Treasury Management Technology: Optimizing the Cash Cycle

August 17, 2006


Boston, MA,  USA August 17, 2006

Treasury's ability to impact the bottom line is gaining increased recognition at the C-levels of leading organizations, driving greater adoption of more sophisticated and better integrated treasury automation solutions.

Companies are striving to increase the visibility and the velocity of the cash flowing through their organizations, and to optimize how this cash is deployed and invested. Treasurers needs accurate and timely visibility over an organization's cash, debt, and investments around the world. Through 2008, we will see broader corporate usage of treasury technology by firms of all sizes. A key driver of this increased adoption will be greater usage of ASP treasury solutions, primarily by midsize treasury departments.

In the report, , Celent analyzes the current state of the corporate treasury technology market, looking at key drivers of treasury technology adoption and examining the advantages and disadvantage of the various automation options available to firms庸rom spreadsheets to treasury workstations to ERP or bank solutions.

The report also takes an in-depth look at the treasury optimization initiatives at Honeywell International and Microsoft Corporation, two multinational firms that have approached their treasury automation needs in dramatically different ways.

Honeywell, with decentralized accounting and general ledger functions handled by far-flung business units, has focused on improving cash visibility by deploying a specialized treasury workstation globally. In contrast, Microsoft, having already put in place a single ERP platform, opted for an ERP solution for global treasury management, and is implementing direct SWIFT connectivity with a number of its bank partners, moving closer to a vision of straight-through processing from the point of bank connectivity through to the general ledger.

"There is no one-size-fits-all when it comes to choosing the right approach to automating treasury functions. A company's chosen strategy will vary based on the scope of treasury's responsibilities, its level of involvement in operational cash flows, its geographical footprint, and the complexity of its banking operations," comments Madhavi Mantha, author of the report and senior analyst at Celent.

The report is 43 pages and contains seven figures and six tables. A table of contents is available online.


Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

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Michele Pace
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Yumi Nagaoka
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Table of Contents

Boston, MA,  USA August 17, 2006


Executive Summary 3
Introduction 5
  The Changing Face of Treasury 5
  Treasury Technology Adoption Drivers 7
Market Overview and Trends 11
  An Overview of Treasury Management Technology 11
  Solution Provider Landscape 17
Case Studies 26
  Optimizing Cash Visibility Across Global Operations: The Case of Honeywell Treasury 26
  Microsoft: Implementing an ERP System for Global Treasury Management 31
Looking Ahead 40
Objectivity and Methodology 42

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