course, liquidity tracking and cash management. These features assist with a variety of pain points a treasurer and accounting department may face and provide decision makers with real-time views of the business' financial standings. As a result of current events and a growing emphasis placed on liquidity and cash management, treasury management solutions are finding themselves in the spotlight. Common features of treasury management systems include liquidity and cash management, proving them invaluable to businesses struggling to maintain an accurate picture of their cash flow and current liquidity ratios. While these features are extremely useful, they can fall under scrutiny if not updated and streamlined according to the current needs of users. Now is the time for treasury management software providers to highlight their liquidity and cash management features when interacting with potential clients. This is also a perfect opportunity to improve and streamline processes that may be outdated, overly complicated, or difficult to implement, as these features will be under greater scrutiny than usual. Taking the initiative to meet the evolving liquidity and cash management needs of today's treasurer will set up a software provider apart from the competition. Enterprise Difference Within the enterprise segment, organizations often have dozens (sometimes hundreds) of back-office applications connected to the process or resulting data from travel and expense management. Data from treasury activities must flow between all the relevant finance functions, including accounts payable (AP), accounts receivable (AR), FP&A, order management, and procurement. In addition, the data must flow outside of the finance teams as well including investors and lenders, certain government agencies, banking/financing partners, and even to certain customers and suppliers. Here are few issues that enterprise businesses feel more acutely than smaller businesses, including: Centralized liquidity/cash data: The centralization of liquidity data streamlines financial operation, allowing for better control for financial leaders. Centralization provides financial leaders with the opportunity to standardize cash management across all legal entities, reduce the number of bank accounts in use, and provide a more holistic view of bank or foreign exchange (FX) exposures. Deep liquidity analytics: Having access to deep analytics provides users with the ability to better predict future liquidity. More importantly, it allows them the chance to find patterns or overlooked items that have business significance (e.g., identifying cash as a revenue-generating asset, monitoring bank fees, and deposit rates). Real-time massive data: Finance leaders need real-time information to optimize decision making but often must wait to the end of day/period/quarter to get an accurate and holistic view of the current state of the enterprise liquidity. Today's liquidity manager needs real-time data to build accurate forecasts and market simulations. Real time is also essential in effective communication of the business cash position between stakeholders. IDC Marketscape Vendor Inclusion Criteria The vendor inclusion list for this document seeks to accurately depict the vendors that are most representative of any given treasury functional buyer's selection list. Vendors were further investigated to ensure that their offerings qualified as "software as a service (SaaS) or cloud enabled" and the vendor had won recent deals. Further, participant companies indicated which other vendors they most often compete against in deals. Also, the treasury software must be able to be purchased and implemented separately from other associated financial/enterprise resource planning (ERP) software. Preference was given to companies with revenue of more than $10 million and/or that were on our watch list of companies within this market. The vendor inclusion list for this document seeks to accurately depict the vendors that are most representative of any given software application on a buyer's selection list based on the following items: Vendors must have a SaaS or cloud offering — on-premises-only applications are out of scope. Software applications can be purchased separately (not just functionality built into a larger system) and are available off-the-shelf without required customization. Software application has capabilities for treasury management features including bank relationships management, corporate payment management, financial risks management, cash and liquidity management, debt and credit ratings, debt and investments, and hedge accounting. The vendor had 2023 revenue in at least two countries. The vendor had at least $5 million in 2023 treasury management software revenue. The vendor had minimum of one treasury product in market for at least three years. The vendor must have a significant footprint with business with more than 1,000 employees. Advice for Technology Buyers The process of transitioning treasury management from a manual model to an intelligent model can be a challenging one. It is important to structure your treasury department to be more efficient and agile to cope with the ever-changing compliance/regulatory/liquidity demands. Here are key steps in the journey toward optimizing your treasury management department through the addition of an advanced software package like the ones listed in this document: Begin by looking inward: Before you choose your treasury management software vendor or even whether a dedicated TMS is a sound investment for your organization, first you should take the opportunity to do some self-reflection. Here are key questions to ask regarding the internal resources and processes: What are the issues I would like to resolve with this new system? Are the issues technology related? What are my internal support resources and capabilities? How should we define success for this implementation? Which internal stakeholders should we include in the evaluations processes? Select the right partners (internal and external): The first step in the journey to TMS is developing a strategy and plan for the implementation. This includes doing due diligence in finding the right TMS vendor. Here are key questions