Connect with us

Business

Digitising transactions opens the door to addressing a $9 trillion liquidity issue.

Published

on

Digitising transactions opens the door to addressing a $9trillion liquidity issue.

By Roy Anderson, CPO and digital transformation officer at Tradeshift, the supply chain payments and marketplaces company (and European unicorn tech startup).

Every financial year begins with good intentions. And as the end of each quarter approaches, it’s a good habit for companies to get into reviewing how they are tracking against their goals, the progress that has been made and areas for improvement.

One of the key areas to come under scrutiny is the payments process. Were all bills paid on time? And if not, address what is causing the delay? Was it because of long-lead times rather a late payment? Did payment terms have to be extended? How many complaints were filed about delays in payment from suppliers?

Have these potentially led to capital shortages for suppliers or spurred a change of supplier? How many invoices had to be manually processed in the areas of procurement and / or accounting? How many people are working on these tasks in the back office?

If you’re looking to understand why a payment might have been missed, or perhaps fix a process that’s broken down, then first you have to have a comprehensive view of finance across the entire supply chain.

That’s easier said than done. The way businesses trade together has not really evolved very much in the past 40 years or so. Most of the processes are fairly paper-intensive, and different departments are siloed off from one another.

When you have a lot of paper, and a lot of steps in the process, chances are things are going to be slow, they’re going to be disconnected, and they’re going to go wrong a lot. Most organisations are recognising the fact that digitising the whole process is the way to go. But despite a lot of grand words, just 8% of trade transactions globally are digital.

Digitising accounts payable process makes a lot of sense for big buyers. Consider this, the average paper-based invoice costs around $14.38 to process. Automation can reduce that cost to $2.52. Now look at the time taken to process an invoice. Best-in-class systems that use automated processing take 3.1 days, compared to the average 10.6 days. Now apply that to DHL 10 million invoices a year. Moving even a fraction of those invoices onto an automated e-invoicing platform can make an enormous difference.

That’s all well and good, but now put yourself in the shoes of a small business owner supplying one of these big buyers. How much of an incentive would it be to digitise your processes, just to help your customer save a bit of money?

But what if you could get something out of it in return? Most buyers want to delay payments as long as they can to preserve cashflow. Most suppliers want to be paid as soon as possible. Neither party is in the wrong. They’re just trying to do what’s best for their business. Finding a compromise is not always easy. But what if you could start to offer suppliers different financing options in return for switching to a digital platform.

Many suppliers are willing to give 2-3% discount if it means they will get paid quicker. But various factors are preventing many organisations from striking that kind of arrangement. Lack of digitisation is a real stumbling block. Back-end processes on the buyer side are often simply too cumbersome to offer dynamic discounting on a large volume of invoices. And from the supplier side, a lot of small and medium sized businesses are locked out of trade financing arrangements because banks and other financial institutions lack visibility and therefore don’t want to take a risk.

What happens then is that financing remains out of reach for pretty much everyone who could use it, and a liquidity gap forms in its place. We put that liquidity gap at somewhere in the region of $9trillion of cashflow that’s trapped between supplier and buyer.

Digitising eases that liquidity gap on two fronts. First it helps the overall process become much more transparent and efficient, even when a business is processing large amounts of invoices from diverse suppliers.

Second, digitising the transaction layer between buyers and sellers, helps smaller suppliers build up a digital footprint that allows banks a financial institutions to build up a clearer picture of who they’re looking at. The more information they have about suppliers, who their customers are, what deals they have outstanding, whether they deliver on time etc., the more attractive it becomes to finance them.

The relationship between buyer and supplier can also become more dynamic, negotiating terms that are beneficial for all parties. Buyers see the prospect of higher profit margins, and greater efficiencies. Suppliers see the benefits of positive cashflow and more manageable payment terms.

Business

Finding and following your website’s ‘North Star Metric’

Published

on

Finding and following your website’s ‘North Star Metric’ 1

By Andy Woods, Design Director of Rouge Media

The ‘North Star Metric’ (NSM) is one of many seemingly confusing terms to come out of Silicon Valley but its message is simple and universal.

It refers to the single metric businesses use to guide activity, drive key decisions and measure success. And while it may seem naïve on the surface, to boil business success down to a single metric, there is a method to the apparent madness.

It doesn’t mean businesses simply ignore all other performance data but instead measure it against the overarching goal they’re working towards.

Here’s how businesses can create their own North Star Metric and follow it to website success.

What is a North Star Metric?

The idea of a North Star Metric is to focus on the goal which delivers the most value for the business and its customers.

It’s a popular strategy adopted by successful business around the world. For example, Spotify set its North Star Metric as ‘time spent listening’, while Amazon focused on ‘purchases per month’. Every business decision was then geared towards increasing these metrics.

