EDITOR ’ S QUESTION
With issues ranging from supply chain disruptions to cybersecurity threats and continued business uncertainties due to the pandemic , 2021 was a difficult year for CFOs across the globe . These challenges were exacerbated by a significant shortfall in Digital Transformation , as determined through recent studies , that hindered the ability of finance teams to anticipate and respond to business changes . This next year , however , represents an exciting moment for finance executives who are now more than a calendar year removed from the uncertainty of the COVID-19 pandemic and are ready to meet challenges head-on .
Alok Ajmera , CEO of Prophix Software , said : " Last year , our Agility in Planning , Budgeting and Forecasting survey findings , done in conjunction with FSN Research , identified most finance departments still face challenges in their Digital Transformation with sizeable gaps in abilities and outcomes in nearly every survey category – ranging from speed to insight to forecasting accuracy , to the ability to conduct scenario planning .
" Our benchmark report underscored the need for Digital Transformation to help fundamentally change the role of finance from reactive to proactive , better anticipate change and take a stronger role as a business advisor . By leveraging more advanced tools within corporate performance management software , including Artificial Intelligence capabilities and intelligent automation , finance executives can be better prepared for what comes next ."
Ajmera shares five predictions for finance teams looking to close the Digital Transformation gap in 2022 :
Dynamic financial planning will be the antidote to continued business disruption
From supply chain shortages to rising inflation , businesses most likely will continue to deal with various disruptions in 2022 – and dynamic financial planning tools such as cloud-based ‘ if / then ’ scenario planning software will emerge as the sure proof solution for businesses to remain nimble and quick-footed in their strategic decision making .
Strategic finance and operational planning will go together in 2022
To unite FP & A strategy with operational planning to meet long-term goals , companies will focus on obtainable financial and organisational targets , ensure their budget supports organisational plans and make use of financial planning software to optimise strategic planning .
A focus on intelligent automation , not hyperautomation
Hyperautomation will not be the silver bullet for CFOs seeking to streamline their reporting processes in the year ahead . Instead , finance executives will apply intelligent automation technologies to specific areas of the business to reduce manual work , increase the speed of decision-making and improve data accuracy for reporting processes .
Zero-based budgeting makes a comeback
Zero-based budgeting ( ZBB ) is gaining in popularity and it is not the slash-and-burn tactic it once was . Instead , with the help of automation , cloud platforms and AI , ZBB allows businesses to roll out budget changes quickly while increasing a company ' s nimbleness in other aspects of FP & A .
The era of AI-powered corporate finance is here
As businesses emerge from the volatile pandemic period , expect to see CFOs finally taking the plunge into AI-powered finance technologies , kickstarting the next era of super-charged corporate finance .
Intelligent CXO spoke to three industry experts about how business can alter their financial strategy to tackle the coming year . . .
TO WHAT EXTENT HAS THE PANDEMIC AFFECTED ORGANISATIONS ' FINANCIAL PLANNING AND SPENDING , AND HOW SHOULD THEY PLAN FOR THE YEAR AHEAD ?
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