Beyond AP Automation: How AI and Analytics Unleash the Power of - - PowerPoint PPT Presentation

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Beyond AP Automation: How AI and Analytics Unleash the Power of - - PowerPoint PPT Presentation

Apr 03, 2023 266 likes •696 views

Beyond AP Automation: How AI and Analytics Unleash the Power of Finance Data The webinar will begin shortly. You will hear silence until the webinar begins. Audio is provided through your computer speakers only. If you are unable to hear the

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The webinar will begin shortly. You will hear silence until the webinar begins.

Audio is provided through your computer speakers only. If you are unable to hear the audio through your computer speakers, simply click on the phone icon above the chat window to receive teleconference information. Technical Support Problems for this Webinar: Email: webinars@iofm.com

Beyond AP Automation: How AI and Analytics Unleash the Power of Finance Data

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Tips for using WebEx

  • Receiving Teleconference Info
  • The chat box (asking questions/tech issues)

Housekeeping

  • webinars@iofm.com
  • This program will be recorded
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Today’s Presenters

Mark Brousseau

President Brousseau & Associates

Chris Happ

CEO Goby

Kerry Hewson

VP, Real Estate Operations Liberty Property Company
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Agenda

  • Where AP stands
  • The power of AI and analytics
  • Stories from the trenches
  • Wrap-up
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WHERE AP STANDS

Beyond AP Automation: Unleash the Power of Finance Data

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Polling Question #1

How is your organization using data today?

1. Data primarily exists in individual files or documents 2. Data has been digitized into spreadsheets but still lives in silos 3. Data lives in a shared database with ability to report 4. Information is used to automate processes and reduce processing times 5. Information is actively used to deliver savings and identify opportunities

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It’s All About the Data!

26% 55% 19%

Critical Important Not Important

How important is data to your finance operations?

Source: Ardent Partners
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How Finance Uses AP Data

70% 64% 63% 61% 53% 53% Forecasting, budgeting & planning Handling invoice exceptions Finance and procurement collaboration Developing payment strategies Enhancing supplier management Cash management

Source: IOFM
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Growing Demand for AP Visibility

Significantly higher 17% Slightly higher 46% Unchanged – demands are high 24% Unchanged – demands are low 13%

How will demand for real-time visibility into AP data change in over the next 2 years?

Source: IOFM
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Visibility is a Strategic Imperative

9.52% 42.86% 25.17% 21.77% 0.68% Significantly higher strategic importance Slightly higher strategic importance Unchanged (we are of high strategic importance) Unchanged (we are of low strategic importance) Slightly lower strategic importance

How will AP’s strategic importance change over the next two years?

Source: IOFM
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The Enterprise Wants AP Data

Significantly greater use of AP data 15% Slightly greater use

  • f AP data

48% Unchanged 37%

How do you expect enterprise use of AP data will change?

Source: IOFM
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The Enterprise Impact of AP Data

  • Financial supply chain efficiency and effectiveness
  • Budgeting
  • Forecasting and reporting
  • Working capital management
  • Spend management and supplier management
  • Compliance
  • Fraud mitigation
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The Problem

Lack of visibility into invoices and payables information

45%

Difficulty handling, managing and finding invoices

42%

Costs to process invoices are too high

38%

Difficulty capturing vendor discounts

17%

Source: IOFM
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66%

  • f CFOs

Lack basic visibility into key insight areas

Source: Accenture
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5 Reasons for Poor Visibility

Key information is not captured Systems are badly integrated Data is poorly

  • rganized

Decision makers can’t access data Information is not timely

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THE POWER OF AI AND ANALYTICS

Beyond AP Automation: Unleash the Power of Finance Data

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Artificial Intelligence

  • Understands tasks
  • Analyzes data sets and patterns
  • Employs “Machine Learning”
  • Trains itself to recognize

documents

  • Mines information
  • Monitors business processes
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The Benefits of AI

  • Performs transactions automatically
  • Flags relevant issues for further attention
  • Identifies trends and anomalies
  • Flags and explains likely risks
  • Offers data-driven forecasts
  • Provides continuous monitoring
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19%

  • f accounts payable professionals believe

that artificial intelligence will be significant to the future of the profession.

