Finance transformation matters now more than ever. Here’s why.
In my recent discussions with clients about finance transformations based on SAP S/4HANA, finance executives often raise two questions in particular:
1. Is now the time? Is today really the right time for a major transformation, given the uncertain economic circumstances caused by a pandemic and other kinds of business disruptions?
2. How fast can I move? If I go ahead, how quickly can I realize measurable business value from a finance transformation?
I’ll briefly address both questions in this short blog and then tell you how you can find out more.
Why the time is now
Why transform your finance organization today? Here are just a few good reasons:
· Avoid investing in legacy systems that are being phased out: Spending money on outdated technology, when you know an upgrade is on the horizon, is a major frustration. Moving to a new platform right now means investing in the future, not the past. Business processes can be more focused on optimal ways of doing things, without being hampered by older technology.
· Access real-time capabilities for data and analytics: Embedded analytics come with S/4HANA, so users can interact with real-time data. Advanced forecasting capabilities help you perform what-if analyses, and also predict and simulate results.
· Realize faster speed to market: The big question to consider here is whether you have business processes in place supported by a system that allows you to develop and deploy products and services in a timeframe fast enough to keep you competitive. This is a real concern, especially in an era when disruption, changing customer expectations and new ideas mean that markets can shift quickly based on who gets a foothold first.
Realizing value … quickly
It wasn’t too long ago that I was telling clients that they couldn’t delay showing a return on their finance transformation investment for the typical three years. They needed to show value within one year. Now, based on my experience, even that timeframe is too slow. You can’t think in terms of delivering value in 12 months; today, it’s closer to 12 weeks.
How can you achieve meaningful goals that quickly? One way is by creating a compelling vision and a flexible implementation roadmap focused on delivering value early and often. Another is by establishing a data strategy early on to understand the value of data for the organization and then turn it into insights. Finally, remember the people whose acceptance of new systems and processes will largely determine how quickly you can achieve value from a finance transformation. Design processes and manage change with users in mind.
Learn more
Join me at SAPPHIRE NOW. Register and view session #FIN600 — Unleash Next-Generation Intelligent Finance.
Read more about how to expedite finance transformations in a recent paper, “Seven secrets to a successful finance transformation with SAP S/4HANA.”
I welcome your thoughts and ideas. Comment below or send me a message.
