Today, as businesses across industries embrace digitisation and transform their business processes to meet the requirements of the digital economy, core business functions need to be optimised to support this transformation.
Moreover, consumers are also expecting more from businesses in terms of accountability, social responsibility, and governance.
The result is that today, most businesses are adopting new and improved digital processes across their core business functions such as procurement and finance to align their operations with the demands of Industry 4.0 and to meet consumer expectations.
The finance function, in particular, is going through a shift in how it operates with cloud finance becoming more prominent in Finance 4.0.
Moreover, significant changes in the economic landscape have allowed the finance function to not only become more efficient at managing how financial resources are spent but to become a more integral part of strategic decision-making as well.
Today, the modern business landscape demands that the finance function play a more active role in informing decision-making across other departments and optimising business processes to drive greater financial efficiency.
In addition to becoming a strategic business partner, one of the biggest changes in the finance function for Finance 4.0 are the increased emphasis across customers, regulators, and stakeholders on transparency across the financial transactions of businesses, including individual investments.
European regulators, in particular, have unveiled a slew of regulations that require businesses to be more transparent about their finances.
What this means for organisations is that as intangible assets become the major part of an organisation’s investment profile, they need to rethink how they are reporting their finances to relevant stakeholders and assets.
Many finance professionals believe that embracing new technologies and integrating them into financial reporting processes is the only way to meet modern requirements and prepare for future regulatory requirements.
That said, integrating digital finance tools with existing processes requires a paradigm shift in terms of the fundamental financial framework.
The only way organisations can transform their financial framework is by investing in technologies that help them uphold the integrity of existing frameworks and enhance their agility to respond to future demands.
The Finance 4.0 revolution can not only transform how organisations approach the finance function, but also pave the way for achieving financial excellence in the future.
As demands of Industry 4.0 are recognised by businesses and they take the steps to optimise their core business functions, financial professionals need to think both creatively and critically to initiate change and drive value across their organisations.
Kronos Group’s team of professionals helps companies and financial professionals across Europe embrace Finance 4.0 to create a more responsive, value-added, and optimised finance function.
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A part of Kronos Group’s team since 2018, Julie is a leader who has honed her specialisation in business transformation and utilised her expansive financial expertise to power business strategy and add value to what we do. She has amassed experience (Pfizer, Sony, AXA, SMEC, Tradelink) all over the world in strategy, project management, analysis, and supply chain.