The Ledger

The Auto Industry is Changing Gears in Their Technologies

Changes in technology and a confusing global trade environment are throwing automotive companies for a loop. After coming off a strong run of auto sales, these companies are struggling to use the same formula that has made them so successful for so long. While very few factors contributing to the rapid change in the auto industry have to do with the finance function, finance leaders will play a large role in the industry’s ability to adapt to the changes successfully. The key is to focus on flexibility by first acknowledging some of the biggest factors influencing the business and then installing systems that allow it to be nimble in the face of disruptive threats.

Read More at CFO Magazine >

The Right Plays for Every Finance Leader

Finance leaders are transitioning from being an entrepreneur with a tight grip on costs, to also taking on driving strategic growth initiatives, handle regulatory change across the company, improve efficiency and performance, and partner closely with other business functions. How can CFOs make a visible impact on overall business performance while handling such a wide range of responsibility? By paying attention to three foundational pillars. These pillars enable the finance organization to collaborate with areas of the company to construct viable new business models and growth opportunities, predict and evaluate outcomes, and flexibly adapt structures and processes to drive efficiency and advantage.

Read More at The Digitalist by SAP >

Revamping Old Products Can Bring New Growth

To stay competitive in any market, many companies focus on the new. The idea of creating fresh ideas and products with the hopes of increasing revenue is very attractive to these companies eager for growth. This can be risky if decision makers don’t understand exactly how these new products will affect them in the long run.

 “Too often the preoccupation with finding or creating shiny new products can cause you to take your eye off your most profitable and lowest-risk opportunity: reviving your current product by innovating around it.”

Gatorade did this in 2008 when they reinvented old products to create new ones.

Read More at The Harvard Business Review >

Achieving Real Value From Cost Management

Reducing costs in any organization is necessary and valuable to increasing revenue and profitability. However, the pursuit of cost reduction can lead to poor tactical and strategic decisions if the goal of creating and maintaining value is overlooked. The idea of value is seen two different ways. Some view value has profit, increased market value, and wealth for financial stakeholders. Others think of value as moral, legal, ethical, and pride in the organization itself. To make the most strategic decisions for the organization, finance professionals must take both perspectives of value into when cutting their costs.

Read More at Automation World >