How COVID-19 Is Future-Proofing Businesses With Accelerated Digitisation

By Rob Harrison, Managing Director, SAP Concur UK & Ireland

COVID-19 has thrown companies very suddenly into an unexpected situation. The sheer speed at which things have changed has meant businesses have had to quickly become accustomed to ‘the new normal’ – a phrase that has taken on a significant meaning.

Tech projects and updates that had been put on hold were implemented overnight. Many companies have been forced into sped-up digitisation and, for them, there is no going back. The accelerated rate at which businesses lagging behind have now had to adopt digital transformation has propelled them into the future. From remote working aided by online tools, to automated financial processes offering unparalleled visibility into cash flow – many companies have been changed for the better and inadvertently future-proofed their business.

The proven value of technology

Since March, businesses have been remote working and with colleagues now disconnected by geography, technology has been the driver of collaboration. Day-to-day communication tools such as Slack and Microsoft Teams for messaging or video calls, and Asana for teamwork, have been essential for keeping employees talking and engaged. If you didn’t have these tools before, you most likely do now.

As well as helping firms from a unified communications standpoint, technology has also helped ease underlying business processes. The pandemic and remote working landscape has accelerated the need for cloud-driven technologies, for example, and the automating of finance processes such as expenses and invoices has been increasingly popular. Companies are turning to automation to handle finance tasks that ordinarily would still be manual and office-based – no longer an option in these times. Not only will automation speed up the mundane, allowing business leaders the time and headspace to think more strategically about their organisation, but at a time of real economic uncertainty, digital processes allow those in charge an ‘x-ray’ of cash flow.

If we look at the financial side of businesses, it’s clearer than ever that those working in accountancy or within in-house finance teams need to know if their cash flow is healthy. Automated technologies allow companies to foresee potential hurdles, cash flow problems and spot unusual or fraudulent transactions. With a period of significant belt-tightening underway, automation is key – it’s automated reports and analysis that will allow businesses to quickly see just what their status is, as well as ensuring payments don’t slip under the radar, and any future speedbumps in terms of cost are accounted for.

No regrets: why investing in tech is worth it

For the companies that have been forced into digitisation brought on by the pandemic, exciting times lie ahead. Before COVID-19, businesses may have found the prospect of digital transformation daunting and potentially costly – the thought of having to invest a lot of money and get to grips with new systems was enough to keep stalling. But ultimately, these investments prove their worth in increased efficiency, insights and importantly, hard savings.

Businesses have realised that legacy systems are slowing them down and by not upgrading tech, it allows their competitors to overtake them. Recent YouGov research found that a third of businesses struggled with the move to remote working. It wouldn’t be a far stretch to assume the companies who faced difficulties lacked sufficient technology. Future workplaces will be quicker and more eager to upgrade legacy systems, knowing the benefit that new technologies can have and the ease with which these can be implemented.

The road to the future 

Rob Harrison

Backing technology decisions is always a smart move for businesses irrespective of the scenario. There may be a move from the board to keep expenditure as tight as possible, but in order for innovation and efficiency to thrive there simply isn’t room for standing still.

Investing in the right software isn’t a simple task however, it requires support and understanding of the complexities, so really Software as a Service (SaaS) is the only answer. With access to experts, the human side of technology remains intact and means hours of frustration and confusion can be avoided. Just like yin and yang, neither people nor technology are absolute in operational excellence; both balance each other’s strength and weaknesses. If you’re given the right training and advice, the man hours saved when technology works seamlessly is immense. What it boils down to is working with the right partners; those that offer guidance and support on top of the technology itself.

Any technology implemented should be cloud-based to minimise hardware costs needed to run it. Flexibility in the model is also hugely important and most cloud businesses operate on commitment-based models, allowing companies to choose the amount of usage they require to meet their needs. Whilst not a pay-as-you-go model, this allows both client and supplier to have predictable cash flow; businesses can forecast and scale as they grow without future commitment, and suppliers can ensure they don’t take on unnecessary cost or margin burdens.

Aside from remote working technology such as collaborative messaging tools and cloud infrastructures, it’s critical businesses look at the finance functions – particularly expenses and invoices.

Firstly, there should be an emphasis on monitoring the types of expense claims being submitted. Indeed, a recent YouGov survey of 804 UK SMBs and enterprises found that since the implementation of lockdown, 57% of businesses have seen a decrease in expenses being submitted, but a significant 14% have actually seen these levels rise too. What’s more, accurate and data-rich invoice processing should be prioritised. With so many businesses under strain due to lockdown making it impossible for business as usual, the reality is one missed bill could have seriously detrimental consequences and be the difference between staying afloat or facing collapse.

No going back

The pandemic has made clear digital transformation works and can be implemented at scale, quickly. Many organisations have had to move fast and turn on a sixpence to suddenly drive real change in the way their organisation operates.  With this in mind, there is no reason to not adopt the latest technologies to empower the business. In these strange times, technology has been what has allowed businesses to stay connected and monitor cash flow whilst simultaneously safeguarding the company and employees.

Enforced remote working has made a positive impact in lots of ways and it’s even bringing teams closer together. Daily morning ‘huddles’ on Microsoft Teams that ensure teams are working towards the same goal and running competitions on Strava have empowered company culture, not hindered it. Automated finances have made life easier, not more complicated. Employers are realising that the changes made will go a long way after the pandemic is over too.

Without even realising it, many businesses have future-proofed their businesses by investing in the technology they should have considered long before. After this initial acceleration of digital transformation, it would make no sense for businesses to put the brakes on or reverse any changes that they have made. As lockdown restrictions ease, businesses will realise that digital transformation has not only helped them survive this period, but it will help them thrive as they move forward.