P2P Connect Digital Transformation for Procure to Pay

 

P2P Connect was started in 2016 by a group of Procure to Pay, Supply Chain, and Sourcing technology experts that felt the time had come to start talking about P2P solutions differently. As a result the P2PConnect site was born.

 

At the time, it was clear that service providers had defined many of the then “Best Practice” P2P solutions to merely manage process gaps rather than to fix them. Additionally, the tools mostly focused on helping the largest of enterprises in a narrow range of industries. In many cases, these providers had no solutions to help mid-sized enterprises or those that were associated with industries that had less complicated transactions.

 

The group at P2PConnect felt it was time to start a new dialog. This new Procure to Pay Connect dialog would define some “Next Practices” and would focus on designing and building new solutions that would empower a broader section of customers across many more industries. P2Pconnect intends to engineer solutions to empower customers and fix many of the procure to pay process gaps once and for all.

 

The background of the P2P Connect team members are diverse and range from running Shared Service, Procurement, and Accounts Payable departments to building a full-service Sourcing platform.

 

The P2PConnect team has been technical leaders for companies like i2 and Conformia, has founded AP Recovery and Cost Recovery firms like Audit Solutions and Lavante and led the development of Supplier Management and Spend Analytics solutions that served customers across many countries and geographies.

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P2P Connect Digital Transformation

Digitial Transformation for P2P

P2Pconnect | The Procure to Pay space is benefiting from the introduction of new data and technology solutions that increase the depth, breadth, and quality of almost every P2P process.

 

Currently, multiple firms are embracing and integrating advanced data solutions, like Artificial Intelligence (AI), Blockchain, and Machine Learning (ML), creating an ever-improving foundation for our P2P processes going forward.

 

The excellent news for both the Procurement and Accounts Payable departments is that some of the latest technology improvements come with direct and indirect improvements to how we use, process, connect with and own our P2P data.

 

Recent requirements of full data ownership and control for parent firms are already impacting business process strategies. In the future, we will see more hybrid systems where there is a blockchain data strategy at the core of the AI or ML-based solution. In line with this trend, a report from Crunchbase suggests that the amount of blockchain-based firms receiving venture capital fundraising in 2019 was significantly higher than in 2017.

 

The proliferation of popular connected P2P SaaS solutions is allowing companies, large and small, to perform at the highest possible level. The idea of data ownership amongst the parent business is one area AI, Blockchain, and ML are looking to tackle.

 

Presently, most SaaS P2P providers place a high value over their rights and even ownership of data, but with the recent proliferation of advanced technologies, this is starting to change. This trend is not only impacting the P2P departments of large corporations; it is also benefitting mid-sized, small and startup businesses as well.

P2P Connect - Blockchain, AI, and ML – Simplified

Blockchain for P2P takes a decentralized and distributed approach to deliver a public, digital ledger that helps record a variety of data and transactions. Once transactions are completed and recorded using blockchain, they are not easily altered and can be made available for various process audits.

 

Procure to Pay Artificial intelligence (AI), places a significant emphasis on the concept of ‘intelligent machines’ to work and react similarly to humans. Some of the activities gaining more attraction in AI today is the design of robust algorithms for data and procurement management.

 

AI is becoming popular in spend analysis to help shape new strategies to improve efficiency, reduce maverick spend, and increase cost-savings. 

 

Unstructured and Structured Machine Learning (ML), takes a similar approach as AI but offers systems the ability to learn automatically by examining past results from existing data sets. Many ML solutions do not require advanced programming skills and can be used to extract data from Supplier contracts and other Procurement documents and data sets.

 

Businesses are using this to automate various auditing practices against disparate and non structured data sets to and also to identify possible fraud. P2PConnect

Blockchain, AI, And ML for P2P Digitization

The acceptance of new methods of handling P2P data, provided by Blockchain, AI, And ML, is gaining tremendous attention within the business analytics and startup community. Several notable factors have led to the massive adoption of these new methods. Some of these factors include affordable data storage, secure data availability, inexpensive and faster computational processing, and growing transaction volumes.

 

For businesses and startups, blockchain is making waves in p2p financial services and still features a massive prospect far above most imagination. Nevertheless, it is not limited to just financial institutions and transactions.

