Finance and Accounting
Architecting the future of finance for CFOs
When Phoenician merchants recorded trade transactions on earthen tablets 5,000 years ago, the finance function was born. As technology evolved over centuries, earthen tablets were replaced by new-age digital tools, reshaping every aspect of how a finance team functions. With the pace of digital disruption quickened, what does the future hold for finance leaders and CFOs?
The role of a CFO is constantly evolving and today the CFO is expected to be a business partner to the CEO with strategic and operational focus. Undoubtedly, the historical tasks of any finance function, such as books and records, financial reporting, and statutory compliance are still of fundamental importance. In addition to that, CFOs are expected to influence businesses, operational decision-making, guarding organizations against frauds, co-shape corporate strategies, and accelerate digital journey to bring strategic, analytical, predictive, and prescriptive approach to C-suite transformation agenda.
Today’s technology evolution means Cloud Computing and Robotics Process Automation (RPA) are business as usual and the slew of new-age digital disruptors, including AI influenced Live Enterprise, Blockchain and IOT are proliferating.
In the same breath, Global Business Service (GBS) is also acting as a transformation partner leveraging the best of people, process, and technology. It is bringing in greater value to businesses by acting as the Center of Excellence, as opposed to having another centralized organization; a profit center as opposed to a cost center; business metric driven as opposed to SLAs and KPIs, all encompassed by a well-defined governance and escalation matrix.
CFO is the new CEO
With CFO as a strategic partner to the CEO, shaping and executing business objectives will now aim to be a challenger of financial and digital strategy by critically examining risks and expected returns and propose alternative strategies. The CFO will be the nerve-center for customers, shareholders, employees, and regulators; be the biggest ally for innovation; provide insights for accelerated decision-making and predictive analytics for future strategy; provide insights for building new skills and capabilities in the next normal and support the company’s overall talent-development efforts.
How does he make it happen?
A. Futuristic solution with current focus.
Connected - Cross-functional synergy, Data Unification and Network of Networks
Example: Implementation of Accounts Payable Cloud Platform for a US based telecom provider connecting network of networks by consolidating 7 ERPs, 43 Countries, 500 Users to process 400,000 transactions worth USD 80Bn
Hyper Automation and Agility: Touchless processing, Moving from “brick and mortar” to digitally enabled platform with minimum disruption and time-to-market
Example: Largest RPA program in the market deploying 550+ Bots in a record of 18 months across 6 regions, resulting in 320+ FTE effort, saving 1 Mn man hours repurposed.
Sentient: Data + Algorithms + Domain to bring insights to innovate solutions
Example: Automation and Analytics driven Preventive Compliance sensing, learning and solutioning at source data, which is preventive compliance vs detective compliance
Experience: Realtime, Self-service, Cloud and Mobility
Example: AI-based collections strategy by studying customer behavior, account pattern and credit rating, predicts anomalies, expedites resolution of disputes, and enables better visibility and forecasting using NIA for Order-to-Cash process.
B. With a continuous focus on:
- Real-time view of financial statements using AI
- Risk prognosis to ensure Predictive finance statements using Enterprise Finance Analytics
- Data cleansing (Input-Process-Output) to ensure Integrity of financial statements
- Sustainability in unpredictable circumstances through support on ESG and financial metrics/reporting disclosure
- Preventive compliance as opposed to detective
One plus one equals three
Besides in-house capabilities that have limitations in terms of cost and time, building an ecosystem of strong partners is extremely important for a well-rounded suite of solutions, which meet current and futuristic needs.
The partner ecosystem has added value in the space of e-invoicingAI influenced collection strategies, platform-based solutions for compliance, tax, and many more. In this enhance role, a CFO is now tasked with jointly building an organization with the CEO, which has business, operating models, and accompanying governing frameworks to enable perceptive experiences, intuitive decisions, responsive value chain, and pervasive compliance.
