Procurement's Year in Stories: October 2024

Should CFOs Upgrade ERP or Invest in an S2P Platform?

CFOs and CIOs are finding faster, more cost-effective value in S2P platforms over traditional ERP upgrades.

Enterprise resource planning (ERP) systems have long been essential for managing back-office operations, but their implementation is often complex, costly and time-consuming.

As businesses aim to streamline their technology stack, many CFOs and CIOs default to ERP upgrades.

However, a growing number are turning to source-to-pay (S2P) platforms for a faster, more cost-effective way to unlock value.

Here we take a look at the key considerations for CFOs and CIOs when comparing ERPs to S2P platforms.

ERP upgrades can take three to four years and cost millions, all while tying up resources. In contrast, S2P platforms can be implemented in about a year, providing faster returns.

By adopting S2P first, companies create a "margin multiplier effect," where small operational changes lead to outsized gains in efficiency, productivity and sustainability.

S2P platforms help avoid the hidden costs of ERP upgrades, such as post-merger integrations and ongoing training for users on non-essential processes.

In fact, savings from S2P can help fund future ERP upgrades, giving organisations a shorter payback period.

According to Coupa's Strategic CFO Survey 2024, almost three-quarters (73%) of CFOs report misalignment with CIOs on business priorities.

This lack of collaboration is a missed opportunity to drive profitable growth through technology that supports both finance and IT needs.

Given that IT often ranks as a company's second or third-largest cost, aligning these roles can lead to significant margin improvements.

ERP upgrades can stall due to misaligned priorities and financial goals. Effective change management, however, depends on collaboration between CFOs, CIOs and other leadership roles.

By asking tough questions early on about the risks of sticking with legacy systems and how new investments deliver value, finance and IT leaders can drive faster, more agile outcomes.

ERPs have been foundational to many businesses, but a rapidly evolving marketplace requires more flexible solutions.

For CFOs and CIOs, adopting an S2P-first approach is one that's often overlooked on the path to unlocking faster value and ensuring long-term success.

How JAGGAER & AppZen Will Transform Invoice Management​​​​​​​

A partnership between JAGGAER and AppZen will see the latter's Autonomous Accounts Payable (AAP) offered within JAGGAER's platform.

This collaboration, scheduled to be released in 2024, aims to transform invoice processing for enterprises globally by integrating AppZen's AI technology into JAGGAER's comprehensive procure-to-pay platform.

"Our partnership with AppZen marks a significant step forward in the evolution of AP automation," says Dawn Andre, JAGGAER's Chief Product Officer.

"By combining JAGGAER's expertise in procurement and accounts payable processing with AppZen's AI-driven automation, we're delivering a solution that will transform how companies manage their invoices, creating efficiencies and reducing manual work."

AppZen Autonomous AP uses proprietary AI to ingest accounts payable invoices with unprecedented accuracy and minimal human intervention, addressing critical demands in the finance and procurement technology ecosystem.

It offers:

• AI Invoice Data Capture: Ensures precise invoice entry, automated GL accounting and PO matching, significantly reducing processing times and errors.
• Advanced Multi-line PO Matching: Matches complex invoices and PO lines without rules, with high confidence, leveraging AI that understands document content and context.
• Autonomous Processing of Non-PO-backed Invoices: Accurately assigns GL codes and allocations, minimising the need for human intervention.
• Seamless Integration: The JAGGAER-AppZen connector uses JAGGAER's standard RESTful API, ensuring smooth data flow between the two platforms.

AppZen's invoice solutions are used by some of the world's largest and most complex global enterprises, including one-third of the Fortune 500, to replace manual finance processes and accelerate their businesses' speed and agility.

"We're happy to bring AppZen's Autonomous AP technology to JAGGAER's robust procure-to-pay platform," adds AppZen's CEO, Anant Kale.

"This integration represents the future of finance automation, allowing businesses to transform their accounts payable processes with unparalleled accuracy, speed and efficiency. Together, we're setting a new standard for financial innovation."

This new offering will be available to customers later this year. It offers substantial value to companies looking to modernise their financial operations.

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