 

AI also gets extensive use in procurement and accounts payable departments, especially in processes like automation, data analytics, and natural language processing. Utilizing Artificial Intelligence has enabled these departments to experience process improvements, improving and streamlining operations and outcomes. Automation and Data analytics delivers better accessibility to completing tasks and new insights.

 

Machine learning (ML) extracts useful insights from raw data. Its ability to find several hidden ideas and quick processing features makes it ideal for solving several business problems across the Procure to Pay spectrum. The integration of ML is growing at rapid rates as it also aids in enhancing business scalability and functionality globally. p2pconnect.com

Benefits of P2P Digital Transformation

Several industry leaders are already achieving outstanding P2P business process improvements at lower costs. Blockchain, AI, And ML processes offer several benefits when you first understand your business model and then improve the overall strategy. The implementation of customized P2P processes allows:

  • More control and ownership over your P2P data.
  • An immutable record enabling you to connect you Procure to Pay transactions.
  • Top Procurement and Accounts Payable Benefits of Blockchain integration in Business

 

Blockchain, P2P benefits include:

  • Enhanced security
  • Greater transparency
  • Improved traceability
  • Reduced costs
  • Increased efficiency and speed.

 

Across global financial services and supply chains, innovators are exploring several AI and ML approaches in disrupting and transforming traditional models for business. The top benefits of leveraging AI and ML into Procure to Pay processes include:

 

  • Customizable P2P Solutions: AI and ML solutions can be customized to meet several desired features. Although the rising shortage of AI talentmay lead to fewer options, several open-source systems are available for seamless integration.

 

  • P2P Transactional Data Collection, Analysis, and Processing: AI and ML provide innovative methods for data collection, analysis, and processing. These methods can offer businesses and startups relevant decision-making information, comparable to what is obtainable at big firms.

 

  • Activities in Human Resources (HR) can gain further transformation via AIand ML. At present, HR makes available several complex services that include continual education, recruitment, and more. Striking a sufficient balance can be effectively done using these tools.

 

  • In-depth Competitor and Product Analysis: To execute a comprehensive Procure to Pay strategy, you will need to keep track of several internal and external data sets. The use of AI and ML can aid in keeping close attention to details like competitor or product information.

 

  • Lead Generation and Better Sales: AI-driven systems can bring exceptional value to the any-size firm. Reports from Harvard Business Review, show business who use AI for sales improved their leads to over 50%, and lessen call time by over 60%. This discovery also shows a 40 to 60% cost reduction. P2PConnect

Limitations Facing New Digital Solutions

While these new data solutions have a lot of promise for P2P departments, there are some notable flaws as well.

 

For blockchain technology, some known limitations include:

  • Issue of Confidentiality: Privacy remains a definite concern. Although one can contemplate the creation and deployment of permitted or private blockchains in procure to pay, these deployments may not provide the proper scale to rule-out a 51% attack.

 

  • Level of Security: The issue of security comes with a blockchain that may face a 51 percent attack. 51 percent attackis a condition that arises when a hacker produces over 50% of the blockchain’s computing power.

 

  • Varying Procurement or Accounts Payable Regulations from Countries: Lately, most governments are showing an increased level of interest in market capitalization growth. The regulatory problems come in diverse forms about the location.

 

  • Speed: Another negative about blockchain today is the speed, especially when compared to faster AI and ML models or processes.

 

For AI and ML, some known restrictions concerning businesses and startups include:

  • Bias in Data: Unseen bias presence within data may lead to improper outcomes or inaccurate results. Sometimes, the combination of algorithms may not work together.

 

  • Data: AI and ML Algorithms need large volumes of Training Data. The Labeling Process is also a tedious task.

 

  • Required knowledge: Machines do not provide explanations; it is often required for personnel to know what they know.

Procure 2 Pay Conclusion

The creation of new, innovative SaaS solutions in the Procure to Pay industry will aid companies and startups in attaining financial process and performance. Presently, most SaaS providers hold high value over the “ownership” of data. But with blockchain, AI, and ML, companies, and startups are starting to gain can better control and ownership over the corresponding P2P data. Alongside the creation of immutable records for all transactions, it always a good strategy to have ownership over data.

 

Complete ownership in P2P tends towards offering better data quality, security, and control. Nevertheless, if you seek an even better process, the creation of a hybrid solution – a combination of one or more advanced technology solutions may offer an enhanced method for the near future. Empaur

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