Watch the Webinar >> http://bit.ly/QlKgU0 The Cloud Agenda for Finance: The Evolving Market for Core Financial Applications & Technologies Join guest speaker Paul Hamerman of Forrester Research, Inc., for this special webinar as he discusses the key trends and challenges for core Financial Management applications and technologies, and the accelerating shift from traditional ERP financials to cloud-based alternatives. Attendees will learn about the following: - Key trends and challenges for 2012 in the Financial Management technology market. - Recent accelerating shift from traditional ERP financials to cloud-based alternatives. - Barriers companies typically face when thinking about the cloud/SaaS and how they are being mitigated. - Financial Management innovation and technologies offered by Workday for enabling increased agility, insight, and control. About Workday Workday is the leader in enterprise-class, Software-as-a-Service (SaaS) solutions for managing global businesses, combining a lower cost of ownership with an innovative approach to business applications. Founded by PeopleSoft veterans Dave Duffield and Aneel Bhusri, Workday delivers unified Human Capital Management, Payroll, and Financial Management solutions designed for today's organizations and the way people work. Delivered in the cloud leveraging a modern technology platform, Workday offers a fresh alternative to legacy ERP. More than 280 customers, spanning medium-sized organizations to Fortune 50 businesses, have selected Workday. Visit us at www.workday.com.

1. The Cloud Agenda for Finance
The Evolving Market for Core Financial Applications &
Technologies
September 13, 2012

2. Today’s Presenters
Dave Blanchard
Editorial Director,
Business Finance
Paul Hamerman Mark Nittler Laurie Wood
VP & Principal Analyst, VP Financial Director of Financials
Forrester Research Applications Strategy, Product Marketing,
Workday Workday

3. The Cloud Agenda for Finance: The
Evolving Market for Core Financial
Applications & Technologies
Workday Webinar
Paul Hamerman, Vice President, Principal Analyst
Forrester Research, Inc.
September 13, 2012

4. Agenda
Trends and challenges in financial
management processes and systems
The impact of the cloud on Finance,
and drivers for adoption
Conclusions
© 2012 Forrester Research, Inc. Reproduction Prohibited 4

5. With cloud-based technology, Finance can accelerate
accounting/reporting processes and improve
business flexibility without the burdens of costly IT
infrastructure

6. Financial business process challenges
• Fragmented and inflexible transactional systems, which companies
struggle to keep up-to-date
• Lengthy process to close the books
› Complex procedures and batch interfaces
• Increasing compliance burdens (e.g., SOX, XBRL, IFRS)
• A volatile global economy complicates planning and forecasting
efforts
• Labor-intensive efforts to assemble external financial reporting and
regulatory filings
• Senior executives need relevant and timely information on financial
and business performance

7. Technical debt builds up on traditional finance
and ERP applications
July 2012 “Measure The Business Impact Of Improved App Strategy”

8. Finance adds value in 3 key areas…
but struggles with processes and data
Executive Team
Consolidated view of cause and Consolidated view of
Driving overall success of
effects between individual functions
and how they impact financial results
business 3 impact on business
objectives
Human Resources Sales Manufacturing Research &
Development
Measuring business performance
Effective operational Productivity and
Managing resources
Forecasting future outcomes
execution 2 operational
insight
Finance
Capital planning, budgeting
System integration,
Accounting and financial reporting
Treasury and cash management
Cost reduction and efficiency 1 automation, and
Risk and compliance process efficiency

9. The Financial Process Life Cycle (FPLC):
Finance processes are conceptually linked across the time
dimensions of past, present and future…
August 2011 “Align Financial Processes And Systems For Better Business Value And Compliance”

10. Agenda
Trends and challenges in financial
management processes and systems
The impact of the cloud on Finance,
and drivers for adoption
Conclusions
© 2012 Forrester Research, Inc. Reproduction Prohibited 10

11. Key trends for 2012 and beyond:
Financial management systems
• SaaS financial solution adoption will grow at an accelerated pace
in the next 3 years, following in the footsteps of CRM and HRM
cloud apps
• Planning, core financials, and disclosure management are
showing high growth already
• Regulatory compliance will drive higher levels of investment in
financial reporting systems
• “Close to Disclose” is an end-to-end process that calls for better
automated support and integration
• Selection of technology to support financial processes will place
increasing emphasis on business flexibility, cloud deployment,
and mobile solutions.
• Finance assumes a higher level of involvement in selecting,
configuring and managing business technology solutions

12. Business application priorities focus on renewal and
rationalization, but SaaS is moving up the list
+10% yoy
June 2012 “Optimize Your Business Applications For Value And Flexibility”

13. Technology reshapes the business application
value proposition
May 2012 “Increase Business Flexibility By Embracing Future Trends”

