Zuora, Inc. (NYSE: ZUO), a monetization suite for modern business, today announced it has signed a partnership agreement with Workday, Inc. (NASDAQ: WDAY), a leading provider of solutions to help organizations manage their people and money.
Fewer than one-third of enterprises have fully automated order-to-cash, and 54% of CFOs agree that legacy ERP systems are not flexible enough to meet the demands of today’s business environment. By utilizing the certified Zuora Connector for Workday Financial Management, businesses can significantly enhance the accuracy of their financial processes while eliminating the need for manual integration of general ledger (GL) journal entries. This integration allows for streamlined workflows, reducing the risk of errors and saving valuable time for finance teams.
Zuora’s monetization suite allows organizations to build and scale any business model, from usage-based pricing to subscription bundles, hybrid offerings and more. More than 1,000 customers around the world, including BMC Software, Box, Caterpillar, General Motors, The New York Times, Schneider Electric and Zoom use Zuora’s combination of technology and expertise. By partnering with Workday, Zuora will integrate its complete technology stack with Workday Financial Management to:
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- Streamline recurring billing processes for a diverse mix of monetization models, pricing and packaging
- Simplify ASC 606 compliance and audits with automated revenue recognition and financial reporting
- Maximize agility across the technology ecosystem with near-real-time insights into customer and revenue data to inform business decisions
“We are thrilled to partner with Workday to power the full order-to-cash process while increasing flexibility through a dynamic mix of business models,” said Daniel Enekes, Vice President, Global Alliances at Zuora. “Together, Zuora and Workday will empower companies to accelerate their monetization strategies and drive sustainable growth.”
The partnership also presents significant opportunities for system integrator (SI) partners who specialize in implementing Workday. By leveraging Zuora’s monetization suite together with Workday, SI partners can offer their clients a more comprehensive solution.
What this means for ERP Insiders
Learn from Zuora’s existing client base: Siemens Healthineers incorporated Zuora Billing and Zuora Revenue into their existing ERP infrastructure. As a result the company achieved over a 60% reduction in manual process steps and a 75% decrease in processing time, enhancing operational efficiency. The deployment also enabled the company to scale subscription-based offerings without overhauling existing ERP systems, and it provided real-time key performance indicators (KPIs) such as active users and churn rates, aiding strategic decision-making. Nutanix, a cloud software company, utilized Zuora Billing and Zuora Revenue to streamline their subscription offerings. This integration enabled Nutanix to release new products with minimal customization, automate revenue recognition, and expedite their financial close processes. Hudl, a sports technology company, implemented Zuora Billing and Zuora Revenue to manage their subscription services. This integration reduced manual revenue recognition processes by 25% and maintained consistent financial close schedules, even during peak seasons. MarketWise, a financial research platform, adopted Zuora Fraud Protection to safeguard against payment fraud and minimize chargebacks. Within five months, they achieved a 37% reduction in disputes and chargebacks, enhancing the quality of their transactions and improving authorization rates.
Zuora strengthens existing monetization capabilities within Workday suite. In the automated revenue recognition space, Workday’s existing solutions support compliance with standards like ASC 606 and IFRS 15, offering automated, rules-based revenue recognition. This ensures accurate and timely financial reporting, reducing manual intervention and the risk of errors. Ideal for subscription-based businesses, Workday facilitates complex billing structures and recurring revenue management, enhancing flexibility. Also, Workday supports usage-based, subscription, and hybrid billing models, providing flexibility to meet diverse customer needs, and allows for mid-cycle adjustments, ensuring billing accuracy and customer satisfaction. Workday’s financial management portfolio combines revenue contracts with operational data to automate the allocation of revenue and ensures accurate tracking and alignment with contract terms, enhancing monetization efficiency. In the area of reporting and analytics, Workday provides real-time insights into revenue performance, customer behavior, and monetization metrics, and predictive analytics and machine learning capabilities enhance revenue forecasting and identify trends in monetization strategies.
Market has appetite for revenue management innovation. In the media and entertainment industry, the shift from traditional sales to subscription-based models is evident, with consumers preferring access to content through monthly subscriptions. This transition necessitates robust subscription management to handle recurring billing, customer retention, and revenue recognition. In software and technology, companies have moved in droves from perpetual licensing to “as-a-service” models, formalizing the software-as-a-service (SaaS) model. This change requires financial management systems that can support dynamic pricing, usage tracking, and automated billing. Proper accounting for subscription and other revenue models is crucial for compliance with standards like ASC 606 and IFRS 15. Financial management software with integrated monetization capabilities ensures accurate revenue recognition, facilitating financial transparency and regulatory compliance. Subscription management allows businesses to dynamically adjust pricing and offer personalized bundles, enhancing customer satisfaction and loyalty. This flexibility is essential in competitive markets where customer preferences are continually evolving. Implementing automated subscription management systems streamlines billing, invoicing, and payment processes, reducing errors and operational costs. This efficiency enables businesses to scale their operations effectively to meet rising demand. Also, increasingly common data-driven monetization strategies involve using customer insights to inform pricing models, product offerings, and marketing campaigns. Financial management software with advanced analytics supports these strategies, leading to increased revenue and market share.
