CPO Rising is excited to publish an interesting series of articles focused on the evolution of technology solutions and automated platforms within the greater spend management spectrum. In each article, we’ll dive into the “then” aspect of a particular solution and explain how it benefitted enterprises years ago, and the “now”: an introspective look at how a solution has evolved to not only continue driving value to their users, but also the expansion of key capabilities and functionalities. On the docket today: travel and expense management technology.
Current industry estimates state that the complex spend category of business travel (and related expenses) comprises nearly 12-14% of the average organization’s total budget, a figure that may come as a shock to some procurement and finance executives. In the lean years immediately following the economic downturn of the late 2000s, it was the business travel category (amongst others) that experienced sharp cuts; no longer were the vast majority of business trips approved by the executive team. With an eye on cost reductions and financial conservation, business travel was immediately stripped of its strategic impact.
Times have certainly changed, and so has the technology required to effectively manage this complex category. Today’s article highlights the “then” and “now” of travel and expense management technology.
Then:
Nearly a decade ago, the merging of online travel booking and automated expense management was considered a boon for the end-user community, as this “end-to-end” means of booking business travel and processing associated expense reports was considered an advent to the finance function. No longer were the two sides of travel and expense management disconnected, and, with automated processes in place to create, develop, approve and reconcile expenses, the professionals tasked with managing this complex category found that there was some strategic impact from automation of key competencies. However, a few gaps during this period would not fully allow for travel and expense management to become a truly strategic force.
Now:
Travel and expense management technology has traversed beyond the simple walls of the category from which it was designed, helping to link data, finances and other key attributes of enterprise visibility to the functions and executives that require real-time intelligence for educated enterprise decision-making. In fact, most contemporary solutions that offer travel / expense management automation can easily be integrated into existing ERP, spend management, or accounting systems, helping to provide a picture of “intelligence totality” that can be leveraged in greater corporate planning, budgeting, and forecasting.
Better yet, the current landscape of travel and expense management technology doesn’t just suit the internal executive team from a management standpoint; solutions in today’s market have revolutionized the very notion of business travel. The integration of mobility and social media has sparked a veritable array of applications and portals that easily book alternative means of transportation and lodging. The “now” of travel and expense management technology not only builds on the advancements of the past…it takes those benefits and applies them across the spectrum of the average organization, be it via intelligence, convenience, or process automation.
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