How the digital era is transforming the finance function
The digital era has become synonymous with transformation, and virtually every sector has had to adapt. The finance function of an organisation is in a constant state of transformation, becoming a vital part of its growth and sustainability.
These days, the finance function goes far beyond the typical control, planning and reporting of financial resources. It plays a strategic role in the development of the business and achieving its overall goals. Financial management not only supports the organisation’s key processes—it’s a real driver of growth.
Where finance and tech experts meet
Generally, the Chief Financial Officer (CFO) is responsible for managing the finances of an organisation. An integral part of the overall management, they work to optimise the company by improving efficiency, reducing costs, and proposing new strategies. They must be excellent decision-makers, rapidly responding to the ever-changing financial landscape—think volatile markets and complex regulatory environments in constant flux.
In this digital age, however, a solid understanding of finance is simply not enough. Companies must harness technology to tackle current issues and do so with a team of well-equipped professionals. Team members must have excellent analytical skills and be comfortable utilizing the latest technologies.
How do we approach digital transformation?
Digital or technological transformation is a process that occurs in various stages. Generally, it begins by evaluating the needs of the different departments. This is done by analysing current processes and measuring their efficiency, agility, and level of automation. These can be make-or-break factors when responding to customer needs.
As well as evaluating processes, there are other ways to become more efficient and reduce costs. For instance, defining the organisation’s financial model is essential. One example of this is a centralised model, favoured by banking institutions. Whichever route you choose, strategic decisions like these are paramount for running a successful business.
Once procedures have been analysed and a model is successfully established, it’s time to take a closer look at technological solutions that will transform your business. Enterprise resource planning (ERP) is a business process management software that is used to manage day-to-day business activities. SAP S/4HANA is recognised as one of the most advanced on the market.
More tech to transform your business
Nevertheless, that’s not enough. These days, organisations need to make the most of the latest technology, such as blockchain, machine learning and robotic process automation. Harnessing this tech allows them to develop their own solutions so they can gain competitive advantage. Both SAP S/4HANA and SAP’s other solutions are facilitating the way these organisations are run by offering the most disruptive technology currently available.
Which processes can be transformed?
There are many financial processes which can become more efficient thanks to digital transformation. Some of these are:
- Cash flow management: Tech solutions like blockchain can improve business performance by managing different payment methods, facilitating the transfer of payment and information to and from banking institutions, and accessing new financing options.
- Financial close optimisation: Artificial intelligence and machine learning offer us the chance to streamline financial close processes and bank reconciliation.
- Financial analysis: Thanks to big data, organisations can process large volumes of information with ease.
The final word
The implementation of ERP and other associated technologies will require organisations to count on the support of highly skilled employees and strategic partners such as specialised tech companies. It’s vital that these tech partners support users of the business and its systems with high value-added services like change management, strategic project management office (PMO), and quality control.
NTT DATA supports organisations during each stage of the digital transformation process, becoming not just a service provider, but a true strategic partner.
