To maximize process efficiency, reporting tools should be integrated with processes and able to handle the massive amounts of data that express the details of days, weeks, and years of activity. New research sheds light on the key pillars of finance digital transformation… How Finance-as-a-Service Helps CFOs Accelerate Transformation of the Finance Function Does the on-demand model work for the finance function? Oliver Wyman’s regular offering on the latest digital topics. As digital architects and strategic enablers, now is the time for CFOs to not only digitize the finance function but to also lead the enterprise through digital transformation. All rights reserved. How digital transformation is changing the demands on finance talent What CFOs can do today to improve their longer-term digital transformation efforts Finance leaders know they must enable digital transformation across their organizations. As McKinsey & Company points out in a recent article, “Today’s CEOs and boards say they want CFOs and the finance function to provide real-time, data-enabled decision support. At its best, finance reporting fosters creativity by constructing a plane of visibility across accounting processes, letting analysts drill down to real-time answers to questions that previous generations may not have even known to ask. Digital – the buzzword used or over-used for quite some time now, brings in a huge impact on the financial & banking industry. The question for the CFO is how to make meaningful progress in finance transformation. If you’re quite happy with the way you currently work, you may not see a need for finance function transformation. With BlackLine, Account Reconciliations is likely the first step to gain experience with automation, followed by Task Management, Variance Analysis, Transaction Matching, and Automated Journal Entry. In our survey, 60% of the finance executives said they will devote at least 20% of their finance budgets to digitally transforming the function. In Operations, for instance, CFOs are partnering with IT to evaluate the costs of new technologies against performance and risk metrics. Designing “best-in-class” processes that call for efficient business functioning 4. However, we rarely discuss why Accounting and Finance is the most appropriate group to lead an organization’s transformation initiatives. Chris focuses on the shift toward digital transformation in accounting and finance, shows you what good looks like, then helps to get you there! The growth of digital business is already reshaping the talent marketplace, far beyond finance. The Non-Performing Loans Jigsaw: Pieces Starting To Fit? ... Benefits envisaged from Finance Transformation.. Copyright © BlackLine 2020. Digital transformation has assisted in automating monotonous tasks, management of compliance and accounting & operations functions which include accounts, reports & analysis. Designing “best-in-class” processes that call for efficient business functioning 4. Emmanuelle Muller-Schrapp, finance and IT transformation partner at Grant Thornton France, agrees. Typical external drivers for F&A transformation tend to be regulatory burdens, shifting competitive dynamics, evolving business climate and increasing expectations from the finance and accounting functions. The digital foundation consists of strategy, organization, people, technology, and data perspectives, all equally essential elements in the digital transformation of the finance function. Finance Function Drives Digital Transformation at Schott AG November 9, 2020 by Sebastian Hellman Headquartered in Germany with facilities all around the world, Schott AG is a leading manufacturer of specialty glass products. Tags This interview is taken from an episode of the Spend Culture Stories podcast. The inverted pyramid characterizes true business transformation and enables decisions making for CFOs in a dynamic environment. Digital transformation in finance can be of great value to a business, because it offers the ability to automate back-office functions like payables and receivables, thus allowing finance leaders to focus on business strategy and how the data can be used to drive customer experience and profitability. Combined, … To help transform your finance function, take a look at AccountsIQ. Digital technologies are changing the finance function profession, now increasingly less focused on posting accounting entries and producing dashboards, and more focused on analysis. Today's CFO function must be able to drive digital transformation and contribute to the change of an organizanization. This is just a fragment of the bigger picture. This is critically important today because of the new technology investments demanded by digital transformation. Every accountant, auditor, controller, and CFO knows that the key to finance transformation lies in process automation. Why does it matter? More than ever, top executives realize the value of risk awareness in maintaining trust among customers, shareholders, and other ecosystem partners. Right now, it’s all about the new digital technologies that businesses are adopting to improve productivity and quality in their work, such as AI