Anoek van der Riet
Digital transformation is no longer a trend - it is a necessity. Especially as it becomes clear that business will not return to "normal" after the pandemic. In addition, rising global inflation means that delaying investment is no longer an option. In this blog post, we explore three ways businesses can encourage digitization.
TIP 1: Management must be on board
Leadership is the key to any digital ambition. The role of a corporate leader, such as the CFO and the CIO, in digital transformation is similar to that of a captain on a ship: he or she is responsible for the course in which is sailed. The leader keeps the overview and steers the organizations and all employees in the right direction.
So leadership in this sense does not mean that he or she cares about the day-to-day operations. What is crucial, however, is that the person is in touch with the employees and managers on the shop floor who do the day-to-day work. By listening to colleagues and understanding their challenges and frustrations, the leader can determine the further direction of the organization and, to that end, create a plan that makes the transition as smooth as possible for everyone.
When the leader is well connected to the entire company, all employees stay engaged, know their responsibilities and understand the strategic implications of digital initiatives at an overarching level.
READTIP: CFOs focus on cost reduction: does p2p process offer opportunities?
TIP 2: Emphasize the added value of digitization
Change can be exciting, but digital transformation has a tremendous amount to offer your organization. Make all colleagues aware of this and remove any uncertainties from them.
A automated purchase-to-pay process can deliver a nice cost reduction, for example. For example, by automating their p2p process, TU Delft brought down their ordering costs from 100 euros per order to 55 euros per order. In addition, the organization now has more control over expenses, the ordering process is much more user-friendly for the end user and their strategic purchasing improved.
Automating and working with data makes processes more efficient and insightful, reduces operational costs, makes the work for employees more strategic and analytical (read: more interesting), and prevents human error.
Make colleagues aware of the benefits and remove uncertainties.
The fear that things like artificial intelligence and machine learning are taking over people's jobs is perhaps understandable, but certainly not well-founded. The collection and (partial) analysis of data may be done automatically, but the decisions and actions that result still have to be performed by humans. The work is not disappearing, but it is changing, and it is up to the leaders of the organization (yes, there they are again) to inform and, above all, enthuse their employees about it.
TIP 3: Understand why investing right now is a good idea
Many companies are currently holding their hands tightly to the purse strings. Spending money in times of skyrocketing inflation, exceptional energy prices, increased transportation costs, extreme personnel shortages, war, and an upcoming recession may not seem like the smartest choice. But it is precisely this kind of exceptional time that lends itself perfectly to exploring new opportunities and taking a different path.
READ ALSO: Financials and buyers wanted: tight labor market remains problematic
A Forbes article states that "an overwhelming majority (90%) of global executives say that automating workflows after Covid-19 will ensure business continuity.... Almost the same number (89%) think digitally transformed companies have a competitive advantage." And that competitive advantage should be obvious by now.... Right?
Full trend report available for free
Want to learn more about how corporates have structured their purchase-to-pay process and the implications for Procurement and Finance? Then read the full Trend Report Digital Transformation Procurement and Finance 2023.
In it you will read about, among other things:
- To what extent do corporates pay their invoices on time?
- How do purchase orders and invoices come about among Dutch corporates?
- What trends and developments affect Procurement and Accounts Payable?
Anoek
van der Riet
Contents Specialist
Anoek writes daily about purchase to pay, order to cash and Robotic Process Automation. She enjoys diving into topics such as e-invoicing, working capital and hyperautomation.