The Ledger

Your Finance Technology Can Be a Significant Strategic Partner

“The technology tidal wave is causing disruption, but it also provides opportunities for accountants and finance professionals to develop leadership skills.”

Blockchain and cryptocurrencies as well as artificial intelligence (AI) continue to drive innovation and change throughout the business landscape. While these specific trends can seem abstract, accounting and finance professionals do need to understand what these technologies are. Arguably more important than any specific technical knowledge, however, is the ability to leverage these innovations to become strategic partners.

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Scenarios Are Critical for Successful Enterprise Planning

The business world is far too complex to have a definitive view of what’s going to happen 12 months down the road. In this environment, scenarios can play an important role, but only if they are part of an overall collaborative approach. With a collaborative approach, scenarios become in effect a short story about what might happen. They present a snapshot of a future business environment encompassing the market, competitors, and potential customers. The scenario is the basis for a model that places the organization into this environment with respect to the product and services it could offer, the price target, and volumes likely to be sold. From this, what-if scenarios can be generated by looking at the changes required for the organization to improve the projected figures and how those changes would be funded.

Read More at The Digitalist by SAP >

Driving Success with Predictive Analytics & Machine Learning

Many finance leaders are seeking predictive analytics and machine learning (PAML) technologies to deliver better outcomes to customers and stakeholders. However, a recent Forrester study found that only 15% of organizations have adopted these technologies. There is a major discrepancy between adoption of PAML technologies and intent to adopt, because over 90% of organizations say PAML is important for building more personalized customer experiences and is needed to drive efficiency with back-end and customer-facing applications. A common obstacle to adoption is that organizations are typically split into two sides of the house: the experimental side and the operations side, often at a rapid clip. There are three core attributes to drive success with PAML technologies.

Read More at The Digitalist by SAP >

Improving the Relevance and Value of Financial Reporting

“How can CFOs and finance organizations improve the relevance and value of financial reporting? Like the competitive life cycle of a firm or product, financial reporting and accounting are at a crossroads: decline or resurgence. Significant forces of change during the last four decades have radically altered the way companies create long-term value. Yet financial reporting and accounting haven’t changed markedly and even have moved in the wrong direction in some cases.” The first step in regaining relevance in financial reporting is for all of us to recognize a problem exists. CFOs and management accountants have an opportunity to experiment and develop internal performance reports focused on the components of the Strategic Resources & Consequences Report that create sustained competitive advantage.

Read More at Strategic Finance Magazine >