Like many organisations worldwide, companies with operations in Australia and New Zealand face the critical challenge of keeping pace with technological advancements and evolving business models, including changes to travel and expense (T&E) practices. Recent research by SAP Insights reveals a concerning trend: a significant portion of organisations (32 per cent globally) express dissatisfaction with their ability to keep current with technology, invest in new equipment, and enhance automation levels. (1)
A reluctance to move away from established business structures further compounds this problem. According to the same research, 40 per cent of executive leaders worldwide identify the difficulty of letting go of existing business models as a primary barrier to innovation. SAP Concur suggests that this resistance to change exposes companies in Australian and New Zealand to substantial risks, especially in T&E management.
Jonathan Beeby, managing director, SAP Concur Australia and New Zealand said, “Not modernising T&E practices could lead to inefficiencies, increased costs, non-compliance with evolving regulatory frameworks, and a potential loss of competitive edge in a global market. Ultimately, organisations must adapt and innovate their T&E practices not just to stay current but as a crucial step towards ensuring long-term resilience and success.”
Fabian Calle, managing director, small and medium business, SAP Concur Australia and New Zealand said, “While some businesses show reluctant change, important lessons emerge from companies that have already revolutionised their T&E management leading to success and greater organisational resilience. Importantly, resilient businesses share three characteristics that others should strive to achieve, including their use of intelligent technologies, openness to innovation, and willingness to adapt and change.”
The use of intelligent technologies and automation drives growth in the competitive modern market landscape. In T&E management, this translates into more effective finance management. Automation and artificial intelligence (AI)-enabled solutions streamline processes, reducing the risk of human error and ensuring compliance. This is especially useful in industries where staff members are frequently on the move, as it guarantees the accuracy and efficiency of expense claims and invoice submissions. By adopting these technologies, executive leaders can maintain a clear understanding of their financial situation, avoiding unforeseen penalties due to procedural lapses.
Another hallmark of resilient companies is their openness to innovation. In the T&E sector, AI has revolutionised operations, especially in areas relating to value-added tax (VAT). These regulations, such as the goods and services tax (GST) in Australia and New Zealand, vary across jurisdictions and often suffer from incomplete or incorrect documentation, making them complex to manage. However, AI’s capability to aggregate and analyse new regulations, scrutinise documents, and streamline workflows significantly enhances VAT recovery processes. By integrating these tools, organisations can more effectively navigate international tax regulations to ensure compliance and maximise financial returns.
Willingness to change and adapt processes is also essential, and a key factor to the resilience of successful companies. This is evident in the shift towards environmentally friendly business travel practices as, although many organisations aspire to sustainability, the path to achieving it can be unclear. Intelligent T&E solutions support this journey, providing workers with essential information during the booking process to make sustainable choices and empowering managers to optimise travel programs through advanced reporting and analysis.
Jonathan Beeby said, “Each of these traits contributes to more resilient companies; however, they also lead to improved forecasting and decision-making in T&E management. Having access to the latest data lets T&E teams make more informed decisions and align their strategies with business values and traveller preferences. Organisations that exhibit these traits often experience significant revenue growth.”
Effective T&E management hinges on clear oversight of data, and tracking spending without appropriate tools presents a formidable challenge, as T&E managers grapple with disparate data sources. Companies that facilitate easy access to data by prioritising smart technology investments are best positioned to address current and future challenges. Policies should also be realistic and adaptable, while accounting for diverse employee needs. This means that addressing skills shortages and preparing staff members for advanced technologies is crucial, and organisations that are proactive in training and communicating changes to their workers find their teams more ready to embrace new technologies and workflows.
Fabian Calle said, “By prioritising data accessibility, improving technology, and adopting smart business processes, T&E managers can navigate turbulent times more effectively. There has never been a better time for companies to start adopting a future-ready approach, ensuring their resilience in the face of ever-evolving challenges and opportunities.”
