What should be included in a P2P Technology Business Case?

Producing a Business Case for Procure-to-Pay (P2P) technology investment should consider much more than just a list of cost and identified benefits. When producing a business case we recommend an organisation should consider the following factors:

  • Current Procurement and Accounts Payable Process: A detailed analysis of the current procurement and accounts payable process should be conducted to understand the existing inefficiencies and areas that need improvement. This will help to determine the potential benefits of implementing P2P technology. Identify what improvements are required and the scale of change.

  • Cost Analysis: The cost of implementing the P2P technology should be estimated, including the costs of licensing, implementation, training, and ongoing maintenance. This should be compared to the potential savings that the technology will bring to the organisation.

  • A Return on Investment (ROI) analysis should be conducted to determine the financial benefits that the P2P technology will bring to the organisation. The analysis should take into account the expected savings from reduced transaction costs, improved vendor management, and increased efficiency. This may require using industry benchmarks for transactional/processing costs or detailed analysis of those costs for your business.

  • Change Management: Implementing P2P technology will require changes to the business processes and the way employees work. Change management should be considered in the business case to ensure a smooth transition and successful adoption of the new technology. The Business Case should evaluate the level of change that will be required, making sure there is appropriate budget for managing the change needed to drive the benefits identified. This is typically underestimated in many projects.

  • Integration: The P2P technology should be integrated with the organization’s existing systems, such as the Enterprise Resource Planning (ERP) system, to ensure seamless data flow and avoid data duplication. A review of the key integration points, particularly focused on data dependencies that the P2P solution will have (such as Supplier Master Data, Chart of Accounts and HR employee data) on the ERP solution should be conducted to identify if there will be any further investment required to enhance data quality to achieve the business case benefits.

  • Scalability: The P2P technology should be scalable to accommodate future growth and changes in the organization’s requirements. Does the solution meet the needs of the whole business and the growth ambitions.

  • Risk Analysis: A risk analysis should be conducted to identify potential risks associated with the implementation of the P2P technology and to develop a risk management plan to mitigate those risks.

  • Stakeholder Engagement: The business case should engage all relevant stakeholders, including finance, procurement, IT, and senior management, to ensure buy-in and support for the implementation of the P2P technology. The Business Case should evaluate if there is clear sponsorship and the buy-in secured from the impacted business areas.
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