By Rohan Kapil
Digital transformation has been an upward business trend for some time, but lately its importance has risen significantly. For years, it simmered in the background, somewhere in dark corners of the IT department, with no real connection to the payments department, HR, controlling or even the office of finance.
Today, digital transformation is an enterprise-wide endeavor, connecting and affecting all business units. It's not just about "going digital"; it's also about the transformation and the mindset behind it.
According to the "The Essential Components of Digital Transformation," by Tomas Chamorro-Premuzic in Harvard Business Review, Nov. 23, 2021, organizations are predicted to have invested upward of $6.8 trillion in digital transformation efforts by 2023. Smart payments industry organizations will consider it part of their overall strategy this year, not the next.
Transformative tools such as artificial intelligence make it easier than ever to make powerful predictions that were either extremely difficult or nearly impossible to do in the past. Those predictions can not only help avoid potential obstacles, but they also can shine a light on the places in which the strategy needs to pivot to counteract them.
An important step in this process is to unify the data upon which finance professionals rely to ensure a solid foundation for an effective transformation.
Digital transformation does not happen overnight. It can happen gradually or quickly, depending on the systems already in place. To determine a company's digital maturity, a few basic levels apply:
The pandemic sped up business innovation and stress-tested the concept of 100 percent remote work for many companies. Changes in the business world are nothing new, but today's realities are based on even more uncertainty than ever before. With so much new technology flooding the market and so much left uncertain, CFOs are scrambling to make sense of it all and determine how to effectively optimize value creation from within finance. Recent market conditions have changed, assumptions have been modified and geopolitical tensions with their ensuing sanctions have given rise to several finance trends:
Digitalization will continue to escalate. Finance professionals are no longer just generating reports, but also generating value across the entire enterprise as strategic business partners. The finance industry is being reshaped at this very moment and must keep pace with ever-changing market demands to ensure digital transformation is more than just a buzzword and can support cross-organizational planning that mirrors the unique contours of your business.
Rohan Kapil is the director of customer success for Jedox Inc, www.jedox.com/en, a leading EPM software solution provider. He holds a Master of Business Administration in Strategy and Finance and a Bachelor of Engineering in Computer Science. He has 14 years of experience in the enterprise performance management space solving critical financial planning and budgeting problems and executing complex projects to enable ambitious growth. Skilled at translating granular financial and non-financial information into actionable intelligence, he helps companies of all sizes enhance executive decision making and mitigate potential risks to improve business performance. Find him on LinkedIn at linkedin.com/in/rohankapil.
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