The Risks Of Not Utilizing Software For Otc Transformation
DIGITAL TRANSFORMATION OF OTC PROCESS
The modern corporate landscape is constantly being rapidly reshaped and redefined by steady influx of technology and the increased use of digitalization. Eventual adoption of emerging digital tools and technologies is an imperative for those committed to staying ahead of their competition. Especially during these unpredictable times, companies need to act fast to remain successful. One particular technology widely used to digitize physical process is software, more precisely order to cash. In this report, we aim to provide an updated overview of risks associated with failing to capitalize on Order to Cash (OTC) software.
From the C-Suite perspective, the true cost of forgoing such software is being exposed as increased complexity and lack of transparency make controlling and managing customer payments, receivables and collections more challenging. What’s more, businesses that opt out of modernized, automated software solutions face many significant risks, on top of frequently decreased customer satisfaction and engagement.
The following identifies the potential costs of not using suitable software for OTC transformation:
Loss of Efficiency and Accuracy: Manual processes that arise when bypassing OTC software are typically slow and prone to errors. Moreover, manual data entry requires greater oversight and thus more staff. Erroneous or inefficient data can result in not only financial losses but also irreversible reputational damage.
Ineffective Auditability: Without comprehensive software-powered solution, auditing becomes more involved and time consuming activity, risking financial audit failure. To keep thorough records and efficiently track processes in real-time, deploying suitable OTC software is of utmost importance.
Vulnerable Compliance and Security: OTC software tools facilitate the automation of customer information and core customer workflows, helping to ensure that customer data remains secure and complies with data regulations. Non-automated processes are often inefficient and opens up your business to compliance as well as security issues.
Prolonged Collections: By choosing not to invest in automated solution, companies expose themselves to avoided and overdue payments, lost invoices and disorganised data. Consequently, this can lead to long and costly collections process, ultimately affecting cash flow and the companies financial health.
The last point is particularly important to remember, considering cash flow is the lifeblood of any business. By failing to embrace digitalization, all the aforementioned risks can seriously threaten companies output, and overall performance. Therefore, it is best to consider the implementation of software employed to facilitate the OTC process. Doing so, remedys multitude of current risks and creates new opportunities as companies enter the digital transformation era.
