Technology Reseller v35

01732 759725 22 COVER STORY Digitalisation, Generational change and Business Value David McCoubrie, Head of Technology Finance at Siemens Financial Services, UK Coronavirus highlights the digital imperative As we enter a new year, it seems a timely moment to reflect on the business challenges that the Tech sector has faced and will continue to face as the year progresses. Clearly, there has been a huge boom in remote working services and the technology to support this change. At the same time, everyone in the industry is keenly watching how, or whether, global supply chains right themselves. Much equipment and many components are manufactured in the Far East, and supply chains have seen major disruption over the last few months 1 . Some OEMs are openly talking about supply chain reform and nearshoring their manufacturing operations 2 . This is not just a matter of new business supply, but also of delivering reliable and dependable maintenance and service levels. Keeping the sales pipeline alive It is not, however, existing client service which is the most immediate headache. The primary concern is that sales pipelines have stuttered badly because of caution and lack of confidence on the part of the end customer. Systems, equipment, solutions sales have all seen a slowdown (at the least). But there is evidence that businesses who have already digitalised their operations and sales processes have coped better than those who had not reached this point 3 . In fact, some areas of technology are seeing a mini boom – counter-intuitively. Software is making a major contribution to the remote working, with meeting apps, version control, CRM, automated research, and many other applications making remote interactions as effective and ‘natural’ as possible. Security software is also popular, as usage of data exchange and hosting in the cloud booms and organisations seek to protect their information and IP. Nor is this simply an issue for today and the present crisis. We are constantly hearing from our Tech vendor partners that digitalisation is a strategic priority as generation shift moves from baby- boomers and Gen X, to Millennials and Gen Z. These digital natives are increasingly both the customer and the upcoming supply-side sales generation. So, slick digital-first operations provide convenience and capability that helps to close sales (customer demands), and helps to attract the best talent (vendor sales requirements). Integrated Financing Our proposal process enables a seamless, fast and efficient process to submit and manage your proposals using powerful APIs. This reduces duplication, time, admin and potential costs. Join the many other companies applying this technology today and make financing easier with SFS. Digital finance – a case in point As the preferred financing partner for over 300 Tech vendors in the UK, our own experience through the pandemic crisis provides a case in point. Now, more than ever, the value of financial services can be seen, supporting business continuity in the Technology sector despite the COVID-19 crisis. As businesses work their way through the current market difficulties, financing is helping to reduce costs, conserve cash and preserve precious capital reserves which are proving so vital to commercial survival. Financing options offer fixed payments and terms which reduces budget uncertainty in a volatile period. At the same time, however, the fact that we have digitalised our business is also proving its worth, supporting our vendor partners. We have been able to deliver continuity for credit decisions, transaction processing and payments, all because they can be done digitally and remotely. Our digital tools offer 24-hour access, automated credit decisions, e-signature capabilities, e-payments, everything needed to keep business going and beat the threat of disruption. The e-signature document flow means contracts are digitally signed within hours, rather than days or weeks – and that is the case no matter where a vendor is located. Digital credit capabilities mean that the salesforce has access to these tools wherever they are – at home, in the office, or through mobile whilst on the move. The business outcome of speedier, easier finance 1 McKinsey, Coronavirus and technology supply chains, 1 Apr 2020 2 HSS, Nearshoring trend ramps up suggests Gartner survey, 25 Jun 2020 3 McKinsey, The B2B digital inflection point, 30 Apr 2020