to ask regarding the TMS vendor: Does the vendor have experience with my type of product, service, and company size? Can the vendor show you a live demo with your organization's "live/real" data to show the benefit to the business? Does the vendor understand the regulations that will impact my business? How are these regulations reflected in my current product, and how will they change in the future? What is the vendor's strategic investment outlook for the next three to five years? Why? How will that change and enhance my business? Take ownership of the implementation: For optimal results, organizations must take an active role in the actual implementation of the software. Treasury management software touches upon other back-office systems (ERP, finance, accounts receivable, supply chain, inventory, etc.). As a result, extreme attention must be given to how the TMS system is set up and how it interacts with other systems within your organization. Here are key questions to ask regarding the TMS implementations: What levels of support are available, and are they geographically available for my business? How should I set up the service-level agreement (SLA) before signing any contracts? Can TMS integrate with my company's other IT systems and those of my partners? Which IT systems need to integrate and to what degree? How are we set up to deal with frequent product updates? Note that post-implementation is critical: The success of any SaaS implementation hinges on what happens after the implementation is up and running. This is where change management takes center stage, and the people side of treasury management becomes essential. Here are a few key questions to ask regarding the post-go-live phase of TMS implementations: Do we have a strategy to encourage rapid adoption among treasury employees? Do we have the right amount of training for employees to master the new features within the TMS system? Are we communicating the purpose and benefits of the system change to the treasury employees? Have we aligned existing policies and procedures to enable the adoption of the new workflows? This IDC MarketScape vendor assessment assists in answering these questions, among others. The goal of this document is to provide potential software customers with a list of treasury software companies that have taken great strides to incorporate the previously listed capabilities. We have profiled and assessed their capabilities to support the complicated area of treasury management software. Kyriba After a thorough evaluation of Kyriba's strategies and capabilities, IDC has positioned the company in the Leaders category in this 2023 IDC MarketScape for the worldwide SaaS and cloud-enabled enterprise treasury and risk management applications market. Kyriba is a secure, scalable SaaS platform that leverages artificial intelligence, automates payments workflows, and enables multinational corporations and banks to maximize growth, protect against loss from fraud and financial risk, and reduce operational costs. Kyriba's platform offers a range of solutions, including cash and liquidity management, forecasting and budgeting, risk management, payments and bank connectivity, and financial accounting. The platform is designed to help companies of all sizes, from small businesses to large enterprises, and manage their financial operations more efficiently and effectively. Quick facts about Kyriba are: Employees: 1,000 Total number of clients: 2,500+ Globalization: 100+ Industry focus: Chemicals, consumer goods, energy, financial services, healthcare, higher education, insurance, manufacturing, nonprofit, real estate, retail, technology, transportation, hospitality, and utilities SaaS: Multitenant SaaS platform Pricing model: Combination of annual subscriptions and consumption based Partner ecosystem: 100+ Strengths Data and connectivity: Kyriba's platform uses APIs to unify data across the enterprise, AI to predict and enrich new data, and embedded Analytics to visualize and present data patterns and reporting. Kyriba offers out-of-the-box, certified connectivity to ERP vendors including SAP ECC and S4/Hana, Oracle, NetSuite, and Microsoft Dynamics and includes prebuilt connectors to over 1,000 global banks for bank reporting and payments. Kyriba offers a SWIFT service bureau alongside APIs and other direct to bank connectivity. More than treasury: Kyriba's platform offers treasury alongside risk management, payments, working capital, and connectivity products. Each can operate standalone or as a single solution. Kyriba was originally built as a cash management solution and has developed into a comprehensive TMS with products that are designed for IT and other branches within the office of the CFO. Challenges Client's short-term goals: Focus by clients on immediate functional requirements to replicate their current business practices without fully strategizing future requirements and involving their IT teams soon enough to leverage available transformation capabilities can be a challenge when implementing a new TMS. Client internal alignment: As Kyriba offers more than TMS capabilities (payment factory, payables finance, and receivables finance), there are challenges in obtaining an internal alignment of many teams in the client organization (CFO, treasury, accounting, procurement, IT, etc.) to leverage all Kyriba's capabilities. Consider Kyriba When Consider Kyriba if you are looking for a comprehensive TMS that features a robust cash and liquidity management system from a company that also offers many additional finance department capabilities. About IDC International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Copyright and Trademark Notice This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit www.idc.com to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit www.idc.com/offices. Please contact the IDC Hotline at 800.343.4952, ext. 7988 (or +1.508.988.7988) or [email protected] for information on applying the price of this document toward the purchase of an IDC service or for information on additional copies or web rights. IDC and IDC MarketScape are trademarks of International Data Group, Inc. Copyright 2023 IDC. Reproduction is forbidden unless authorized. All rights reserved.

