Digital transformation is all the rage in accounts payable. More organizations are digitizing the way they process and post invoices and other documents, with no letup in AP transformation projects in sight.
IDC predicts that by the end of 2020, 30 percent of Global 2000 companies will have allocated capital budget equal to at least 10 percent of revenue to fuel their digital strategies. Across the corporate enterprise, 39 percent of global organizations have completed or are close to completing digital transformation projects, according to a survey of 750 global senior IT decision-makers from enterprises with more than 500 employees conducted by market research firm Vanson Bourne.
But accounts payable departments are missing out on the full benefits of digital transformation.
That’s because many accounts payable departments aren’t leveraging their data to move faster, make better decisions and achieve best-in-class efficiencies. Acting on insights from the data captured by digital technologies is critical to achieving optimum results from AP transformation initiatives.
Machine-generated data is rapidly rising. Think of the huge growth of electronic invoice delivery channels: supplier portal, e-mail attachment, FTP file upload. But 56 percent of the organizations that Vanson Bourne surveyed acknowledge that it is humanly impossible to properly manage this data. An even higher percentage of large organizations – those with between 3,000 and 4,999 employees – strongly agree that managing higher volumes of machine-generated data is a problem.
Making matters worse, 46 percent of C-suite execs have inadequate visibility into how the software systems they deployed as part of their transformation efforts are performing for staff and customers.
Additionally, many organizations say they can’t access the day-to-day metrics they need.
These are the types of problems that digital transformation solutions were supposed to solve.
Many accounts payable departments are taking the wrong approach to digital transformation.
They are deploying:
- Purchasing-centric solutions
- Optical character recognition (OCR) solutions
- Document management solutions
- Online portals
- Robotic process automation (RPA)
Moreover, many departments automate their accounts payable tasks piecemeal.
Transforming the invoice processing lifecycle end-to-end with a proven accounts payable solution ensures that departments achieve the full benefits of digitization and can better manage their data.
An end-to-end accounts payable transformation platform combines capabilities for:
- Self-service portal
- Digital mailroom
- Intelligent data capture
- Digital workflow
- Business intelligence and analytics
- Supplier management
With an end-to-end transformation platform, accounts payable departments can be assured that their data will be captured completely and accurately, it will be readily available, it will be organized and integrated with downstream systems and processes, and it will be accessible to decision-makers.
And this is true regardless of whether invoices and other documents arrive as paper or electronically.
In short, end-to-end accounts payable platforms deliver on the promise of digital transformation.
Despite the poor job that accounts payable departments are doing in leveraging their data, a stout 91 percent of global organizations are satisfied with their digital transformation initiatives. Imagine how much more satisfied organizations would be if they more proactively managed their data.
If digital transformation is on your accounts payable department’s agenda, email us at email@example.com.