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Author's profile photo Michael Tiemens

The intelligent way to manage bad credit risk leveraging SAP Analytics Cloud – by Deloitte

Every sale brings with it a certain amount of risk. And while any well-managed company will take precautions to avoid it, bad debt is a harsh reality of doing business. This holds true across industries and companies, no matter the size of either, and despite the best-intentioned human intuition and customer qualification processes.

There is another reality, however, fueled by artificial intelligence and machine learning – and SAP Analytics Cloud (SAC) – that can empower companies to sidestep fallible human spidey senses, amp up evaluation and qualification processes, to ultimately bring stability and certainty to profitability.

Working with leading enterprises, Deloitte has seen an interesting trend. While companies have made great strides integrating emerging tech to build an intelligent enterprise, many struggle to make use of machine learning that can analyze massive amounts of data to identify cash-collection warning signals in real-time.

Without that kind of foresight, organizations inevitably bring about that harsh reality by incurring the costs of selling to bad credit customers.

Deloitte’s approved SAC solution can mitigate these challenges. Developed for real-time BI, planning and predictive analytics that natively integrates to SAP, the solution can predict when proactive action is required, something typically difficult for companies to do. The accelerated value is in enhancing organization’s ability to collect cash and improving its insight into profitability indicators.

It also leverages SAC content to seamlessly integrate with SAP data and SAP S/4HANA®. Advanced predictive analytics becomes the quiet driver behind dynamic operational, tactical and strategic dashboards that have been designed with SAP Fiori for a uniform and modern user experience.

Finance and accounting teams can dynamically interact with financial results, whether at birds-eye overview levels or drilling down to evaluate outliers at a line item level. What is remarkable is that these trends and evaluations are continuously leveraged by the machine learning capability of SAC and applied on the ever growing data, improving predictions and mitigating risk.

​Teams can track emerging profitability and cash conversion issues to determine where intervention is needed, making immediate action on cash collection issues a real possibility. More importantly, organizations can avoid selling to high-risk customers at the onset and drastically reduce the cost of bad debt and collection efforts while bringing stability and certainty to profitability.

Further details on SAP Analytics Cloud and Deloitte’s approved Profitability and Cash Conversion Overview can be found on the SAP App Center.


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