# Understanding the different levels of maturity in travel and expense management
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-19
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Why Businesses Need Digital Transformation for T&E
Meta Description: Discover how investing in digital travel and expense management solutions can enhance productivity and reduce errors for your organisation in the long run.
URL: https://financedigest.com/understanding-the-different-levels-of-maturity-in-travel-and-expense-managementhtml

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_By_ **_Ryan Demaray,_** _SMB EMEA MD at_ [_SAP Concur UK_](https://protect-eu.mimecast.com/s/KkalCPjqXSvA50qtrFo2h?domain=concur.co.uk/)

Digital transformation is no new phenomenon and even before the pandemic, many organisations had long term digital transformation strategies in place. However, having to face a unique crisis like never before, businesses were now forced to rethink the way they work with technology to better accommodate hybrid and remote working models within their organisation.

Many were now scrambling to digitize their operations as solutions that facilitated the processes and challenges of the here and now had to be prioritised over tech that would provide additional efficiency further down the line.

However, these solutions or [quick fixes](https://www.financedigest.com/eu-demands-quick-fix-from-u-s-of-green-subsidy-law.html "EU demands quick fix from U.S. of green subsidy law") were found to be somewhat ineffective in the long-run. In fact, [according to the latest report](https://www.financedigest.com/louisiana-floods-to-cost-us-economy-more-than-10bn-according-to-aon-catastrophe-report.html "Louisiana floods to cost US economy more than bn, according to Aon catastrophe report") from SAP Concur titled “The Hidden Potential of VAT reclaim”, it was found that 40% of those companies surveyed reported an increase in errors, especially when it came to expense and invoice submission and processing.

Now more than ever before, as the [global economic growth is expected to decelerate over the next two years](https://www.worldbank.org/en/news/press-release/2022/01/11/global-recovery-economics-debt-commodity-inequality), business leaders are constantly under pressure to reduce costs and optimise the business’ performance across its entire organisational value chain.

And this includes making the necessary improvements and adjustments to the existing travel and expense (T&E) management processes to avoid similar situations in the future and [investing in better tech to accommodate recent trends](https://www.financedigest.com/investing-trends-and-projections-for-2023.html "Investing Trends and Projections for 2023") such as hybrid working scenarios.

**Considerations for implementing** [digital T&E solutions](https://www.financedigest.com/carta-teams-up-with-vauban-to-launch-the-first-digital-solution-aimed-at-venture-capital-investors-creating-luxembourg-based-funds.html "Carta teams up with Vauban to launch the first digital solution aimed at venture capital investors creating Luxembourg-based funds")

According to IDC insights, 53% of [businesses are planning](https://www.financedigest.com/hyperspectral-imaging-system-market-know-latest-trends-forecast-for-long-term-business-planning-up-to-2026.html "Hyperspectral Imaging System Market – Know Latest Trends & Forecast for Long-term Business Planning up to 2026") to increase their spend on finance-related technology. However, with their bottom line in mind, business leaders need to make sure they’re funnelling their [investments](https://www.financedigest.com/why-investing-in-employee-health-can-be-good-for-business.html "Why investing in employee health can be good for business") into areas that make sense for their business as implementing a highly sophisticated solution prematurely might not be necessary for everyone.

Here are three things to consider when looking at the technologies that are appropriate for each stage of your [business’s digital travel](https://www.financedigest.com/5-business-ideas-influencing-the-travel-industry.html "5 business ideas influencing the travel industry") and expense management maturity process –

**Maintaining legacy applications** – Although extensively relying on obsolete technology or aging applications are known to cause [security issues and financial](https://www.financedigest.com/5-steps-to-strengthening-your-online-financial-security.html "5 Steps to Strengthening Your Online Financial Security") damage in the long run, organisations are often reluctant or nervous about adopting new applications as they fear this might bring about disruptions to their current business processes.

In fact, according to IDC’s 2020 SaaSPath Survey, over 40% of the [businesses involved in the study admitted to relying on outdated applications including Excel](https://www.financedigest.com/the-ultimate-excel-sales-tracking-templates-for-businesses.html "The Ultimate Excel Sales Tracking Templates For Businesses") sheets and other solutions with long update cycles for travel and expense management.

Even if businesses choose to stay with legacy [systems to avoid additional financial](https://www.financedigest.com/why-a-rules-management-system-can-untie-financial-services-hands.html "Why a rules management system can untie financial services’ hands") outlay, many end up spending more in terms of maintenance. Organisations might also encounter additional non-financial costs in terms of lower productivity, lack of vendor support and [security breaches](https://www.financedigest.com/transport-operator-go-ahead-flags-cyber-security-breach.html "Transport operator Go-Ahead flags cyber security breach"). Overtime, as technology rapidly progresses and businesses continue to adopt innovative systems, the existing [legacy system](https://www.financedigest.com/retailers-weighed-down-by-their-own-legacy-systems-survey-reveals.html "Retailers Weighed Down by their own Legacy Systems, survey reveals") can become incompatible with the newer applications.

In order to [overcome some of these challenges](https://www.financedigest.com/5-challenges-to-overcome-in-governance-risk-and-compliance-magazine.html "5 Challenges to Overcome in Governance, Risk and Compliance-Magazine") associated with legacy applications, businesses should now look into managing their workflows more effectively by automating tasks to reduce human errors in data entry and to prevent employees from manipulating system vulnerabilities so as to validate out-of-policy expenses and other transactions.

