IDC Recommended – 4C Model To Get Your A/R Transformation Right
The CFO’s growing emphasis on fast-tracking the cash-conversion cycle has made it necessary for A/R leaders to find a cloud-based solution that is intelligent and allows room for collaboration across the order-to-cash function.
Although a good amount of order-to-cash practitioners are going forward with automation initiatives in 2021 - one cannot deny that the success of such a massive project isn’t always guaranteed. 85% of the digital transformation projects fail, as per Gartner. That’s almost like saying a football team is expected to lose four out of five matches in an international tournament!
Just like the right football coach and manager - having the right technology and vendor can help you defy the odds and win the game. The 4C model highlighted in this blog is based on the International Data Corporation (IDC) 2020 SaaSPath Survey, which surveyed 1,915 organizations across five continents, including 11 countries, to perform A/R technology and vendor assessment.
This model will help you ask the right questions during the different stages of technology implementation and enable you to analyze and make better decisions for the success of your automation project.
Check for The A/R Team’s Issues and Scopes
Even before looking out for the technology options, look internally for the challenges faced by your team and the scope for automation:
What are some of the challenges we are looking to resolve with a new automation system?
Were these issues an outcome of the absence of technology in the A/R function?
How should we define success for an automation technology project?
Which internal stakeholders should we include in the evaluation processes?
How will the new automation system bring a change to my organization?
Choose The Right Partner For Automation
Perform due diligence while choosing the right vendor and, more importantly, the right technology that meets your business needs:
Does the vendor have experience working with a product, service, and company size similar to ours?
Can the vendor show us a demo with some sample data from our A/R function to show the benefit that the technology will provide to the business?
What is the vendor’s strategic investment outlook for the next three to five years? Why?
How will that change and enhance our business?
How much involved will the vendor team be in the entire digital transformation journey?
Climb Into The Driver Seat During The Implementation
Take charge during the implementation and try to list down the pros and cons of the automation implementation:
What can be the expected timeline for the implementation process, and will it cause any disruption to our daily business?
What levels of support are available, and are they geographically available for our business?
How should we set up the service-level agreement (SLA) before signing any contracts?
Can the system integrate seamlessly with our company’s IT system (and across all our business units)?
How are we going forward with installing the product updates?
Create A Post-implementation Strategy
The success of any software implementation hinges on the post-implementation stage. Tap into the role of a change manager to ensure it delivers real value:
Do we have a strategy to encourage rapid adoption among our employees?
Are we communicating the purpose and benefits of the system change to the relevant employees?
Do we have the right amount of training for the employees to master the new features within the system?
Have we aligned the existing policies and procedures to adopt the new workflows brought in by the automation system?
As an A/R leader, you should be the driver of change in your function and take charge of the entire digital transformation project. The ‘one-size-fits-all’ plan doesn’t apply to technology selection. For such a massive project to be successful, you must understand the significance of choosing a technology that meets your business requirements.
IDC has positioned HighRadius as a Leader in the 2020–2021 IDC MarketScape for worldwide SaaS and cloud-enabled A/R automation software for both mid and enterprise markets. Discover the A/R technology and vendor assessment process and the observations from IDC across this journey in the link below.
The CFO Mandate: Understanding the Future of Automation in the Mid-Market CFO Office