Digital Finance Transformation CFOs Guide

A great way to improve your company’s data collection is by digitally transforming your external operations, website, and social media to captivate as much data as possible from your target demographic. The external digital transformation process usually manifests itself as an interactive website or a social media presence. The point of this step is to get people to interact with your business on a new, digital medium – opening up the doors to a brand new, buzzing, and well-populated market. The internal changes will be the way that your company and all of its employees work and interact within the enterprise on a day-to-day basis.

Financial services providers must follow digital transformation trends and adapt their services to the future of technology. Many financial services institutions have already begun their digital transformations, but more work still needs to be done. To remain competitive in the future, financial service companies need to develop an excellent digital transformation strategy that encompasses all aspects of the customer experience. The benefits of digital transformation for the financial services industry are clear.

Accounting and Finance Digital Transformation Use Cases

Moreover, cloud functionality makes for 24/7 remote and online accessibility by all authorized personnel. This will mean that the progress of financial tasks, be it close or O2C or S2P, can all be remotely monitored independent of location. Finance teams and businesses should look to SaaS solutions, cloud migration, and other innovative technology to aid in their digital transformation. As the movement toward digitalization expands, so will the various offerings targeting the finance function. As a whole, digital transformation is an umbrella term that describes any efforts of a business to utilize digital technology to improve or amend current operations.

• Instead, open up the lines of communication with employees throughout the process while providing a clear vision of expectations across the company.
• Cloud computing can be used to improve the customer experience by providing access to financial information and services through cloud-based apps or websites.
• Our accounting and reporting solutions are underpinned by state-of-the-art digital enablers, such as EY DigiFAAS, EY LAN and EY Policy Sphere, to significantly enhance the efficiencies of finance and accounting teams and ensure better compliance.
• Strong algorithms ensure that data is not just processed but validated as well.
• Moreover, cloud migration can save around 15% on all IT spending, and small to medium-sized businesses can save up to 36%.

Just as your software becomes obsolete if you don’t update it regularly, creating and maintaining a digital business model is fluid, so be sure to adapt and scale your model as needed. Regardless of your choice, introducing communication tools, time tracking, and workflow options are just some of the new tools that businesses have introduced to cope with this new way of working. Accelerated by the pandemic, this trend began in 2020 by necessity and continues today.

Insights From Amazon: Making Digital Transformation Work With AI, Data, And Cloud

Blockchain will eliminate that possibility because all adjustments are recorded and verified in real-time, not just at the end of quarters. For example, in the order-to-cash process, once an item is added to the cart, retailers have to assume that the costumer has the money to pay for the good, so that they can set the logistical wheels in motion. That “assumption” is basically extending the customer a line of credit until it comes to payment processing. For periodically-repetitive procedures, such as journal entries during financial close, these bots can be scheduled to work as commanded (i.e. recording sales data on journals as they come in), thus minimizing the possibility of missed deadlines.

Only then will such initiatives come into its own and truly showcase its effectiveness. Digital dashboards with real-time data visualisations can identify the impact that the performance of an MVP in team sports like football or basketball has on jersey sales, week-on-week. This allows retail chains to alter stock availability of a specific player’s replica jersey, based on their performances. According to analysts, new mobile banking registrations increased by a whopping 200%.

Autonomous Finance in 2023: Key Points & Benefits

Conversely, when organizations embark on digital transformation that’s not tied to a broader digital strategy or articulated in general terms, it can lead to market capitalization erosion—and three times less value than when there is a digital strategy. This point of view is aimed at finance executives, wishing to pursue the second avenue. The authors offer practical insights and actionable steps on how finance can become the digital driver of an organization. In our view the key is to communicate this vision clearly, empower your agile teams, harness the opportunities of big data and AI, and start small and grow fast. A core part of the CFO’s responsibility is to forecast future financial performance and traditionally, this has been based on historical financial data and fixed assumptions. However, in a pandemic or similar scenario where all the assumptions go out the window, traditional methods will not provide accurate predictions.

“Finance often has the most sophisticated infrastructure teams of any industry, so the reaction was often ‘I’m sure our on-prem must be better than cloud,’” says Guthrie. Secondly, they facilitate “smart contracts” that act as digital wallets for digital currencies. This allows users to create automated transactions and agreements, such as lending or borrowing money. By using digital currencies, crypto users can easily make financial transactions with each other, removing the need for banks, authorities, or other intermediaries. Like it or not, crypto is now an important part of the financial service landscape. A 2022 Gartner report predicted that by 2024, a fifth of financial transactions would use cryptocurrencies.

What Are the Benefits of Digital Transformation in Finance?

Overall, the key to successful digital transformation in accounting and finance is to take a systematic and strategic approach. By identifying areas for improvement, researching technology solutions, and implementing them in a planned and measured way, you can help your organisation realise the benefits of digital transformation. Digitalization in finance aims to innovate the corporate finance processes with the help of modern tools and advanced technologies. It allows companies to automate up to 90% of finance-related tasks and, thus, drive significant time and cost savings and improvements in financial data accuracy. In today’s fast-paced business world, finance digital transformation is crucial for organizations to stay ahead of the game. From streamlining processes and increasing efficiency to providing real-time insights and improving data accuracy, financial transformation is the ultimate game changer.

The company hired curious leaders seeking to understand customer challenges that would help it build a nuanced vision for transformation that would always evolve and see across the ecosystem. While this might sound like a recipe for success, the initiative was doomed by a series of value decelerators, such as the maturity of specific technologies the organization proposed to implement and its own readiness to implement organizational change. Core managers were suspicious of the venture from the start, partners for the platform business were too few to scale, and the waterfall approach could not hold. Before long, the CEO left mid-project, and the adjacent business is now history. Companies that articulate their digital strategy in financial disclosures are likely to boost their valuation—and citing the adoption of technology aligned with their strategy can double valuation.

AP & FINANCE

The emerging role of finance is an outcome of its strategic placement in an organization. The insights and services we provide help to create long-term value for clients, people and society, and to build trust in the capital markets. To solve a single problem, firms can leverage hundreds of solution categories with hundreds of vendors in each category. We bring transparency and data-driven decision https://globalcloudteam.com/what-is-digital-finance-transformation/ making to emerging tech procurement of enterprises. Use our vendor lists or research articles to identify how technologies like AI / machine learning / data science, IoT, process mining, RPA, synthetic data can transform your business. And if you believe your business would benefit from a digital transformation software, we have a data-driven lists of digital transformation consultants.

This meant that for the first time, the various business units and Corporate were using the same language from transaction through consolidation. For a business operating in multiple industries, this was no small feat, and it made possible a global shared services model and streamlined intercompany processes. We worked with the client to develop a target global operating model to identify which processes would be retained in the business units and which would be phased into the shared services centers. Our client, a well-known multinational conglomerate operating in multiple industries across multiple regions, had grown over time through an aggressive acquisition strategy . Their acquisitions operated with a high degree of autonomy, and this had been a good thing — until it wasn’t. Our client realized that they needed a company-wide finance transformation to address their structural problems and enable them to continue their acquisition strategy with accelerated synergy and time to value.