This posting is found in ValueWalk and written by an exec at a payments automation fintech. The headline can be interpreted another way, but is really about suggestions for things to stop doing if your company remains stuck in analog financial operations and needs to modernize.
We have covered this most recently in member research on digitizing the cash cycle. So the author goes through the problem, then offers up some of the fundamental changes required to improve.
‘We can point to several reasons leaders may hesitate to implement new technology — whether they fear disruption to the status quo, worry that people will reject new tools, believe that change management efforts will be overwhelming, or struggle to grasp the value of something that seems so unnecessary. On the one hand, it is challenging to comprehend value for something you haven’t experienced. It’s not uncommon for B2B companies to resist a high price tag for a piece of technology they don’t think they need. But often, that’s because B2B leaders don’t fully understand the technological capabilities. For example, they may think that accounts payable automation is a simple process that’s been around for decades. But that’s not true. Sure, something like invoice processing, which allows supplier invoices to be captured digitally, has existed for a while. But if that’s all a B2B leader thinks payment automation is, they’re missing out on myriad solutions available to them. Modern payment automation and accounts payable solutions not only digitize invoices — they also streamline and manage internal processes and procedures along the way.’
So the point is that inertia has been a long standing issue (‘if it ain’t broke….etc) in these types of modernization processes, but as we know the pandemic caused a major call to action in many cases given the WFH circumstances and follow-on adjustments. So financial operations modernization projects have become much more of a priority, especially as it pertains to sending and reciving payments. So the author points out some of the things to dump overboard, and each one has a summary. Worth a quick look.
‘To survive and succeed, your organization must transform its underlying accounts payable solution and cost structure. Now is the time to strategically rethink how to operate and make a commitment to lasting gains….Ready to learn how to implement the right technology for your business? Below are the top four processes that hinder B2B growth and how you can flip the script.
Operating With Manual Processes And Approvals
Relying On Inefficient B2B Payment Methods Like Paper Checks
Slacking On Implementing Financial And Compliance Controls
Failing To Optimize For A Multi-Entity Structure
Finally, remember that you’re not starting from scratch. The great thing about embracing technology is that it allows you to determine the highest and best use of your human capital — and then automate the rest. Maybe you have a rock star teammate who’s bogged down in accounts payable management when they could’ve been managing a team and leaving old tasks to a computer. Start by assessing your current talent — human, machine, and otherwise — and putting together a game plan for how you can build on all those components using technology. Ultimately, technical solutions should augment your human talent, not detract from it.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group