Digital transformation has been the primary focus for Global Process Owners (GPOs), with the pandemic playing the role of a catalyst.
O2C GPOs focus more on increasing agility and improving business insights which helps them transform their process into a more value-driven function. One of the ways to achieve it is by investing in digital transformation of A/R shared services. Shifting towards a more innovative and tech-based platform without considering proper measures and parameters can disrupt the process.
Over the years, the answer to the question “What is the perfect way to transform digitally without disturbing the regular continuum?” has remained unanswered until the current Gartner decision making framework was introduced.
We are in an uncertain environment, and everything is changing by the minute. Gartner provides us with a comprehensive decision-making framework that would result in cost optimization and would allow A/R teams to make the right choice in this tough economy which will help them- Sustain, Recover, Thrive.
By using this framework, one can evaluate the impact and priority of each decision. The parameters against which you need to assess any new decision are briefly explained below.
These parameters have three degrees to declare the outcome LOW, MODERATE, and HIGH.
Let us take the example of automating credit management in an O2C function. Whether onboarding new customers, setting up periodic reviews or gathering data from credit agencies to assess credit risk, credit management is tedious and prone to errors if done manually. Automating credit management speeds up credit application processing, provides real-time credit risk monitoring with simplified credit scoring, and segments the customers to assign credit limits for low-risk, high-volume customers automatically.
To better understand this, let us use this framework and see how it helps GPOs to decide on investing in automated credit technology.
Shared service companies can become more value-based by investing in the right technology at the right time. However, GPOs need a strong framework like the Gartner Decision Framework to make better business decisions, especially the ones involving O2C technology investments. The comprehensive list of parameters mentioned in the framework will give GPOs a holistic view of how their decision will impact the O2C function.
To learn more about how AI-powered A/R technology impacts other order-to-cash functions, watch our webinar Guide to Become a dotONE company | Insights from HighRadius and Gartner.
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