Finance leaders are once again under pressure. The ability to respond to customer demands by offering fast, personalized and always-on services, are just some of the latest challenges faced by every finance function. The answers rely heavily on digital transformation and how quickly you can deliver it.
SAP is helping its customers achieve their digital transformation goals by basing the future of SAP solutions on SAP S/4 HANA. This strategy gives businesses the potential to consume and make decisions on data more quickly, provides a better client experience, and ultimately gives clients a competitive edge in the market.
SAP plan to stop supporting older ERP versions on December 31, 2027. It’s clear they are targeting customers more aggressively to move to the cloud, focusing on co-innovation and moving to one data model across its platforms.
At HighRadius, we believe this presents the opportunity to take advantage of a larger change project and implement additional custom cloud functionality that specifically leverages artificial intelligence in cash, collections, and deductions to help you make faster and more informed business decisions.
Here, we explain some of the benefits SAP customers can experience by seizing this opportunity today.
“SAP S/4HANA is mission-critical to businesses because it optimizes their digital transformation strategy; improves agility, visibility, and innovation; and reduces costs and time-to-process information” – IDC, Customers are on the Move to SAP S/4 HANA, June 2019
54% of SAP users are planning to deploy S/4HANA within 3 years
42% of users are consolidating several ERP instances to one SAP S/4HANA
The COVID pandemic has disrupted organizations and their processes alike. It is estimated that adoption of digital technologies has sped up by three to seven years in just months, with companies accelerating efforts for fear of being outflanked by the competition.
According to McKinsey, only 11% of 1,140 business executives surveyed believe their current business models will be economically viable through 2023. It’s easy to understand why 64% of those execs say their companies must build new digital businesses.
Here are just some of the benefits organizations can achieve when choosing to migrate to S/4 HANA as part of their overall digital transformation strategy:
1. Competitive edge – companies already moving to SAP S/4HANA will get the benefits sooner, and those benefits can be substantial. There also are risks in waiting, as SAP will end support of legacy versions at the end of 2027.
2. Data quality – Many companies are still struggling to get their act together when it comes to data. For those with multiple instances of SAP or other ERP systems, SAP S/4HANA is an opportunity to pull the entire enterprise into financial alignment around a tested set of simplified processes, leveraging one data model.
3. Better financial insight with real-time analytics—SAP S/4HANA enables more speed and better insights in almost every area of finance. The new system also brings a simplified data model that lets you record once, use it many times, and create a single source of truth. Analytics and insights that were historically very time-consuming to source, and rarely accurate, can now be found quickly to support speedy decision making.
4. Innovation – in the current climate, cloud adoption is at the forefront of technological innovation within the business, and SAP S/4HANA is one of the primary driving forces behind it. The cloud has opened a wide platform for different software vendors to experiment and provide a range of innovative products for business use, all of which will expand the capabilities of your ERP solution.
Another benefit of migrating is to enable process standardization across the business, resulting in a consistent approach across all facets of the A/R space. As processes are the same globally, this provides executives with more insight into current and potential challenges.
Apart from the innate advantages of migrating to S/4HANA, the ERP migration/upgrade process is the perfect catalyst to take your finance function to the next level. It presents a unique opportunity to take advantage of the latest innovations in artificial intelligence and machine learning across the O2C process.
If you are investing the time and resources to move to a new ERP system, simultaneously investing in configuring cloud solutions that integrate with S/4HANA can help organizations save up to $1m.
It is becoming increasingly clear that finance teams who are not leveraging AI for collections and credit, disputes, risk rapidly losing market share to their competitors who are.
Top 3 benefits from artificial intelligence applications in O2C
|Eliminate 100% lockbox key-in fees with AI-powered cash application||Auto capture of remittance, enhanced exception handling, real-time visibility of payment statuses, and 100+ out of the box reports|
|Achieve 75% faster past-due recovery by Leveraging Autonomous Collections||Integrated VOIP Calling, prioritized follow-up worklist, automated notes, and intelligent next best action suggestions|
|Improve net recovery rate with AI for deductions management||Auto-aggregation of backup documents, AI-based dispute validity predictor, insights, and analytics to assist with faster approval cycles|
S/4HANA migration is your opportunity to streamline O2C operations while building future-proof capabilities through cloud-based enhancements. This opportunity will prevent multi-year IT projects every time the organization decides to migrate to a new version or even change the ERP to something else.
If you are preparing or even thinking about your SAP migration, you should select a partner that has deep experience in working with SAP customers across a range of different industries. Consider the following when making your evaluation:
Companies committed to SAP will likely find themselves grappling with SAP S/4HANA decisions over the next few years. Making sure you choose the right partner early in the process who can demonstrate commitment, value and innovation will certainly increase the odds of getting things right.
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.