Managing Your Bank ERP Cloud Migration
Over the next five years, there will be a seismic shift in the enterprise software space. Before the decade is over, a majority of companies will need to migrate their on-premises ERP software to the cloud as older versions of the applications will cease to be supported. Within a narrow timeframe, the demand from companies needing conversion services will surge and create capacity constraints for their respective ERP software providers and the third-party system integrators tasked with facilitating this massive undertaking. This perfect storm of having to complete a multi-year project within a narrow conversion window means that implementation services will be stretched thin and at a premium.
To get ahead of the curve, one option is to peel away your individual banking connections from the ERP that are needed for cash disbursements, cash collections, and cash accounting and instead centralize them into the cloud with Kyriba. Nitor and Kyriba work together to assist companies in their cloud migration projects, while capitalizing on the Bank Account, Cash, FX, Debt, Investment, and Working Capital management functionality that Kyriba excels in but your ERP may not fully offer.
Currently, we are hearing the same thing over and over from those who are currently struggling through the migration process, “We had no idea it would be this complex or time-consuming.” In fact, many system integrators we work with consistently tell us that bank integrations are one of the riskiest components of their projects. The difficulty comes from the development of connections to each bank interface per domicile and is complicated by the constraints of the bank’s own timelines as they juggle the needs of other clients going through the same conversion.
Today’s corporate IT teams may be well experienced in building interfaces between back-office systems, but these are typically stagnant interfaces and do not require additional resources. When working on a bank interface, the IT team typically needs multiple resources to coordinate with the bank. These can include IT, Accounting, Treasury, AP, the connectivity team, and the bank’s own tech team. With every bank requiring its own unique format – and most clients needing multiple formats per bank such as low value, high value, check, wire transfer, etc. – many companies will need hundreds of formats to be developed and tested across their partner banks. Once the individual specs for each bank and domicile have been developed, they rarely pass the first test and the development team often has to rebuild and re-test it; sometimes up to five times for each bank approval. We routinely see IT firms taking more than two years to work through all of the bank connections and payment format testing for a client. In fact, it is not uncommon for a single payment format to take 6+ months to be developed, tested and released into production to be utilized by the business owner. Each test and retest means that the team has to rework the coordination effort yet again. The painstakingly process of having to reconfigure multiple global bank connections to your new ERP in the cloud can be avoided by utilizing Kyriba’s existing hub connections to hundreds of banks across the globe. From there, one simple connection is needed from Kyriba to your ERP to move banking information back and forth. This one Kyriba connection to the ERP which has been established with the thousands of other Kyriba clients around the world can be completed with very minimal effort from your internal IT department.
With Kyriba, not only can you bypass the time consuming and expensive process of building, testing, and deploying individual static interfaces between your ERP and each of your banks, you can enhance your process and controls with Fintech. Modules such as Payments, Cash Management, Cash Forecasting, Debt & Investments, Intercompany Management, FX and Derivatives can all be integrated seamlessly to your ERP through the same one connection to Kyriba that you established for bank connectivity. This presents an opportunity to save on integration costs and licensing fees while maximizing your company’s productivity.
In the last few years, Nitor has participated in over 40 Kyriba implementations where hundreds of connections have been established and functionality implemented for satisfied clients. Nitor's strengths lie in our Banking, Treasury, Capital Markets, and IT experience and the flexibility of our seasoned team which can adjust to your needs and deadlines.
To learn more about how Nitor services can accelerate your ERP migration project, contact us today.