Thriving in the Era of Innovation – Are your
Finance Systems Holding you Back?
Karen Sewbhujjan,
Principal ERP Consultant at Decision Inc.
The Changing Landscape of Business Innovation
Amidst the relentless pace and competition of our current business landscape, innovation is crucial for success and growth. Advancements in technology and evolving consumer behaviours present both challenges and opportunities for businesses.
• Key Trends Driving Change
One significant factor driving this change is the increasing demand for personalised experiences from consumers. As more companies enter the market with similar products or services, it has become crucial for businesses to differentiate themselves. Innovation, by offering unique solutions, allows businesses to capture the attention of their target audience and gain a competitive edge. According to Gartner:
• Navigate Change with the “Triple A” Power: Analytics, Automation, and Agility
Innovation extends beyond customer and operational improvements to financial innovation, impacting investment opportunities, payment systems, and financial inclusion. Modern finance systems transcend traditional bookkeeping methods, helping finance leaders reduce accounting errors, shorten invoicing cycles, and comply with evolving tax laws and regulatory requirements. A robust finance system enhances budgeting, forecasting, and planning, optimising cash flow and solidifying business innovation.
The finance sector is riding high on the digital wave with the “Triple A” troika- Analytics, Automation, and Agility. The ability to adapt quickly, leverage automation, and use analytics is reshaping the finance function, enabling organisations to become more efficient and data-oriented.
The Critical Role of Finance Systems
As we traverse the evolving landscape of business innovation, we see a distinct shift in the role of financial systems – from mere data capturing tools to strategic decision-making aids; and this progression, it seems, is both a reaction and a catalyst to the changing business dynamics.
Modern finance systems focus on streamlining and automating mundane processes, freeing up skills for more beneficial tasks and enabling better-informed business decisions. They integrate more with operations, increasing control and facilitating easier analysis.
However, finance leaders often face challenges in producing timely, accurate month-end financial reports due to inadequate tools. Issues with data quality and analysis are amplified without proper controls and simpler analysis tools. Effective finance systems bridge the gap between old practices and the new business innovation landscape, allowing finance leaders to embrace digitalisation and stay ahead.
Signs that Your Finance Systems May Be Holding You Back
As is often the case, if you’re persistently confronting inefficiencies in your financial processes, it might be a sign that your current finance system is the problem. Common issues include prolonged month-end closes, excessive manual data manipulation, and unclear cost drivers. Inadequate controls and compliance can increase the risk of fraud, errors, and regulatory non-compliance.
Another sign is the lack of real-time data and analytics capabilities. If data isn’t readily available or credible, your finance system may be at fault. Challenges arise when multiple systems used for various processes fail to integrate seamlessly, necessitating manual intervention and causing potential errors and delays in decision-making.
Lastly, an inability to support emerging business models indicates a finance system constraint. Today’s dynamic business environment demands a flexible, scalable finance system equipped with robust analytics capabilities to manage complexities in financial transactions.
Overcoming Challenges: Upgrading Finance Systems
Assessing the current state of their finance systems is not just a routine check-up; it is a strategic initiative that drives efficiency, compliance, and growth. In an era where financial accuracy and agility are paramount, staying ahead with optimised finance systems is a critical component of a successful business strategy.
Finance leaders must frequently evaluate their finance systems to increase efficiency and accuracy. By doing so, they can determine if their staff is spending too much time on basic transactions if manual reconciliations in Excel are being performed, or if there’s a lack of confidence in the data used in reporting. It also helps to identify if the creation of monthly management accounts is time-consuming due to manual interventions, or if data access difficulties lengthen the time taken.
Once a thorough assessment is done, planning for systems improvement can begin. Evaluate if the current system can be optimised or if implementing new modern finance solutions is necessary. The choice of solutions depends on the business’s size and complexity. There are many solutions out there and information can be found quite readily.
The Future of Finance with Innovation
It’s important to remember that in the throes of rapid technological progress and market evolution, staying ahead of the curve becomes a necessity rather than a luxury. Consider this: a study conducted by KPMG in 2023 found that 59% of finance managers at companies with sales over $1 billion are already using AI tools in their tax or financial processes. One critical area for continuous improvement is finance. Here are some strategies to help you stay ahead:
Efficiency optimisation:
By streamlining your financial processes, you not only save valuable time but also enhance your capacity to adapt to changes swiftly. The role of a finance leader in our era requires this agility, making the quest for efficiency a priority.
Embrace a dynamic financial ecosystem:
A robust, flexible, and dynamic financial ecosystem can be a game-changer for your operations. With such an ecosystem, you can yield financial results faster, empowering in-depth and efficient analysis.
Leveraging advanced analytics for better decision-making:
This strategic capability can endow you with the confidence to assist business managers in enhancing operational aspects, leading to increased profitability and efficiency across the board.
In wrapping up, it’s crucial to mull over this salient point: the improvement of efficiency and innovation should be paramount for all finance managers. The evolving landscape of digital transformation drives innovation in finance, and it’s fundamental to maintaining competitiveness, meeting your customer’s dynamic needs, and creating a pathway for growth and value. Assess your finance system! Is it reinforcing your role instead of making it more challenging? Its agility, flexibility, scalability, and user-friendliness should always be a priority. Embrace the intersection of finance and innovation – it’s not just a suggestion, it’s a requisite in today’s fast-paced, digital world.
Strategic partnerships, like those with Decision Inc., can also aid in the seamless integration and implementation of Hyper-Automation technologies. Platforms like Power Platform can unlock new levels of efficiency, agility, and innovation, enabling employees to achieve meaningful business outcomes.
Get started with your evaluation and start transforming your finance systems today.