Enterprise Liquidity Management: A New Ecosystem for Corporate Chief Financial Officers

Enterprise Liquidity Management (ELM) has emerged as a new practice area within the CFO’s and treasury professional’s remit to manage and execute the entire lifecycle of corporate liquidity—a specialized capability traditional Treasury Management Systems and ERPs are not able to deliver. The ELM concept a purpose-built, dedicated Enterprise Liquidity Platform has emerged as the software solution suite required to do so. Key takeaways from the study include the following: From a corporate finance perspective, liquidity is the strategic resource necessary to deliver value and growth under any circumstance, including but not limited to maintaining solvency. Enterprise Liquidity Management provides diagnostic decision support intelligence on all liquidity transactions, then enables indispensable actionability and operational interconnectivity between internal and external systems. ELM is powered by the Enterprise Liquidity Platform, a fully integrated software suite (e.g., Treasury and Risk Management, a comprehensive Payments Hub, and Working Capital Finance solution sets) all of which are connected, integrated, and networked through Open APIs that provide indispensable, secure machine-to-machine automation between software applications. The result is that all cash and liquidity-related data and process workflows within the organization and its external finance ecosystem are unified into a “Golden Source” of intelligence and, then within the same system, made actionable as a strategic decision-making support system. Managing cash and liquidity across large enterprise ecosystems demands the support of a dedicated infrastructure engineered to overcome one of the most significant burdens to corporate finance: the proliferation of disjointed software applications. An ELM platform differentiates from traditional treasury management systems, extending visibility, security, and actionability across all of finance internally and externally beyond cash positioning and forecasting: the treasurer can understand multiple liquidity management scenarios and—directly from the platform—move and optimize liquidity to or from the right location at the right time. The goal of this paper is to inform the market that ELM has become a strategic practice area for CFOs, Treasurers, and other corporate finance leaders who understand the newfound urgency to leverage new technologies and techniques to capture opportunities and eliminate risks. Introduction Liquidity is the strategic resource necessary to deliver value and growth under any circumstance, including but not limited to maintaining solvency. The speed and complexities required of corporate finance leaders to manage cash and liquidity in realtime, however, and especially during market shocks such as the 2008 and Covid-19 crises, has surpassed the ability of humans to build better and better spreadsheets. Even the largest ERP and treasury management system providers struggle to deliver value in the new world where comprehensive, cross-functional liquidity management has become a board-level mandate. Aite-Novarica Group’s view is that emerging leaders in the space are thinking differently and developing new technologies to enable liquidity to be managed holistically as a new practice area within the CFOs purview. While from a conventional liquidity management standpoint almost every global and regional bank has the technology in place in the form of a web-banking portal, enterprise users expect to consume decision support data through transaction banking cockpits and portals developed according to standard business process flows and practices. These cockpits must be interoperable and interchangeable. Finance and treasury executives and managers don’t want any longer multiple web-banking user interfaces that require system experts to cut and paste highly-valuable financial data into “software soups”. Fintech players must develop and present technology solutions and software applications that support their corporate clients’ internal, strategic liquidity management objectives and, at the same time, allow the enterprise to meet external client needs. This thought leadership paper introduces the concept of enterprise liquidity management as a formalized practice area for corporate finance; it further analyzes the technological, process architecture, and execution workflow capabilities required to make it happen. Following, this paper develops the concept that corporations of all sizes and complexity aim to have all their subsidiaries on a central repository for cash and liquidity-related operations rather than on individual web-banking portals. The concept is similar to the idea of a self-contained infrastructure to manage liquidity, as if it were an “ERP for liquidity management”. The paper introduces Enterprise Liquidity Management as a new financial technology category. Methodology