The finance department is always at the heart of digital transformation
Over the last few years, the role of the finance department has greatly expanded from a simple supplier of figures and legal statements to a key player in the organization, driving decision-making and analyzing all available data. New technologies are accompanying this movement, providing administrative and financial departments with tools that enable digital transformation with ever greater relevance. You will find this theme in our technological innovation file.
Strategy FINANCE
State of play of the digitalization of the finance function
Many digital transformation projects have already been launched in most companies. They aim to facilitate the automation of low value-added tasks, dematerialization and the invoice life cycle. Like other strategic and operational departments, the finance department must be equipped with tools to make data reliable and available.
Thus, administrative and financial directors now have the means to conduct a more detailed analysis of the evolution of the company’s profitability by integrating broader data such as the profitability of related markets and the regulatory impact on its figures. This will make decision-making much easier.
One of the major challenges of the digital transformation of finance functions is to secure and optimize the processes of ordering and receiving the amount due from the customer (” order to cash “). The same applies to the processing of purchases made from the company’s suppliers (” purchase to pay ” process) and their security. Investing in reliable and efficient tools will help strengthen the relationship of trust with customers and partners and thereby improve the company’s results.
Artificial Intelligence, Data Analytics… new tools and challenges
Artificial intelligence offers considerable opportunities for data processing and the development of data strategy. The rise in power of algorithms is likely to open up interesting prospects. Innovation in this field is crucial in a highly competitive market.
However, many companies still have difficulties in developing this potential. This is a major challenge that requires a significant change in the way management control is conceived. Only then will CFOs be able to participate in performance management, based on the predictive and prescriptive models provided to them.
The digital transformation will undoubtedly bring about significant changes in the financial services professions, whether for management or controllers. Some may fear that their jobs will be sacrificed on the altar of artificial intelligence. Others, on the other hand, may be frightened by the increased level of responsibility. The success of a digital transformation project is therefore a challenge that must be fully understood and accepted by all the company’s stakeholders.
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- Performance management: CFOs’ priority for 2020
- The finance department is always at the heart of digital transformation
- Risk management, cash management: what challenges for CFOs in 2020?