Presenters Elaine Nowak Tony Hiatt Sarah Fane Director of Product Credit Manager Head of Research Management and Marketing sharedserviceslink Ivanti HighRadius
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Your copy of the slides -pay The slides will be available after the webinar at www.sharespace.digital
Context Digital transformation is happening everywhere we look. From how we book taxis to how we pay bills and interact with customer service robots, technology has re-invented many of our day-to-day processes. -pay But what does digital transformation look like for shared services – and particularly, order-to-cash? Advanced technology is now changing the O2C landscape. Today we will explore how Ivanti are using AI to predict payment dates, improving productivity, leveraging better information about their team and supporting their business’ growth.
Agenda SSC Evolution from Cost Reduction to Cost Effectiveness Role of Digital Transformation in Driving Cost Effectiveness Case Study: Digital Transformation at Ivanti AI-Enabled Cash Forecasting at Ivanti Results of Digital Transformation Lessons Learned About High Radius and Q&A
Early Stage Objectives Shared Service Centers Standardize operations • Enhance efficiency • Primary focus Cost Reduction
Next Generation Shared Service Centers Primary focus Cost Effectiveness Objectives Enhance value by driving bottom-line impact • Improve customer relationships & service delivery • Support business scalability and profitability •
Digital Transformation Key Driver for Building a Next Generation SSC PWC survey results on the impact of digital transformation on revenue growth and profitability Customer 1876 Experience Launch new Improve Enhance existing Ensure products/services customer products/services cross-channel experience consistency Operational 1266 Improvements Automate Enhance Improve internal operations productivity of communication workers Business Model 1087 Improvements No. of Responses Expand to Launch new Develop new Transition new businesses business models physical customers products to digital products Source: http://www.iqpc.com/media/1002156/32454.pdf
POLL QUESTION Which of the following are you looking to improve? • Cash Forecasting • Collections process • Receivables aging • AR Reporting • Other / None of the above
Improving Cash Forecasting, Receivables Aging and Reporting with Digital Transformation The Ivanti SSC Story
Digital Transformation at Ivanti A Real Life Success Story
Ivanti’s Strategy for Cost Effectiveness A 3-Fold Approach to Digital Transformation Reporting Process Framework Performance SSC Scalability
Ivanti’s Top 3 Focus Areas for Improvement Process Performance Reporting Framework Scalability Revamping the collections operations with digital transformation
Collections Process Before Automation Collections Department Manual Past-Due Correspondence Invoices Customer Ad-hoc Collector Contacts Reminders Customers Ivanti Manual Prioritization Call logs and On spreadsheets Notes
Collections Process Before Automation Collections Department Order fulfilment Manual Past-Due Correspondence Invoices Manual dunning through emails, fax, calls • – difficult to cover most of the accounts Ad-hoc Customer Collector No centralized repository to track Reminders • Contacts reminder calls, e-mails, notes, payment Customers Ivanti commitments Manual Prioritization Call logs and On spreadsheets Notes Invoice Payments 50% of analyst’s time spent in dialling for dollars, writing emails, requesting escalations
Collections Process Before Automation Collections Department Order fulfilment Manual Past-Due Invoices Correspondence Difficulty in prioritizing customer list • Customer Cumbersome task to manage & track • Ad-hoc Collector Contacts Reminders tasks across multiple spreadsheets Customers Ivanti Manual Prioritization Call logs and On spreadsheets Invoice Payments Notes Lack of focus on strategic accounts impacting the receivables ageing
Automated Collections Operations Collections Automation Order fulfilment Automated Automated Correspondence fetching of invoices Automated Automated HighRadius fetching of Reminders Collections Cloud customer details Customers Ivanti Automated Prioritized Repository for Call Worklist Notes Invoice Payments
Impact of Digital Collections • Automated, multi-dimensional prioritization of worklist • Maximum account coverage : Dunning of all assigned accounts with automated correspondence • Improved collector’s productivity : More focus on strategic accounts Analyst’s time now spent in researching and contacting the top customers 90 %
Ivanti’s Top Three Focus Areas Process Performance Reporting Framework Scalability Revamping the Building a robust reporting collections operations framework with digital with digital transformation transformation
Developing a Robust Reporting and Tracking Framework: The 3 Essential Elements In-Depth KPIs for Employees CXO Dashboard to Monitor Performance Effective Aging Analysis to Fastrack Collections
Challenges Lack of Defined Performance Metrics for Employees • Difficult to evaluate individual employee performance • Inaccurate appraisal process, chances of missing promotion of deserving employees • Minimal scope for continuous process & performance improvement due to minimal visibility into metrics
Designing In-Depth KPIs for Employees Improved focus on individual KPIs of collectors with HighRadius reporting Visibility into collector performance enabled identification of scope of improvement
Developing a Robust Reporting and Tracking Framework: The 3 Essential Elements In-Depth KPIs for Employees CXO Dashboard to Monitor Performance Effective Aging Analysis to Fastrack Collections
Challenges: Minimal Executive Visibility in the Overall Performance Metrics • Lack of single-view visibility for CXOs to analyze performance on global as well as business unit level • Cumbersome data extraction and report building • Difficult for the senior management to take data-driven, proactive course corrective measures
The CXO Dashboard to Monitor Performance Increased executive visibility into critical performance metrics such as DSO, cost of A/R operations, and bad debt write off trends
Developing a Robust Reporting and Tracking Framework: The 3 Essential Elements In-Depth KPIs for Employees CXO Dashboard to Monitor Performance Effective Aging Analysis to Fastrack Collections
Challenges: Poor Aging With Minimal Focus on Critical Accounts • Analysts working on spreadsheets, with limited access to real-time data • Difficult for the collections teams to focus on high-risk, delinquent accounts • Difficult for the collections teams to plan and adopt customer-specific collections strategies
Effective Aging Analysis to Fastrack Collections Accurate aging reports and visibility into critical delinquent accounts enable modification of collection strategies Top 10 Delinquent Customers 450000 400000 350000 Open Amount 300000 250000 200000 150000 100000 50000 0 November December Customer
Ivanti’s Top Three Focus Areas Process Performance Reporting Framework Scalability Revamping the collections Building a robust reporting Achieving business operations with digital framework with digital scalability with digital transformation transformation transformation
Building Scalable Business Operations with Technology Two-fold objectives of scalability Handle increase in transaction volumes with business growth Support growth via mergers & acquisitions Scalability with Digital Transformation Elimination of manual, repetitive tasks Strategic utilization of resources for value-add tasks Enterprise-wide standardization of processes
Ivanti’s Tech -Enabled Scalability Technology enabled faster and smoother transitions for the recent acquisitions of RES & Heat Software Achieved 20% YoY growth without adding any resources Acquisition and growth roadmap for the next 2-3 years does not include additional FTE costs A/R Staffing without Automation AR Staffing with HighRadius 35 30 25 20 20 17 A/R STAFF SIZE 15 15 13 12 10 10 9 8 8 7 7 7 5 - Current year Year 1 Year 2 Year 3 Year 4 Year 5
Artificial Intelligence Enabled Cash Forecasting Going the Extra Mile with Digital Transformation Traditional Cash Forecasting Model Cash Forecasting Inaccurate Cash forecasting Other Operational and Non-Operational Cash Accounts Receivable Accounts Payable Flows Unpredictable These data are accurately predicted component
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