COMPANIES face many obstacles in implementing Digital Transformation (DX) and different departments within an organization face different sets of challenges that are unique to them.
Take the finance department, for example. Unlike other business units, their most pressing problem is not to implement digital technologies into the processes, but rather to engage people in the transformation agenda and use the technology solution effectively.
Businesses not only struggle to align finance professionals with organizations’ digital initiatives, but also face additional challenges in re-qualifying them for a more digital financial system.
Another problem that plagues businesses is the lack of clear vision in the management of financial data, which happens to be an important aspect of DX. Businesses need to have a strong strategy when it comes to integrating data in a way that can be incorporated and reflected in the organization’s financial reports, analyzes, and projections.
Integrate data with DX in finance
To overcome these challenges, businesses must take a different approach and put data at the center of everything.
From a technical standpoint, a company’s finance team needs to be able to collect and analyze data from across the organization, which will provide them with actionable insights.
To achieve this, companies must first develop a robust data governance framework that explains how financial data such as expense reports or invoices is entered, the systems used to enter it, and how it is fed into the business. whole organization.
In doing so, the data becomes more reliable and standardized, which would help the business to be data-driven.
Beyond this, finance managers within companies also need to understand how different business units are connected in order to achieve accurate financial planning.
While it is crucial to integrate data from various departments, it is also equally important to understand what is captured and what is not.
Harmonize DX in Finance Across the Enterprise
With the advent of advanced computing, storage and networking technologies, deploying new systems is no longer the biggest hurdle, but aligning them to serve the organization’s common transformation goals remains elusive for many. many companies.
Due to the past misalignment of digital journeys and goals, different business units may have acquired and deployed different solutions, which store data in silos, or worse yet, depend on existing systems.
One solution to this problem is to create a system that could consolidate various systems within the company.
Many financial planning and business performance management software available on the market today have the ability to connect to different systems to aggregate data from various sources within an organization. The key to success is choosing the right product.
In conclusion, the reluctance to adopt digital tools within the finance department of many companies could hamper their overall DX program.
However, by putting data at the center and deploying a robust financial planning solution, the finance department could act as a common denominator that could align organizations’ DX efforts, while pushing the business to be data-driven. .