Change is difficult — but organizations must embrace it or risk falling behind the innovation curve. They can begin by scrutinizing their most critical business processes.
Companies that use SAP systems – one of the most widely used ERP platforms, with methods for workflow management for accounts receivable and payable, order tracking, human resources, and more – can benefit from improving business processes such as procure-to-pay and order-to-cash, but not every business benefits equally. That is why it is critical to be adaptable to understand better the process flow and your organization's unique needs.
Evolving best practices and new technologies may necessitate revisiting outdated processes and shifting the emphasis to value. It is often challenging to determine where to begin when there are many ways to improve processes. Here are five suggestions from Chris Salis for businesses to begin driving meaningful SAP process improvements:
Improve Accuracy and Speed by Going Paperless
Paper reduction remains a goal for businesses that continue receiving many invoices and orders through the mailroom. Existing scan and capture technology can be costly, inefficient, and outdated. Going paperless can improve process speed and accuracy, increase operational productivity, and lower costs.
Automate Workflow with Intelligent Automation
Automation of workflows improves process speed but does not automatically enhance operational efficiency. However, combining intelligent solutions and robotic process automation can improve both. Artificial intelligence applications eliminate redundant or repetitive work and can save significant processing time, allowing companies to concentrate on more practical processing tasks.
Move to the Cloud
Cloud-based solutions are appealing because of their flexible pricing and innovative design; however, it is critical to migrate to the cloud only where it makes the most sense for your organization. Shift consumer processes, content-centric Shifting to the SAP HANA Cloud platform will ensure seamless connectivity between existing on-premise systems and new cloud components.
Improve Order-to-Cash Processes
Order-to-cash processes encompass a wide range of activities span multiple departments, touch numerous systems, and occur in numerous locations. This degree of complexity and coordination is the process's most difficult challenge. It is also why organizations of all sizes rely on large ERP systems like SAP to coordinate order-to-cash operations. Even with a record system, many organizations face challenges at each stage.
Consider Value is More Important than Cost
Although cost reduction is essential and a goal for most businesses, it should not be the only consideration when deciding how to improve processes. The best process improvements enhance efficiencies and value by making processes more effective and thus lowering costs. Companies should look beyond simple cost savings and efficiency gains to determine how changes will improve the process's effectiveness and value to the company.
The Takeaway
Organizations can ensure that they are utilizing technology to drive constructive process improvements by implementing Chris Salis's five suggestions. Improved SAP systems that genuinely add value will reap significant benefits for the financial department and the company.
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