From next day deliveries to AI and automation, digital transformation is transforming our lives one pixel at a time. As the capabilities of AI, machine learning, and RPA technologies continue to grow, their reach is extending further into the business world.
The tools now available to business professionals seem like something out of a sci-fi novel. Cash forecasts with built-in machine learning algorithms, AI in cash management, and some organizations are even using AI to write blog posts (but don't worry this one was written by a human). Technological advances are reshaping business processes that have existed for decades.
In the world of cash management, financial digital transformation is allowing business leaders to re-evaluate the tedious, manual workflows that have restricted the expediency and reliability of cash data, cash reporting, and forecasting.
The digital maturity of a business is beginning to have direct impacts on its fiscal health. The latest digital tools give leaders the ability to make swift decisions with confidence, fully understand and view their financial position, as well as apply resources to strategic planning instead of report generation. The competitive advantage offered by automation has left organizations at a crossroads: embrace the digital wave or get left behind. While the advantages of automation are numerous, many businesses have yet to embrace financial digital transformation. Why?
One of the most common roadblocks to digital transformation is the “if it’s not broke don't fix it” approach to cash management processes. While it is true that Excel and legacy systems have been the backbone of many Treasury, Accounting and Finance departments, there are more efficient ways to work.
Excel is an incredible tool, but relies on highly manual processes and is rife with opportunities for human error. Legacy TMS systems are able to provide consolidated cash data but still leave businesses exporting to Excel for forecasting and reporting. Automation has the potential to reduce the amount of time spent completing repetitive, manual tasks and minimize opportunities for human error.
In a case study done by PricewaterhouseCoopers, “A Fortune 100 multinational implemented RPA to automate the daily cash positioning of their in-house bank and eliminate repetitive human input. This allowed the team to free up 1.5 hours a day for one person to focus on strategic projects and analyse investment decisions.”
Have you ever tried to drive somewhere new without a map or directions? It is impossible. The road to digital transformation is no exception. When there is not a plan in place, it can be difficult to know how to choose the right solutions and when is the right time to begin.
“When beginning the digital transformation process, it’s vital for a business to think about both how it wants to evolve and which new technologies it can leverage to get there. Businesses must think through the resources they have at their disposal and which can be devoted to modernization. This might even mean reprioritizing projects and thinking through the business organization, identifying any gaps that could hurt the digital transformation effort.” -Hewlett Packard
Creating a digital roadmap doesn’t have to be difficult. Start by identifying the pain points of your current cash management system. Does your team struggle with highly manual processes, inaccurate forecasts or a visibility gap? Once you understand the needs of your organization, you can begin to outline digital goals and the tools needed to achieve them. Lastly, create a digital budget and begin your search for an automated cash management solution.
If you are not quite sure how to get started, worry not, we can help guide you through it. We’ve put together some resources on embracing digital transformation by role and field.
Let’s not ignore the elephant in the room. Platforms and technology cost money and if there is not already a digital strategy set in place, there may not be money in the budget for the cash management solution you need.
While older systems like legacy TMS required substantial investments of time, capital and IT resources, this new digital wave is different. AI, cloud computing and APIs allow for less expensive and less invasive solutions. The proliferation of API connections has drastically reduced the price of accessing real-time, consolidated cash data. Similarly, cloud computing advancements have enabled businesses to create solutions that can be onboarded in just a few weeks, and can scale to match the needs of businesses as they grow.
Trovata makes it easy to embrace digital transformation. With Trovata you only pay for what you need, and you get a solution that can grow with you. Overcome your visibility gap with Trovata’s real-time cash data and automated cash positioning tools. Make your forecasting and reporting process smarter with AI and machine learning technology. With Trovata you gain the insight and time you need to build and maintain a competitive advantage over your competitors or keep pace with the economic and regulatory changes that resulted from the COVID-19 pandemic.