Finance Transformation in 2019
The terms ‘Finance’ and ‘Digital’ Transformation are used interchangeably to describe initiatives to ‘align finance and operational processes’ to drive organizational efficiency.
Finance is the heart of an organization and a Partner to other functions in business. It plays a key role by providing metrics and performance indicators that show the health of different areas of the organization. It is responsible for regulatory and compliance reporting to external parties. Key activities in a typical Finance transformation are:
Rethink the business process?
Transformation projects begin with examining the objectives and steps in a business process. By identifying drivers and triggers of the process in an unbiased manner, a new paradigm for the activity may emerge. This will enable the business process to be executed in an efficient and optimized manner with the reward of greater productivity.
Use Technology to drive change
The convergence of technologies such as Internet of Things (IoT). Artificial Intelligence (AI) and Machine Learning (ML) have enabled a level of data interchange and seamless connectivity that was previously not practical.
Industrial technologies such as ‘Smart factory’ and ‘Smart Manufacturing’ and the use of sensors and robots allow us to transmit signals and data in real-time and can trigger appropriate actions. Automating underlying activities may translate to a faster, more accurate and efficient ‘financial close’.
Incorporate Risk and Change Management
Controls and governance models have to be defined and implemented for the transformation program to be successful. As new technologies are deployed, new risks emerge and different ways of managing and mitigation risk will have to be employed. The change management process involves:
Communication - keep all parties informed of project progress
Training - train employees on using new processes and technologies
Compliance - compliance and governance programs to manage identified risks.
About the author
The author is Mallika Ramamurthy, a Principal with Lydian Global Business Services (www.mylydian.com). Lydian’s compelling combination of deep industry expertise, custom developed Products and Solutions, well-articulated vision and its ability to mix and match the right set of innovation, practical business problem-solving skills understanding customers pain points and designing right solutions keeping customer in mind, help organizations to derive the additional value that businesses expect from their investments in Enterprise Technologies and Digital Transformation journey.