A company’s effort required to manage their administrative processes is a big burden on a lot of organizations. And although administration is a necessary part of any business, it is important to keep focusing on the right balance between administration and actual value adding processes.
In our book, value adding activities are all activities you do to improve your customer’s appreciation of your product or service. This can range from improving functionality, improving service to faster delivery or lowering prices.
When considering ERP systems, legal requirements are generally not a value adding activity. As just complying with legal regulations:
- Does not make your customer any happier with your product or service
- Does not deliver you any more revenue
- Does not make your product any cheaper
- Certainly does not lead to a lot of innovation
So when a Business ByDesign customer contacted me a few months ago to ask about the time and effort it would require to prepare for the Dutch VAT increase starting from January 1st 2019, I was happy to respond:
Nothing, really nothing at all.
This is because SAP Business ByDesign publishes a new release on a quarterly basis to deliver new features which can support organizations in improving their internal processes. An important part of these features are delivered to ensure an organization’s legal compliance, on a global as well as local level.
IFRS requirements is one of those legal requirements. When IFRS 15 became effective, it changed the way companies selling contracts and sales bundles should recognize their revenue. When dealing with new financial requirements, it is very valuable that you can rely on the fact that ByDesign covers these requirements from a functional point of view. Still allowing customers to scope and activate these features based on their relevancy and within their own timelines.
Another good example is the nearing Brexit. When you are dealing with business transactions to and from the UK, you already have enough to worry about. This is why Business ByDesign takes care of the legal aspects within the ERP landscape. Think about your VAT reporting when the UK leaves the EU. In case of a hard Brexit, ByDesign will automatically start re-evaluating the UK as a non-EU country and the relevant tax rules, tax number determination, and calculations will come into effect. Without any intervention required from anybody.
So with Business ByDesign, you have an ERP solution that supports your business and legal requirements, now and in the future. This will allow your organization to save time on complying with legal requirements enabling them to spend this on their true value add.