14. Perceptions of SaaS are changing:
It’s about flexibility more than costs
April 2012 “The Changing Cloud Agenda”

15. Companies look to cloud computing to improve agility
and speed
April 2012 “The Changing Cloud Agenda”

16. Some firms remain wary of deploying SaaS apps, but
concerns are losing steam
‘What are your firm’s concerns about using SaaS?’
“4” or “5” on a scale of 1 to 5 where 1= not at all concerned and 5= very concerned.
Security and privacy issues are difficult to control 72%
Integration with other applications is a challenge 66%
SaaS can financially lock us into staying with the same… 53%
The total cost will be higher 50%
Application performance (e.g., downtime, speed) are… 48%
Transition and migration toward SaaS is complex and risky 42%
SaaS is not customizable 41%
Pricing is unclear or complicated 37%
We can't find the specific SaaS applications we need 33%
SaaS technology is technically immature 33%
Base: 556 North American and European software decision-makers in enterprise organizations
Source: Forrsights Software Survey, Q4 2011
© 2012 Forrester Research, Inc. Reproduction Prohibited 16

17. Comparing deployment models: Hosted
Cloud versus SaaS
Deployment
Hosted Cloud SaaS
characteristic
 Single tenant – each customer  Multitenant – all customers on
 Tenancy has own version of the app the same software instance
 Software technology  Mature  Embracing new technologies
 Dedicated application
 Shared application and
 Hosting model instance, shared computing
infrastructure
resources
 Upfront license, recurring sw
 Payment model maintenance and managed  Subscription, all-in
services fees
 Vendor-managed, but  Vendor-determined, more
 Updates and upgrades customer chooses upgrade frequent, less effort for
timing customers
 Customization  Configure and customize  Configure only in metadata

18. Agenda
Trends and challenges in financial
management processes and systems
The impact of the cloud on Finance,
and drivers for adoption
Conclusions
© 2012 Forrester Research, Inc. Reproduction Prohibited 18

19. Summary: Drivers of adoption for cloud
financial systems
• Systems are upgraded and updated regularly – reduced
obsolescence
• Faster deployment times
• Business agility, and less dependence on internal IT for systems
support
• Transparent cost of ownership via subscription model
• Business insight delivered quickly and in context
• Business people manage the system, including processes,
business rules, and reporting structures

20. Opportunities for Finance: optimize your applications for
insight, flexibility, and sustainability
May 2012 “Optimize Application Strategy To Generate Business Value”

21. Workday Financial Management
Mark Nittler – VP Financial Solution Strategy

23. Stuff Happens

24. …Can’t get There From Here
Traditional Market
ERP Ideal
Heavy Light
Complex Simple
Expensive Economical
Rigid Agile
Irrelevant Relevant

25. “The significant today
problems we face
cannot be solved at the
same level of thinking
we were at when we
created them.
”

26. A New Level of Thinking
New Delivery New Technology New Approach
26

27. Accounting Centric Architecture – Today
Business Intelligence System Dashboards, Scorecards
& Spreadsheets
Data Warehouse
Other
Systems Summary
Lines
Accounts Financial & Statutory
HR Reporting
Data
Mart Journals
Segregation of
Duties
AP AR Pay Security
Workflow Journal Journal Journal
Entry Entry Entry

28. Unified Finance
Reporting & Transaction Governance,
Analysis Processing Risk & Compliance
Transactions
Efficient & Accurate Accounting
Governance
Effective, Proactive Controls
Analysis
Actionable Business Insight
WORKDAY CONFIDENTIAL

29. New Assumptions
• Business is about commerce
• The whole business wants good
information
• Assume you have a computer

30. Workday Business First Architecture
Dashboards, Scorecards
Financial & Statutory & Spreadsheets
Dashboards, Scorecards
Business Intelligence System
Reporting & Spreadsheets
Data Warehouse
Summary
Lines
Accounts
Other
Systems Summary
Journals Lines
Accounts Financial & Statutory
HR Reporting
Data Warehouse
Data
Mart Journals
Segregation of
Duties
Security
Workflow AP AR Pay
Buy
Journal Sell
Journal Receive
Journal Pay
Entry Entry Entry

31. Workday Business First Architecture
Dashboards, Scorecards
Financial & Statutory & Spreadsheets
Reporting
Summary
Lines
Accounts
Journals
Event Repository
Workflow
Segregation of Duties
Buy Sell Receive Pay
Security

32. Agility
Organization Process Information Integration
• Org Model • Business • Worktags • Studio
Process
Framework

33. Workday Financials Demo
Laurie Wood
Director of Product Marketing, Workday Financials

34. Key Takeaways
 ERP Financial Management Systems have
become costly and complex
 The cloud offers finance agility and faster
accounting/reporting processes without the
burdens of costly IT infrastructure
 Workday is taking a leadership position in
the market by offering a unified, world class,
Financial Management solution
(HR-Payroll-Financials-Expenses-Procurement)
WORKDAY CONFIDENTIAL

35. Thank You!
For More Information:
 Email/Follow Paul Hamerman:
 phamerman@forrester.com
 Twitter: @paulhamerman
 Meet Workday Financials:
http://www.workday.com/applicatio
ns/financial_management.php
 Attend a Workday Live Demo:
http://www.workday.com/resource
s/workday_live.php
 Contact Workday:
+1.925.951.9000