This Spanish Hotel (SH) was founded in 1980 and presently has more than 350 hotels spread over 4 continents. One of the largest hotel businesses globally, SH hotel had a strategic focus on global growth and was aggressively acquiring other hotel companies world over.
Smart Automation in Finance And Accounting Drives Business Transformation and Operational Excellence- A Hospitality Sector Case Study
Challenges came with Newer Acquisitions
Acquisition of hotels in other continents helped SH in growing its revenue and expanding customer base however also posed many other challenges due to new workforce with different work styles, new systems and new business processes. Activities in foreign territories made the business processes increasingly more complex for SH.
The administrative cost was rising and cash flow issues also started cropping up due to blocking of funds for new acquisitions and outstanding receivables of millions of dollars every month. Manpower and business productivity started suffering as also customer focus and satisfaction due to increased efforts to manage funds and arrange working capital. Financial performance and profit margin were badly hit.
Top management of this global hotel business realized the immediate need to address issues with business visibility and financial performance, revenue and cash flow management, productivity and cost optimisation, and service quality and customer satisfaction.
Tactical and Long Term Strategic Measures Deployed
Simplifying business through the process standardization in Finance and Accounting, and freeing up cash to maximise the advantages the market was offering became the topmost priority for the SH management team.
Continued and long term focus to mitigate business risks and inefficiencies were also high on the agenda for improving profitability and competitiveness and making its finance and accounting functions an integral part of the business.
Solutions Arrived At
To address the challenges and effectively implement the strategies and tactics, SH management partnered with a leading global professional services company providing a range of services in strategy and consulting with best in class digital capabilities.
SH Team focussed on automating and integrating Finance and Accounting functions by implementing Robotics Process Automation (RPA), Artificial Intelligence (AI) and Analytics Tools for improving business visibility and controls, performance and compliance, and customer services across its entire global operations.
The global business process services consulting group readily implemented Finance and Accounting Automation through
Cloud-based Digital Platform for standardizing processes and cash flow improvement.
Business Management Analytics for descriptive, predictive and prescriptive uses and monitoring records, documents and payments.
Dashboards for Automation enabling creation of self-service dashboards for monitoring and intuitive visualisation of all KPIs within NH operations worldwide.
A mechanized and dedicated Revenue and Cash Flow system with the artificial intelligence of a business executive was created for matching payments to the right invoices.
The Consulting Services team also integrated Artificial Intelligence with client-specific matching algorithms and Robotic Process Automation.
Finance and Accounting Process Transformation Archived and Benefits Derived
With Smart Automation, a data-driven business climate created and business risks and uncertainties removed. NH transformed into a smarter and more productive organisation propelling new values across all company business processes. Workforce Innovation and machine intelligence were integrated for fast track effective operations helping NH to excel in its hotel business.
Immediate benefits accrued we’re
Insightful and Ready Decisions made for realizing new values.
Value Creation was achieved by a wise allocation of tasks, improved morale of the human capital and promoting sustainable business operations.
Freeing up of creative and talented human resources for driving critical thinking and continued business process innovation by identifying all routine transactional tasks and utilizing software bots.
Transformations in Finance and Accounting model for improved and timely invoicing and maximizing receivables and cash flow for all global operations. The average handling time of transactions and the number of times a transaction routed through ERP were also greatly reduced.
Smart Finance and Accounting Automation Improved Business Visibility and Overall Productivity
The smart and automated data-driven financial model helped RH in achieving cost reduction and compliance continually. Continuous enhancement of customer satisfaction and service levels placed NH as the Industry leader and as a benchmark of operational excellence in the hospitality sector.
Overall hotel business productivity was improved by more than 40% with an average operational cost reduction of 15% globally.
NH entered into a long term business contract with the BPS consulting company for driving sustainable business growth.