Corporate Treasury s New Role: Strategic Business Advisor

Transcription

1 E-Book NO. 18 Corporate Treasury s New Role: Strategic Business Advisor SAP Center for Business Insight Brief Q&A Case Study Inquiry E-Book

2 Companies Want Their Treasury Groups to Become Strategic Advisors CEOs want corporate treasurers to aid in corporate decision making, whether the decisions are related to cash flow, funding, or risk considerations. Yet treasury functions lack the standardized banking network and universal access to their banking information that would enable them to provide that insight. 2 E-Book: Corporate Treasury s New Role: Strategic Business Advisor

3 A Joint SAP/CFO Research Survey Finds That Companies Are Demanding Improvements in Treasury Processes, Collaboration, and Connectivity What are your company s three most important priorities for improving treasury performance? Skills, Depth & Collaboration Information & Visibility Organization & Staffing 44% Optimize treasury processes 38% Upgrade treasury information systems or technology 32% Work more closely with line-of-business management 33% Improve connectivity of treasury systems with external information systems 31% Improve treasury staff expertise or capabilities 29% Integrate better with non-treasury information systems 24% Expand or add treasury services 18% Change the organizational or reporting structure for treasury 17% Adjust treasury staffing levels Note: respondents were allowed to make up to three selections. 3 E-Book: Corporate Treasury s New Role: Strategic Business Advisor

4 CEOs Have Higher Expectations for Improvements Than Finance Executives in Some Key Areas Significant improvement is needed % * 38% 22% 18% * 19% 23% 32% * 14% 13% 28% * 15% 12% * CEO-level executives in the survey are much more likely than finance executives to see the need for significant improvement in treasury activities linked to growth operations. Strengthening liquidity Improving communication or connection with the information systems of third parties (e.g., suppliers, funding institutions, customers) Optimizing internal funding across different countries Reinvesting cash reserves in the business CEOs N = 62 CFOs N = 105 Treasurers N = 81 Note: multiple responses allowed. 4 E-Book: Corporate Treasury s New Role: Strategic Business Advisor

5 Treasury Departments Will Be Looking for Banking Partners That Can Help Them Meet Increased Demands from the Business Over the next two years, is your company likely to seek new banking partners? 50% Will Consider 5% Don t Know 17% No 29% Yes Note: percentages may not add up to 100 due to rounding. 5 E-Book: Corporate Treasury s New Role: Strategic Business Advisor

6 Companies Will Seek a More Consultative Relationship with Their Current and Future Banking Partners Is your company likely to scrutinize current 5% or prospective financial services provides 7% 47% Don t Know No more thoroughly over the next two years? Will 44% Consider Yes WE HAD A NUMBER OF EXECUTIVES SAY THEY WOULD LIKE TO BE ABLE TO PARTNER WITH THEIR BANKS IN A MORE CONSULTATIVE WAY. David Owens, Director of Research, CFO Research Note: percentages may not add up to 100 due to rounding. Source: Q&A: Treasurers Want Cloud, But Do Banks? 6 E-Book: Corporate Treasury s New Role: Strategic Business Advisor

7 One of the Ways Banks Can Start to Build a More Consultative Relationship Is by Offering Cloud-Based Analytical Services Which of the following statements do you believe best reflects your company s position on using cloud computing technology to automate its banking relationships? 40 38% 30 27% 20 19% 10 8% 9% My company is likely to be an early adopter of cloud computing for banking relationships. My company is likely to be a fast follower in adopting cloud computing for banking relationships. My company is likely to adopt cloud computing for banking relationships when most of its peers do so. My company is likely to adopt cloud computing for banking relationships after most of its peers. My company is not likely to adopt cloud computing. Note: percentage of respondents may not add up to 100 due to rounding. 7 E-Book: Corporate Treasury s New Role: Strategic Business Advisor

8 There s More TO GET THE FULL ANALYSIS OF THE SAP/CFO RESEARCH SURVEY AND FIND OUT HOW TREASURY AND BANKS SHOULD RESPOND TO THE FINDINGS READ ASCENT TO POWER: CORPORATE TREASURY S NEW ROLE IN THE BUSINESS. The SAP Center for Business Insight is an organization that discovers and develops new research- based thinking to address the challenges of business and technology executives. 8 E-Book: Corporate Treasury s New Role: Strategic Business Advisor

9 NO SAP AG or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies ( SAP Group ) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see for additional trademark information and notices. SAP Center for Business Insight Brief Q&A Case Study Inquiry E-Book