How Finance 4.0 can support sustainable processes and governance
Summary
The digital revolution has been underway for many years and while the margins between the digital and physical worlds blur, it changes everyday routines from an organisational to an individual perspective.
Industry 4.0 techniques have become a mainstay in ensuring a business retains a competitive edge and stays afloat in the current economic climate. 4.0 techniques in the finance function have also become more necessary in a world where a business’ financial outlook must remain transparent and aligned with the global priorities they advocate for.
Industry 4.0 and the sustainability race: Given the critical juncture the world is in with the climate crisis and the natural disasters it is spurring, rapid changes are needed. Rapid changes, which can only be supported through cutting-edge digital frameworks. It is vital that companies leverage 4.0 digitalisation to support their sustainability goals and recognise the opportunities it brings.
Commit to improvement and governance: For a company to stay accountable and dedicated to essential sustainability goals, a robust system of governance is required. Through transparent and accurate reporting, governance can create higher value addition to advance your sustainability goals and help your company meet all its objectives without compromising quality or productivity.
Industry 4.0 is here and with the digital revolution comes a blurring of the lines between the digital and physical world. We have already experienced the effects of this change in every sector of our lives from entire nations to an individual’s everyday routine. 4.0 technologies are the future.
Each critical business function has its own methodology for Industry 4.0 techniques, from Finance 4.0 to Procurement 4.0 and everything in between—entire industries are undergoing rapid transformations.
For a business to remain competitive, let alone afloat in the current global economy, it needs to transform to 4.0 techniques and undergo the necessary changes this will bring.
In order to supercharge a successful transformation, it is important that companies do not view the changes ahead as separate from their other business objectives. Industry 4.0 is the most advanced wave of digitalisation and it brings the potential for more integration, higher value addition, enhanced skill development of all teams, and opportunities to change the way your business operates permanently.
Digitalisation cannot just be a tool in your operations, but the foundation on which your operations and objectives all depend.
Finance 4.0 and the race to sustainability
Technology alone is not automatically more environmentally conscious.
In fact, e-waste has become yet another issue that has taken the technology world by storm.
It is clear that even the potential to be sustainable must be accompanied by the mission to be sustainable and a business must act on this mission in pragmatic ways in order to create much-needed change.
Finance 4.0 as a technological wave cannot bring about eco-conscious change, but a company can leverage the many opportunities and resources it brings to support more eco-conscious systems in the shape of sustainable processes and governance.
4.0 techniques can achieve sustainable development in the form of resource preservation and more intelligent, intuitive systems and processes that free up your human-led teams for higher-skilled roles.
Sustainability is also the only way for a company to compete in the current, global, digital market, which means that in many ways, a business has very little choice about whether or not to embrace eco-consciousness as a priority. As priorities, both Industry 4.0 and sustainability have this in common and are conducive to each other.
A contemporary firm must leverage the cutting-edge tools available to them to meet their environmental, economic, governance, and social sustainability goals through a framework that allows them to remain competitive in the current market—an Industry 4.0 framework.
Committing to improvement and governance
The governance of your systems requires accuracy and transparency that human error can often complicate. A Finance 4.0 system promises integration, transparency and higher value addition in numerous ways to enhance your governance processes.
A governance system is led by the human aspect of business, and it is the human aspect of business that truly shines when technology holds its rightful place.
By centralising governance, alongside the systems that are implemented to advance sustainability objectives, you ensure that your goals are adapted to meet your trajectory, your reporting is accurate and comprehensive, and that your network is supporting your goals and showcasing your priorities.
Governing your sustainability once it is underway is a necessary part of ensuring that you stay accountable and open to further development. It can give you a competitive advantage in a market that, by and large, will share the same goals as you do.
Finance 4.0 makes room for more value-added governance by creating a stable backdrop for this development to take place. With the implementation of Industry 4.0, you support your business with the most updated view of the market without running the risk of inefficiency and resource wastage.
Meet your priorities through digitalisation
As we look toward the future of business practices around the world, digitalisation is set to play a more important role in what that future looks like and what each industry will be capable of.
At this juncture, it is vital that organisations make the necessary investments in lasting and flexible frameworks that can not just meet their development needs and growth goals, but also more specific and urgent objectives such as sustainability and eco-consciousness.
The climate crisis is only set to worsen in the years to come, and having the right tools by your side can make all the difference in mitigating the risks ahead.
Depending on your industry and current operations, it is impossible for a contemporary company to meet the demands of the current market while maintaining profitable bottom lines and meeting ESG priorities. Impossible—that is—without the help of cutting-edge innovation.
