Finance has historically been slow to adopt Cloud as a technology. In the research study co-sponsored by SAP with CFO.com, called Shaping the Finance Function of Tomorrow, finance executives are now becoming more open to placing their financial processes into the cloud:
86% of respondents agree that their finance functions will be pressured to make greater use of cloud computing over the next two years. Many finance executives emphasize cost savings, data storage, and data access benefits of cloud computing.
About three-quarters of the respondents recognize the benefits of speedier implementation (74%) and easier updates (77%) that cloud technology offers.
Just as often mentioned is the imperative to free up finance resources for higher-value analytical tasks, which is also encouraging many companies to make greater use of cloud computing.
Business is changing because of the impact of going digital. Ensuring that there are digital processes across an enterprise impacts finance. Companies can’t be digital if they are not real time cross the entire business processes which includes finance.
Companies can embrace digital value networks to enable business transformation through:
Running in real-time, enabling you to transform every business process enterprise-wide to achieve new levels of performance and competitive advantage. Digital experience with uber, these processes ends with immediate invoice seamlessly, automating processes such as invoicing to be touchless.
Empowering the business to identify issues quickly, immediately evaluate available options, select the best combination of options, and then immediately initiate workflow to execute the action. This includes on the fly adjustments and analysis by any
Simplifying technology by eliminating and streamlining process steps, data aggregates and data tables and systems ( should also relate to implementation and maintenance)
This all means that companies can innovate for the future by rapidly identifying and building new business models and new business processes to capitalize on real-time market opportunity
What is a digital value network and how does a digital value network enable business transformation?
The digital value network starts with a digital core (SAP S/4HANA) which interconnects all aspects of the value network in real-time to drive business outcomes. It gives companies the opportunity to re-platform core business processes and bring together business processes with transactions, analytics and planning in real-time to enable a smarter, faster and simpler enterprise.
Workforce engagement to retain and grow existing talent, attract new talent and preserve enterprise intelligence with a smarter, engaged workforce, with processes from integrated time and expense management as well as strategic HR through contingent labor integration.
Business Partner collaboration-through business networks to mitigate risk, accelerate growth and help ensure global compliance, all while maximizing margins. Networked Economy collaboration accelerates value for the business partner and growth – automating processes such as payments and receivables with the business networks.
Outcome-based Omnichannel customer experiences enabled by the capacity to reach, engage and serve customers with timely, tailored and relevant information and offers along the entire customer path to purchase, across all channels, from e-commerce to in-store, to market to an “audience of one.”
The Asset and Internet of Things, combining internal, external, social and sensor data to enable real-time visibility to quantifiable measures of customer activity and other market dynamics with qualitative measures of customer intent and behavior. Harness information from Assets and Internet of Things to drive real-time insights and new customer touch points & business models – flexibility to predict and to make on the fly adjustments.
SAP S/4HANA and Cloud Computing
The complexity found in decision making, process execution, and IT architecture has a high cost.
In the past:
In Decision making: Finance has to wait for experts (usually in IT) to gather and prepare data to analyze. By the time this is done, the problems finance is trying to discover and diagnose have often become unmanageable.
In Process execution: Today’s batch-oriented processes, like period-end close, not only suffer from the inherent latency of a batch operation, they also rely on manual reconciliation between finance and controlling systems. The result is that there is no time left in a period to check for errors or even simulate what would happen under different conditions, such as an acquisition, divestiture, or reorganization.
In IT architecture: Because there has been little structural change in finance systems, IT must spend time to create interfaces and reporting layers to help bend the business into the predefined structure demanded by the system. As a result, businesses cannot really optimize the way they work. If they do reorganize, this creates even more of a burden on one-off interfaces or reporting structures to handle the differences.
With a traditional system:
Close activities that don’t begin until period end
Multiple batch-run dependencies
Batch bottlenecks that delay downstream activities
High error-correction efforts
Complex issues that are postponed until after close
Delayed visibility into reporting
With SAP S/4HANA and the Cloud
Real-time system with key performance indicators (KPIs) instantly refreshed
Elimination of end-of-period batch bottlenecks
Continuous intercompany reconciliation
Continuous financial reporting visibility
Profitability analysis and line-item detail reconciliation
Automation for routine tasks
Full management visibility of close tasks
Experience Digital Transformation with Approyo
The opportunity exists to transform business processes and achieve the digital transformation of your business with more automation and real-time visibility. Our SAP S/4HANA, SAP HANA and Cloud solutions address these important needs and more. Let us show you today! Set up a free consultation.