– By Ashwani Narang
In the mercurial world of business, uncertainty is a constant companion, and ready to dive at the most unexpected moments. A universal truth emerges: no business is invincible. The vulnerability of enterprises to unforeseen disruptions is most pronounced when they’re caught unprepared. The business landscape is interrupted by phases, where companies can find themselves in states of abundance, stagnation, or struggle, each phase presenting its unique set of challenges to revenue streams and stability.
India’s Tryst with Disruption: Unmasking the Impact of COVID-19
The COVID-19 pandemic’s seismic waves echoed across the Indian business terrain, leaving in their wake a trail of trials and tribulations that rippled through various sectors. The pandemic compelled businesses to grapple with a new normal, ushering in remote work arrangements on an unprecedented scale. This paradigm shift brought forth a slew of challenges, spanning the gamut from technological infrastructure and cybersecurity to maintaining employee productivity. The ramifications were far-reaching, with numerous enterprises enduring substantial financial losses, among the hardest hit were small-scale businesses, which bore the brunt of the economic turmoil. While it’s impossible to eliminate challenges or the certainty of change, there exists several methods that can empower businesses to navigate adversity—be it a disruptive natural calamity, a global pandemic, or an unforeseen surge in demand that strains supply chains and human resources.
Empowerment through Automation: A Panacea for Challenges within Financial Processes
Embracing a sweeping automation strategy for financial processes serves as a formidable tool, enabling businesses to flourish irrespective of geographical dispersion or challenges encountered. By reducing the reliance on manual interventions, companies can reduce the tide of errors intensified by change, all while gaining richer insights into their financial operations. Bolstered by refined practices and cutting-edge technology, moments of uncertainty and disruption are poised to transform into intervals of assurance and opportunity. Here are indispensable insights gleaned from the volatile landscape of VUCA (Volatile, Uncertain, Complex, and Ambiguous) times:
Setting Clear Priorities in Crisis Navigation
Guiding businesses through tumultuous times requires a crystal-clear focus on priorities for both leaders and employees. When confronted with transformative changes, a well-defined focal point becomes a lifeline. This becomes especially crucial when team members are tasked with roles that deviate from their usual responsibilities. Within the realm of finance and accounting, the adoption of automated processes and cross-training can unburden employees from mundane tasks, allowing them to engage with pressing matters. The automation of procedures like expense reporting and invoice management not only reduces errors but also amplifies productivity, giving employees more time for high-priority tasks.
Mastering Cash Flow Dynamics for Savings
Acquiring a real-time, accurate view of available funds and imminent financial transactions equips businesses with agility for resource allocation. Conducting “what if” scenarios to pinpoint areas for cost reduction and process enhancement proves invaluable. Insights from IDC’s research spotlight businesses that embraced automated expenditure management systems, realizing reductions of up to 10% in travel and spending expenses—an invaluable advantage when finances teeter on the precipice during crises. Automated expense solutions consolidate data from multiple sources, minimizing errors and reducing manual workloads. These systems offer immediate insights into spending patterns, facilitating informed decisions about budget allocation and resource management.
Pioneering Remote Work Policies: Embracing Flexibility in a Changing Landscape
In an era of flexible work arrangements, crafting policies and deploying tools for seamless remote work assumes paramount importance. Cloud-based financial solutions facilitate unfettered access to vital financial data and streamlined processes, regardless of employees’ locations. This contrasts with the challenges posed by accessing data confined within physical office spaces. Real-time access empowers employees to monitor expenses and make well-informed choices—particularly vital during unforeseen disruptions that necessitate remote work. McKinsey’s study underscores the strategic advantage of pre-pandemic process automation, underscoring its role in bolstering businesses against crises. This underscores the importance of leveraging technology to automate procedures and alleviate manual burdens.
Conclusion
An economic crisis possesses the capacity to test even the most formidable businesses. Missing a robust strategy for managing business expenses, organizations may be forced into extreme measures simply to stay afloat. Conversely, those with strategic foresight will not only weather storms but also seize opportunities for market expansion and garner a competitive edge arising from adversities. In a rapidly evolving business environment, the hallmark of success lies in forging resilience in the face of the unforeseen.
(Ashwani Narang is the Vice President and Head, Intelligent Spend Management & Business Network at SAP Indian Subcontinent.)
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