Successful Digital Transformation – In its 2019 Guide to Procure-to-Pay & Digital Transformation Report, Levvel Research examines the current state of adoption as well as the key technologies and the emerging technologies that will benefit organizations’ digital transformation initiatives.
What is digital transformation? According to Levvel, the three key elements include:
While each of these initiatives may be pursued independently, they can drive more additive business benefit when pursued collectively.
Companies can jumpstart their digital transformation journeys by implementing procurement and AP automation – processes collectively referred to as “Procure-to-Pay” (P2P). Just under 40% of North American companies today have adopted electronic procurement (eProcurement), according to a Levvel survey. AP automation is used by less than half of North American organizations, while just over one third (36%) automate invoice entry. About 50% automate invoice routing.
P2P digital transformation means changes for procurement, AP finance and IT, and an integrated transformation approach helps organizations:
This last benefit can drive significant value for businesses. Synchronizing supplier data enables organizations to have more efficient and secure payment processes, stronger supplier relationships and lower financial supply chain risks through continuous aggregation and analysis of information as soon as it becomes available.
The report also takes an in-depth look at the technologies and business developments that are driving digital transformation in P2P software, including:
Despite the many benefits of P2P digital transformation and the wide array of technologies available to support these efforts, surprisingly 40 percent of organizations Levvel surveyed have no plans to pursue digital transformation for their P2P processes.
This means essentially the proverbial “line in the sand” is being drawn demarcating the “haves” versus the “have nots,” where organizations that aspire to challenge business-as-usual thinking will gain competitive advantage over their peers that are content to stay the current course.