For the business, this increase means greater advertising revenue and sales, while for users, spending more time using the service or making more purchases shows the platform is meeting their needs.

Chasing this North Star Metric sees businesses align their efforts towards a single goal. For ecommerce businesses, this means sales and marketing activity is aimed at taking users to the website, where service experts provide relevant content and information and website designers add natural calls to action.

Finding the North Star Metric for your website project, whether it be sign-ups, purchases or more time spent on site, allows the whole team – plus your agency, if you work with one – to move in the same direction.

What does a successful NSM look like?

Nominating your NSM before undertaking a website project allows you to focus all your efforts in design, functionality and content on delivering your goal.

However, some businesses may have been operating for years with a North Star Metric that isn’t quite right. If you’ve been focusing your efforts towards a goal which isn’t driving value for the business or customers, and for which you struggle to measure impact, you may need to switch focus.

Key considerations for making sure your NSM delivers a positive impact for your business include:

Generating engagement: the internet is full of businesses fighting for custom and users don’t owe them anything. If a website doesn’t give them what they need, they can find one that does within minutes.   

Solving consumer challenges: Customers want a product or service that solves their problems and they want it now. Does your website contain information that answers their questions? Does it call out the key features of your product or service that makes their life easier?

Building trust: The chances are, many businesses offer a similar product or service to you. Customers need to know your business is trustworthy if they’re to part with their cash. Case studies, awards and user reviews are examples of content which can improve your brand authority.

Finding your website’s NSM

Identifying your NSM doesn’t mean picking a goal that sounds good in the boardroom. It needs to be a targeted, realistic and measurable goal.

Andy Woods

Andy Woods

Dial-in on your NSM by answering these three questions:

What is the single most important thing your website should deliver? The answer to this should be simple and obvious – more sales, sign-ups, downloads or leads.

What do users want from the site? You’re likely to have many users, so try to identify your main three here. What are they looking for when they enter your site? Advice, a product, a follow-up from an employee?

Which metrics tie together the above? You need to be able to measure your performance in answering these questions. If you’re after more leads, monitoring on-site user data – like time spent on site and number of pages visited – gives you an indication of what users want and how well you’re meeting their needs.

There are many questions to answer when finding your NSM. A useful way to arrange the information is in a visual hierarchy. Place your NSM at the top, with the answers to these key questions as branches.

Breaking it down into a visual flow chart like this also helps with gaining crucial buy-in from the whole business, with teams visualising how their role fits into the wider goal.

Final destination

As your business grows and industry and user demands change, you may need to adapt your NSM.

If you’ve been working towards an appropriate NSM, it may only need tweaking slightly. For example, as a start-up, your NSM may have been building awareness by generating more leads. After a few successful years, the business may decide to switch the focus from leads to online sales.

While the metric changes slightly, the original strategy has already laid the foundations for the new goal, with your website designed to drive traffic and provide helpful content to inform users’ buying decisions.

Using analytics data, businesses can make changes to their website to align with their changing goals. Look at how users are behaving on your site. Are there ways you can encourage them to convert or sign-up?

This data helps you understand where to add calls to action or how to improve website design and functionality, so completing a form becomes a natural part of navigating the site and accessing content.

Continue Reading

Business

Risk assessment: How to plan and execute a security audit as a small business

Published

on

Risk assessment: How to plan and execute a security audit as a small business 2

By Izzy Schulman, Director at Keys 4 U

Despite the current global coronavirus pandemic and the uncertainty it has placed on the modern workplace, businesses cannot afford to relax their attitude towards security. Especially as there have been reports of increased break-ins and cyberattacks among the crisis.

Conducting a thorough security audit could be the key to improving employee awareness and identifying weak points in the business to avoid breaches.

Starting from scratch

The first step in an effective business security audit is a risk assessment – reviewing the workplace and all business processes to identify every risk.

No stone should be left unturned. This means conducting a physical inspection of the office, plus breaking down all employee tasks and demands and even reviewing how employees are working from home amid the current pandemic.

It’s important all risks are identified, so relevant and proportionate measures can be put in place – from heavy lifting to ensuring a comfortable office temperature.

At this stage, it’s also important to get employees to buy-in to security policy. Everyone needs to play their part to ensure complete safety.

Let employees know you understand they’re busy with their role but everyone needs to pull together to stay secure.

Offering incentives like employee recognition emails or even small rewards like gift vouchers may incentivise employees to go the extra mile.

Assessing the workplace

The average small business break-in sees around £2,000 lost in stolen property – not to mention the cost of disruption as a result of lost or damaged equipment.

