In this fast-moving digital world, innovations are happening all the time. Logistics and delivery systems are becoming increasingly automated with everything from robotics to self-driving vehicles, and Google has used artificial intelligence from its DeepMind machine-learning system to cut the amount of energy its data centers use by 40 per cent.
What we’re saying is that we hope our future computer overlords will be kind. But while we wait for the robots to take over, today’s businesses will need to keep up with innovation – and this includes the order to cash function.
A recent report from the McKinsey Global Institute examined recent breakthroughs in digitization, analytics, artificial intelligence, and automation. It found that adopting new technologies can lead to new forms of competition and business disruption, opening up new markets and value networks that could displace established market-leading firms, products, and alliances.
But it seems that not all sectors are making the most of the disruptive value of new technology. McKinsey looked at five business areas, which were evaluated in a previous report on big data from 2011. The firm found that only location-based services and retail had really made progress in finding ways to benefit from data and analytics technology. Meanwhile, manufacturing, the public sector, and health care had captured less than 30 per cent of the potential value of these systems.
One big takeaway here is: if you’re in one of the industries that are lagging behind, now is the perfect time get on the innovation wagon (and acting quickly could really help to put you ahead of the competition). And if you’re in one of the more up-to-date industries, you need to keep innovating to avoid falling behind.
“If a credit department is not using some common industry offerings, then you’re doing yourself and your company a disservice.” – Kenny Wine, National Association of Credit Management
Another recent study of more than 200 manufacturing executives was carried out by Longitude Research on behalf of Siemens. It found that the top five digital technologies implemented by manufacturing firms are:
- Cloud computing
- Connected sensors in plants
- Connected sensors in products
- 3D printing
- Advanced data analytics tools
While much of this list isn’t particularly relevant to a credit management team, it’s easy to see how both cloud computing and advanced data analytics tools can benefit the order to cash process. Kenny Wine, national chairman-elect of the National Association of Credit Management, explained that the credit profession continues to evolve, and the benefits of big data analytics cannot be ignored. He said that the right tools could help a credit professional decide which customers are the riskiest and which offer the greatest potential for additional business. It could even help you to pinpoint who is most likely to pay you quicker. “If a credit department is not using some common industry offerings, then you’re doing yourself and your company a disservice,” he added.
Onguard credit management software can help you capture and analyse data, saving you time and providing useful insight about your customers and the performance of your credit management team. To find out more, please contact us today.
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If you’d like to learn more about how Onguard credit management software can help you save time at work, please don’t hesitate to get in touch. Call us on +31 (0) 88 – 256 66 66 or send an email to email@example.com. You can also keep up to date by following us on Twitter @OnguardHQ.
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