Layers to the Problem
When buying and/or selling B2B solutions, particularly SaaS solutions that enhance process performance, you must, in many cases, look at the problem in layers to be sure you capture the direct and indirect impact of solving it.
The layers will be problems that are directly impacted by the software, and problems that are indirectly impacted. It is in the indirect problems that both buyer and seller will often find the most compelling business case.
As an example, consider the myriad of solutions that promise to help close the books faster. Automating the financial close is not new or innovative but it is often undersold and bought as to the problems it can solve for the teams doing that work.
Here is how the problems layers can be played out.
Layer 1 - Problem is a Delayed Close
At one level automating the financial close can solve the problem of too much manual work that results in a close that takes too long.
Layer 2 - Problem is Burden of Manual Work
Manual work is a burden on many fronts including excessive headcount, reduction in team morale, costly errors and omissions and lack of trust from key stakeholders.
Layer 3 - Problem is Resource Allocation
Too much money and time is spent on meaningless tactical work instead of mission critical strategic work.
Most stop here and settle on the idea that fixing the close leads to more focus on strategic work. But this is not where the story should end.
Layer 4 - Problem is Mission Critical Initiative Failure
What is the problem when an IPO fails?
What is the problem when an ERP project fails?
What is the problem when you spend too much on an Acquisition or in some cases make an acquisition that should not be made?
What is the problem when your top talent burns out and leaves?
What is the problem when your insights are not delivered in real-time?
All of the problems in Layer 4 are serious and can be addressed by simply aligning resources away from the manual burden of closing your books and more towards any of the initiatives where the mind of an accountant can help execute and drive shareholder value.
Sure, automating the financial close will drive efficiency but it may also ensure you get your IPO. The cost of ignoring the process fix is that you lose your IPO.
The value of your IPO is the return you should expect when automating your close.
The business case isn’t settled on the tactical problem being solved. It is settled when the story continues and includes the value achieved by the entire organization when you fix a process that may not directly impact everyone in your organization.