New technologies can help finance leaders to future-proof their business and think more strategically, writes Danny Buckley.

One of the prerequisites of working in a disruptive market is the need to design a more flexible operating model for finance.

For many, the need to transform these operating models is no longer an option – it is an imperative.

CFOs are reassessing gaps in their operating models to help set better targets and improve their reporting and forecasting capability.

Riding the crest of the innovation wave

Since the onset of the pandemic two years ago, the rise in automation has given finance teams more scope to concentrate on higher value-added activities.

One area of particular interest has been financial forecasting powered by artificial intelligence. Here, AI has the potential to help finance teams generate predictive insights and reduce margins of error — and, at some point in the near future, instant forecasting in real-time may well become the norm.

To build a better view of the future in the meantime, organisations will need to embed a culture of innovation — one in which technology and data can be used together for strategic advantage.

The finance team will also need to change, opening itself up to new ideas and greater collaboration with others, both within and outside the organisation.

On the journey from ‘running’ finance as a function to ‘driving’ finance as a value-added service, CFOs and senior finance leaders will need to focus on:

• partnering with external parties to provide finance processes or activities requiring specialised technology or knowledge;
• embracing data ecosystems which could prove crucial as organisations look to share business information across internal boundaries;
• hiring people with the right skills, giving them a career path, and attracting in-demand talent; and
• keeping abreast of the constantly changing legislative and regulatory environment.

Transformation in operating models may create opportunities for finance-as-a-service. To future-proof operating as seamlessly as possible, CFOs will need to be able to build cross-functional teams.

A clear understanding of targeted business interventions will help finance leaders to use data proactively to provide operational insights so that they can drive value at scale.

To do this, they with need a solid strategy combining both data and technology. Technology can create a platform for the digital transformation of the finance function and a collaborative architecture connecting a range of ecosystems. Ultimately, it can bring employees, providers, and customers together as a cohesive unit.

Danny Buckley is Partner of Financial Services CFO Advisory at EY.