**[Automated point solutions and connected platform](https://www.financedigest.com/banking-on-snow-automation-platform-for-success.html "Banking on Snow Automation Platform for Success") ecosystems**

With automated point solutions [businesses can track](https://www.financedigest.com/5-fx-metrics-your-business-should-be-tracking.html "5 FX METRICS YOUR BUSINESS SHOULD BE TRACKING") employee’s spending behaviour, save considerable time, and improve the overall accuracy of the whole expense management process.

While traditional expense [management involves using spreadsheet](https://www.financedigest.com/goodbye-excel-spreadsheets-hello-performance-management-tools.html "Goodbye excel spreadsheets, hello performance management tools") and paper-based systems to report and process reports, automated expense management systems use rule-based patterns for travel and expense processes. This essentially reduces errors, [prevents employees from committing expense fraud](https://www.financedigest.com/payroll-fraud-and-how-to-prevent-it.html "Payroll fraud and how to prevent it") and improves the efficiency of the overall reimbursement process.

To further enhance their automation efforts, [businesses should consider](https://www.financedigest.com/pizza-firm-dp-eurasia-considers-divestment-of-russian-business.html "Pizza firm DP Eurasia considers divestment of Russian business") making use of a connected platform ecosystem that can help connect various financial applications, which in turn provides a more accurate view of expenses and minimises the risk of inaccurate claims being accepted.

Having a connected platform ecosystem, within your travel and expense operations, enables back-office point solutions to connect to a [system of record](https://www.financedigest.com/market-for-tire-pressure-monitoring-systems-market-to-record-significant-incremental-dollar-opportunity-through-2026.html "Market for Tire Pressure Monitoring Systems Market to Record Significant Incremental Dollar Opportunity Through 2026"), third-party applications, and external data sources. This establishes one consistent view of travel and expense, which enables everyone in the organisation to be on the same page when collaborating. And to take these advantages even further, [businesses should consider integrating application suites and deploying intelligent prediction processes](https://www.financedigest.com/automating-business-processes-is-essential-to-digital-transformation.html "Automating business processes is essential to digital transformation").

**[Application suites and intelligent prediction](https://www.financedigest.com/transportation-predictive-analytics-and-simulation-market-2021-by-global-key-players-types-applications-countries-industry-size-and-forecast-to-2027.html "Transportation Predictive Analytics And Simulation Market 2021 by Global Key Players, Types, Applications, Countries, Industry Size and Forecast to 2027") processes**

With integrated application suites that connects [business apps](https://www.financedigest.com/why-mobile-apps-are-crucial-for-a-successful-business.html "Why Mobile Apps are Crucial for a Successful Business") with budget tracking and pre-approval processes, businesses can not only accelerate the connectivity of their business processes but also innovate their operations to respond faster to employees and partners with real-time processing.

As businesses continue to [face unexpected demands and challenges](https://www.financedigest.com/under-saved-and-underprepared-women-face-challenges-saving-for-retirement.html "UNDER-SAVED AND UNDERPREPARED: WOMEN FACE CHALLENGES SAVING FOR RETIREMENT"), these integrated application suites can help organisations to optimise and streamline end-to-end employment spend management processes and proactively control their spending rather than just responding to it when it has already occurred. This makes it easier for [CFOs and other financial decision makers to have a complete view of the company’s balance](https://www.financedigest.com/managing-corporate-currency-risk-the-cfos-balancing-act.html "Managing Corporate Currency Risk: The CFO’s Balancing Act") sheets make strategic decisions more efficiently.

Once apps are integrated across various [business application landscapes, businesses should then look into implementing intelligent prediction processes which can help further accelerate business performance](https://www.financedigest.com/how-business-owners-can-improve-their-operational-and-financial-performance-through-contactless-and-card-payments.html "How Business Owners can Improve their Operational and Financial Performance through Contactless and Card Payments").

Due to increased data volumes, the task of spend [management continues](https://www.financedigest.com/uk-to-manage-water-resources-carefully-as-drought-continues.html "UK to manage water resources carefully as drought continues") to expand in scope and complexity. With the help of intelligent prediction processes, businesses are now capable of working at optimal efficiency as these processes continue to support emerging innovative technologies including virtual assistants, T&E planning/ budgeting as well as AI-based [fraud protection](https://www.financedigest.com/protect-your-organisation-from-fraud.html "Protect your organisation from fraud").

**Evolving towards better expense management processes**

Although becoming a business that has intelligent and predictive processes should be the ultimate goal, it’s an option to [move towards](https://www.financedigest.com/investment-advice-moving-towards-a-new-model.html "Investment advice – moving towards a new model") this rather than try and transform completely overnight.

Hence, rather than steaming [ahead and implementing](https://www.financedigest.com/eu-sees-more-work-ahead-to-implement-russian-oil-price-cap.html "EU sees more work ahead to implement Russian oil price cap") intelligent prediction processes, it makes sense to audit where the business currently sits in its journey. What may work for a business at the connected platform ecosystem stage may not make sense for a business that is [operating](https://www.financedigest.com/2021-predictions-operational-resilience-takes-center-stage.html "2021 Predictions: Operational Resilience Takes Center Stage") at the legacy systems stage.

Overall, by constantly and iteratively implementing solutions and connecting all sources of travel and expenses across the entire enterprise, [businesses can gain full visibility of each item of spend and can establish manageable](https://www.financedigest.com/finance-management-for-small-business.html "Finance management for small business") expense management solutions. This can enable businesses to make better strategic decisions around travel and [expense management](https://www.financedigest.com/5-practical-ways-to-manage-your-business-expenses.html "5 Practical Ways To Manage Your Business Expenses") and to keep up with the pace of change within the business environment.


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