Best Practices: Cloud Computing for Associations

Transcription

1 Best Practices: Cloud Computing for Associations What You Should Expect from this Session A solid understanding of cloud computing and Software as a Service Best practices for how cloud computing is being used by association finance What to do to get ready for 2011 (including how to negotiate, avoid pitfalls and get the best deals) Not a sales pitch and definitely not this: 2 1

2 About LarsonAllen LarsonAllen Top 15 National CPA firm 1,800 people and growing Serve clients in a wide variety of industries with a significant association client base Provide a full array of financial services 3,500+ not-for-profit clients Began using Cloud Computing in 2001 Early Adopter Significant number of clients using Cloud Computing Cloud solutions are preferred option for handling client outsourced accounting services 3 About Intacct The Cloud Financial Management Company Fastest growing of any financial management and accounting vendor 4,000+ customers Preferred provider of financial applications for the AICPA Best awards and recognition Most experience and innovation Exceptional service and operations 99.99% availability for the year Record client satisfaction 9 out of 10 clients recommend Intacct Fastest time to value, highest ROI 75% to 500+% annual Return on Investment 4 2

3 Some of the associations working with Intacct and LarsonAllen 5 Agenda Cloud Computing Defined Why Cloud Computing for Association Finance? Tips for Negotiating and Getting the Best Deals 6 3

4 The Cloud Impacts All of Us Both as Consumers and in Business 7 And Now Also for Your Business Applications Use the Cloud Anytime, Anywhere via any Web Browser 8 4

5 Software as a Service Run your Business Applications in the Cloud Cloud computing is a broad term encompassing everything from B2C services to infrastructure Software as a Service is a subset of cloud computing focused on enterprise business applications Mature, high function applications Flexible to configure and integrate World class operations and maintenance Support and service level agreements Vastly better economics 9 Key Cloud Computing Drivers 1. More cost effective / Higher ROI than other alternatives 2. Anytime / anywhere access 3. Have limited IT resources 4. Faster time to deployment / faster time to value / less risk 5. Easier and less expensive to customize / more flexible / more open 6. Positive experiences with other cloudbased products 7. Better security & operations than you can otherwise afford 8. Turn CAPEX into OPEX and align costs with operations 10 5

6 Top Concerns about Cloud Computing (64% of these respondents now have strategy to prefer Cloud) 11 Security, Infrastructure & Operations Cloud Vendors Have Superior Operating Capabilities Far better than nearly all not for profits can afford to deploy IBM Fortune 100 class data center Encryption & hardened systems 24x7x365 operations on three continents SunGard disaster recovery center Redundant hardware and networking Continuous backups Automatic upgrades SAS 70 type II audited Possible because costs are spread across thousands of organizations 12 6

7 Agenda Cloud Computing Defined Why Cloud Computing for Association Finance? Tips for Negotiating and Getting the Best Deals 13 State of Current Financial Solutions Effectiveness Gap Source: Saugatuck Technology, Cloud Financials Come of Age,

8 The Impact of Cloud Computing on Financials Closing the Effectiveness Gap Source: Saugatuck Technology, Cloud Financials Come of Age, Traditional Options ❿Quickbooks Inflexible General Ledger Over-reliance on Excel for financial and management reports Weak internal controls with minimal or no audit trail for transactions No workflow capabilities Limited ability to scale users and entities NFP Software Suites Expensive to implement, operate, administer, upgrade Requires expensive IT resources Often requires 3 rd party add on reporting tools No real time business visibility No easy way to create and distribute reports to internal and external stakeholders 16 8

9 Why Not Cloud for Finance? Many Associations already use cloud applications for important elements of their business.. Payroll Membership Fundraising Bill payment Banking Events Moving to cloud for Financials is a logical next step. And it is happening quickly 17 Accounting and Compliance Challenges for Association Finance Accounting Challenges Revenue Recognition Allocations, Programs Internal Controls Cash Flow Mgmt/Budgeting Custom and ad-hoc reporting Integration w/ams systems Finance Deliverables Internal reporting External & Board reporting Budgeting/forecasting Stewardship of funds Timely closing-the-books Audit & compliance Manually Intensive Processes IT not a core competency Accounting regulations A-133 Compliance Pain Points & Impediments to Success Heavy Dependency on MS Excel Manual / Offline Reporting Weak Internal Controls/Fraud Wasted time and money Volunteers / Part time workers Automated member billing and collections Lengthy Close Processes 18 9

10 Cloud Financials Delivers Real Business Advantages to Association Finance Achieve anytime, anywhere accessibility Access to real-time information is becoming expected Improved internal controls/work flows that result in gained efficiencies Enable proper stewardship of funds Focus is on members NOT running an IT department! Better integration Lower total cost of ownership only pay for what you need when you need it Automation of revenue recognition and automated billing - with less Excel 19 Advantages (continued) Program managers are demanding faster access to real-time information Movement towards a paperless office is gaining momentum Cloud solutions can help make it happen faster More employees working remotely Cloud can facilitate Continuous upgrades No large up front cost for purchase Products are easier to use less reliance on consultants 20 10

