Unlocking value from data within an organisation and using it to drive change is the only way companies will thrive in today's disruptive times. Organisations who keep doing the same things without adapting and do not embrace Machine Learning, Artificial Intelligence and Advanced Analytics at the heart of their business stand a risk of being completely disrupted by new market entrants.
67% of the companies Ventana Research surveyed said the proliferation of spreadsheets makes it difficult to perform analysis. Lack of technology automation makes it difficult for finance teams to provide key reporting metrics to the business. Companies should consider adopting new cloud-based predictive planning and analytics tools, including visualization technology.
So what is the Path to Modern Finance
Most Finance teams are revolving around Operational Excellence, which means they are doing great in terms of Transactional Tracking and Process Management. In these phases you are just reacting to complex systems and detail or focusing improve reporting and minimising risk. IT is typically heavily involved delivering static reports. Management reporting packs are made for board meetings. Data needs to be manually pulled from different systems. You may get some drill down capability and limited KPI reporting.
The Management Excellence phase starts where Finance Departments start participating as Business Partner to Executives, or the Finance Department is Driving Strategic Decisions. This is an environment where you focus on Analysing information not only in Finance Systems (GL, ERP, Treasury, Cash Flow, Risk) but also from line of business sources such as Marketing, Sales, Inventory, Operations, Assets connected to your company via Sensors etc. Technology from fuelled with Analytics, Predictive Intelligence, Artificial Intelligence,
Machine Learning, Robotic Process Automation and Autonomous helps you achieve this objective easily.
Take a moment to go through and think where you are versus where you would want to be. The Path to becoming adopting Modern Finance approach is a 4-step process. Sounds easy but it is a journey towards Excellence. The below Maturity Assessment blueprint demonstrates what a Modern Finance function looks like.
What to consider:
Not all organisations are the same, your unique position in the industry and your current maturity curve would define what steps you need to take to be a Modern Finance Leader. Qubix has the capability to analyse and recommend the best path. Qubix has the ability to analyse and recommend the best path for you.
- Take Advantage of all of your data
To get richer insights in to your organisation, consider all data in your organisation and not just finance data.
- Start with one function and expand
- Build a data ethics committee
- Build advanced analytic capabilities in finance
- Embrace cloud, it's faster
Lastly, cloud has made it much more cost effective, simpler and faster to get started with a full Analytics plat form. You can start small and grow as you need.