CFOs know that it is important for businesses to change the way they operate by reengineering key processes. Such changes have been seen to improve the efficiency and reach of organizations. George Westerman, a research scientist at MIT’s Sloan School, puts it dramatically like this. When digital transformation is done right, it’s like a “caterpillar that turns into a butterfly”, but when it’s done right, “all you have is a fast caterpillar”.
So, the text is on the CFO’s screen, but he doesn’t know where to start the transformation process – what is the best process for digitization? It is important to present the initial results to peers and management to gain support for digital transformation within the organization. Proven benefits, ease and speed of implementation, low barriers to entry, and overall corporate impact are some of the factors that give confidence to a successful digital transformation project.
Indicators like these help pave the way for greater digital transformation and greater investment and higher management attention. As the digital transformation partners of many financial managers, we have found that digital budget management delivers impressive results in these management metrics. Platforms, suites, and solutions that deal with this territory go by a variety of names, but fall under the Procure to Pay (P2P) model.
P2P solutions use a common platform that connects all parties involved in trading and commerce. This platform-based approach breaks down silos of communication and lack of communication and promotes collaboration across organizations and vendors. From the ever-losing invoices that sit in people’s drawers to electronic invoices that automatically go to the appropriate agencies. This is the kind of power that P2P solutions provide.
Faster error-free cycle times, better supplier relationships are the efficiency improvements of cash management digitization. When the business process is digitized, there is less time for legal errors. In fact, it is the digitization of politics that turns caterpillars into butterflies.
Companies have financial management strategies that can be complex due to changes in addition to time, and the need to make situation-specific decisions. Today’s sophisticated P2P software has a policy engine that can be configured to fit multiple spending strategies, compliance systems, and integrate with the DOA matrix. With automation, many expenses can be managed through the system and the management team focuses on deductions and deductions.