Tech and business leaders are prioritizing the transformation of core business processes like accounts payable, as revealed in SAPinsider's latest research. To explore this trend further and uncover how innovative organizations are making impactful changes, SAPinsider recently hosted an expert Q&A with Tony Cheung, Global Vice President of Enterprise Accounts and Strategic Alliances at xSuite.

Research Insights and Benchmarks

The discussion kicked off with insights from SAPinsider’s recent executive research on finance and accounting processes such as accounts payable and procurement. Notably, SAPinsider's executive benchmark report, "The CIO’s Transformation Report Card," highlighted that 52% of leaders surveyed identified their top transformation priority as the automation, standardization, or redesign of business processes. This marked the second consecutive year that this response ranked highest. For many, reimagining business processes through AI and automation technologies represents the ultimate goal. However, challenges persist. According to SAPinsider's "AI and Automation in Finance" benchmark report, 53% of respondents cited the complexity of operational and business change as a major barrier to success. Other key obstacles included a lack of relevant skills and resources, as well as security and privacy concerns. Despite these hurdles, organizations are advancing their transformation efforts. Finance departments, in particular, are applying automation to:

• Increase financial close efficiency
• Free up staff for higher-level tasks
• Reduce overhead costs
• Improve planning accuracy

Key areas of focus include financial reporting, planning and analysis, payment processing, and financial close. Among these, invoice and payment processing emerged as the top priority for deploying AI and automation technologies.

Real-World Success Stories

Tony Cheung of xSuite highlighted several customer success stories that demonstrate how organizations are overcoming challenges and achieving tangible results with automation.

Radiant Logistics

Radiant Logistics, a freight transportation and logistics company, processes 1.8 million invoices annually using a shared services model. Freight invoices are particularly complex, often requiring numerous data points and coordination with diverse business partners. Radiant initially struggled to find the right automation solution despite working with various providers. xSuite provided a "best practices" template, enabling Radiant to restructure even their most intricate freight-related accounts payable processes. This new approach offered scalability and adaptability. Cheung noted, “Radiant successfully implemented our solutions, allowing them to process 40% more invoices without adding to their 40-person team. They eliminated labor-intensive spreadsheet work, improved data entry accuracy, and significantly enhanced efficiency.”

Lionsgate Entertainment

Lionsgate, renowned for films like John Wick and The Hunger Games, faced typical accounts payable challenges, compounded by the creative industry's unique demands. Only one-third of their invoices were purchase-order-based, with the majority requiring manual review and approval. This created visibility issues and delayed contractor payments. Before automation, their invoice processing cycle averaged over 30 days. With xSuite's solutions, Lionsgate transformed their processes, achieving remarkable results:

• Payment cycle time dropped from 30 days to 3 days—a 90% reduction.
• Enhanced transparency and document accessibility improved operations across the board.

Cheung described the transformation as a “game-changer,” enabling Lionsgate to fully embrace digital transformation and streamline processes company-wide.

Measuring Success

Automation outcomes vary across organizations. Cheung shared key performance benchmarks from xSuite’s customers:

• Data capture rates: Ranged from 66.81% to 98.80%, with an average of 85.76%.
• Processing time: Fastest at just over 3 seconds; slowest at 23+ minutes; average at 6 minutes.
• Touchless processing rates: As high as 95%.
• Cash discount benefits: Highest benefit of $427K from early payments.

Achieving high performance hinges on proper planning, minimizing manual intervention, and ensuring high-quality master data.

Key Takeaways for SAPinsiders

1. Benchmark Your Performance Use SAPinsider’s benchmark reports and xSuite’s data to evaluate your current processes. Identify areas where automation could drive measurable improvements.
2. Explore Automation Aggressively Leverage SAP and partner solutions like xSuite to modernize your finance and accounting processes. Engage vendors for demos and Q&A sessions involving both business and IT teams.
3. Document Processes and Optimize Data Ensure accurate documentation of current workflows and implement a robust master data strategy. This foundational work will accelerate implementation and help achieve top-tier performance.

To listen to the full webinar and Q&A, click here.