11 5/3/2011 Real-Time Financial & Operational Reporting Accurate Reporting & Business Visibility for all Key Stakeholders Real-Time, consistent information in the Cloud for all Stakeholders Officers, board members and other Stakeholders can receive reports, perform approvals and have rolebased dashboards Management by KPI s 21 Example of Cloud Financials for Associations: Web-based Workflow and Controls Ensure compliance, reduce costs and risk Safely engage all employees and volunteers in financial processes Real-time visibility plus financial control Multiple levels of approvals Comprehensive audit trails 22 11

12 Collaborate with your CPA firm Save money and work more efficiently with your CPA firm Sharing, securely: Cloud computing lets you securely share information with your CPA firm advisors and auditors in real-time Cost savings: reduce audit fees via reduced site visits Better advice: resulting from real-time information, dashboards and analyses Another alternative: Cloud financials can enable cost effective financial department outsourcing 23 Integrate your key systems Cloud s Web services are the key Avoid mistakes and wasted time with disconnected systems Member management Donor management Finance / accounting Event management Bill payment Payroll Fixed assets 24 12

13 5/3/2011 Example Member Management integrated with Financials 25 Example Member Management integrated with Financials 26 13

14 Summary - Associations are Realizing Significant Benefits Automate key processes and eliminate manual workarounds by leveraging workflow, automation and web services Increase workforce productivity - by reducing travel time, automating expense management and procurement Slash time spent enabling compliance / governance through improved visibility and reporting Free up time of staff accountant by making processes more paperless and efficient Reduced IT costs - eliminate overhead and capital expense of managing and operating software, hardware and networking Program Managers get better information more quickly realtime access to data utilizing dashboards 27 You Still Have to do Your Homework: Needs Analysis & ROI Understand your organization s needs Quantify the needs (what are your pains & problems) Analyze those needs Evaluate how best to address those needs Determine the ROI of any changes Associations are very much like living organisms; they are constantly evolving and changing Requirements of your funding sources evolve and change as well; how quickly are you able to respond Calculate your ROI based on: Achievement of a specific goal or problem solved Improved productivity & automation of manual processes Increased speed of transaction processing Generation of reporting & tracking needed to meet funding requirements Elimination of reliance on IT 28 14

15 Agenda Cloud Computing Defined Why Cloud Computing for Association Finance? Tips for Negotiating and Getting the Best Deals 29 What s Different in the Cloud There is More to Evaluate Product fit Implementation success Support quality + Operational track record Infrastructure and security Ongoing business practices / culture ROI / TCO 30 15

16 Key Insight Service Level Agreement to Mitigate Trust and Risk Concerns Which cloud features provide higher or lower value vs. on-premises? 31 Service Level Agreements Key to creating a successful ongoing relationship with your vendor Sets expectations and guarantees performance for how your system is operated Recognizes both concerns and advantages of cloud computing Vital tool to reduce risk and establish shared performance goals 32 16

17 Service Level Transparency 33 Expect Significant Benefits 73% to 589% ROI; $75,000 to $715,000 Annual Savings 34 17

18 Apples to Apples TCO On-Premises Software vs. Cloud Computing On-Premises Cloud Computing Ongoing Costs Apply Fixes, Patches, Upgrade Downtime Performance tuning Rewrite customizations Rewrite integrations Upgrade dependent applications Ongoing burden on IT Maintain/upgrade hardware Maintain/upgrade network Maintain/upgrade security Maintain/upgrade database * Yankee Group DecisionNote Technology Analysis Ongoing Costs Subscription fee Training Configuration 35 You ve Got the Power in the Relationship Contracting and Negotiating Ideas Cloud vendors are measured on recurring revenue Delivers goal alignment between client and vendor Willingness to offer steep subscription discounts is a red flag demand caps on price increases on renewal, no changes to module definitions Cloud vendors feel pressure on cost of sales References, testimonials, ROI studies are valued for discounts The more prepared you are going into an evaluation (the faster the cycle) the more likely the vendor will be willing to discount Ensure support, training and maintenance are included Check carefully so you don t get surprised 36 18

19 The Future: 100% in the Cloud Radical simplification of IT infrastructure Shift costs and risks to vendors and the cloud Get out of the no-value-added IT business 37 Connecting in the Clouds Intacct s Internal Business Applications 38 19

20 Key Insights Cloud computing is here and is rapidly replacing on-premises systems Many benefits functional, productivity and TCO/ROI Particularly attractive to association finance Easy to get started 39 Thank You! Dan Druker John Wooldridge 40 20