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Less stress, more success: A guide to proper planning for your treasury software implementation

What you’ll learn

  • How to find the most suitable treasury software and vendor.
  • How to implement a new treasury technology and when to create an implementation plan.
  • Best practices for implementing a new treasury solution and securing a win-win post-implementation.

Finding the right software is crucial for a successful implementation

A successful implementation comes down to choosing the right treasury software and solution provider.

Tips for choosing the best-fit treasury technology

1. Plan a strategic vision

  • Build the vision by identifying:
    • Highly manual and error-prone processes.
    • The amount of time required to execute the tasks.
    • The technology currently used to perform the tasks.
    • The functions that can be automated.
  • Align the strategic vision with the company’s goals and requirements.

2. Identify all the stakeholders

  • Identify the stakeholders involved and ask them for their wish list.
  • Identify the requirements that can be met.

3. Determine the system requirements

  • Understand the requirements on a high level, such as:
  • Prioritize the requirements based on their importance.
  • Evaluate the technology options for the prioritized requirements.

4. Draft a general timeline for execution

  • Create a reasonable timeline.
  • Determine if procurement involvement is required to help with the selection or negotiation.
  • Determine if the IT team’s involvement is required to validate technologies.
  • Identify the people involved in budget approval.

Tips for choosing the best-fit treasury technology vendor

  • Cast a wide net
    • Research the latest technology options in the market by researching online, talking to colleagues, and/or by attending conferences or webinars.
    • Reach out to existing users to understand their experience with the product.
  • Screen the vendors via online technology guides such as AFP, Strategic Treasurer, Bob’s Guide, or other resources.
  • Browse vendor websites to gather product collateral and read client stories for a better understanding of product capabilities.
  • Set up an initial call or a brief demo
    • Verify the credibility of the solution and the solution provider.
    • Listen to vendors to understand what’s the latest technology, market trends, and product changes.
  • Map the pain points
    • Analyze the challenges in the current process.
    • Use a vendor evaluation scorecard to shortlist vendors based on the challenges and the features offered.

Implementing a new treasury solution

Over the past decade, the rapid pace of digitalization has introduced a range of sophisticated tools that facilitate treasury operations by exercising more robust governance into cash flows, providing better analysis, and enabling informed decision-making. AI-enabled treasury solutions are now being implemented into treasury processes for the following reasons:

  • Process automation and standardization
  • Optimized working capital and cash management automation
  • Straight-through processing environment
  • Enhanced reporting and strategic planning

However, implementing a new treasury solution can be challenging and time-consuming. Treasury management system implementation projects can take months or years to complete, and in that timeframe, the resources often get implementation fatigue as timelines get pushed, and costs increase. As a result, the cost-benefit ratio gets lowered when the software doesn’t live up to the expectations. Hence, the team needs to create an implementation plan by:

  • Documenting current-state processes
  • Preparing a future-state vision
  • Identifying objectives and creating a prioritized roadmap entailing how to reach the desired end state.

When to create an implementation plan

As a best practice, the treasury department needs to have an implementation plan before commencing the implementation to maximize oppor­tunities. An implementation plan is a project management tool that facilitates the execution of a project by breaking down the implementation process into smaller steps while defining the timeline and the resources that need to be involved. The plan can be developed in tandem with the selected vendor since they know their product best.

Generally, a project implementation entails these 7 steps:

five stages of a project implementation plan

To learn about the negotiation and contract signing process, read this blog or watch this webinar.

1. Implementation methodology

Implementation methodology

The project implementation plan should include these stages:

  • Preparation: The vendor initiates the project onboarding process after signing the contract.
  • Design: The vendor begins designing the system after gathering information about the client’s requirements.
  • Configuration: This step is also known as the build phase. In this phase, coordination and project management takes place.
  • Testing: Firms utilize the testing phase to identify all of the system’s flaws, fix those issues and verify if the product fits the needs of their clients.
  • Go live: The system is ready to use by the clients.

Best practices for implementing new treasury software

  • Make a list of the resources needed to implement the new system. These resources include, but are not limited to, budget allocation, IT support, and stakeholder buy-in.
  • Allocate the tasks among the team members after gathering the requirements.
  • Analyze the metrics and allocate work before transferring the project to production.
  • Check whether the project is heading in the right direction and provide continuous feedback to the chosen vendor.

What if the implementation of the new treasury solution has already begun

Although it is best to create the implementation plan ahead of time, it is never too late to make one. To ensure a win-win for clients and vendors:

1. Identify the project goal and metrics

Project goals and metrics help evaluate how efficiently and quickly the goals are being met and determine corrective measures if there are issues.

Best practices for clients

  • Set timelines for each task: Complete the more difficult tasks first, followed by the simpler ones.
  • Focus on the ROI: Obtain hard dollar savings from budgeted expenditures and reduce the number of services consumed. Obtain soft dollar savings from free training, maintenance, or upgrades negotiated as part of the purchase of the solution.

Best practices for vendors

  • Identify the KPIs: Identify the KPIs to track the project and its progress.
  • Set specific timelines: Learn what the client’s expectations are regarding the timelines. The team must have enough resources to meet those expectations.

2. Identify the key players

The key players are stakeholders responsible for the project throughout its completion. These stakeholders ensure that project goals are on time.

Key players from the client-side

  • The process owners, the system users, and the leadership team.
  • A subject matter expert (SME) who assists clients in understanding the process’ crucial stages.

Key players from the vendor-side

  • Project managers, key resources involved from the start of the implementation, SMEs, IT team, and end-users.
  • Experienced consultants who understand the scope of the project.

3. Identify and overcome the challenges

  • Provide the vendor with good-quality data.
  • Invest a significant amount of time in updating data.
  • Ensure clear communication from top to bottom about the project.
  • Identify when treasury resources will not be available.
  • Detect issues in data by:
    • Ensuring that the first data dump is accurate.
    • Collaborating with SMEs to gather the appropriate datasets.

4. Ensure effective communication

  • Establish a point of contact from the client’s internal team to communicate with vendors and keep them informed.
  • The customer value and professional service teams from the vendor’s side should inform the clients of the latest project updates or new software versions.

Watch these mini-webinars on buying and implementing treasury technology to get detailed insights into the implementation process of treasury technology.

If you are looking for an easy-to-implement treasury solution that meets your company’s needs, schedule a demo with HighRadius today.

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The HighRadius™ Treasury Management Applications consist of AI-powered Cash Forecasting Cloud and Cash Management Cloud designed to support treasury teams from companies of all sizes and industries. Delivered as SaaS, our solutions seamlessly integrate with multiple systems including ERPs, TMS, accounting systems, and banks using sFTP or API. They help treasuries around the world achieve end-to-end automation in their forecasting and cash management processes to deliver accurate and insightful results with lesser manual effort.