What is the role of finance in the digital era?

Yesterday, somebody asked me my opinion on the two following questions:

Question 1. What is the finance role in the digital era because any change in the environment?

Question 2. Do you know the top 3 finance issues in a digital transformation company?

Here is my point of view:

My answer on question 1:

Finance should be one of the leader of the digital change as it has access to many points of data, and is involved to many processes.

Moreover it should use it to lower the function costs.
What they can do:
Digitize and automate processes with high transactions but low value added (like accounts payable). Make better use of the data by improving data collection and consolidation for reporting and forecasting using new collaboration, planning and BI tools.

My answer on question 2:

Issue number one: change management (make sure people are on boat and understand + implement the change.

Issue number two: skills make sure that you have the right skills in your people to lead and implement the change (could be done by a combination of training, external hiring and help from third parties).

Issue three: culture. Take the opportunity of the digitalisation to challenge the status quo to streamline and standardize processes. Leadership must be an example of culture shift.

👉What would you have answered?

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2 thoughts on “What is the role of finance in the digital era?”

  1. Pingback: Overview of CCC: Cash Conversion Cycle - Nicolas Boucher

  2. Pingback: 10 best CASH KPIs You Need To Track

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