By Bil Khan, SAP
While the vision of a paperless workplace has been around for years, the tools to make it a reality are finally within reach. Yet, surprisingly, many organizations are still stuck on a hamster wheel of manual processes, siloed information, and on-premise software.
How can companies jump off that wheel and truly transform?
According to recent IDC research sponsored by SAP and OpenText, the answer lies in starting with a content management platform that is accessible, integrated, and, above all, comprehensive. The paper highlights that this approach ignites digitalization outcomes that “enable efficiencies and higher quality as teams readily identify and obtain the information they need.”
Additional reported benefits include fast document migrations, streamlined invoice and finance-related operations, and effective regulatory compliance.
Digitalization Takes a New Turn
Resistance to digitalization is more than just an inconvenience; it’s a significant barrier to achieving the resilience, efficiency, and sustainability needed to stay 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 vast volume of information, documents, and content to achieve true business digitalization.
SAP enterprise content management (ECM) solutions by OpenText calm these fears, as demonstrated by IDC interviews with current SAP customers. IDC calculates that organizations save an average of $54,600 per one million documents stored in the solutions, totaling $9.29 million on average. These savings directly impact different 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 moves beyond merely digitizing paper-based information to actively using content to work, innovate, and create new content more effectively and with greater impact.
Take, for example, invoice management. Organizations can digitalize and automate the accounts payable process, enabling them to manage and accelerate invoice processing and comply with regional and global regulations. The capture of incoming business documents 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 advantages of SAP ECM solutions by OpenText extend beyond just financial operations. IDC found that businesses using these solutions achieve a 351% three-year ROI. This is primarily due to the fast and efficient handling of document-related tasks such as intake, processing, and auditing — all of which are critical components of ECM.
As a customer shared during the IDC study, one of the standout benefits is streamlined data management: “We can now look at all types of data in one place with OpenText connected to SAP. It’s all about 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 to everyday 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, particularly when transitioning 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% boost in efficiency among employees required for the task.
This efficiency translates to 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 Invoicing and Accounts Payable
One of the most significant benefits of linking business processes with ECM is the reduction of errors, particularly in areas such as invoicing and accounts payable. Manual processes are prone to mistakes, leading to costly penalties and missed opportunities.
As an example, by using the AI and machine learning capabilities within the SAP Information Capture Core application by OpenText to automate invoicing and accounts payable tasks, organizations reported a 37% increase in team efficiencies. In addition, they realized a $1.74 million savings in accounts payable process costs and an additional $5.36 million saved in total invoicing and accounts payable.
These findings suggest that incorporating ECM solutions into business strategies not only improves financial performance but also enhances overall compliance. By providing secure, 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 the 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-payment penalties.
As one customer from the IDC study noted, “The AI and ML functionality integrated has revolutionized our invoicing 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 by OpenText. By automating invoice data capture, extraction, and validation, these solutions eliminate bottlenecks and errors that typically slow down manual processing while enhancing accuracy and compliance.
The Full Potential of ECM Unlocked
The IDC research shows that integrating SAP ECM solutions by OpenText with business processes enabled by SAP S/4HANA Cloud is essential for breaking free from manual processes and outdated systems. With significant ROI, faster document migrations, improved invoice processing, and quicker 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 by OpenText,” doc #US52389824, July 2024.
This story also appears on the SAP News Center.
This post was originally published on here
