An old adage in business suggests that it takes money to make money.
Undoubtedly business process improvement efforts such as automated data entry, optimized workflows and streamlined systems require time, effort and resources to make your company more efficient. New technology spending, investments in training, and downtime associated with system conversions all contribute to the total cost.
But new evidence reinforces our belief that business process improvement efforts can result in real financial gains.
A new study commissioned by CFO Magazine indicates that more than 60 percent of finance and procurement executives agree strongly that improving the performance of their organizations’ financial and administrative processes would deliver meaningful financial benefits to their companies.
The study also found that taking the time to understand processes can be especially useful for identifying areas within your company that are ready for improvement. This is also helpful for convincing skeptical decision makers to embrace business process improvement initiatives.
In essence, seeing is believing. Many companies don’t understand the negative impact of doing things the same old way because it is easier than changing. The inertia comes at a cost.
Across three decades of working with companies running SAP systems to improve business processes in the areas of procure-to-pay and order-to-cash has taught Dolphin that not every business benefits from increased efficiency equally. That’s why our solutions are designed for flexibility. It is important for us to understand process flow and the specific needs of your organization in order to ensure the solution is one that fits your specific needs. And, if a penny saved is a penny earned, then cutting internal processing costs is as effective as increasing topline revenue.
The best run businesses always do both.