Digital transformation improves efficiency of finance departments
A recent report from The Hackett Group states that finance organizations can reduce costs by more than 40%. To do so, they can fully embrace digital transformation. Therefore, this will accelerate their progress towards greater efficiency levels.
Additional resources that can be used in more value-added activities
The Hackett Group’s “Digital World Class” analysis is described as an estimate of the additional benefits that finance organizations can achieve through the combination of three factors :
- First, operating model changes
- Second, full technology landscape optimization
- Last but not least, successful adoption of digital technologies
For instance, this study suggests that organizations can improve efficiency by nearly 20% through digital transformation. Which can free up staff and budget resources. These could enable organizations to expand digital transformation initiatives, engage in more value-added activities, or fuel company growth.
“World-class finance organizations have maintained a steady 40-45% efficiency lead over peers for the past decade” said Nilly Essaides, The Hackett Group’s research director. According to him, digital transformation has the potential to propel peers to today’s world-class levels. While at the same time redefining what world class means for finance leaders.
Moreover, the Hackett Group’s research reflects the movement of next-generation finance organizations beyond metrics focused on internal efficiency and effectiveness. Indeed, these metrics now include direct measurement of the experience of key stakeholders.
Tools that can be leveraged to achieve digital transformation
The methods presented for accelerating digital transformation programs include :
- Robotic process automation
- Cognitive automation
- Intelligent data capture, and other leading-edge technologies.
The researcher found that these systems provide finance organizations with significant interim improvements in efficiency and effectiveness. Moreover, BI solutions such as Power BI bring further efficiency in KPI monitoring and helps the CFO make sound decisions. Our previous article highlights how Finance departments can bring their reporting abilities to the next level thanks to Power BI.
In conclusion, the publicly available report, called “World-Class Finance : Redefining Performance in a Digital Era“, can be downloaded by clicking the hyperlink.