The Gartner Magic Quadrant report for Integrated Invoice-to-Cash (I2C) Applications analyzes the top I2C software vendors based on their ability to execute within evolving markets and completeness of vision to anticipate the customers’ business requirements.
The success of a transformation project depends upon multiple factors and isn’t always guaranteed.
Selecting the right software vendor is as critical as deploying the right technology to drive your transformation journey and achieve the desired objectives successfully. A/R leaders must conduct a thorough assessment while choosing an ideal vendor to ensure a smooth technology implementation across their Order to Cash (O2C) operations.
This blog is based on the insights from the 2022 Gartner Magic Quadrant report and highlights a four-step model for A/R leaders to consider while evaluating their vendors' capabilities against the organization’s business needs.
Before starting a digital transformation project, the A/R leaders should identify the primary success metrics for the project and get clarity on the expected outcomes at the end of the implementation.
These outcomes can differ for organizations based on their specific and evolving business needs. For example, an A/R leader might implement technology to primarily automate low-impact tasks like credit data aggregation from multiple credit bureaus and improve team productivity. In contrast, others might prioritize reallocating the trapped working capital in receivables with Artificial Intelligence(AI)-based payment predictors.
Software vendors should ensure that the solution can support customers’ invoicing requirements with custom invoice formats based on their business units or geographic location. The vendors should also provide A/R Leaders with a secure PCI-DSS compliant platform for submitting remittances that could seamlessly integrate with their customer’s A/P portals.
Vendors’ solution capabilities should include electronic invoice delivery and auto-capturing the remittances. These features will help the A/R teams to significantly reduce invoice delivery costs and reallocate the teams’ bandwidth toward more strategic tasks like sales enablement.
Along with automated invoicing operations, the software solution should also be flexible with global payment modes like auto-pay and formats like ACH to facilitate a better customer experience.
A crucial step in the decision-making for technology investment is for the vendors to align their product capabilities to the requirements of the A/R leaders. Solution vendors should ensure their offerings include advanced AI and Machine Learning(ML)-powered capabilities like auto-prioritization of customers or real-time risk alerts based on the customer’s payment trends.
A/R Leaders must ensure that the vendor can work with them to understand their end goal with an automation project and develop product capabilities that align with the evolving market trends.
The final step before investing in a technology for A/R transformation is for the solution vendors to work with the internal subject matter experts and data scientists to ensure the success of a digital transformation project.
Learning how long the technology project will take to drive actual business value is also an important consideration. A good technology vendor will closely work with the internal IT team to guide them throughout the transformation journey and ensure that the project starts delivering at least 80% of the expected value in under six months.
Gartner recognized HighRadius as a ‘Leader’ in its first-ever Magic Quadrant for Integrated Invoice-to-Cash Applications because it leverages advanced technologies like AI and ML to overcome the limitations associated with traditional O2C solutions.
The report placed HighRadius in the top-most quadrant, with the highest score across the two criteria of ‘Ability to Execute’ and ‘Completeness of Vision’ based on:
Before undertaking a digital transformation initiative, A/R leaders should thoroughly evaluate their solution vendors’ benefits, compliance with local/global regulations, and how they adapt their product capabilities to the changing market. Working closely with their software vendor will help A/R Leaders achieve their expected digital transformation goals more effectively and quickly.
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.