Dive Brief:

• Customer-to-cash, or C2C, software applications from newer players in the market tend to deliver a higher return on investment when compared to their legacy counterparts, according to a recent study from the Hackett Group, a Miami-based management consulting firm.

• The newer players such as Esker and HighRadius enable organizations to apply customer payments faster and with greater accuracy, delivering an average of $107 million annually in additional operating cash for a typical $10 billion company, according to a 22-page report summarizing the findings. 

• Such companies are edging out big names like Oracle and SAP, according to the research.

Dive Insight:

The analysis comes as rising interest rates and growing concerns over a possible recession have elevated the importance of working capital management, the Hackett Group said.

In all, the consulting firm analyzed nine software providers, which collectively have invested more than $1 billion toward developing modern C2C receivables platforms over the last five years, according to the report.

“There’s major value being created by these firms,” Michel Janssen, the Hackett Group’s chief market intelligence officer, said in an interview. 

Esker, HighRadius and FIS Global ranked at the top, surpassing six industry peers: Billtrust, BlackLine, Cforia, Invevo, Sidetrade, and Quadient. Esker provided the greatest value realization of these companies, while HighRadius led on breadth of capabilities.

These newer C2C platforms — at varying levels — offer improved cash flow management and better customer and employee experience over legacy systems that were designed by companies like Oracle and SAP, with a 43% overall average performance advantage, according to the summary, which is available to the public on a complimentary basis, with registration.

It’s the first report in a series evaluating various types of enterprise software and services providers, according to Janssen. Subsequent reports, including one focused on “purchase-to-pay” applications and another on finance and accounting outsourcing providers, are expected to be released later this year, he said.

The Hackett Group conducted the C2C research using a proprietary benchmarking database, software performance data from customers, and interviews with both vendors and end users, according to a press release.

“Even among the modern platforms, there is a significant difference between solution providers in terms of their ability to deliver real value, cost reduction and business process improvement,” Bryan DeGraw, the Hackett Group’s global C2C practice leader, said in the release. 

“Three solution providers demonstrate powerful automation features such as advanced automation, AI, predictive analytics, strong analytical tools and exceptional user experience, which simply drove higher ROI, earning them the distinction of Digital World Class,” he said.