The Risks Of Not Software-Izing The Order-To-Cash Process
DSO IMPROVEMENT
As the cit iscape of modern business varies, companies globally are led to explore innovative tactics for optimizing their operations. An increasingly common tool for such improvement is the development and adoption of specialized software, optimized for an organizations unique needs. The order-to-cash process is one such domain in which financial executives are increasingly turning to software solutions to drive improvements in areas such as account receivable, cash processing, and invoice creation. While leveraging such software can undoubtedly bring numerous beneficial opportunities, failure to do so carries with it range of risks.
First and foremost, non-softwareization of the order-to-cash process severely limits an organizations scalability. Simply put, manual procedures lack the necessary elasticity and flexibility to robustly accommodate uncertain, dynamic business conditions. To put this into perspective, manual OTC processes are highly labor-intensive, entailing range of individuals and significant amount of time to complete even the most basic operations. Over time, this results in ineffective use of resources, in comparison to software-driven OTC systems, which provide nearly instantaneous response times and require significantly fewer individuals to implement.
Apart from scalability, manual OTC processes also stand to compromise accuracy. While mistakes due to human errors are not necessarily inevitable, they are far more likely than within computer-driven systems, which can automate and accomplish tasks with speed, reliability, and accuracy. This is further complicated by the fact that manual OTC implementations often carry with them degree of inconsistency, dependent on who is carrying out the work and the nature of their experience. On the other hand, software-driven processes can be tailored and optimized to better suit the needs of the business while maintaining accuracy throughout.
Beyond accuracy of the OTC process, manual implementations typically carry with them greater security risks, too. As computers are inherently shielded from environmental factors, there is greater assurance of data protection. In contrast, manual activities are far more exposed to external threats and are typically associated with slower ways of carrying out duties. With slower response times and the potential for human mistakes, organizations elevate their likelihood of security breach when operating without software.
In summary, on the whole, the implementation of software for the improvement of the order-to-cash process presents unique opportunity for businesses of all shapes and sizes to maximize their operations. From greater scalability and enhanced accuracy, to lower security risks, software-driven OTC systems offer numerous advantages. Thus, for organizations hoping to maximize their financial operations, software-izing the order-to-cash system is an essential consideration to keep in mind.