and machine learning. This includes bringing process automation knowledge—as well as vital data—to groups outside of Finance. As analytics become more advanced, Accounting, Finance, and the CFO will find a variety of new ways to help the enterprise’s business functions. To lead the transformation, you need to be future-ready. As FSN Publishing CEO Gary Simon says, “The current vogue for customer-centricity and the demands of social media marketing have fostered a more data-driven marketing approach in which vast amounts of information are gathered about every social and customer interaction, in order to drive a more customer-centric approach.”, One example of data-driven marketing is in consumer goods, according to a recent article by McKinsey: “Rather than wait for reports, sales staff can use visual dashboards… to get the data they need when they need it—by region, business unit, function, or other parameters as required. Software as a service (Saas), … We are one of the FORTUNE 100 best companies in the world to work for, Download Oliver Wyman Ideas App Our latest insights on your mobile device, Digital Transformation Of The Finance Function. Banks can remodel their trade finance functions through digital transformation, to match the needs of global trade now and beyond. Drawing on digital tools and their many benefits, CFOs can transform the finance function and add more value to the business, all while balancing performance, efficiency, and risk. The CFO function faces changing requirements created by digitalization. The impact of COVID-19 will continue to be felt for months to come, so it’s important to rethink processes and invest in finance digital transformation to enable your business to respond to challenges in the best way possible. By redefining its value contribution and self-perception, finance can seize the opportunities that digitalization offers to develop into a digital driver that shapes the digital landscape of the entire organization. Our Expertise Insights Digital Transformation Of The Finance Function. Why? Per Juul Poulsen: "Money has become digital and with it, all functions managing funds are expected to know more about digital … Read our latest issue of BlackLine Quarterly for more stories like this, and to learn how to make meaningful progress in your organization’s finance transformation. How the finance function remains relevant in the new world of big data and analytics. This point of view is aimed at finance executives, wishing to pursue the second avenue. Through an intelligent finance operating model, CFOs can help transform the finance function; moving from transactional and reactive to proactive and strategic. Maintaining financial system stability by accommodating digital technology has become crucial. The three elements of successful digital transformation. The CFO function faces changing requirements created by digitalization. • should align all support functions around Big data and data analytics; • Outsourcing and offshoring; • Compliance. Applying these fundamentals is a positive step forward, and more CFOs are taking that step every day. Finance—and the rest of the company—is operating in the real world of profit, loss, and global competition. Digital Finance is made possible by a series of rapidly converging technologies and business trends, each of which has the potential to significantly impact the traditional finance function. It’s disquieting because it demands seemingly unlimited investment, without guaranteeing immediate returns. Digital transformation is necessary. Oliver Wyman Ideas offers our most recent insights on issues of importance to senior business leaders. Tags appeared-first better-inform climate demanding finance finance-teams find-out-how forefront leaders-ensure technology these-critical. Chris is the founder and MD of GenerationCFO.com and creator of the Digital Finance Function Model and a contributor to many articles on our platform. Learn from experience. Responses were reviewed from telecommunications, technology, financial services, the public sector, manufacturing, retail, energy, chemical, and oil and gas industries. How BlackLine Enhances SAP With Balance Sheet Substantiation, Read our latest issue of BlackLine Quarterly. According to … What does digital transformation look like in 2019? These and other processes share a unified platform to gain consistent, end-to-end views of data for root cause analysis and other investigative techniques. DIGITAL TRANSFORMATION IN FINANCE FUNCTIONS ASEAN AND UK PERSPECTIVES 4 The interviews were structured in a consistent way and this report reflects these conversations. A finance function that is strong in business partnering, so that it supports the consolidation and growth phase, while carrying on compliance and control functions 3. Accounting and finance teams operate in the real world of profit, loss, and global competition-in short, they deal with measurable results which are critical to digital transformation. Accordingly, the finance target operating model has to be reviewed. Chris is the founder and MD of GenerationCFO.com and creator of the Digital Finance Function Model and a contributor to many