Tag: digital business transformation

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4 Rules of Thumb for Getting Business Benefit From EDI

The First Step in Transformation is to Stop Doing Things Twice

Double-entry is dumb. Entering data once introduces the possibility of making an error, and entering the data again only increases the chances for a mistake. Typing information into the computer also takes time and the more manual entry is done the greater the potential is for input errors which take even more time to find and correct. Manual entry of information may be required when starting with a paper-based process, but double-entry of information doesn’t make any business sense. In this age of computers, the internet and electronic commerce, reducing manual entry to increase performance and accuracy is more important than ever. Thankfully, manual data entry is being eliminated and EDI is the foundation that helps make it happen.

tall-tower-vancouver“… the key is the unattended and intelligent movement of data from one system to another.  People don’t have to get involved in order for the information to flow from one system to another… it just goes by itself.  Like a robot.”

Robots are just automation you didn’t know you needed

Electronic Data Interchange (EDI) is the use of computer and telecommunication technology to move data between or within organizations. EDI uses strictly structured information that can be transferred from one program to another without human intervention. EDI is one of the most important subsets of e-commerce, being the technology that helps two parties exchange information around a commercial transaction. One of the fundamental first steps in business transformation is the automation of business processes, and this is the main goal of EDI.

EDI addresses and solves problems inherent in paper-based processes. For many, EDI is the basis for reengineering processes and giving manual workflows an automation overhaul.

4-rules-of-thumbHere are 4 Rules of Thumb regarding implementing EDI in the business and where it can deliver the biggest benefits

Rule 1: Go paperless and reduce or eliminate paper-based processes

Delays in activity performance and access to information are often due to paper-based processes, where transportation, storage and retrieval of documents cost valuable time. Labor costs are also higher when paper-based processes reign, increasing overhead costs for document processing and handling. Non-EDI systems also tend to be more error-prone because information is keyed multiple times, and because documents are transported, stored and retrieved by humans.

Rule 2: Reduce operational costs by increasing the speed of business and decreasing processing times and errors

Cutting costs is a top benefit of implementing EDI in the business, centered on doing away with the use of paper while automating key business transactions, saving both time and money in the core process as well as in error correction and problem resolution. Increased productivity is an expected result of employing paperless solutions and technologies. By reducing paper-based processes and embracing electronic transaction processing, businesses can handle more operational activities with the same (or fewer) human resources.

Rule 3: Re-Structure workflows to improve activities that make customers happy

Using EDI in the business helps to structure information and workflows, increasing efficiency and process performance in a variety of areas.

EDI also improves performance because processing time can be reduced to seconds, enabling greater efficiency in services delivery and a level of responsiveness that makes customers happier. Because EDI permits access to a potentially vast amount of detailed transaction data, the information can now be used to automate other processes and stored for analysis.

Rule 4: Get better data and more insight

EDI solutions help to minimize errors in the data, creating a basis for better reporting and analysis. Mistakes in data entry or order taking can be significantly reduced (if not eliminated), and well-structured data removes the need for “interpretation” of the information. Replacing paper documents with electronic ones can also make it easier to keep track of the status of an item, which is why EDI solutions ensure traceability of transactions that paper-based tracking can’t readily provide. All this serves to help the business gain the insight necessary to respond more quickly to changing market conditions and customer demands.

Integrating EDI into the business processes is key to improving business performance in a wide variety of areas. Like moving from phone to fax orders, or from fax to online, EDI represents a big change in how transaction processing takes place. By enabling EDI transactions with current and new suppliers and channels, the business also enables more efficient, seamless communications between all participants in the supply chain. Removing the need to re-key data and reducing the need to rely on human manual processes, EDI systems connect orders and invoices and shipping and returns… and all the trading partners along the way.

 

jmbunnyfeet

Make Sense?
J

 

cropped-logo_mc_w_short-1Cooper Mann works closely with the experts at Mendelson Consulting, experts at QuickBooks and EDI.
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Focusing on Transformation

Focusing on Transformation

In January of 2007, Network World published an article stating that “user satisfaction with software as a service (SaaS) is starting to slip, but customer interest in this method of outsourcing IT functions is continuing to grow“, and says that recent survey results clearly demonstrate SaaS being “a dominant force going forward”.  That was 10 years ago, yet the same message is being played out today as managed services and hosting continues to grow in popularity. IT outsourcing makes sense for thousands of businesses, whether the software is part of the package or not. Today, outsourcing IT is almost an imperative if the business is to keep up a competitive pace.

