People
Selecting the right talent is key to starting change in the right way and giving the programme the best chance of success. Programme leadership, governance, change management and technology roles all require skilled individuals.
How to win backing for your finance transformation
Finance transformation and your business
The headwinds facing today’s global economy are well-publicised. Rising interest rates, inflation, and even possible recession hold the headlines, but in truth this is an era of opportunity for finance professionals.
Advanced digital finance systems have revealed new potential for the finance function to act as a strategic partner to the wider organisation, providing insights to decision-makers and driving overall efficiency. A successful transformation, however, cannot be limited to the finance function, and hinges on selling the whole vision to stakeholders to secure the necessary resources to make it a reality.
People, process, technology and data
While digital systems are at the heart of finance transformation, true success – and the ability to secure maximum available budget – comes through recognising this as an organisation-wide endeavour. This is reflected in the four foundational pillars of finance transformation:
Technology
Today’s digital cloud business platforms are comprised of Enterprise Resource Planning (ERP) systems, Enterprise Performance Management systems (EPM), and data analytics solutions. Whether a system is the right one depends on the context, so it’s important to take stock of business objectives, risks, and the systems and processes already in place before making a choice.
Process
New digital systems require new processes, but this is an opportunity to be embraced. Beginning a finance transformation journey is a chance to overhaul existing processes across the business, reexamining and recalibrating them to ensure outputs are optimal.
Data
Using data to shape business strategy has always been a core part of the finance function’s value proposition. Now big data analytics, machine learning and other forms of AI are increasing the efficiency of finance activities, enabling innovations such as real-time recording and reporting on transactions.
A Dilemma And Opportunity For Mid-Market Firms
Sooner or later, digital transformation – or its absence – becomes an existential issue for mid-market firms. Defined as businesses with a revenue of £50 to £500 million, and 100 to fewer than 10,000 staff, they are more agile than their larger counterparts, with more resources than small businesses. Despite this, many fail to attract investors due to their ongoing reliance on outdated legacy technologies and processes.
These legacy systems – while cheaper in the short term than investing in a new finance system – undermine the foundations of a business slowly over time. A loss of customers, a drain of talented staff poached by rivals, diminished availability of product, challenges accessing funding – all of these can arise from the obsolescence of systems and workflows.
On the other hand, greater finance automation is a highly desirable quality to private equity or VC firms seeking businesses with untapped potential. Dealmakers can use enterprise data to gather more accurate information about mid-market companies as they weigh up whether these businesses fit their investment criteria or have enough growth potential to deliver.
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