Professional Documents
Culture Documents
[ CHAVONE JACOBS
[ ALLAN FISHER
[ COREY PEARSON
Pressure to reduce overall costs Risk of customer non-payment or default Customer demand to improve service levels Inability to accurately forecast cash flows Rising cost of servicing major customers Customer pressure to extend payment terms 0% 21% 19% 19% 29% 29%
67%
10% 20% 30% 40% 50% 60% 70% Percentage of Respondents, n = 140
Source: Aberdeen Group, The Order-to-Cash Cycle: Enhancing Performance with Process Automation (July 2011)
Reduce Days Sales Outstanding (DSO) Improve cash flow forecasting/guidance Reduce receivables processing cost/time Reduce 'customer-to-cash' or 'order-to-cash' cycle Improve transaction efficiency Manage credit risk, losses from bad debt, and collections expense 0% 10% 20% 30% 40% 50% 34% 36% 35% 42%
54%
30%
60%
Source: Aberdeen Group, The Order-to-Cash Cycle: Enhancing Performance with Process Automation (July 2011)
Customers Sales and Marketing Customer Service - Order Entry Finance and Accounting Operations Distribution Customers (Cash)
Quotation
Pack
Post Goods Ship Bill Payment
[
Pressures: External forces that impact an organizations market position, competitiveness, or business operations (e.g., economic, regulatory, technology, competitive, etc.) Actions: The strategic approaches that an organization takes in response to industry pressures (e.g. product/service strategy, target markets, go-to-market, and sales strategy) Capabilities: The business process competencies required to execute corporate strategy (e.g., skilled people, brand, market positioning, viable products/services, financing, etc.) Enablers: The key technology/solutions required to sup-port the organizations business practices (e.g. development platform, applications, connectivity, user interface, training and support, etc.)
Note: Aberdeen utilizes a proprietary research framework called PACE to systematically and objectively develop its research findings.
10
Actions (A): Streamline front and back office administrative processes to remove non-value steps. Automate process flows with electronic workflow technologies.
Real Experience. Real Advantage.
11
[ PACE Framework
Capabilities (C):
Standardized enterprise-wide procedures through
12
[ PACE Framework
Enablers (E):
ERP - integrated order entry, procurement, production/resource planning and execution, and financial management Event management (triggers and alerts) Electronic interfaces to banks and customers Web-based and electronic sales order management application Credit management solution Electronic Invoice Presentation and Payment solution ERP features or extensions: Customer Relationship Management (CRM)
13
14
[ Performance Results:
15
60% 50% 40% 30% 20% 10% 0% Integrated Order-to-Cash Systems BI / Analytics 50% 47%
Best-in-Class
All Others
43%
37%
37%
23%
18%
12%
Electronic Workflow
Customer Portal
Source: Aberdeen Group, The Order-to-Cash Cycle: Enhancing Performance with Process Automation (July 2011)
16
17
20
]
22