By Bil Khan, SAP
While the vision of a paperless workplace has existed for years, the tools to make it a reality are finally within reach. Yet surprisingly, many organizations are still stuck in a hamster wheel of manual processes, siled information and on-premise software.
How can companies jump off that wheel and truly transform?
Document migration is often one of the most challenging aspects of digital transformation, especially when moving to a cloud ERP system.
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According to Recent IDC research sponsored by SAP and OpenTextthe answer lies in starting with a content management platform that is accessible, integrated and, above all, comprehensive. The paper states that this approach sparks digitization outcomes that “enable higher efficiency and quality as teams easily identify and retrieve the information they need.”
Additional reported benefits include fast document migrations, streamlined invoice and finance operations, and effective regulatory compliance.
Digitalization takes a new turn
Resistance to digitization is more than just a concern; it is a significant barrier to achieving the resilience, efficiency and sustainability needed to remain competitive in a dynamic market. However, it is easy to be intimidated by the massive effort required to scan, consolidate, manage, govern, secure and integrate a large volume of information, documents and content to achieve true business digitization.
SAP Enterprise Content Management (ECM) solutions from OpenText allay these fears, as demonstrated by IDC interviews with current SAP customers. IDC calculates that organizations save an average of $54,600 per million documents stored in the solution, amounting to $9.29 million on average. These savings directly impact various departments, streamlining workflows and freeing up resources for more strategic tasks.
The key to this transformation lies in integrating business processes with ECM solutions to drive continuous, efficient and error-free processes. This integration goes beyond simply digitizing paper-based information to actively use content to work, innovate and create new content more effectively and with greater impact.
Take, for example, invoice management. Organizations can digitize and automate the accounts payable process, enabling them to manage and accelerate invoice processing and comply with regional and global regulations. Inbound business document capture can also be modernized and automated to extract and process critical information from invoices and related documents, eliminating the need for manual intervention.
Quantitative benefits of digital content integration
The benefits of SAP ECM solutions from OpenText extend beyond just financial operations. IDC found that businesses using these solutions achieve a three-year ROI of 351%. This is mainly due to the fast and efficient handling of document-related tasks such as receiving, processing and auditing – all of these are critical components of ECM.
As a customer shared during the IDC study, one of the standout benefits is simple data management: “We can now look at all types of data in one place with OpenText connected to SAP. It’s all about the speed and efficiency of access by having one place to go instead of many, and the ability to take data governance seriously.”
What do all these advantages mean for daily business operations? Here’s what some of the surveyed customers shared.
35% Faster document migrations
Document migration is often one of the most challenging aspects of digital transformation, especially when moving to a cloud ERP system such as the private and public editions of SAP S/4HANA Cloud. However, by integrating ECM solutions with BPM strategies, organizations can experience a 35% reduction in migration time and a 53% increase in efficiency among on-task employees.
This efficiency translates into lower costs and a smoother transition. As one customer said: “One of the most significant impacts has been the automation of invoice approvals, which has drastically reduced processing time and minimized human intervention.”
$5.36 million saved in billing and accounts payable
One of the most significant benefits of linking business processes to ECM is the reduction of errors, especially in areas such as billing and accounts payable. Manual processes are prone to errors, leading to costly penalties and missed opportunities.
As an example, by using AI and machine learning capabilities within OpenText’s SAP Information Capture Core application to automate billing and accounts payable tasks, organizations reported a 37% increase in team efficiency. In addition, they realized a savings of $1.74 million in accounts payable process costs and an additional $5.36 million saved in total billing and accounts payable.
These findings suggest that incorporating ECM solutions into business strategies not only improves financial performance, but also increases overall compliance. By providing secure and centralized access to documents, these solutions support remote work and collaboration, which are increasingly important in today’s globalized business environment. As a result, businesses can maintain high levels of productivity and compliance regardless of where their employees are located.
25% Faster Payment on Vendor Invoices
Another benefit highlighted in the IDC research is a 25% acceleration of vendor payments, generating an annual savings of $1.08 million per organization. This acceleration in payment processing directly impacts cash flow, enabling companies to optimize working capital and potentially secure early payment discounts while reducing the risk of late penalties.
As one customer from the IDC study noted, “Integrated AI and ML functionality has revolutionized our billing operations. One of the most significant impacts has been the automation of invoice approvals, which has drastically reduced processing time and minimized human intervention.”
The improvement in payment speed is driven by the automation and intelligent processing capabilities of SAP ECM solutions from OpenText. By automating the capture, extraction and validation of invoice data, these solutions eliminate the bottlenecks and errors that typically slow down manual processing while increasing accuracy and compliance.
Full potential of ECM unlocked
IDC research shows that integration SAP ECM solutions from OpenText with business processes enabled by SAP S/4HANA Cloud is essential to break free from manual processes and outdated systems. With significant ROI, faster document migrations, improved invoice processing and faster vendor payments, these solutions drive operational efficiency and financial performance.
Learn more in the IDC White Paper, sponsored by SAP and OpenText, “The business value of SAP ECM Solutions from OpenText“doc #US52389824, July 2024.
This story also appears in the SAP News Center.
