Accounting and finance teams deal with detailed specifics and measurable results, both crucially important to a pursuit such as digital transformation—especially since so little is tangible in terms of costs and outcomes. Oliver Wyman Ideas offers our most recent insights on issues of importance to senior business leaders. The Non-Performing Loans Jigsaw: Pieces Starting To Fit? 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. “Out-of-the-box solutions are key to enhancing finance transformation. Emmanuelle Muller-Schrapp, finance and IT transformation partner at Grant Thornton France, agrees. Digital disruption is driving radical transformation of the finance function. Tags 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 … Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati spoke at length on the digital transformation … The first two sections focus on the big picture and how the digital transformation of finance functions … Under the latter scenario, the finance function combines operational and financial data (big data) and uses advanced analytics and AI to enhance business decisions … There are many internal factors and external trends that make a Finance Transformation a strategic imperative. 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 … Digitalization also reduces the possibility of cyber risks and minimize errors that occur due to the execution of robust strategies. 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. Through an intelligent finance operating model, CFOs can help transform the finance function; moving from transactional and reactive to proactive and strategic. Copyright © BlackLine 2020. Why? • should align all support functions around Big data and data analytics; • Outsourcing and offshoring; • Compliance. Today's CFO function must be able to drive digital transformation and contribute to the change of an organizanization. New research sheds light on the key pillars of finance digital transformation, including cloud planning platforms , automation, data optimization, predictive analysis, and modern planning processes. The finance function is rapidly evolving in response to changing demand, regulatory pressure and emerging trends. Global Digital Transformation in Banking and Finance Market Research Report 2020 . Finance Automation / Finance Performance Management. 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. Finance digital transformation is the implementation and use of digital technologies to improve the efficiency, insight, and agility of finance teams. This interview is taken from an episode of the Spend Culture Stories podcast. But of course, that is the ideal scenario. From the advent of advanced artificial intelligence to cloud computing and blockchain, the finance function is ready for transformation. 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. change and become drivers of the digital transformation themselves across the organization. Finance—and the rest of the company—is operating in the real world of profit, loss, and global competition. Once that question is answered, Accounting and Finance can look outward to help the rest of the organization. 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. How the finance function remains relevant in the new world of big data and analytics. 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. To help transform your finance function, take a look at AccountsIQ. The key is … 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. In Operations, for instance, CFOs are partnering with IT to evaluate the costs of new technologies against performance and risk metrics. Driven by the accelerating digitalization, the finance function faces the risk of being reduced to an efficiency-first support role. Even without digital transformation, organizations can grow and change very quickly. Driven by the accelerating digitalization, the finance function faces the risk of being reduced to an efficiency-first support role. The question for the CFO is how to make meaningful progress in finance transformation. The digital finance framework brings together operations, insights and analytics, systems and ... “Digital transformation in Finance … Digital transformation of Finance functions has become a major challenge for organizations of all kinds. Just as business is becoming more data-driven than ever before, CFOs are realizing that Finance is in a unique position to help facilitate their organizations’ digital transformation efforts. 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. The authors offer practical insights and actionable steps on how finance can become the digital driver of an organization. As analytics become more advanced, Accounting, Finance, and the CFO will find a variety of new ways to help the enterprise’s business functions. Talent essentials for digital transformation. How BlackLine Enhances SAP With Balance Sheet Substantiation, Read our latest issue of BlackLine Quarterly. “Out-of-the-box solutions are key to enhancing finance transformation. New products, divisions, and acquisitions create new data sources for financial overview. “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.”. 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. The Report 2020-2026 Global Digital Transformation in Banking and Finance Market Report Industry analyses the important factors of this market based on present industry situations, market demands, business strategies utilized by Digital Transformation in Banking and Finance … New research sheds light on the key pillars of finance digital transformation… This point of view is aimed at finance executives, wishing to pursue the second avenue. This is critically important today because of the new technology investments demanded by digital transformation. 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. … What does digital transformation look like in 2019? Digital transformation has assisted in automating monotonous tasks, management of compliance and accounting & operations functions which include accounts, reports & analysis. 