New Order-to-Cash to Drive Better Monetization
A large B2B software and services company in the US was selling various offerings through multiple business models, including recurring subscriptions, consumption-based pricing, and one-off services. The company’s order-to-cash process was entirely manual, leading to several significant issues. These included an inability to track customer entitlements, improper renewals, difficulty matching bills to bookings, revenue leakage, long Days Sales Outstanding (DSOs), a large number of credit notes, and overall customer dissatisfaction.
Complication
The manual nature of the order-to-cash process resulted in numerous pain points. The company lacked essential systems such as Customer Relationship Management (CRM), Configure Price Quote (CPQ), subscription management, and billing systems tailored to their needs. There was no single source of truth for contract and entitlement data, making it difficult to track and manage. Additionally, the absence of digitized contract data and robust reporting mechanisms further exacerbated the issues.
Approach
TechTorch conducted a rapid assessment to map the existing order-to-cash process. This assessment identified the major pain points, including manual processes and the lack of necessary systems and data management. Based on these findings, a comprehensive design plan was developed to address the process, technology, data, and organizational challenges. The plan included implementing a CRM, CPQ, subscription management, and billing systems configured to the company’s specific needs. It also focused on creating a centralized source of truth for contract and entitlement data and digitizing contract information.
Results
Conclusion
The company faced numerous challenges due to the manual nature of its order-to-cash process, including a lack of essential systems and difficulty managing contract and entitlement data. TechTorch’s rapid assessment and subsequent comprehensive design plan addressed these issues by implementing tailored CRM, CPQ, subscription management, and billing systems. This transformation resulted in a significantly more efficient order-to-cash process, reducing order-to-invoice times, increasing the number of perfect orders, and ensuring 100% tracking of customer entitlements. These improvements enhanced monetization, minimized revenue leakage, and boosted customer satisfaction.
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