The Ledger

What Sets Modern Finance Teams Apart from The Competition?

What sets modern finance teams apart from their competition? The short answer: their cost management methodology.

“Using cost management as a strategic lever, as opposed to a defensive response, creates new opportunities. It is no longer a reactive tool. It is a proactive way to become more competitive in the global environment.”

Modern finance leaders have transformed not only the way they view their costs, but also how their costs operate within their overall finance strategy. The biggest difference between finance teams with this viewpoint and those that are still struggling to understand their cost is that they are using new technologies and thinking outside the box. They use new tools, new techniques, completely new cost structures that not only reduce costs, but also free up money for growth.

Read More at Knowledge @ Wharton >

Smart Automation: The Framework for Dynamic Digital Operations

The Hackett Group defines smart automation as “the optimization of structured work, knowledge work, and interaction work through the adoption of emerging robotic process automation (RPA), smart data capture, conversational interfaces, cognitive automation, and agile orchestration technologies.”

For finance, this means applying new technologies to improve effectiveness, efficiency, and user/customer experience, while providing operational insights. Because digital transformation and innovation are disrupting the way businesses operate and increasing competition, smart automation solutions are an important part of the finance function’s future.

Read More at The Digitalist by SAP >

Cost Management Isn’t Only About Costs

“Not long ago, companies thought cost management was about reducing expenses. The notion then evolved and was viewed as a way to manage costs while also driving growth. Now, cost management is advancing further. Business leaders see it as a strategic initiative that is part of a larger transformation process.”

Modern businesses’ focus on cost management has shifted from cost reduction to cost transformation. The cost-to-transform method is about managing cost structures along with revenue growth and changing product and services offerings, all while focusing on growth. In this “save to transform” mode that many businesses are in, technology is making a huge play.

Read More at Knowledge @ Wharton >

Digital Technologies Are Re-Imagining Financial Reporting Capabilities

Many finance leaders see their reporting practices as a monotonous task that requires many charts and spreadsheets that show several different versions of how the business is performing. A Deloitte survey reported that the majority of finance leaders spend almost half of their time creating and updating reports, and only 18% communicating results to the business. While some companies are using standardization to gain efficiency and insights quickly, many are applying point solutions to traditional reporting processes to help improve specific capabilities. A handful of digital technologies are providing modern businesses with a fully-automated end-to-end reporting process that makes real-time insights accessible.

Read More at The Wall Street Journal >