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. Maintaining financial system stability by accommodating digital technology has become crucial. the finance function to operate at a high level, even in a remote environment. It’s imperative that Accounting is able to extend to new ERPs and other financial systems, or adapt to new foreign acquisitions as smoothly and quickly as possible. Responses were reviewed from telecommunications, technology, financial services, the public sector, manufacturing, retail, energy, chemical, and oil and gas industries. Digital transformation has assisted in automating monotonous tasks, management of compliance and accounting & operations functions which include accounts, reports & analysis. "In your opinion, with the digital transformation, what do you think the finance function will look like by 2030?" 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 … 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. Software as a service (Saas), … In this episode of The Better Finance Podcast, John Murphy, Executive Vice President and CFO at Adobe Inc., joins podcast host and EY’s Myles Corson to discuss the role of the CFO in enabling digital transformation and its impact on the finance function. Emmanuelle Muller-Schrapp, finance and IT transformation partner at Grant Thornton France, agrees. The inverted pyramid characterizes true business transformation and enables decisions making for CFOs in a dynamic environment. Why? 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. Digital – the buzzword used or over-used for quite some time now, brings in a huge impact on the financial & banking industry. The digital finance organization remains an emerging concept in many organizations, and CFOs are still at one remove from the center of digital-transformation efforts, even though they own and manage … BearingPoint conducted a study to understand where European companies stand in the digital transformation of the CFO function. 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. DIGITAL TRANSFORMATION IN FINANCE FUNCTIONS ASEAN AND UK PERSPECTIVES 4 The interviews were structured in a consistent way and this report reflects these conversations. 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. … … 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. 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 growth of digital business is already reshaping the talent marketplace, far beyond finance. Software as a service (Saas), for example, is carrying many hopes with its quick set-up and scalable cost. However, we rarely discuss why Accounting and Finance is the most appropriate group to lead an organization’s transformation initiatives. 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 of any given organisation oversees CAPEX and OPEX budgets, and most IT organisations report directly to the CFO. AI, blockchain and advanced data analytics are challenging the relevance of traditional skills while creating transformative opportunities for organisations and individuals. Our Expertise Insights Digital Transformation Of The Finance Function. All rights reserved. BearingPoint conducted a study to understand where European companies stand in the digital transformation of the CFO function. Digital technologies are changing the finance function profession, now increasingly less focused on posting accounting entries and producing dashboards, and more focused on analysis. If you’re quite happy with the way you currently work, you may not see a need for finance function transformation. Finance Automater and Analyzer. As is consistency of measurement. The CFO function faces changing requirements created by digitalization. Digital transformation is necessary. Every accountant, auditor, controller, and CFO knows that the key to finance transformation lies in process automation. Generally, Finance Transformation is the combination of Technology, Business Process Automation, Performance Management & Data Analytics which can help in achieving the overall … Accounting professionals wrestle with this every day, and the daily influx of new solutions populating the automation landscape isn’t helping. Read on to discover how integrating accounting software with other systems is leading to a revolutionary digital transformation of the finance function. 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. Chris focuses on the shift toward digital transformation in accounting and finance, shows you what good looks like, then helps to get you there! 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. The ideas and opportunities that derived from EY’s approach invariably … Analytics and reporting, the mainstay of finance functions, are also brought into play. the finance function to operate at a high level, even in a remote environment. Driven by the accelerating digitalization, the finance function faces the risk of being reduced to an efficiency-first support role. 3 Core Objectives of Digital Transformation of Finance Functions by Jessica Kirk on February 17, 2020 We’ve been talking a lot about financial digital transformation lately, so let’s take a high-level view of the objectives that drive this change. 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 … 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. 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. Tags appeared-first better-inform climate demanding finance finance-teams find-out-how forefront leaders-ensure technology these-critical. The digital foundation consists of strategy, organization, people, technology, and data perspectives, all equally essential elements in the digital transformation of the finance function. In this episode, Nilly Essaides from the Hackett Group chats with us and discusses what digital transformation looks like for the finance function, how tech will impact future work and what the trends look like for 2020 and beyond, and why usability of tools is even more important now in this day and age. The focus of this survey was on the digital transformation of the finance function. The three elements of successful 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? 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