Every business process execution is tightly connected to the financial perspective of an organization. In order to understand both perspectives in its entirely, you should analyze them with mutual consideration.
For instance, optimizing the ‘Cash Conversion Cycle’ by reducing the ‘Days of Inventory on Hand’ leads to higher liquidity and lower costs of financing. On the other hand, it could impact the execution of the ‘Purchase-to-Pay’ process negatively because less inventory could result in less flexibility in servicing unexpected large customer orders (peak demand).
To make a second example, increasing the time period for your customers to pay their bills could lead to higher customer satisfaction and therefore also to a higher willingness to order more (revenue increase). On the other hand, it negatively impacts the ‘Cash Conversion Cycle’ because the amount of available capital decreases for alternative investments.
Noreja Causal Process Mining can help to combine both perspectives and supports organizations in finding the right balance between process execution and financial optimization. Together with our partner Ramsauer & Stürmer Software OG, we can offer this analysis by combining data from their rs2 modules ‘Einkauf” and ‘Verkauf’.
Feel free to contact us to learn more!
#causalprocessmining #cashconversioncycle #businessprocessmanagement