Office security audits should begin with entry points, checking potential break-in spots like doors – and windows if you’re on a low floor – are monitored by alarms and cameras. Make sure these are visible, as this is known to deter potential intruders from trying their luck.

The workplace must also be protected against fire risks. Not only do fires threaten to destroy property and disrupt businesses, but hefty fines can be issued for failing to meet fire safety standards.

Carry out a thorough fire risk assessment, including nominating and clearly signing fire exits, establishing an emergency procedure and educating staff on its steps.

Safety audits should also highlight any trip hazards or danger of falling objects, plus any electrical or flooding risks.

Plus, this year has brought its own health and safety risks, with the coronavirus pandemic demanding new hygiene and social distancing measures.

For businesses with over five employees, the government has put together a specialised risk assessment for a COVID-19 compliant workplace, including advice on handwash stations and staggering shifts to avoid contact.

The online threat

The cost of cyberattacks to UK businesses is estimated at around £34 million a year – from the theft of intellectual property and the cost of recovering from the attack.

However, the coronavirus pandemic has only increased the risk, with many employees encouraged to work remotely, away from employers and IT managers.

A combination of technical IT solutions and educating employees on cybersecurity best practices can help businesses navigate these uncertain times.

For example, multi-factor authentication technology means employees are prompted to enter multiple login credentials to confirm their identity – typically their standard password plus a one-time code sent to their phone.

Even if their password is stolen, the attacker is still unable to log in to the company network without the additional code.

Managing permissions by employee case adds an extra layer of security, with individuals only able to access the data they need. If an employee’s device is breached, it limits the amount of data available to the attacker.

Keeping the company network secure is a team responsibility. Arrange calls in small groups in which IT professionals can explain new remote working protocols in detail and emphasise the importance of adherence, as well as answering employee questions.

Look ahead

Investing time and budget into identifying and addressing threats now, places businesses in a stronger position to maintain high standards of security in the future.

All information gathered from the security audit should be recorded, laying the foundations for a security framework and annual security audits. Log each hazard, along with the status of the risk and measures taken to prevent it.

The idea is to create a clear and structured audit process, which is intuitive to follow if personnel changes occur, or in an emergency. Include a priority checklist with the most significant risks, along with key dates for renewals or updates of any key equipment or facilities.

Update the file year-round, with all new information which may impact business or employee security. Any physical changes to the office should be recorded, along with new or updated equipment and machinery and any significant IT updates. Include key contacts and manufacturer information in the notes to speed things up in case of an emergency.

Continue Reading

Business

Buying enterprise professional services: Five considerations for business leaders in turbulent times

Published

on

Buying enterprise professional services: Five considerations for business leaders in turbulent times 3

By James Sandoval, Founder and CEO,  MeasureMatch 

The platformization of professional services provides businesses with direct, seamless access to the skills required to face any crisis or opportunity. 

The business world was ill-prepared for the current crisis, but a new breed of professional services marketplace platforms is providing valuable access to much-needed enterprise software and data specialists to curb the damage and rise to the challenge. 

In today’s age of distributed teams, remote working and material lifts in online communication and commerce, digital systems and data skills are highly important and a matter of success or failure for many organizations.

Enter the ‘platformization of professional services’. Over the last few decades – in a majority of sectors – consumers’ worlds have been reshaped by platformization and personalization. Companies which have offered traditional products and services have moved online or they have been replaced by nimbler online competitors. 

The most successful of these companies exhibit two qualities: They offer a platform for others to trade, communicate and to build upon, tailoring their services to the needs of individual consumers. Platformization and personalization.

The innovations born out of the platformization and personalization of B2C businesses are now beginning to transform the buying and selling of goods and services between businesses as well. 

This means that businesses increasingly have extraordinary human capital investment flexibility and can safely, cost effectively remain well-equipped to survive and thrive through the most turbulent of times.

Here, MeasureMatch Founder and CEO, James Sandoval, has summarised five core benefits of the platformization of professional services for organizations feeling the heat from shareholders, competitors and even disruptions from pandemics.

  1. Unparalleled Accountability

The best of today’s professional services marketplaces will win the confidence – and budgets – from clients because they not only provide access to highly desired skills and services, but they’ve also gone to extraordinary lengths to maximise success by conducting, amongst other things, identity, insurance, skills vendor partner verifications. And this is on top of star ratings, written reviews, flexible contract management and more.  

  1. Exceptional Speed

The combination of cloud computing services, plus deep ravines of data from historical customer engagement and completed contracts, means that professional services platforms can and should add exceptional value immediately on entry, and across every step of the experience – prior to spending a penny. 

