Many founders do not dare to implement SAP. However, with the right method, the advantages of the business software outweigh the disadvantages. An expert explains.
SAP - far too complicated?
Such a complex conversion process is prone to errors and many companies do not have the expertise to manage the implementation. However, this does not detract from the benefits they can derive from working with SAP software. The solution: The implementation and IT infrastructure should be handed over to experts as part of business process outsourcing (BPO). nexnet offers such all-round solutions for subscription management, accounts receivable management and rating & billing. Lars Heucke, Managing Director of nexnet, on the reasons for successful accounts receivable management with SAP.
SAP software can be used to map all of a company's business processes. Companies that want to work with SAP to give their accounts receivable management a fresh coat of paint face a complex process. Before the program can do its job, companies need to determine their individual requirements and master the actual software implementation. Not only do all business processes have to be analyzed - they may also have to be changed if it turns out that they are not optimally structured.
Mr. Heucke, what specifically changes for companies when they work with SAP? What can the software do?
"It is not just the pure debit-side processes in the finance area that can be mapped; partner handling can also be made visible for each individual transaction. In general, SAP can be used to map the entire process logic in the financial process, be it B2C, B2B or for payment service provider controlling. This provides security. Before working with the corresponding software, PSP payments could not be precisely assigned to an individual transaction. After the SAP implementation, the purchase and payment, as well as the tax and posting to the account, are visible for each individual transaction.
This is accompanied by higher process quality for billing, which is faster and error-free. The customer no longer has to worry about financial processes and can instead focus on sales and their product. This is because SAP is the only system that performs well, runs stably and is also suitable for mass production. It also meets all the requirements of an audit and is therefore audit-proof. For start-ups in particular, however, it is important that the software is scalable and customizable. SAP can also meet these requirements. However, many companies have fears: extremely high costs during implementation, long delays, heavy demands on internal resources or high license costs."
In your opinion, are these fears justified?
"These concerns can be largely circumvented. By using a BPO service provider, companies only benefit from the advantages of SAP, as the extremely difficult, time-consuming and cost-intensive implementation process is eliminated. At nexnet, we have almost 20 years of experience in accounts receivable management with SAP, without selling the software directly, as many other management consultants or consultants do. Instead, customers can use our SAP landscape without having to install their own software."
Nevertheless, you often read that there can be major complications during implementation. What are these and what are the reasons for them?
"There can be various reasons for this, such as a lack of SAP expertise coupled with a lack of industry knowledge and experience in implementing SAP projects. But it can also simply be a case of incorrect advice or a misjudgement of your own expertise and resources. An SAP implementation is extremely complex and should not be underestimated. There are numerous steps in the implementation process that offer potential for error: installation and setup, user management, process implementation and so on.
Apart from such technical sources of error, internal company reasons can also lead to complications. For example, if the requirements for the software change constantly during the implementation phase, this can disrupt the entire process. Many companies also want too much at once instead of concentrating on the important core aspects first. After all, a house is not built in a day. You start with the foundations instead of installing the electrics straight away. With BPO service providers like us, the house is already built, it's just a matter of distributing the rooms. This has the advantage that there is little need for coordination and installation. The companies just have to move into their new home, so to speak."
What can companies do to ensure that their accounts receivable management runs smoothly with SAP?
"Outsource processes! Successful SAP implementation requires expertise above all else. Choosing the right service provider with the right experience in the required areas is therefore crucial for companies. Those who rely on BPO do not have to purchase their own licenses, carry out the installation or manage the setup themselves. This not only saves time and money, but also a lot of stress. 80 percent of the work is done by the service provider, only the remaining 20 percent has to be done together - this mainly concerns the individualization of the software.
Another advantage of BPO service providers is that the SAP experts work well together - they know each other. There are no time-consuming disagreements and there is no need for a familiarization phase. Nevertheless, the time pressure should not be too great."
So on the whole, SAP has more advantages than disadvantages when it comes to accounts receivable management?
"Yes. SAP is scalable, suitable for mass production and at the same time reliable and audit-proof. The auditor has nothing to complain about. The many disadvantages usually come from the extremely difficult, time-consuming and cost-intensive implementation. The disadvantages therefore always outweigh the advantages if the company tries to do everything itself without having sufficient experience in the area of SAP implementation or cannot be sufficiently supplemented with know-how from the areas of finance, development and project management. But this process is eliminated when companies use reliable BPO service providers."
Article from: Gründerszene.de from July 03, 2019
Article image: EyeEm
