CFOs understand that firms must modify their operating models by digitising fundamental procedures. Organizations’ performance and reach have been found to improve as a result of such change. George Westerman, a Research Scientist at the MIT Sloan School, describes it thus way: When done correctly, digital transformation is like “a caterpillar developing into a butterfly,” but when done incorrectly, “all you got is an extremely quick caterpillar.” So the CFO sees the writing on the wall, but she’s not sure where to begin the transformation process – which procedures are most suited for digitization?
It is critical to demonstrate early outcomes to peers and management in order to obtain support for digital transformation inside the company. Some of the criteria that provide credibility to a successful digital transformation project include demonstrable advantages, simplicity and speed of implementation, minimal barriers to access, and enterprise-wide effect. Markers like this can pave the way for larger digital initiatives that need major financial investments and top-level management support. We’ve seen spend management digitization produce admirably on key managerial criteria as digital transformation partners to various finance chiefs. Platforms, suites, and solutions that handle this area go by a variety of names, but they all fall under the umbrella of Procure to Pay (P2P). P2P solutions rely on a shared platform to link all sourcing and procurement players.
This platform-based strategy breaks through walls of misunderstanding and non-communication, allowing the business and vendors to collaborate more effectively. From the dreaded lost invoice in someone’s drawer to the e-invoice that automatically sends itself to the appropriate workstations. P2P systems provide this kind of flexibility. Digitizing spend management improves performance by allowing for faster, error-free cycles and improved vendor relationships.
There are fewer instances of policy violations when company operations are digitised. In reality, it is the digitalization of policies that causes caterpillars to transform into butterflies. Because of revisions and addendums throughout time, as well as the requirement for situation-specific decision making, companies’ expenditure management rules may be highly complicated.
The rules engine in today’s advanced P2P software can be built to suit most spending regulations, approval processes, and integration with the DOA matrix. The majority of expenditure situations may be controlled mostly by the system, with management personnel focused on outliers and unusual cases, thanks to automation.
As a consequence, expenditure digitalization via P2P software has a significant effect, produces rapid results, and involves a large number of stakeholders, making it an ideal first project for CFOs and CEOs to transform the caterpillar into a butterfly.