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The digital finance moonshot

Improve finance effectiveness and deliver better enterprise performance


OVERVIEW

Improve finance effectiveness and deliver better enterprise performance

Finance executives have doubled-down on digitizing the finance function. They see the potential for digital to make Finance more agile, future-focused and insight-driven—mission control of value creation for the business.

Yet many finance organizations are investing in digital in the wrong places. They are digitizing isolated transactional processes to reduce costs. Digital finance as a cost efficiency play only goes so far. Digitizing more broadly to improve finance effectiveness delivers results for Finance—and brings extra money to the top and bottom lines. Where’s the best place to start?

VIEW THE REPORT [PDF]

KEY FINDINGS

To make the most of digitizing Finance, the finance organization needs to think differently:

  1. All digital finance investments are not alike.
    Our review of five finance processes shows that organizations digitizing the most in financial planning & analysis (FP&A) achieve the most effectiveness gains. Their financial effectiveness is 50 percent higher than peers that only digitize accounting and finance operations.
  2. Digital F&A unlocks enterprise value.
    Most companies with both higher FP&A digital maturity and higher finance effectiveness have better enterprise performance than peers. These companies consistently beat their industry on profitability, growth and capital efficiency measures.
  3. Piecemeal investments do not go far enough.
    Companies cannot digitize FP&A in isolation and expect to achieve breakthrough business results. FP&A relies on data from other finance processes. If these processes are not optimized, the benefits of digitizing FP&A cannot be fully realized. Neither can finance effectiveness.

VIEW INFOGRAPHIC [PDF]

RECOMMENDATIONS

Digitizing FP&A means breaking from traditional ways of working and getting strategic about digital:

Taking action can help you yield 1.4x higher return on capital, 1.2x higher EBITDA margin and 1.1x higher revenue CAGR than your peers.




AUTHORS

CONTRIBUTORS

Divya Atiyoti        Connect with Divya Atiyoti's Profile on LinkedIn. This opens a new window.


Chuck Wise        Connect with Chuck Wise's Profile/s on LinkedIn. This opens a new window.



Sabrina Chou        Connect with Sabrina Chou's Profile on LinkedIn. This opens a new window.




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