This thought leadership paper is based on desktop analysis and extensive examinations of various solutions used by treasurers to manage corporate liquidity. Using the life cycle steps of liquidity management operations as a benchmark, Aite-Novarica Group’s groundwork also included analyzing the limitations of currently available solutions. To validate the conclusions of the research, Aite-Novarica Group will refer to the findings of an analysis conducted on Kyriba’s Enterprise Liquidity Platform and on its impact on the corporate organization culture, business processes, IT performance, and its alignment with management’s goals1. The Liquidity Management Lifecycle and the Need to Unify Fragmented Systems Enterprise liquidity is the lifeblood of every business of any size. Considering the numerous definitions used to describe it, liquidity confirms to be a strategic resource for corporate chief finance officers (CFOs) to deliver value and growth under any circumstances including but not limited to insolvency. Enterprise executives know that information technology permeates business operations and is the most powerful tool for change. Corporate finance business units, however, appear not to be the most technically mature in the organization, so only enlightened corporate CFOs are at the forefront of corporate finance digitization to transform the way they leverage cash and liquidity to build resiliency, earn growth, and generate strategic value to customers, shareholders, and boards. If resiliency, growth, and value are the targets for corporate finance, the task is now for the CFO and his teams to practically meet such targets. To his/her rescue comes liquidity management: in times of crisis a proper management of the company sources and destinations of liquidity contributes to make the organization more resilient. At the same time the ability to manage corporate liquidity not only helps the company to survive but also sustains the value of the company through growth: value is generated when the company has proper funding to distribute dividends, buy back shares, and grow by investing in other avenues and controlling capital expenditures. Liquidity is the organization’s lifeblood, irrigating all internal functions and lines of business; as blood needs to be enriched with oxygen, liquidity needs to be enhanced by a complex external ecosystem, including banks, financial data suppliers and market places, and fintech players. Liquidity is also typically managed along different time dimensions. In long-term vision, CFOs grow and protect cash availability by operating financial transactions with multiple settlements. The most iconic of such transaction is drawing down a debt for cash. This triggers the long-term need to repay the debt at the end of maturity up until the final settlement. Another transaction with long-term financial repercussion is a hedge transaction that will take the company to enter in a swap with multiple settlements, maybe for the next two or three years. On the short-term execution, the corporate treasury office generates or consumes liquidity with cash transactions. Examples of cash transactions are one-off payments to a supplier, an employee, or an FX spot transaction. Between long-term financial transactions and short-term cash operations should stand strategic planning. Financial Planning and analysis (FP&A) that the CFO uses to understand what will be the budget for next rarely translates in terms of liquidity requirements and usually lacks critical data to ensure there is enough money: Should it be borrowed? How to hedge the risk? The budget fixed at the beginning of the year will inevitably move as time goes by. The necessary adjustments swing the pendulum from the very short-term treasury operations to the long-term forecasting of the outcoming liquidity. A bank that negotiates with a CFO will always ask the company’s liquidity plan for the next year, sometimes even several years ahead depending on the market segment the company operates in. This demands the treasury department and financial manager of each subsidiary to integrate their figures, usually on a monthly basis, into the centralized corporate FP&A view that gives the CFO the most updated and reliable liquidity profile of the company. Enterprise Liquidity Management - A New Practice Area in the CFO Suite Beyond closing accounts, the CFO’s constant focus is- hence- to know where liquidity comes from and where it can be allocated, and, with that intelligence, ensure its protection (from fraud and over-exposure) throughout. This requires more than a mindset shift towards prioritizing the strategic value of liquidity--it requires a purposebuilt layer of software to make it happen. We believe this combination constitutes the design and deployment of a new Practice Area. To start, Aite-Novarica Group suggests to measure the value of liquidity beyond the ordinary ‘cash and cash equivalents’ balance sheet item. This