What are the Data-Driven Strategies for Digital Transformation Success?
Digital Transformation quickly became one of the buzzwords that became most talked about of the COVID era , as business leaders had to figure out the various virtualized applications, experiences and the new methods required to fully empower and manage remote workforces. Even as numerous organizations have shifted to hybrid or on-site operations, the necessity of creating, executing and adjusting how a company adjusts to the digital world is more critical than ever before.
Return on Investment
CFOs are the first to say that every business initiative should yield a compelling ROI. The days of asking the CRO or teams to show an increase in Net Present Value (NPV) or to meet the prescribed Internal rate of Return (IRR) threshold have passed; each project that is presented to the CIO must have an increase in the bottom line and/or top impact. Projects that succeed will show an improvement of higher order, with a solid business case and be able to withstand the most comprehensive evaluation and analysis of the treasury department, financial planning and analysis teams, and budget teams.
CFOs, CIOs and other CFOs are building closer connections as enablers of digital transformation initiatives. In the wake of the epidemic, it was revealed that siloed systems do not have the capacity to handle changes with speed and precision. To ensure better results for the future of the business They are making investments in automated systems, inter-connectivity between external and internal systems and real-time data processing across the entire enterprise to make better well-informed and scalable choices.
Highly skilled value engineers can identify business requirements, quantify the impact of changes in terms of dollars, and then validate the data using an assessment of performance maturity that compares organizations of similar size as well as industry. The end result is a realization assessment that defines what the expected business outcomes will be for the next state that is being envisioned in the Digital Transformation initiative as a map or a guideline and the business plan can be used to track the progress of the project as a series of project milestones prior to, during and after digital transformation has been completed.
Automation is not the main goal of any endeavour, but rather an enabler that allows employees to focus on other activities that add value. Let’s say we go to Maslow’s hierarchy of demands. In this scenario we can safely assume Maslow would have regarded productivity as the most fundamental of requirements in the path towards the digital transformation equivalent to self-actualization and improved business results.
Automatization goals can also serve as crucial early-stage milestones for projects. Gartner declares that the way to hyper-automation starts with task automation. It is as easy as it sounds. The goal is to replace manual processes with automated ones to reduce time. APIs are frequently cited as the primary catalyst for automation and financial solutions that are composable. Automating tasks is typically provided through standard features in the same software platform but sometimes, robot processes automation (RPA) can be used to make up for deficiencies in the product like complex calculations or reports.
Process automation, which is the interconnection of enterprise information platforms, is beginning to provide more value than just time savings as technology solutions shift from records systems and systems of interaction.
Jean-Luc further states, “Kyriba, for example has been focusing on the development of its platform for enterprise liquidity management to bring together treasury, payment working capital, treasury, and Risk management tools for the CFO as well as their teams since this broad approach offers the highest potential for optimizing liquidity and increasing top or bottom line results. It’s this fully connected ecosystem that allows transparency, control, efficiency, and data-driven decision making to implement the business expansion strategy.”
There’s nothing more powerful than unifying data to boost confidence in the ability to make decisions quickly. Data is the key to understanding and confirming business strategies. If done correctly Automation and API-connected solutions will unlock new capabilities to make data-driven decisions by reducing time and cost instead of requiring an investment in additional resources and time.
To provide better value business results digital transformation initiatives need to give new insight that leads to improved decisions. There are many terms that refer to intelligence: artificial, data business, financial. They all end up at the same spot, an understanding of how to improve processes in business and make better decisions.
There are numerous examples of taking new steps however one of the easiest ones to measure from the perspective of an accounting and IT solutions provider will be the way that digital transformation can reduce the effects of volatility in the currency on corporate earnings. For instance:
An accounting system can provide the multi-currency assets as well as liabilities in the balance sheet.
A computerized system of engagement will detect, extract and normalize transactions in multi-currency accounting from ERP and convert them into gross or net exposures to currency
A well-thought-out intelligence system can assess how vulnerable an organisation’s income statement to potential currency volatility, including hedges against currency risks using derivative instruments, or executing invoice or supply chain business processes (such as the process of billing and paying with the exact same currency) as well as incorporating the historical gains and losses from currency headwinds as well as tailwinds.
In this case process automation can provide intelligent , data-driven analysis that is automated without the need for a new army of employees. The potential for an outstanding ROI is not just quantifiable but substantial should the business reduce their exposure to currency to not more than 1.5% of their earnings. In the context of this that’s billions of dollars in lost earnings each quarter.
Better Business Results with Digital transformation:
Digital transformations that are successful are not just well-planned they also forecast a clear and convincing ROI, and automate the delivery of decision-making based on data They are also extremely collaborative and have forward-thinking leaders who, just like their artificially-intelligent algorithms that they seek to develop learn from the data they collect to create better business results.