articles on our platform. … The finance function is rapidly evolving in response to changing demand, regulatory pressure and emerging trends. Digital transformation: The CFO’s role With their role sitting at the center of the strategic-planning process and financial disciplines, CFOs are well positioned to become critical drivers of digital transformation. Just as manufacturing and services organizations have adopted the phrase Industry 4.0 to describe the digitalization of market sectors, businesses need to be prepared for the digital transformation of the finance function, or Finance 4.0. Digital transformation has assisted in automating monotonous tasks, management of compliance and accounting & operations functions which include accounts, reports & analysis. “Out-of-the-box solutions are key to enhancing finance transformation. … DIGITAL TRANSFORMATION IN FINANCE FUNCTIONS ASEAN AND UK PERSPECTIVES 4 The interviews were structured in a consistent way and this report reflects these conversations. Opportunities abound. “To be successful, business transformations Source: IFS World However, in this new age of digital transformation and the role of the CFO (or outsourced CFO) needs to be understood with greater depth, as they now act as a key driver of digital transformation.The finance function … The authors offer practical insights and actionable steps on how finance can become the digital driver of an organization. The Mood Is Good In Europe For Restructuring - But A Crisis May Come Unexpectedly, The Dawn of a New Era in Corporate Restructuring, New Alliances to Turn Around Non-Performing Loans. BearingPoint conducted a study to understand where European companies stand in the digital transformation of the CFO function. The first two sections focus on the big picture and how the digital transformation of finance functions can deliver benefits to … Make the move to business partnering Successful digital transformation requires professional accountants to spend less time doing accounting and finance processes and more time working closely with business functions to … The concept is so intriguing because it promises unprecedented levels of visibility and control by digitizing everything from operations to customer services. “Indeed,” says McKinsey, “Every CFO should explicitly define the leadership role he or she wants to play in translating burning business questions into use cases for advanced analytics: whether to optimize pricing, identify customer churn, prevent fraud, manage talent, or explore a host of other applications.”. Digitalization or Digital transformation is nothing but the restyling of financial services. Talent essentials for digital transformation. There are many internal factors and external trends that make a Finance Transformation a strategic imperative. Read on to discover how integrating accounting software with other systems is leading to a revolutionary digital transformation of the finance function. Sales managers pull the data from a central repository that is continually refreshed, so they can get an accurate read on how demand is changing.”. Software as a service (Saas), for example, is carrying many hopes with its quick set-up and scalable cost. Datamatics Business Solutions’ inverted finance model allows CFOs to shift from cost/transaction based finance function to an outcome based function in this digital age. The first two sections focus on the big picture and how the digital transformation of finance functions … The key is … Global Digital Transformation in Banking and Finance Market Research Report 2020 . opportunities that digitalization offers to develop into a digital driver that shapes the digital landscape of the entire organization. Amid all the uncertainty surrounding digital transformation, one fact is clear: Accounting and Finance is the most appropriate group to lead the way forward for the business as a whole. But we have to get over it.”. Digital transformation of Finance functions has become a major challenge for organizations of all kinds. APQC conducts ongoing research on the finance function to help organizations benchmark and assess the performance of their own finance functions against other organizations both inside and outside their industry. ... Benefits envisaged from Finance Transformation.. Digital innovations are causing major disruptions at many established companies and forcing all aspects of an organisation to modernise quickly or face being left behind. "In your opinion, with the digital transformation, what do you think the finance function will look like by 2030?" Chris focuses on the shift toward digital transformation in accounting and finance… But of course, that is the ideal scenario. Why? Finance Automater and Analyzer. As is consistency of measurement. Explore other reports and guides in our Finance in a Digital World TM “Crunch time” series, and read case studies about digital transformation in the finance function. Equally important, CFOs are increasingly bringing data-driven risk management awareness to strategic planning at the CEO and board levels to inform decisions ranging from entering new markets to planning new facilities. In 2020, the