  1. ‍Mind-blowing Service

Professional services platforms are built for people to use – people from different walks of life and with different business needs. The best platforms provide an equally exceptional layer of people. They differentiate with added human value in the form of due diligence, domain and process expertise. 

  1. Lower Costs

The OECD says unit labour costs “can be expressed as the ratio of total labour compensation per hour worked to output per hour worked (labour productivity).” Teams and individuals contracted via marketplace platforms, however, are armed and ready with requisite domain knowledge, experience and skills – which means there’s no requirement for the overhead costs commonly required for training, insurance, HR, office rent, utilities, which can amount to 25% to 100% on top of salaries. 

  1. Material Value

Taking into account the contributions made by an unlimited capacity for precise machine-driven matching, exceptional accountability and flexibility, measurable productivity lifts, topped with human customer service and an attractive cost basis, it’s no wonder professional services marketplaces are exploding in popularity. The opportunities for value creation are material and available now.

The future will come with more complexity, surprises and risk. The platformization of professional services, together with advancements in enterprise personalization, will help everyone to embrace it all with confidence, balance and success. 

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2020
2020 Global Banking & Finance Awards now open. Click Here

Latest Articles

AML and the FINCEN files: Do banks have the tools to do enough? 4 AML and the FINCEN files: Do banks have the tools to do enough? 5
Banking33 mins ago

AML and the FINCEN files: Do banks have the tools to do enough?

By Gudmundur Kristjansson, CEO of Lucinity and former compliance technology officer Says AML systems are outdated and compliance teams need better...

Finding and following your website’s ‘North Star Metric’ 6 Finding and following your website’s ‘North Star Metric’ 7
Business45 mins ago

Finding and following your website’s ‘North Star Metric’

By Andy Woods, Design Director of Rouge Media The ‘North Star Metric’ (NSM) is one of many seemingly confusing terms...

Taking control of compliance: how FS institutions can keep up with the ever-changing regulatory landscape 8 Taking control of compliance: how FS institutions can keep up with the ever-changing regulatory landscape 9
Top Stories53 mins ago

Taking control of compliance: how FS institutions can keep up with the ever-changing regulatory landscape

By Charles Southwood, Regional VP – Northern Europe and MEA at Denodo The wide-spread digital transformation that has swept the financial...

Risk assessment: How to plan and execute a security audit as a small business 10 Risk assessment: How to plan and execute a security audit as a small business 11
Business2 hours ago

Risk assessment: How to plan and execute a security audit as a small business

By Izzy Schulman, Director at Keys 4 U Despite the current global coronavirus pandemic and the uncertainty it has placed...

Buying enterprise professional services: Five considerations for business leaders in turbulent times 12 Buying enterprise professional services: Five considerations for business leaders in turbulent times 13
Business2 hours ago

Buying enterprise professional services: Five considerations for business leaders in turbulent times

By James Sandoval, Founder and CEO,  MeasureMatch  The platformization of professional services provides businesses with direct, seamless access to the skills...

Wireless Connectivity Lights the Path to Bank Branch Innovation 14 Wireless Connectivity Lights the Path to Bank Branch Innovation 15
Technology3 hours ago

Wireless Connectivity Lights the Path to Bank Branch Innovation

By Graham Brooks, Strategic Account Director, Cradlepoint EMEA As consumers cautiously return to the UK high street in the past...

Financial Regulations: How do they impact your cloud strategy? 16 Financial Regulations: How do they impact your cloud strategy? 17
Technology3 hours ago

Financial Regulations: How do they impact your cloud strategy?

By Michael Chalmers, MD EMEA at Contino How exactly do financial regulations affect your cloud strategy? It’s a question many of...

Is It The Right Time To Invest In Gold? 18 Is It The Right Time To Invest In Gold? 19
Investing3 hours ago

Is It The Right Time To Invest In Gold?

By Zoe Lyons, Hatton Garden Metals The current climate is one of uncertainty, so it can be difficult to know...

Private public investment is more inter-dependant than ever 20 Private public investment is more inter-dependant than ever 21
Investing3 hours ago

Private public investment is more inter-dependant than ever

By Konstantin Sidorov, CEO and Founder of London Technology Club Today, one thing unites the majority of governments around the...

Post-COVID Mortgage Processing: Ripe for Intelligent Automation to Boost Organisational Resiliency 22 Post-COVID Mortgage Processing: Ripe for Intelligent Automation to Boost Organisational Resiliency 23
Technology3 hours ago

Post-COVID Mortgage Processing: Ripe for Intelligent Automation to Boost Organisational Resiliency

By Asheesh Mehra, Group CEO and Co-founder, AntWorks As seen in many other countries, the COVID-19 pandemic sent a shockwave through...

Newsletters with Secrets & Analysis. Subscribe Now