Transformation projects can offer much and fail to deliver, but HighRadius clients can testify to the significant impact on performance that AR automation can bring.
A new dawn I
t is clear that many of the promises that have been made for the transformative impact of technology have turned out to be illusory. A combination of poor execution, bad design, uncertain leadership and muddled thinking can often lead to disappointing results. So what, after all the hard work of designing and deploying a new AR solution, should clients expect? And how can they harness the benefits of the process?
As Rash Hullait explains, as the transformation efforts move towards more sophisticated layers of finance, particularly in relation to automation, the finance function’s two primary purposes come to the fore.
“One is to regulate business results or outcomes and to look into the future in terms of where the business is going. The other angle is compliance. So those are the two branches that feed up to the CFO.”
Deep impact
Where, then, does HighRadius fit into these transformations? “Our technology has a number of fundamental areas that it impacts,” suggests Hullait. “It delivers quantitative results, particularly in areas
like working capital.” HighRadius projects often involve improvements around same day auto-cash posting and higher speed of reviewing invoices, and deliver a percentage improvement in cash application hit rate. “And suddenly, with even a small basis point movement in working capital in terms of day sales outstanding (DSO), the numbers can be significant – you could be talking hundreds of millions for large multinationals so that’s the first big outcome,” Hullait goes on to add.
Beyond that, HighRadius’ ability to increase exposure levels of transparency around processes can deliver other significant benefits. “Take, for instance, the need to understand how you interact with your customers,” Hullait explains. “From a bad debt perspective, the ability to understand the risk around your customers is hugely beneficial. So once the technology is deployed we usually see a significant reduction in bad debt exposure.” More to the point Hullait emphasises that, particularly in CPG-type businesses, or for businesses where there is revenue linkage from disputes and deductions, automating AR solutions “allows our clients to manage those interactions and to reduce
Finance Director Europe /
www.ns-businesshub.com
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