Zack suggests treating the blueprint as
a work in progress during the vendor selection process. As treasury teams learn more
about treasury management system functionality, they gain a more precise sense of
the capabilities that are available and the
process changes they will want to implement to achieve their desired future state.
Get commitments from
Given the large group of IT systems
that treasury management systems pull
data from, selection and deployment of
treasury software should involve consultation with a number of internal stakeholders, to identify any requirements
they may have for the technology. Typical stakeholders include finance and
accounting, procurement, sales, and IT.
Banking partners should also be consulted, Flexer notes, to help treasury and IT
leaders understand how easily a prospective treasury management system will integrate with banking systems.
“Having other stakeholders sup-
port treasury automation can help your
business case,” ION’s Kolman says. IT’s
involvement is important in addressing
cybersecurity requirements, as well as
in determining which technology mod-
el—on-premises, private cloud, public
cloud, or hybrid—the deployment should
follow. Some IT functions include a value-
engineering team that can assist with
calculating benefits and building the
business case for technology investments.
“A well-developed business case
should outline the expected short- and
long-term benefits for the entire organization,” Flexer explains. She also recommends that treasury leaders obtain formal
buy-in and commitment from a project’s
numerous stakeholders prior to finalizing
and presenting the business case to senior
Include industry benchmarks.
When identifying hoped-for benefits
in the business case, treasury managers
should include industry benchmarks for
additional context, says Kyriba’s Stark. If
days payables outstanding (DPO) is an im-
provement objective, for example, it helps
to point out that the company currently
lags behind industry peers in that metric.
“As you quantify the benefits you want
to get from new treasury technology, it
helps to show the CFO that the technology
can help give the company a competitive
advantage—or close competitive gaps—
from a cost standpoint,” Stark says.
Consider external assistance.
Some treasury functions may not
find sufficient in-house assistance for
calculating ROI, tracking down industry
benchmarks, or understanding the sys-
tems integration work that a new trea-
sury management system may require. In
those cases, it makes sense to seek assis-
tance from external consultants and/or
technology vendors, who can often help
craft strong business cases.
“We have a value engineering group,”
Stark says, “and we frequently get asked
to help potential clients with aspects of
the business case, when they don’t have
access to those resources.”
Obviously, the primary purpose of the
business case is to prove to senior man-
agement that investment in a new trea-
sury management system is worthwhile.
However, the business case has important
secondary uses as well. It sets the stage for
the implementation process, and it speci-
fies the follow-up measurements that the
organization will use after the fact to de-
termine whether the investment is meet-
ing its value objectives.
As treasury teams compare their initial ROI projections with the actual returns
six months or more after the implementation, they will gain a precise idea of how
their own business case calculations measure up to reality.
Eric Krell’s work has appeared previously in Treasury & Risk, as well as
Consulting Magazine. He is based in
14 TREASURY &RISK MARCH 2019 SPECIAL REPORT treasuryandrisk.com
BUSINESS CASE (cont’d from page 11)