Coupa Account Executive Glynis McCabe shared her thoughts on the new era of business and management during her presentation at the 2018 Chief Financial Officer Leadership Forum in New York on November 28. In her presentation, McCabe discussed the value of business spend management software for global organizations.
Today’s organizations frequently use customer relationship management (CRM), enterprise resource planning (ERP) and other software to manage different aspects of their day-to-day operations. These software empower organizations with the ability to streamline certain areas of their everyday operations. Yet the real world value of CRM, ERP and similar software often is limited.
“[These software] represent a marketplace need, and they drive real business value for organizations” McCabe stated. “They drive efficiency and give visibility into an end-to-end process.”
Organizations require software that drives efficiency and automation. Otherwise, an organization that leverages disparate software and systems may be forced to deal with time-consuming and labor-intensive processes to manage its spending.
As organizations search for ways to foster collaboration among myriad departments, software is required that can be used to analyze how an organization is performing against different benchmarks. Furthermore, organizations require software that allows them to analyze various investments and find ways to get the most out of the time and resources at their disposal.
Now, organizations can deploy business spend management software to conduct continuous analysis into their everyday investments. Business spend management tools are available to organizations of all sizes and across all industries. Meanwhile, these tools could help organizations optimize their investments, as well as reduce their reliance on CRM, ERP and related software.
“Business spend management is a unified set of business processes supported by software that encompass procurement, invoice management and expense management … as well as the related processes of contract lifecycle management, supplier information management, inventory, advanced sourcing, budgeting and analytics,” McCabe said.
With business spend management software, organizations can take the guesswork out of budgeting. The software allows an organization to look beyond sales and revenue goals, and instead, assess the value of its everyday investments.
“Organizations today put a heavy emphasis on sales and generating top-line revenue,” McCabe pointed out. “But it’s becoming more important for organizations to focus on spend and getting more visibility into spend.”
Also, business spend management software usually is simple to integrate into an organization’s operations. It generally can be used in combination with an ERP system, for example.
“Business spend management should be an extension to an organization’s ERP system,” McCabe indicated.
Best of all, business spend management software gives organizations a valuable tool to drive collaboration across all departments.
Business spend management software enables an organization’s leaders to find out how much different departments spend. It ensures that an organization can identify ways to cut down on spending across all departments. At the same time, the software helps an organization’s leaders uncover ways to foster unprecedented growth and transformation without breaking an organization’s budget.
“Spend management is very challenging for organizations today,” McCabe noted. “As organizations become more global … spend happens in multiple departments and around the world. And this spend is typically siloed and extremely labor-intensive to manage.”
Employees should have no trouble tracking financial data in business spend management software, either. The software is designed with end users in mind, and as such, helps employees quickly and effortlessly collect and assess financial data.
“End users are not adopting [certain technology], which means spend is not going through this technology,” McCabe stated.
Not all business spend management software is created equal, and an organization must deploy business spend management tools that support its mission and goals. If an organization finds the optimal business spend management software, it could benefit from its investment for an extended period of time.
“Organizations are not able to maximize the value of every dollar that they are spending,” McCabe said. “So what is needed is a comprehensive business spend management solution that encompasses all of the aspects of spend in one place.”
As organizations review business spend management software, they should consider analytics as well.
Thanks to business spend management analytics, an organization’s leaders can gain the insights they need to make informed decisions. Plus, these analytics can help an organization’s leaders identify spending patterns and trends and search for innovative ways to maximize business spend. They can even empower an organization’s leaders to monitor business spend key performance indicators (KPIs) and ensure an organization can discover the best ways to keep pace in a highly competitive global marketplace.
“Analytics allow you to see what you are spending against different departments,” McCabe pointed out. “You can also get KPIs to help you make the best decisions possible related to spend.”