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.
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.