indicator may in fact be deceptive if not depurated from the component of the uncommitted drawn facilities. There is a possible risk that the lender may ask for the repayment anytime, and this scenario will vaporize the value of the borrower’s assets. On the other side, the value of cash and cash equivalents must be increased for the total value of the undrawn committed facilities the company can still access. These represent reliable and immediately accessible liquidity because the time to draw down such facilities in general is very fast, usually in the order of a couple of days. The example of the metric to gauge the real potential value of available liquidity is yet one of the many key capabilities a CFO should have available in the ELM Practice Area, a decision support system. At the back of these capabilities the CFO and the treasurer need a system that unifies the data scattered across a landscape of IT systems totally fragmented, the more disjointed the larger and complex the organization. Historically, the CFO suite has been an installed on-premise (almost monolithic) ERP sometimes combined with an equally monolithic treasury management system (TMS), now morphing into a composed set of a core solution (e.g., SAP, Oracle) and connected mission critical best-of-breed solutions such as payroll and benefits, budgeting and planning, order-to-cash, procure-to-pay, and risk management. The most recent trend sees companies shifting their IT infrastructure to the cloud with multiple objectives: constant innovation, business continuity for critical functions, or real-time flow of information while lowering the total cost of ownership of the underlying software and hardware infrastructure. A New Category: ELM Enterprise users expect to consume decision support data through interoperable and interchangeable cockpits and portals, developed according to standard business process flows and practices, typically provided by banks – or, through monolithic ERPs combined with an ever-increasing portfolio of specialized point solutions. Today, as we see the emergence of “composable” ERPs capable of providing value beyond simply recording transactions, there remains a major void in the marketplace. Corporations aim to have all their subsidiaries on a central repository for cash and liquidity-related operations rather than on individual and separated web-banking portals. The concept is similar to a self-contained infrastructure to manage liquidity and introduces to a new financial technology category: Enterprise Liquidity Management. Treasury has evolved from account management staff duties (e.g., reconciling cash every morning and putting cash in the right accounts) to a more strategic, cross-functional role, so corporate finance decision makers are receptive to ELM as the suite that enables companies with long-term vision to work with multiple liquidity structures and make autonomous and simultaneous decisions across use cases, particularly treasury. The next sections will provide detailed descriptions of the modules that constitute the ELM construct. At this point is important to capture the possible ELM use cases. As an example, the ELM construct allows the corporate user to drawdown from a credit line directly from their liquidity cockpit. Or, to recommend the corporate decision maker at what point does it make sense to go back to market and refinance. This makes it possible to look at external debt in a completely new way. Users don't want just to model cash, they want to make sure they can model all their cash flow deadlines. The ELM tools model and not just showcase. They are part of a set of open and scalable intelligent systems to come to decisions. From a conceptual standpoint, the ELM is a platform composed of three layers (Figure 1). FIGURE 1: THE THREE LAYERS OF THE ELM PLATFORM The first- the operations layer- groups the application modules to run treasury, payments, risk management, and working capital optimization. The connectivity layer is the second layer- and the raison d'être of ELM- that takes a standalone suite of rich software features to a system open to the world, thanks to the development and use of connectivity APIs. The composed infrastructure of two or three large ERPs that most large enterprises have today generates a portfolio of point solutions that can be best connected through an API architecture. This architecture enables not just the visibility of data, but the unification of that data, enabling the user to leverage AI for decision support. The third layer- the execution layer- makes it possible to analyze and understand the data exchanged between the connected systems, take the best decision using business intelligence capabilities, and leverage machine learning and artificial intelligence (AI) to turn information into decisions and- this is key- to execute directly from the corporate treasurer’s enterprise system.

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