The role of a finance leader across many organisations has undergone a significant transformation in recent years. No longer expected to be just the gate-keeper on financial reporting and compliance, today's finance leaders are in the boardrooms for strategic decision-making and organisational transformation with a focus on a low-cost finance operation. A survey by Egon Zehnder among 600 finance leaders across the globe revealed that 82% believed their roles had expanded to other business functions such as mergers & acquisitions, ESG, business strategy, and so on in the last five years.
This shift can be largely attributed to the digital transformation initiatives in the finance and accounting (F&A) function, thereby redefining the expectations and responsibilities of the finance heads. In an environment where economic volatility, regulatory changes, and technological advancements are constant, finance leaders are now expected to use financial data coupled with real-time insights to drive the business strategy forward. As the finance function evolves, they are also expected to strategically link the organisation’s objectives to the financial goals and deliver value across the organisation.
What does digital transformation mean to a finance leader?
Organisations across the globe are focused on digital transformation leveraging new age technologies. Estimates indicate that global spending on digital transformation will reach $3.9 trillion by 2027. Yet, digital transformation is not fail-proof. A two year old report from McKinsey indicated that nearly organisations realised only one-third of the expected value from their digital initiatives.
From their centre stage position, what do finance leaders expect? Given how core the F&A is from a strategic perspective, cost optimisation is a moot point. What these finance leaders need is transparency, accuracy, deep and real-time insights to augment decision making. Digital transformation enables finance leaders to manage data more efficiently, ensuring that high-quality, accurate data is available for analysis and reporting. Automation and artificial intelligence (AI) help to consolidate data from multiple sources into a single source of truth, ensuring that the finance teams have access to consistent and accurate information. Automation also helps to align financial practices with regulatory requirements, reducing the risk of non-compliance and associated penalties.
AI and analytics: Key tools in the finance leaders’ arsenal
The F&A landscape is being revolutionised by new-age technologies that go beyond simple cost-cutting measures. Technologies such as AI, big data, and automation are redefining the way financial data is managed, analysed, and utilised, providing numerous benefits to the finance leaders.
AI, particularly in the form of predictive analytics, enables finance leaders to forecast future financial trends with greater accuracy and thereby mitigate risks. This capability is invaluable in an era where rapid changes in market conditions can have significant impacts on an organisation's financial health.
Big data is another game-changer for the finance teams. By leveraging large datasets, finance teams can gain insights into customer behaviour, market trends, and operational efficiency, contributing to better strategic decision making. Big data analytics also play a crucial role in risk management, eliminating the risk of fraud and strengthening the compliance and audit readiness.
Automation, in a broader sense, is enabling a more streamlined and efficient F&A process. Automated systems can simplify and streamline the entire F&A value chain from transaction processing to compliance reporting, ensuring that finance leaders have access to accurate and timely information at all times.
Writer Information: The key business partner for finance leaders
Writer Information is well poised to collaboratively engage with finance leaders in this digital transformation journey. Our services in Business Intelligence & Insights, Process Automation, Business Process as a Service, and Predictive Analytics enables finance leaders to simplify their responsibilities, driving them to support business growth and innovation. Our solutions are designed to maximise the benefits by reducing the gap between demand and supply and bring down procurement expenses. By leveraging tech-disruptive processes, we challenge traditional workflows, ensuring guaranteed cost optimisation and enhanced operational efficiency. Our global and scalable delivery model enables us to serve clients worldwide, providing consistent and high quality outcomes.
What lies ahead for the finance leadership?
As new technologies continue to evolve, they will play an increasingly pivotal role in shaping the finance function. The next wave of technological advancements is round the corner, promising to further reshape the way financial data is managed and utilised. At the helm of supporting the strategy and making key business decisions, finance leaders who embrace these technologies will be better equipped to drive strategic decision-making, manage risks, and achieve their organisations' financial goals.
- Category: Banking & Financial Services
- Date: 13-09-2024