HighRadius Corporate Profile - Google Groups

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Software company headquartered in Houston, Texas , U.S.A ... Ranked among fastest growing technology companies in ... Ca
HighRadius Corporate Profile

This document is for internal use only. Please do not distribute to third-parties without the prior consent of HighRadius. 1

Copyright © 2011, HighRadius Corporation. All rights reserved.

HighRadius Background

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About HighRadius • Software company headquartered in Houston, Texas , U.S.A • Specialize in Financial Supply Chain Management (FSCM) • Provide Accelerators to SAP FSCM modules

• Provide Hosted Software-as-a-Service (SaaS) Solutions • Currently No.1 in SAP market & No.2 in overall market • Ranked among fastest growing technology companies in Houston in 2008, 2009 & 2010

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Partial List of Customers

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HighRadius Product Lines SAP FSCM Accelerators

ReceivablesRadius SaaS Products

Dispute Resolution Accelerator

POD & Claims Automation

Credit Memo Approval

Deductions Management

Credit Debit Matching Engine

Trade Promotions Management

FSCM Correspondence Automation

Cash Application Automation

Cash Collections Forecasting

Document Management

Credit Decision Accelerator

Credit Data Aggregation

These products are developed in SAP ABAP and are imported and installed within the SAP landscape 5

These products are hosted Software-as-a-Service (SaaS) multi-tenant applications deployed on the cloud and accessed via the internet

FSCM Space & Opportunity

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FSCM

• FSCM stands for Financial Supply Chain Management • Optimizing movement of ‘money’ between and across companies similar to Supply Chain Management which is movement of ‘goods’ • Fits within a logical process of a company called Order-to-Cash (OTC)

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What is Order-to-Cash (OTC)?

Vendor Order

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Delivery

Customer Invoice

Payment

Transaction Processing Times in the Order-to-Cash Cycle

1960s

2010

Order

4-7 Days

Today

Delivery

14-21 Days

Next Day

Invoice

4-7 Days

Same Day

Payment

45-60 Days

45-60+ Days Source: Killen & Associates

In 50 Years Industry has not improved much w.r.t payments! 9

FSCM Opportunities that HighRadius Operates In

• Deductions Management • Collections Management • Credit Management • Electronic Invoice Presentment & Payment (EIPP) Market Size: $5.5 Billion (Source: Paystream Advisors)

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Working Capital Optimization (Big Picture) • $580 billion tied up in excess working capital (assuming companies below the top quartile could achieve the same efficiencies as those in their industry in the top quartile) • Additional $260 to $324 billion was available through the implementation of efficient supply chain management practices. • Another $200 billion could be recovered from accounts receivable through process improvements Source: Survey by REL Consultancy & CitiGroup

$1 trillion dollars in stagnant working capital! 11

Deductions Management Companies are losing about $70 Billion every year in Deductions Vendor

Order

Delivery

Customer Payment

Invoice Deduction

Deduction: Short payment of a vendor invoice taken by a customer for various compliance reasons How Big is the Problem?*

• Deductions represent about 4% of sales • 78% of deductions are Allowed (e.g. credited, written-off) • Average deduction resolution time is 105 days * Source: Survey conducted by Credit Research Foundation of 424 companies across 30 industries

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5% additional recovery on Deductions for CPG Industry could be $1 Billion to bottom-line!

Collections Management

• ‘Collect Cash’ on Open Receivables • Key Metric: Days Sales Outstanding (DSO) – Average number of days that a company takes to collect revenue after a sale has been made – Typical DSO is about 48 days

• What is the value creation of 1 Day reduction in DSO? – ABC Manufacturer: $10 Billion Sales Revenue – Cash borrowing cost: 4% Simple Interest Rate – Value Creation = $1.1 Million [ $10 Billion * 4% * (1/365) ]

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1 Day Reduction of DSO for a Fortune 1000 could be $1.1 Million to bottom-line!

Credit Management

Vendor Total Open Orders

$50,000

+

Total Open Deliveries

Customer

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$100,000

Total Open Invoices

$75,000