Finance organizations are experiencing the first impacts of what will be a massive change in the way they work as the world transitions to the digital economy. The result will be a tremendous positive change in the way finance performs its function.
Finance leadership should be spending a lot more time in business value creation, driving business strategy rather than providing inputs based on historical numbers. Finance is expected to become the knowledge hub of the organization, not only reporting but also simulating outcomes and predicting results. In fact, according to a global survey of 1,500 finance executives conducted by Oxford Economics and SAP, 88% of respondents report that the CFOs in their organizations are becoming more involved in strategic decision-making outside of finance.
Looking at the corporate finance function specifically, here is how we see the different functions evolving:
The decisions you make today will ripple through the entire organization. Real-time insight into performance will lead to better planning and management. Solution agility will enable quick integration of acquisitions. Efficient, flexible analytics will allow for performance improvement across the organization. And new processes will fundamentally change your organizational skills profile.
Key questions that need answers include: Will you be able to adapt to new-generation competition and grow the business? Do you have the right information at the point of decision (within business context)? How can you move from legacy processes to continuous business-model innovation while also proactively managing risk?
Refer to this white paper to start a discussion with your team around finance transformation.