2. Don’t forget deal desk operations.
Another capability of critical importance to tech companies looking to improve QTC metrics is incorporating cash impact in deal desk operations. In a subscription-based revenue model, the deal desk must understand and price commercial arrangements that are the most advantageous to the business, including those with end-user fluctuations. But, quoting systems typically need software upgrades to include contracts with variable pricing based on the number of end users.
Within a matter of weeks, the EY-Parthenon team identified QTC improvements, including deal desk opportunities at a PE client’s global software portfolio company. This was accomplished through a current state and gap analysis, identifying clear deal acceptance criteria and processes, and the creation of a metrics dashboard. Cross-functional involvement can help confirm that agreed-to deals are in line with business objectives and downstream capabilities, such as billing.
3. Improve procurement and payment processes.
For tech companies looking to improve working capital performance, many relevant procure-to-pay strategies can be deployed. These can include accounts payable (AP) process improvements, industry-acceptable vendor payment terms and tech-based supply chain financing programs that link the parties in a transaction, lower costs and improve efficiency.