In part two of this series, I continue the discussion of finance transformation and modernization by taking a closer look at the avenues and resources available for charting the path forward.
Transformation is a never-ending cycle, organizations can always find new ways to improve their business processes, but they must also look at modernizing the technologies and applications used to support the business processes to truly reap the benefits.
Over the past 10 years, the IT landscape has been shifting to a new paradigm – cloud computing. This is a major technology platform shift, much like the transition from mainframes to client/server systems in the ’90s and it’s having a major impact on business.
Sales and marketing were the early adopters of cloud-based applications, followed by human resources organizations. But in the past five years, the finance sector has gotten more comfortable with cloud-based applications and is now rapidly adopting cloud-based ERP, EPM, payroll, purchasing and other systems.
Cloud-based applications offer a number of advantages over on-premises applications:
- Faster deployment
- Autonomy from IT
- Rapid innovation
- Lower cost of ownership
- High scalability
"Finance transformation and modernisation go hand in hand and are essential for driving innovation in finance, as well as across the enterprise"
On the last point, security, there’s growing recognition that security of cloud-based systems is actually stronger than most on-premises data centres. All of these attributes make cloud-based applications a great choice for rapidly growing companies as well as established companies looking to standardise and centralise business processes, while reducing costs.
According to a recent study by PwC, 78% of US CEOs and 61% of global CEOs say they are concerned about the rapid pace of technology and change as they are continuing to make investments in technology as a way to further innovation and efficiency.
And, to really be seen as leaders – in the eyes of the CEO and the rest of the company, CFOs need to lead the way and set an example for the rest of the organization.
To learn more, read the full text of this article as published on Business & Finance.