CFOs need to change if they want to succeed. Finance organizations can no longer simply be gatekeepers of funds and managers of budgets. Today’s business environment demands finance transformation, where the role of finance evolves from reactionary, transactional work to value-generating work and strategic engagement. Finance transformation embeds financial expertise into every area of the business, allowing that expertise to guide the strategic decisions of the broader business and allocate resources more effectively.
Research from the IBM Institute for Business Value has identified five factors that together make finance
transformation possible.
- Focusing finance on developing and executing strategy
- Aligning business processes to support agility and drive business outcomes
- Putting diverse data at the heart of finance operations
- Redefining and unlocking the power of the workforce and culture
- Combining technologies to support intelligent workflows
Companies that embrace these factors are 3–4 times more effective at developing and executing their strategy. This effectiveness has measurable benefits; when companies fostered strategic focus and aligned finance functions with the company mission they saw 49% higher revenue growth and 20 times higher EBITDA growth over a 5-year period.
Finance transformation can be complex and challenging, but the benefits are clear. A partner with relevant experience and core competencies can help make sure you achieve those benefits.
This article is posted at ibm.com
Please fill out the form to access the content