Digitalization of the capital expenditure (Capex) validation process can drive significant value for a company by streamlining the approval process, improving accuracy, and reducing costs.
Traditionally, the Capex validation process involves manual reviews, paper-based approvals, and a significant amount of back-and-forth communication between different departments. This can be a time-consuming adn error prone
Digitalization of the process, on the other hand, can automate many of these manual steps and provide real-time visibility into the status of each project. This can significantly reduce the time and effort required to validate and approve Capex project. A recent study from Deloitte showed that companies that fully digitalize the process can reduce the time spent on approvals (by up to 90%) and the cost of the process (up to -80% of administrative costs according to PWC). Indeed, by automating many of the manual steps involved in the approval process, companies can eliminate many of the costs associated with manual data entry, paper-based approvals, and other administrative tasks.
Additionally, digitalization can also provide improved communication and collaboration between different departments and stakeholders, helping to ensure that all necessary information is captured and that decisions can be made quickly while impriving data accuracy (50% error reduction according to Accenture)
Overall, digitalization of the Capex validation process can drive significant value for a company. By using digital tools and automation, companies can quickly and efficiently validate and approve important investments, allowing them to stay competitive in today's fast-paced business environment. With studies showing that companies can reduce time spent on approvals by up to 90%, reduce errors by up to 50%, and reduce administrative costs by up to 80%.