When technology advances as dynamically as it has over the last decade, businesses and organizations will inevitably find themselves at different levels of technological adaptation. This transitional phase in the era of cloud and mobile computing is even more stark than in the past, as the speed of change and the depth of functionality are paramount in their scope.
Across all industries, enterprise systems have adopted software solutions to streamline workflows and meet customer expectations; automation and centralization have expanded businesses’ capabilities and increased their bottom lines. The focus of adopting new technology has been, mostly, on customer-facing processes, which is why upgrading AP processes has been neglected for most businesses.
The time has come though for AP automation to take center stage, as the transition period begins to settle into a digitally dominated global marketplace. Enterprise systems are now ready to focus on the back room of AP, as they begin to understand the benefits of adopting automation into this integral process. Let’s explore this more by discussing 3 key factors influencing AP automation adoption.
Competition Using AP Automation
The benefits of using electronic invoicing and AP automation are giving businesses using it an advantage over those that don’t. Streamlining the AP department with automation is cutting down on labor costs, reducing costly errors, bringing early payment discounts, and improving supplier relationships.
As more and more businesses and organizations adopt AP automation technology, those who are still using manual processes will become less competitive; 65% of businesses are planning to switch to AP automation software in the next two years. The pressure of meeting supplier expectations and cutting costs to remain competitive is influencing AP automation adoption among modern businesses in the U.S. and globally.
Expectations of Millennials in the Workforce
According to an article from the Pew Research Center called: “Millennials are the largest generation in the U.S. labor force”, written on April 11th, 2018:
“More than one-in-three American labor force participants (35%) are Millennials, making them the largest generation in the U.S. labor force…”
With the majority of the workforce in the financial industry being Millennials, businesses will be influenced to transition their AP processes to meet their expectations. Millennials and post-Millennials have been raised with cloud and mobile computing technologies, which means training them with archaic manual AP processes would be counter-productive, especially, considering e-invoicing and automated workflows are the future of AP processes.
Baby Boomers are Retiring
Another key factor influencing the transition to AP automation is the fact that Baby Boomers are retiring more and more everyday. Investopedia has an article called: “Are We in a Baby Boomer Retirement Crisis?”, written on June 7th, 2017 by Barbara A. Friedberg, which explains:
“Baby Boomers, born between 1946 and 1964, are heading into retirement in droves (about 10,000 a day, in fact).”
This is a key factor determining AP automation adoption, as the Baby Boomer generation of finance workers are the last to universally use manual AP processes. It only makes sense that AP departments will upgrade as younger tech-savvy generations begin to take over the industry, rather than continuing with archaic manual processes.
While there are many factors influencing AP automation adoption among modern businesses and organizations, the 3 we’ve discussed are as important as any. Staying competitive and making the transition to AP automation in tandem with shifting generations in the workforce are both good reasons for enterprises to consider adopting e-invoicing and AP automation soon.
After the decision is made to upgrade this important process, businesses must carefully consider what service to use. Partnering with an established service with a proven track record of success is very important with such a sensitive process. iPayables has the experience and expertise needed to provide enterprises with the exceptional AP tools they need to make this a profitable transition. If interested in learning more please contact us today.