Brian Kinion, VP Finance at Marketo, gives a keynote address at Armanino's Sixth Annual Technology Forum. He discussed moving from IPO to acquisition, the growing pains, the IT challenges and other topics pertinent to the financial organization.

1. presented by
Managing the Transformation
of Technological Change
Brian Kinion, VP Finance at Marketo
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
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2. presented by
Shifting to the Cloud from On Premise
• Prior Experience
• SuccessFactors
o Cloud transformation
o Significant growth
o Multiple challenges
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
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3. presented by
Move to business leadership
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
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4. presented by
SuccessFactors
From IPO (2007) to
SAP Acquisition (2012)
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
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5. presented by
The challenges………
and solutions
4.
3.
2.
Controlling
the Business
1.
Transaction
Management
Planning and
Analysis
Integrated
Functional
Excellence
Challenge: Leadership &
Performance Management
Challenge: Talent & Insightful
Value Drivers
Challenge: Consistent process excellence
Challenge: Number of Transactions
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
Source: slide 34
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6. presented by
Our business requirements continued
to exceed our technical capacity
gap
gap
People, Process,
Systems
GAP to close
gap
gap
Technical
Capacity
Business
Requirements
IPO
Early
Reductions in Staff
Follow-on
Offering
3 Acquisitions and EITF
08-01
Plateau
Acquisition
Planned Growth Acquisitions
and Federal
2007
2008
2008
2009
2010
2011
2012
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
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7. presented by
Need to create order out of the chaos
and close the initial gaps
Growing Pains: 2007
IT Challenges
• IPO by “brute force” and “sheer
determination”
• Buried in transactions and
manual processes
• Significant deficiencies and
material weaknesses to
address
• Long-term under investment in
G&A functions
• Rebuilding financials while
being audited
• CIO organization view of
departments owning,
implementing and
administrating their own
systems created “siloed
information” and master data
management issues
• Lack of integrated systems
• Lack of documented
process/policy
• Heavy reliance on Excel
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
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8. presented by
Making progress (2008 to mid 2011)
System/process improvements while nailing
Transactions/Compliance/Control and becoming more efficient
•
Noise level dramatically reduced with regard to transaction errors
•
Added additional technical capacity across finance organization
•
Addressed and remediated significant deficiencies/material weaknesses
•
Added in-house NetSuite expertise and various system/process
improvements
•
Reduced reliance on Excel
•
Decreased day to close
•
Completed two follow-on offerings
•
Completed and integrated multiple acquisitions
•
Changed audit firms and navigated an SEC comment letter
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
#TECH4CFO

9. presented by
Systems improvements were helping
BUT...
Procure
to Pay
• A/P workflow/process review; to reduce headcount/increase volume with Coupa
• US Concur roll-out with integrated credit card program (2010)
Quote
to Cash
• Lockbox implemented for collections (2008)
• CRM transition from SFDC to Seibel to SFDC (Q209)
• Big Machines (quotes) (Q309); previously in Excel w/ manual approvals
• Avalara (sales tax) module (Q309); previously not charged/manual reserve
• Xactly (commissions) (Q109); previously in Excel
• OpenAir Implementation (Q210)
• EITF RevRec Module (Q310); support of EITF 08-01 adoption
Payroll and
Equity
Record to
Report
• EquityEdge live (2007); previous in eProsper
• Switched from ADP to Ceridian payroll (2009)
• Hyperion Planning (2008) to Host Analytics (2011)
• FAS (fixed assets) system (Q208); previously in Excel
• Netsuite cash reconciliations implemented (Q208); previously in Excel
• Clearwater (treasury analytics) system (Q308)
• Netsuite stabilization (2009-2010) and brought system administration in-house
• OneWorld (consolidation) module (2009); previously in Excel
• Consolidated # of outsourced International Accountants with Nair (2009)
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
#TECH4CFO

10. presented by
We needed to scale to support a $1B
business
New Demands + New Idea = New Organization
•
All the system/process improvements were done while we were doing our
day jobs
•
Rapid growth and additional acquisitions raised more infrastructure
questions and if our current system landscape would scale
•
Built business case for technology transformation and focused team to
make it happen
•
Had established relationships existed across the enterprise which we
leveraged for cross functional system/process improvements
•
Hired “black belts” and process oriented staff who brought new skill sets
such as project management/change enablement/training
•
Built key dashboards in NetSuite for increased visibility to business
•
Increased efficiencies and—eliminating manual efforts
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
#TECH4CFO

11. presented by
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
#TECH4CFO
#TECH4CFO

12. presented by
Transformation process
Approach
• Defined scope and new technology landscape strategy to rip and
replace multiple systems
• 10 week implementation of all SAP OnDemand products
• Cross functional collaboration
• Re-engineered key business processes
• Clever use of interfaces and partner solutions
• Intense use of key user tools
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
#TECH4CFO

13. presented by
Transformation process
• Approach
• Defined scope and technology landscape strategy
• 10 week implementation of all SAP OnDemand products
• Cross functional collaboration
• Re-engineered key business processes
• Clever use of interfaces and partner solutions
• Intense use of key user tools
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
#TECH4CFO

14. presented by
A changed systems landscape
Prior to being acquired by SAP- 13 major systems in place
BIZX Platform / EC
After being acquisition SAP- One Integrated System End State
Partner
Solutions
BIZX Platform / EC
SAP®
Sales OnDemand
SAP® Contract
Management
SAP® Sourcing
SAP® Travel
OnDemand
OnDemand
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
#TECH4CFO

15. presented by
Marketo:
“I’ve seen this movie before”
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
#TECH4CFO
#TECH4CFO

16. presented by
Smart Company (Nov 14, 2013)
interview with Marketo CEO Phil Fernandez
Asked what he wishes he had three years ago to make growth easier
today, Fernandez says he wishes he’d invested more in IT systems.
“We got behind on systems and we’ve been playing catch-up,” he says.
“I had the company so dialed towards growth and interacting with
customers, that we forgot a little bit about the back office.
“All of a sudden you wake up one day, you’re a $100 million company,
you’re public, and you’re pushing people to catch up.”
“We’ve been investing like crazy on systems infrastructure in the
business, which is amazing. Companies can grow faster than IT
departments can grow software.”
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
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17. presented by
Marketo challenges
These look very familiar…
• Heavy reliance on Excel
• Lack of system integrations
• Lack of documented process and policy
• Lack of maturity of systems needed to address being able to scale
• Impact on systems and financial modeling
• M&A execution and integration support
• Training, retention and development of key players
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
#TECH4CFO

18. presented by
Poised for growth / scaling the business
Marketing Automation
Quoting Workflow
CRM/Service Cloud
Customer
360 View
Complex Billing?
Professional
Services
Automation
Commissions
M
Procurement
M
Sales Tax Engine
Fixed Assets
M
Core GL/RevRec/Billing/Consolidations
Financial
Planning
M
M
M
Foreign
Bookeeper
Records
M
Accounting for Stock-Based Comp
US Payroll
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
M=Manual Upload
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19. presented by
Transformation advice
• Be a champion for change and continuous improvement
• Identify gaps in both systems/skill sets and close them
• Build strong relationships throughout the organization and leverage
them
• Partnership and collaboration are critical
• Have a vision and be a leader and a cheerleader as needed
• Be relentless and push your vendors for functionality and partnership
• Network, network, network
No two system landscapes will look the same!
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
#TECH4CFO

20. presented by
Q&A
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
Existing and Emerging Technology:
How Strategic CFOs Are Transforming Finance
#TECH4CFO
#TECH4CFO