Users need and demand mobility and will get their anytime/anywhere access to applications and data however they can get it. Businesses require agility in their technology, which is difficult when significant investments in hardware and infrastructure must be earned out prior to any new investment. Making systems accessible from outside the firewall, securing them in a reasonable manner and keeping them up and running all the time so users can access at any time is not a job for part-time IT.  Keeping the systems on and available at all hours requires full-time IT management, and this is in part what fuels the popularity of outsourcing it all.

SaaS (Software-as-a-Service) goes a long way toward helping businesses manage their IT costs in that the systems are part of the service.  The hardware running the application, the storage of the data and the support accompanying the solution are all part of the package.  Unfortunately, the SaaS solutions is not generally the only thing in use by the business, so continued reliance upon PCs, desktop software and locally stored data causes IT management costs to persist.  One size does not fit all, even with online application services.  Although customizations and add-ons can help a single app become a broader solution framework, there is usually something left behind that ends up anchoring a process or function to the desktop, device or local network, and requiring IT management and administration to go along with.

Application hosting services compete somewhat with SaaS in that the systems and management of them is included in the hosting service subscription fee.  While the business user retains licensing of applications and the flexibility of using the software already embedded in the operation, the organization is enabled to focus on operational improvements and not on the underlying systems supporting them.  By reducing or eliminating the requirement to directly manage and maintain servers, complex networks and user working environments, businesses are able to focus their in-house technical energies towards innovation and improvement. The centralized nature of the system facilitates new collaborative capabilities while allowing the business to build on the knowledge and base of information already invested software and processes.

Outsourcing IT service provisioning and management is just a baby step towards improving the business agility and positioning the organization for growth. Real digital business transformation begins with a change in the business mindset: not simply a focus on operational processes and improvements, a new strategy should evolve where the enterprise is situated to interact with its market seamlessly, at any time and all the time.  Businesses that wish to compete at this level must consider whether or not purchasing and maintaining their IT infrastructure is where they wish to focus their energies or if they’d rather invest their technical talent towards market building and transformational objectives.

Make Sense?

J

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Cloud and Digital are Driving Change in Professional Practice

Accounting and Finance Professionals: Cloud and Digital are Driving Change in Professional Practice

Accountants and financial consultants working in public practice are experiencing a revolutionary change, evolving from documents and paper-based processes with after-the-fact reporting to real-time business management and providing services which support daily decision-making.  The underlying cause for this evolution in business accounting is the technology: cloud and collaborative computing models are enabling much closer and regular interaction between accounting professionals and the businesses they serve. Even more, technology is taking its proper place in automating once tedious activities, allowing professionals to focus on causes and results rather than on transactions.

What is the real impact this is having on the accounting profession?  It’s forcing a new focus and attention on change management within the practice, and is causing professionals to recognize the requirement for standardization of processes and development of controls which are the foundations for creating sustainability in a business.  The goal now is placing reliance on process rather than people, which establishes the basis for intelligent automation.  Standardization of processes does not require that the firm lose its personality.  Rather, the mission at hand is to imbue the organization with its unique flavor and approach and to use process automation to develop and support consistency in the functions performed.

While cloud computing models allow accounting and finance professionals to work closer with their business clients, it is important that the practice look at those client interactions and develop standards for processes supporting frequently performed functions.  These operations generally represent the activities within the firm which generate the highest levels of profitability due to the consistency in approach and repetition of tasks, and are the activities to apply intelligent automation to first.  Those activities or engagements which represent the “one-offs” are often the most costly for the firm to perform, and therefore may not be the most profitable of activities and are certainly the most challenging to support with any significant level of automation.  It is in this area where AI will find useful value in the practice, where a more informed answer than simple process automation is required.

The surprising finding when looking at many professional practices with more than one partner/professional involved is that these firms often fail to develop even the most basic of standard processes which apply throughout the firm.  Rather, each partner or professional has “their way” of handling things, which challenges the supporting personnel as they try to deal with multiple working methods. The result is a lack of consistency in the service delivery to the clientele and reduced productivity and profitability for the firm.

The thing that these firms are failing to recognize – the light bulb over their heads that just isn’t lighting up – is that cloud computing and collaborative working models aren’t designed just to enable and facilitate a closer working relationship with clients.  They’re also able to be applied inside the professional practice, enabling a more productive and efficient workflow which addresses the strengths and capabilities of the entire organization. And it doesn’t stop there.  Businesses are relying upon their accounting professionals to provide guidance and develop controls and standards to support the client transformation from paper-based to digital operations, and embracing the entire realm of data and interactions associating with the business. Digital transformation in a client business demands transformation in those firms who serve it.

As professionals learn to go deeper in client operations they would do well to look internally, too, exploring how increased attention to process automation and consideration for the firm’s own “digital transformation” might lead to great profitability through market differentiation and improved performance.

Make Sense?

J