Digital Transformation in Finance

These are the areas that we see as critical for the success of digital transformation in Finance:

A. Corporate performance management (CPM)

  • Vision: Performance in action based on data-rich analytics, against shared vision and high-level strategy for business, and responsive to business environment
  • “Always-on” planning in collaborative teams, reviewing scenarios from changes in business environment or own actions
  • Corporate Dashboard: Automated routines on reporting & forecasting, reducing complexity and amount of data communicated, but ensuring a broad data set (from a rich data pool)
  • Performance reviews forward-looking, action-based, linking rolling forecasts into planned scenarios
  • Ongoing reviews of asset allocation (spending, people etc.)
  • Action through sourcing & recruitment (> adaptive budgets), based on strong analytics

    B. Strategy implementation & governance

  • Vision: Collaborative (integrated, cross-functional) approach to executing digital strategy across “core operations” and “digital backbone”
  • Governance model to support digital transformation (people, processes, investment & product decisions, balancing conflicting objectives)
  • Corporate venturing that ties into overall strategy for business
  • Innovation management that is data driven & agile (e.g agile thinking, design thinking, business canvas)
  • Adaptive portfolio management (from corporate venturing to product portfolio), including eco system
  • Funding & valuation approaches reflective of uncertainty & risk inherent in digital strategy
  • Opportunity & risk management in an agile environment (markets, eco system, technology)

    C. Agile people & processes in Finance (& beyond)

  • Process focus (product or customer centricity) rather than hierarchy: Design thinking & agile processes (beyond IT)
  • People performance management
    • Target setting, incentives and dealing with success or failure in an agile or uncertain context (individual & team targets rather than “cascaded targets”)
    • Working with networks of people in eco systems (professionals, specialist, freelancers or outsourced/ shared teams)
  • Culture change
    • Embrace and empower decision-making through collaborative (cross-functional) teams
    • Accepting continuous change: From (Re-) Organisation to adaptive processes & structures
  • Accounting systems & processes
    • Automated, scalable and efficient core processes (making use of AI, machine-learning, in-memory computing, blockchain tech etc.)
    • Vertical solutions & open interfaces (e.g. API) vs. complex, integrated systems
    • Provide/ support data-rich, consistent systems environment (accounting, ERP, BI and beyond), supporting more analytics & fact-based decision making across eco system