Digitalisation: The foundation for success in 2022

streamlined ERP and TMS systems are the bedrock for all future projects. “We are implementing end-to-end digital payments and collections, integrated into our ERP and TMS, across around 60 group companies,” says Gokalp at Sisecam. However, while big ticket items like ERP and TMS systems are important, “small-scale solutions can be critical to streamline treasury process flow, reporting and communication in order to improve efficiency,” says Janssen at Mars. Equally, among some corporates, there is a growing recognition of alternatives to mainstays such as TMS. “In the past, TMS were the only solutions offering bank- quality security and the ability to configure for a variety of treasury activities,” says Kelly at Pearson. Now two factor authentication is available in many workflow solutions while other non-treasury solutions can be customized for treasury activity (as well as other functions). “For the first time, there’s genuine competition for TMS providers and so it’s for them to keep close to clients and to continue to innovate to continue to be the preferred choice for treasury.” Real-time takes centre stage The market landscape is changing as payment systems evolve around the world. “This will have a transformational effect on treasury as it moves to a 24/7 model,” says Fauzia Nyabiosi, Director, Liquidity Management Services at Citi. Real-time encompasses three areas: information, payments and receivables, and liquidity and funding. Company priorities will differ depending on their business model and industry — which may also be evolving. “For instance, we continue to witness a move towards subscription and direct-to-consumer models to lock in revenues and better influence user experience,” says Ross McEwan, Director, EMEA Cash Management Product Sales at Citi. Direct-to-consumer and eCommerce mean companies need help from their banks to accept a range of payment instruments, including real-time payments. “Real-time payments can be a critical differentiator for companies, and with global availability they can now reach a global customer and supplier base in a more compelling way,” says McEwan. Mars’ Janssen says it wants to gain greater payment flexibility: “It’s important to facilitate eCommerce but not at the price of increased complexity and cost.” The move to real-time opens up a range of opportunities: working capital buffers can be reduced, for instance. It also shines a spotlight on a variety of innovative solutions. Mansour operates in some challenging markets, such as sub-Saharan Africa, Egypt and Iraq, notes Abouldahab. “APIs give us greater visibility of cash — increasingly in real-time — and make it easier to interface with banks.” “ Having the right talent on board is critical” People underpin digitalisation As treasury accelerates digitalisation projects in order to improve the efficiency of fundamental treasury functions and looks for new ways to work with the business to add value, it is tempting to see technology in isolation. “But moving from a digitalisation phase to becoming a growth-enabling function for the business is not all about technology,” says Donegan at Hewlett Packard Enterprises. “Having the right talent on board is critical.” Gokalp says Sisecam is investing in treasury talent to improve its business analytics skills while Mansour’s Abouldahab adds that digital skills are a priority when hiring new treasury professionals. More generally, the treasury team may need to be upskilled or new talent may need to be hired according to Citi’s Cole. “Digitalisation can only deliver the anticipated benefits if treasury has the right skills. Banks and other partners may be able to help by supporting training, for instance.” “ Real-time payments can be a critical differentiator for companies” Digitalisation: The foundation for success in 2022