We know that the world is a challenging place right now. Businesses struggle to respond immediately to emerging disruptions and protect their most valuable assets like preserving your cash, safeguarding the supply chain or defending your financials; reports The Hackett Group in their research 2020 Disrupted: Five Essential Actions to Take Now. As so many businesses are grappling with the effects of the coronavirus, digital transformation involving big data and artificial intelligence to stay ahead is particularly vital in this ever-changing environment; finds another report from The Hackett Group CFO Agenda: Become the catalyst for enterprise agility. We’ve summarised these reports for you to read below – let us know your thoughts.
Quick, accurate and efficient insights are critical at the moment but data overload sitting in silos could be overwhelming leading to wrong forecasting and ineffective decision making which in effect might have a detrimental impact on the entire business. Disparate processes, locations, and legacy systems add even more complexity to this challenge. Unlocking more visibility into your customers behaviour (invoicing, payment behaviour, current cash position) through smart automation and analytics helps finance leaders proactively mitigate risk, gather critical data to improve decision making, and help finance teams stay on track in this time of change.
Digital transformation and its growing importance for CFOs
Digital transformation has been on the CFO’s agenda for a long time but it’s becoming a priority now as a growing number of CFOs recognise its significant, positive impact on the business in both the short and long term. According to The Hackett’s Group recent research CFO Agenda: Become the catalyst for enterprise agility, organisations with this digital, world-class finance operating model are:
- More profitable – achieving 30% higher margins and incurring 43% lower process costs
- More agile – responding 3.6 times more effectively to disruptive events
- Better at retaining top talent – talent management maturity leaders have a 31% greater high-performer retention rate
- Twice as effective in creating meaningful analytics and insight
- Better at managing risk – 100% error-free has become the standard, not the goal
- 3 times more likely to be rated valuable business partners by internal stakeholders
The time is now!
The current Covid-19 landscape has proved that finance is no longer just an operational area, it’s a strategic business partner taking on a more proactive and transformative role. To be able to respond quickly to potential effects of the crisis, visionary CFOs must act now. To mitigate risks now and supercharge company growth later, finance leaders must take a more dynamic and innovative approach and move towards a digital and agile finance function.
View our recent infographic to learn about the future of finance, and how industry leaders are implementing AI-powered solutions to supercharge their cash flow.