Six Sigma design is a business process management methodology that helps analyze processes and provides proper visibility of the bottlenecks associated with it. The Six Sigma methodology influences the A/R teams in all the possible ways to help them adapt to continuous change and improvement. Many companies are adapting to changes by either outsourcing or building Shared Services and GBS (global business services).
Six Sigma design enables empirical research and determines the needs of customers and businesses. It assists companies to define, measure, analyze, improve, and control continuous organizational changes. Proper implementation of it could help companies boost up the account receivables environment or any workspace.
The Six Sigma design is focused primarily on evolutionary and continuous process improvement. Companies need to understand and convince their teams to adapt to process improvement for better standardization of business processes.
Since most of the employees are millennials now, there is a difference in how people adapt to changes. Continuous improvement could bring changes in AR, and millennials could easily adapt to these changes and learn new ways quickly. Adapting to change or automation not only makes things easier and simpler but also more straightforward.
Automation takes a big leap when it comes to Process improvement. In Accounts Receivables, the most important thing is to get the work done faster and ensure no errors. Manual and redundant tasks are often time-taking and error-prone, whereas automation brings in a new ray of hope making an analyst’s work easier. Following the top 5 principles of six sigma could help companies accelerate their business growth and enable continuous process improvement.
To implement continuous improvement strategies effectively, companies need to understand the needs of both their employees and customers. Implementing change requires a lot of effort, and naturally, people would fear it. But improvement, on the other side, is essential as it could eliminate a majority of manual and redundant tasks from an analyst’s life. Any process which is challenging or error-prone is made simple and error-free after implementing automation.
Inter-team collaboration and effective communication become an absolute necessity while implementing process change. A particular set of skills is required for any team to work effectively, and adding automation to it might bring in vital improvements. Leaders play a vital role when it comes to improving the Order-to-Cash cycle. Approaching your customers could be a little tricky at first, but then making them understand the benefits of automation could help them to get started with their digital transformation journey. Training the employees to adhere to the Six Sigma design knowledge is a prime objective that could assist companies in becoming more significant in their Continuous Process Improvement.
Six sigma is a proven and internationally accepted methodology that enables companies to identify defects in the existing processes and design methods to eliminate the same. From big multinational companies to small mid-size firms, several companies have adopted Six Sigma strategies to control quality, improve customer experience, and reduce small-time costs.
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HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.