ACCA, alongside PwC and CFO, Jens Madrian, explore the challenges that digital disruption brings to the finance function. This is the first article in a joint series that will help senior finance professionals respond to the issues and opportunities the digital revolution presents.
Digital disruption and sweeping changes challenge finance functions as we know them today. But what does this mean in reality? How do we transform ways of working, improve efficiency and develop value-add skills?
In our series of articles over the next twelve months we will be answering those questions, from three different points of view: our own as the global body for professional accountants, PwC, and professional CFOs.
At ACCA our research shows that businesses are starting to recognise how the digital environment is reshaping what is needed from the most prized asset – talent. Technology alone can never be the ‘magical solution’ – it is the skills that finance professionals bring to the function that will differentiate those functions leading them from good to great.
PwC will be using the traditional model of the roles in finance to frame the conversation around the impact of digital on finance. Where once finance was seen purely as the accounting function, in the roles of score keeper and diligent caretaker, producing financial and management accounts, world class finance teams are re-shaping themselves to take on a much more prominent role in daily commercial activities of the organisation therefore shifting upwards towards communicator and business partner roles..
The CFO viewpoint is represented by Jens Madrian. In this first article, he highlights that responding to the digital age isn’t just about new IT sophistication but more the need to change the whole operational approach. Jens says that, the people and activities of future finance functions will look very different from today and that CFO’s will need a new mind-set and language to cope with the new economies to be able to lead the transformational change.
There is no doubt about it, the role of finance and how that role is undertaken is changing rapidly. There are greater expectations being placed on finance professionals to add more value and drive the business agenda in these challenging times. In addition, this needs to be done amidst a backdrop of the need to play a role in building trust in many organisations and driving even greater operating efficiencies.
Bringing the three unique perspectives of PwC, the ACCA and the CFO community together has highlighted the key considerations for CFOs in the digital age. Many of these are around the finance operating model and the strategy for finance within an organisation but there are also lots of questions around the most appropriate use of technology in finance and, critically, the skills and behaviours needed of members of the finance team.
Over the coming months we will be using the traditional model of the roles in finance to frame the conversation around the impact of digital on finance. Where once finance was seen purely as the accounting function, in the roles of score keeper and diligent caretaker, producing financial and management accounts, world class finance teams are re-shaping themselves to take on a much more prominent role in daily commercial activities of the organisation therefore shifting upwards towards communicator and business partner roles.
Through this series we will explore how digital and the new demands from the business are impacting each of these aspects. In particular, we will reinterpret these to effectively tackle the impact of digital, and the demands from CEOs.