3 Leadership Opportunities in Credit Management
In general, finance teams are expected to be more productive and more innovative. The mindset has shifted to value innovation and not just efficiency – “work smarter, not harder.”
Here are three trends that showcase a new opportunity for credit leaders to bring increased value to their organizations:
1. Embrace Digital Disruption
Software giant Oracle predicted the trend for cloud-based solutions to replace legacy systems that inhibited data sharing. Their study, Modern Finance in the Digital Age, found that “Modern CFOs are increasingly turning to cloud-based financial management systems to replace legacy ERP systems … and deploy new functionality to complement on-premises systems.”
2. Adopt Automation
Automation has the ability to greatly streamline the collections operation. A Credit Today survey on automation found that three out of four (77%) credit departments have automated at least part of their order-to-cash process. But, the definition of automation varies, and being “fully automated” is still rare among credit departments. The survey found that, in fact, only two of the 12 steps of the order-to-cash process are automated.
3. Assess the Power of Analytics
Analytics has emerged as a key requirement for the modern credit team; it’s no longer just a “nice to have.” According to Analytics Accelerates into the Mainstream, a study by Dun & Bradstreet and Forbes Insights, 70% of companies say at least half of their decisions are made based on analytics. Before you think these companies are using sophisticated predictive tools that cost a fortune, 40% admit their analytics consists of spreadsheets.
Download the eBook, “Weathering the Storm: 5 Data & Technology Trends Impacting Finance & Credit” to learn more about ways credit teams can continue to innovate in their organizations.