Source: IOFM
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Analytics

  • Monitors key metrics
  • Aggregates data
  • Operations
  • Cash forecasting
  • Spend management
  • Drills down for root-cause analysis
  • Filters data
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The Benefits of Analytics

  • Better operations and working capital decisions
  • Visibility into trends
  • Easy aggregate spend calculations

– Cost center – Category – Supplier – Invoices sorted by unit, vendor, account, cost center, location

  • Earlier notification of budget variances/maverick spend
  • Leverage for contract management & negotiations
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40%

  • f accounts payable departments say that

better analytics and reporting is a priority.

Source: IOFM
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THE BENEFITS

Beyond AP Automation: Unleash the Power of Finance Data

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Most organizations believe AP is the most manual and paper-intensive F&A function Most organizations believe AP is the F&A function best suited for automation

Source: IOFM
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The Value of AP Visibility

Measure KPIs Cash mgmt. and spend analysis Improve your

  • perations

Identify volatility Manage day-to-day

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Lower Invoice Processing Costs

$8.78 $6.92 $5.81 $4.76 $3.41 $2.87 $2.44 $1.77

Level of Automation Low High

Source: IOFM
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More Invoices Processed Per FTE

1,350 3,600 8,600 10,938 19,889 22,756

Level of Automation Low High

Source: IOFM
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More Time for Value-Added Activities

Ensure contract compliance Mitigate compliance issues Rationalize supplier spend Manage accruals and budgets Forecast & manage cash

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More Invoices Paid On-Time

46% 46% 53% 37% 35% 55% Limited Automation Moderate Automation Significant Automation

SHARE WHO PAY > 90% OF THEIR INVOICES ON TIME

PO Non-PO

Source: IOFM
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The Problem with Slow Cycle Times

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Best-in-class performers process a single invoice within 3.6 days while most companies take 16.6 days to process a single invoice.

Source: Ardent Partners
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Fewer Duplicate Payments

PEER GROUP LESS THAN 1% Limited Automation 61% Moderate Automation 60% Significant Automation 66%

Source: IOFM
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The Hidden Costs of Errors

Profit leakage More paper handling and manual keying Late payment penalties More supplier inquiries Strained supplier relationships Missed early- payment discounts Loss of internal credibility Inaccurate forecasting Audit recovery service fees

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More Early-Pay Discounts Captured

PEER GROUP % OF EARLY PAYMENT DISCOUNTS CAPTURED Limited Automation 52.9% Moderate Automation 58.5% Significant Automation 74.2%

Source: IOFM
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80% of Suppliers Offer Early Payment Discounts

The Opportunity

0 Days Invoice 15 Days Approve 60 Days Due Date

Source: IOFM
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STORIES FROM THE TRENCHES

Beyond AP Automation: Unleash the Power of Finance Data

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Polling Question #2

What is your biggest hurdle to increase automation in your AP department?

1. Change management 2. Budgetary restrictions 3. We have already automated all of our low hanging fruit; what remains is a heavier lift to automate 4. No champion within the organization 5. We are 100% automated

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The Opportunity for AP

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Evolving Expectations of AP

Kerry Hewson VP, Real Estate Operations NYSE: LPT Chris Happ CEO

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Polling Question #3

What is your AP organization focused on in 2019?

1. Reducing Processing Costs / Cycle times 2. Increasing Data Capture and Quality 3. Enhancing Cashflow Management and Planning 4. Actively Using Enterprise Analytics 5. None of the Above

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Thank You!

Questions after the event? E-mail webinars@iofm.com We hope to see you at a future AP & P2P Network event! For upcoming events please visit: www.iofm.com