Raking in Revenue: Optimizing Order-to-Cash Cycle (O2C) by Automating Accounts Receivable
 

Raking in Revenue: Optimizing Order-to-Cash Cycle (O2C) by Automating Accounts Receivable

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Video & Slides: http://www.proformative.com/events/raking-revenue-optimizing-order-cash-cycle-o2c-automating-accounts-receivable ...

Video & Slides: http://www.proformative.com/events/raking-revenue-optimizing-order-cash-cycle-o2c-automating-accounts-receivable

For most organizations, the Order-to-Cash (O2C) cycle is a complex, multi-step process that involves order creation, fulfillment, shipping & distribution, invoice generation, payment collection, receipt and finally, closing the books. AR automation not only helps shorten the cash conversion cycle and improve operational excellence, it allows finance executives to build a solid foundation for a holistic, sustainable O2C cycle.

Join us as Aberdeen Group and Transverse discuss how leading organizations are leveraging AR leverage automation to fuel business growth. Content will focus on actionable advice and best practices for improving AR efficiency as well as real-world examples illustrating how manual processes can impede response time (and customer service).

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  • Tools to automate the entire order-to-cash process. Revenue recognitionBilling and invoicing AutomationPayment and collectionsProduct catalogOrder managementReportingERPGLSupportCore productProduct/pricing/order mgmt.Revenue assurance Audit & complianceProduct / Offer ManagementBilling / InvoicingRevenue RecognitionOrder Management and FulfillmentTaxationPayment ProcessingCollectionsBusiness AnalyticsAudit and Compliance Reporting
  • Improves customer-to-resources ratioAudits/complianceDecreases instance of human errorReduces risk of losing IP or critical info when employees leaveSpeeds time-to-market for new productImproves customer satisfaction by eliminating under/overbilling

Raking in Revenue: Optimizing Order-to-Cash Cycle (O2C) by Automating Accounts Receivable Raking in Revenue: Optimizing Order-to-Cash Cycle (O2C) by Automating Accounts Receivable Presentation Transcript

  • Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals Raking in Revenue: Optimizing Order-to-Cash Cycle (O2C) by Automating Accounts Receivable Chris Couch, Chief Operations Officer, Transverse Ankita Tyagi, Research Analyst, Aberdeen Group
  • • • •
  • • Understand key attributes of a successful Accounts Receivable department • Understand the market drivers compelling organizations to improve current billing and payment processing systems • Identify key challenges faced and benefits realized in automating AR • Understand key Order-to-Cash Cycle performance benchmarks
  • Leveraging AR Automation to Optimize Order-to-Cash: Featuring Aberdeen Group Ankita Tyagi Research Analyst Financial Management & GRC Aberdeen Group
  • – – – – –
  • • • • • •
  • Aberdeen’s Methodology External and internal forces that impact an organization’s ressures: market position, competitiveness, or business operations. P Actions: C The strategic approaches that an organization takes in response to industry pressures. The business competencies (organization, process, etc…) apabilities: required to execute corporate strategy. Enablers: The key technology solutions required to support the organization’s business practices.
  • Aberdeen’s Methodology Best-in-Class Percentage of AR past due Number of days to clear A/R ledger Total Respondents: Industry Average Extent of manual intervention Respondents are scored individually across KPI Laggard
  • Aberdeen’s Methodology What are Best-in-Class companies doing differently? What pitfalls are they avoiding? Pressures: External and internal forces that impact an organization’s market position, competitiveness, or business operations. Actions: The strategic approaches that an organization takes in response to industry pressures. Why are they achieving greater success? Capabilities: required to execute corporate strategy. What technologies and services are enabling them to succeed? Enablers: The business competencies (organization, process, etc…) The key technology solutions required to support the organization’s business practices.
  • Pressure to reduce Days Sales Outstanding (DSO) 59% Pressure to reduce overall costs 45% Customer pressure to extend payment terms 19% Risk of customer non-payment or default 19% Customer demand to improve service levels 19% 0% 10% 20% 30% 40% 50% 60% Percent of Respondents n=75 70%
  • • • • • • – –
  • 57% Increase the usage of electronic invoicing 25% Streamline administrative processes to 43% 49% remove non-value-added steps 35% Invest in automation of A/R processes 39% 0% Leaders 17% Harmonize A/R processes Followers 16% 10% 20% 30% 40% 50% Percent of Respondents, n=75 60%
  • Leaders Process Organization Knowledge Technology Followers Billing and collections are integrated with order entry and credit with no duplicate data entry 70% 37% Standardized enterprise-wide procedures for order fulfillment, delivery, and shipment 64% 43% Centralized A/R in corporate HQ or shared services center 67% 47% Real-time visibility into outstanding invoice volumes and status 82% 31% Real-time visibility into current exceptions by customer, problem type, etc. 68% 21% Electronic interfaces to banks 82% 58% Performance dashboards 68% 31% Electronic workflow automation 59% 30%
  • Definition of Maturity Class Mean Class Performance Leaders: Top 30% of aggregate performance scorers    6.1% of A/R past due 1.1 days for payments to clear A/R ledger 11.7% of require manual intervention Followers: Remaining 70% of aggregate performance scorers    8.8% of A/R past due 6.9 days for payments to clear A/R ledger 30.1% of invoices require manual intervention
  • Source: Integrated Accounting Platform: Achieving Accuracy and Efficiency at a Lower Cost, September 2013
  • Source: Integrated Accounting Platform: Achieving Accuracy and Efficiency at a Lower Cost, September 2013
  • • • • •
  • Leveraging AR Automation to Optimize Order-to-Cash: Featuring Aberdeen Group CFO as a Catalyst for Change COO and Co-founder Chris Couch
  • • Co-founded in 2008 by finance technology veterans with extensive experience solving the toughest order-to-cash challenges • A corporate finance solutions company, not an IT vendor
  • - The Salesforce.com shake up: CIO is no longer the gate keeper in major IT buying decisions Innovations in Cloud technology aligns buying decisions with broader business goals Decisions are being made at the line-of-business level Technology viewed as an investment in the business
  • Product Management Auditing You are here. Order Management Product Catalog General Ledger Payment and Collections Revenue Assurance ERP Reporting Business Assurance Order Management Revenue Recognition Billing and Invoicing Taxation Business Analytics
  • Self Signup Self Service Orders Invoices Payment ERP Integration CRM / Order Systems AR Automation FULFILLMENT Activities Notifications Balances Events SERVICE USAGE © 2013 Proformative. Proprietary and confidential Your Service or Application
  • Digital Security Company with High Volume of Usage Data Manual AR: • 60,000+ row spreadsheet • Lost Orders • Revenue Leakage from lost “re-ups” Invoices Payment ERP Integration Automated AR: • Order Management • Usage Collection and Rating • Action Framework • Agreement Management AR Automation FULFILLMENT Activities Notifications Balances Events © 2013 Proformative. Proprietary and confidential SERVICE USAGE Your Service or Application
  • Manual AR: Automated AR: • 3.5 weeks to close billing period • Usage Collection and Rating • 6 Individual Spreadsheets • Order Management • Complex Orders and Revenue Recognition • Revenue Recognition • Compliance Reporting • Invoices Payment ERP Integration High Audit Costs CRM / Order Systems AR Automation FULFILLMENT Your Service or Application Activities Notifications Balances Events SERVICE USAGE © 2013 Proformative. Proprietary and confidential
  • Improves Cash Flow Reduces Revenue Leakage Manages Revenue Recognition Increases Customer Satisfaction Boosts Profitability Speeds Time-to-Market Increases Business Assurance Frees Valuable Resources Minimizes Instances of Human Error
  • THANK YOU
  • Please join us at www.proformative.com to ask any additional questions you may have and to continue this conversation with your peers and the experts you heard from today. If you have questions about CPE Credit, please send an email to cpe@proformative.com
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