Are you slashing the right CAPEX projects Post COVID-19?
Everyone is talking about ‘curtailing CAPEX’, ‘CAPEX cuts’ and ‘freezing capital expenditure’ amidst the unprecedented disruption caused by the COVID-19 pandemic. Is your capital expenditure management system up to the task of ensuring that mission critical initiatives continue to get funded?
Whilst delegation of authority limits are clearly defined in most organizations, the process of data collection, collaboration, decision making, and monitoring are often only weakly supported by IT systems and are seldom integrated; relying on spreadsheets, emails and manual data entry.
Organizations running SAP have an excellent basis for their investment management requirements. Unfortunately, standard SAP does not provide an effective executive user experience for initiating and evaluating complex investment initiatives.
Leveraging SAP Fiori application development is the fastest way to fully automate CAPEX management in SAP ERP to make timely, confident investment decisions with a high degree of demonstrable probity and policy compliance.
Companies like Albany International have used IQX AppBuilder for SAP Fiori to develop applications to automate and expedite Capital Expenditure Requests to ensure that scarce capital resources are allocated optimally. To ensure you are slashing the right projects make sure you have end-to-end visibility of all critical capital expenditure requirements with IQX CAPEX for SAP Fiori.
CAPEX Opportunities post COVID-19
All organizations have experienced some form of disruption from the pandemic, from supply chain shortages to shop or plant closures, supply and demand volatility, staff layoffs and of course CAPEX cuts or reprioritization. But what if you could utilize COVID-19 as an opportunity to transform your organization? To leverage low interest rates, reduced rents, tap into subsidies and available talent in the market?
A silver lining to COVID-19 is the chance to grow and out-compete by seizing the initiative. In this volatile environment, how do you enable your team to propose radical investment initiatives that may take advantage of these time-sensitive opportunities?
Key components of an effective investment management solution include:
- Digitalization to enable instant transmission of ideas and collaboration;
- Alignment of initiatives to strategic imperatives;
- Portfolio management with standardised metrics for effective comparison of risks, rewards and resourcing demands
- Integration with core systems for seamless operation from wishlist request to asset capitalisation
- Realtime Analytics of budget status from initial approval through project execution.
IQX CAPEX for SAP Fiori provides organizations running SAP with an end-to-end CAPEX management solution that is user-friendly and deeply integrated with their core financial system.
Reprioritizing Capital Investments
COVID-19 has provided an opportunity to slow down and rethink the priority of your CAPEX projects. To do this you need clear visibility of your planned project portfolio, and the nature and urgency of your planned investments. For many organizations, capital expenditure tracking and control is a labour intensive process with manual data synchronization between multiple spreadsheets and systems.
To reprioritize CAPEX projects effectively, executives require the flexibility to dynamically review and monitor investment proposals by a number of dimensions and with respect to inevitable funding, timing, and resource constraints. The most common dimensions for analyzing proposed investment initiatives include:
- Investment reason – Compliance, Environment Health and Safety, Replacement and Growth initiatives
- Cashflow profile – noting that many capital projects may be funded on a leasing or subscription pricing basis
- Economic Investment Measures – such as Return on Investment, Internal Rate of Return, and Payback period
- Resource demand and timing – to evaluate impact on staffing and other conflicting business events (eg plant shut-downs)
SAP customers are able to leverage the IQX CAPEX for SAP Fiori solution to digitally transform their Capital Investment Management processes. Adopting SAP as the planning and transactional platform, and Fiori as the end-user experience, you can accelerate and control the entire CAPEX process with intuitive web forms, approval workflow automation, supporting document management, bi-directional Excel integration, real-time analytics and seamless ERP system integration. With IQX OneList mobile approvals, your Executives are able to access, evaluate and approval urgent Capital Projects quickly and confidently. So whether your organization is expanding or consolidating, IQX puts you in control of your Capital Expenditure to maximize your return on investment.