Digital disruption is a change brought on by new business models and rising technology. Digital disruption can impact the value of existing products and services and entire marketplaces or sectors. Digital disruption consists of four components:
SMEs are in danger of being impacted by market-changing economic changes, regulatory restrictions, and digital disruption. 34% of small and medium-sized enterprises (SMEs) say they will go out of business if they don’t come up with new ideas, according to research commissioned by Ricoh. According to Ricoh’s survey, SMEs must be prepared to question prevailing notions of growth, given that 56% are attempting to boost profits, and 54% are expanding their businesses.
Given the unpredictability of the economy, SMEs are under pressure to achieve digital transformation while still managing operations. The study identifies three major areas where SMEs should use technology to help them focus their efforts:
Many industries are seeing long-standing boundaries blur or disappear entirely due to digitization, connectivity, and collaborative ecosystems. As new business models transform the company, treasury must adjust to the effects on liquidity, funding, and risk management requirements. Treasury leaders will need to reevaluate how they organize and manage treasury functions as more and more financial transactions move to “real-time” to ensure that technology investments properly support increasingly interconnected processes. This includes looking at everything from liquidity management and financial risk mitigation to better preparing for cyber threats.
According to the survey, although 92% of SMEs acknowledge the impact of digital disruption in their sector, 59% are not yet in a position to take advantage of its benefits. Furthermore, a quarter of SMEs anticipates that businesses will not be able to respond quickly enough to changing government rules in the next two years, and 20% expect that automation will increase.
Treasury should be willing to learn about these changes and consider how they may use new applications to streamline processes as they happen. Before any major restructure or deployment, treasury must thoroughly understand the solutions they will be working with. Additionally, every staff member needs to adapt to new technologies.
Leveraging the latest treasury technologies can help manage digital disruption.
Cash flow software for small businesses can help speed up time-consuming, administrative-heavy tasks and prevent other small business cash flow problems.
Below are a few points why SMEs should use business cash flow software to manage digital disruption:
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The HighRadius™ Treasury Management Applications consist of AI-powered Cash Forecasting Cloud and Cash Management Cloud designed to support treasury teams from companies of all sizes and industries. Delivered as SaaS, our solutions seamlessly integrate with multiple systems including ERPs, TMS, accounting systems, and banks using sFTP or API. They help treasuries around the world achieve end-to-end automation in their forecasting and cash management processes to deliver accurate and insightful results with lesser manual effort.