Enterprise Resource Planning (ERP) systems have been the backbone of back-office operations for years. However, their implementation often comes with a hefty price tag and a complex, time-consuming process. As a result, many CFOs and CIOs are exploring Source-to-Pay (S2P) platforms as a more efficient and cost-effective alternative.
S2P platforms offer a quicker return on investment, with implementation typically completed within a year, compared to the three to four years required for ERP upgrades. This swift implementation leads to a “margin multiplier effect,” where minor operational changes result in significant gains in efficiency, productivity, and sustainability.
Aligning Priorities for Profitable Growth
According to the 2024 Strategic CFO Survey by Coupa, there is a significant misalignment between CFOs and CIOs on business priorities, with 73% of CFOs reporting this issue. This lack of collaboration represents a missed opportunity for driving profitable growth through technology that caters to both finance and IT needs.
Financial Models and Business Agility: ERP vs. S2P
When comparing ERP and S2P, financial modeling is crucial. Summit Materials, for instance, ran scenarios comparing the internal rate of return (IRR), net present value (NPV), and payback periods for both ERP and S2P. The results showed that S2P platforms provided quicker wins in cost savings, compliance, and risk mitigation.
In today’s rapidly changing business environment, agility is paramount. ERP systems can be rigid and slow down decision-making, while S2P platforms consolidate data across systems and streamline processes, enabling organizations to adapt swiftly to new challenges.
The Power of Collaboration
Effective change management hinges on collaboration between CFOs, CIOs, and other leadership roles. By asking tough questions early on about the risks of sticking with legacy systems and how new investments deliver value, finance and IT leaders can drive faster, more agile outcomes.
In today’s rapidly changing business environment, agility is paramount. ERP systems can be rigid and slow down decision-making, while S2P platforms consolidate data across systems and streamline processes, enabling organizations to adapt swiftly to new challenges.
While ERPs have been foundational to many businesses, the rapidly evolving marketplace demands more flexible solutions. For CFOs and CIOs, adopting an S2P-first approach is a promising path to unlocking faster value and ensuring long-term success.
