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Disruption: Friend or Foe?
Pulling data from various surveys with finance executives, a recent Ernst and Young report sheds light on Finance 4.0, and what it means for finance professionals.
The major takeaways are:
- “Disruption” has arrived, and will continue to drive the finance industry for years to come
- Finance leaders must understand how to fully leverage current and upcoming technologies if their organizations are to remain competitive
- Finance operations must become more agile to be able to accomplish more, faster, and at a lower cost
- Finance professionals will have expanded responsibilities to a broad array of stakeholders
- For future projections, current information > historical information
How Finance Professionals can Stay Relevant
In a recent global reporting survey, two in three respondents claimed that increased complexity is impacting the effectiveness of reporting. This is not surprising, as more technology leads to more data, which ultimately leads to more complex reporting procedures. More is not always better, and the increase in complexity can often impede utility.
The ability to process more data in real-time creates the need for finance and accounting specialists to forecast answers to investment decisions based on current values. Historical values tend to be reliable, acting as a known quantity, but become quickly obsolete and frequently irrelevant when it comes to future projections.
Learn more about staying relevant with finance automation here.
A Well-Adapted Finance Team can Answer These Questions
- Who are the internal and external stakeholders?
- What are there desired outcomes?
- What strategic assets are needed to satisfy these outcomes?
- What level of investment will be required for each asset?
- Is everything being properly captured, recorded, and reported?
- What are the most relevant sources of financial and non-financial information?
CFOs are becoming more public faces of their organizations. With this comes a significant stake in determining how successful a digital transformation will be. It is critical that they understand the full power of this transformation and can demonstrate the organizational purpose to build confidence in both the stakeholders and the public.
Read the full report “The Role of the CFO and Finance Function in a 4.0 World” here.