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 2020 was significantly higher than in 202019.
The proliferation of popular connected procure-to-pay 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 procure to pay departments of large corporations; it is also benefitting mid-sized, small and startup businesses as well. P2PConnect
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. One of the activities gaining more attraction in AI today is the design of robust algorithms for data and procure to pay 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.
We at P2Pconnect have observed businesses using this to automate various auditing practices against disparate and non-structured data sets and also to identify possible fraud. P2PConnect
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
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:
Blockchain, P2P benefits include:
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:
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:
For AI and ML, some known restrictions concerning businesses and startups include:
The creation of new, innovative SaaS solutions in the Procure to Pay industry will aid companies and startups in attaining financial processes 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
Select Icon below to see additional content related to Tips and Tricks to building your department