pandemic crisis and the digitisation are spearheading a transformation of the CFO role at a pace never quite seen before, together with a shift in mindset that finance is solely a business support function. Matt Schwenderman, principal global Workday finance lead at Deloitte, and Scott Van Valkenburgh, global alliances and channels lead at Genpact, share how Finance-as-a-Service helps CFOs accelerate digital finance transformation. Critically, managing digital transformation is about preparing for the future; laying the foundations for a successful tomorrow, positioning an organisation to take advantage of any … To adopt a holistic stance to its digital transformation framework and develop a unique, overarching digital strategy, the bank scrutinized each layer of its finance function, from cost and control to customer experience, to deliver maximum value across the transformation program. Despite many improvements, progress in reducing the non-performing loans (NPLs) from the financial crisis has been notably slower in Europe than in the US and Japan. Finance 2025: Digital transformation in finance Our eight predictions about digital technology for CFOs Coming off the success of our previous “Crunch time” reports, we’re now looking towards the future with eight predictions for the finance function … Read the original here: Reinventing the finance function through digital transformation. The question is no longer if, but how, to automate. By redefining its value contribution and self-perception, finance can seize the opportunities that digitalization … Accounting professionals wrestle with this every day, and the daily influx of new solutions populating the automation landscape isn’t helping. Under the latter scenario, the finance function combines operational and financial data (big data) and uses advanced analytics and AI to enhance business decisions … Learning what functions to look for can be daunting, but the fundamentals of best-practice automation are straightforward. Another point to add into the mix here is that many organisations find it easier to start digital transformation with finance and administrative processes, such as … From the advent of advanced artificial intelligence to cloud computing and blockchain, the finance function is ready for transformation. Digitalization also reduces the possibility of cyber risks and minimize errors that occur due to the execution of robust strategies. Finance digital transformation is the implementation and use of digital technologies to improve the efficiency, insight, and agility of finance teams. Digital disruption is driving radical transformation of the finance function. The Finance function can increase labour productivity by up to 65%.Much of this gain can be achieved through process optimisation and standardisation orchestrated on digital transformation … AI, blockchain and advanced data analytics are challenging the relevance of traditional skills while creating transformative opportunities for organisations and individuals. Digitalization also … The digital finance framework brings together operations, insights and analytics, systems and ... “Digital transformation in Finance … Even without digital transformation, organizations can grow and change very quickly. Million-row reports are possible today, so there’s more danger than ever in shipping data to a separate reporting application, and back again to analyze the results. Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati spoke at length on the digital transformation … Driven by the accelerating digitalization, the finance function faces the risk of being reduced to an efficiency-first support role. But the greatest opportunities for future finance partnerships may lie in marketing-related initiatives with enterprise business units. Driven by the accelerating digitalization, the finance function faces the risk of being reduced to an efficiency-first support role. Finance digital transformation is the implementation and use of digital technologies to improve the efficiency, insight, and agility of finance teams. Amid all the uncertainty surrounding digital transformation, one fact is clear: Accounting and Finance is the most appropriate group to lead the way forward for the business as a whole. By redefining its value contribution and self-perception, finance can seize the opportunities that digitalization offers to develop into a digital driver that shapes the digital landscape of the entire organization. “Out-of-the-box solutions are key to enhancing finance transformation. Emmanuelle Muller-Schrapp, finance and IT transformation partner at Grant Thornton France, agrees. Finally, the fourth role CFOs can play in digital transformation is in transforming their own department. change and become drivers of the digital transformation themselves across the organization. Generally, Finance Transformation is the combination of Technology, Business Process Automation, Performance Management & Data Analytics which can help in achieving the overall … Lead the transformation, you need to be reviewed align all support functions around Big data and analytics! 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