As finance pros race toward 2025, the accelerating pace of technology is reshaping finance functions. They're adopting new tools and processes to optimize efficiency, accuracy, and strategic decision-making. But simply adding technology is just the start. Stakeholders want to embed it deeper into everyday operations in a process generally called transformation.
The days of pen-and-paper are behind us, but technology integration is an ongoing journey. They're ready to push further, unlocking the true value of transformation by aligning tools, teams, and goals.
Finance teams are one key area where transformation has the biggest effect, from boosting data volume to better modeling and AI-driven insights. But for CFOs and Finance Directors to get the most out of transformation, and truly drive value, they'll need a sharp focus.
What is Finance Transformation and How It Can Drive Value?
Transformation for finance teams means better integrating technology within finance systems and processes, paired with a fresh approach that uses efficient systems across operations. It’s all about optimizing the finance function to meet both departmental and business goals.
This can reduce process complexity, streamline manual tasks, and embed new tools to improve analysis and decision-making.
Some examples of systems and processes that can be optimized through finance transformation include:
Financial Close and Consolidation
Enterprise Resource Planning (ERP) and Corporate Performance Management (CPM) systems
ERP and CPM systems are crucial for organizations looking to improve efficiency and performance. According to recent reports, 79% of finance leaders rank digital transformation as their top priority for 2024, yet only 31% of transformations achieve sustained success.
These systems help streamline processes, reduce costs, and provide a comprehensive view of an organization's financial health, thereby supporting successful digital transformations.
5-Step Roadmap for Finance Transformation
Implementing finance transformation requires a clear plan that aligns technology, processes, and people. Here's a simple roadmap to help businesses maximize efficiency and value at every step:
Assess Current State: Evaluate your existing systems, data flows, and workflows to see what's working and what isn't.
Define Key Objectives: Set measurable goals tied to efficiency, compliance, and ROI.
Select the Right Technology: Explore solutions like FP&A software, ERP improvements, or AI-driven tools that fit your needs.
Implement & Iterate: Roll out chosen solutions in phases and gather feedback regularly for continuous improvement.
Measure Success: Track KPIs like process speed, data accuracy, and cost savings for ongoing optimization.
How Can Key Stakeholders Ensure Finance Transformation Drives Value?
Finance transformation is a hot topic, but many stakeholders worry about the risks it carries. They're eager to adopt digital solutions, yet they're sometimes uncertain about which technology truly fits their business, and they fear competitors might transform faster and gain an edge.
1) Some CFOs and VPs push for rapid digitization without fully understanding the best-fit technology. Rushing can leave finance functions in a suboptimal state.
2) Onboarding isn’t organized effectively, so teams aren’t prepared for the new technology. Organizations report over 10% average improvement in profits or performance from digital initiatives, a significant leap from just 2.5% in 2022.
3) Transformation is essential for every part of a business, but it’s especially critical for finance teams. They rely on huge volumes of structured and unstructured data, and technology can revolutionize how that data is processed, analyzed, and leveraged. Notably, 58% of finance organizations adopted AI in 2024 (a 57% year-over-year increase) primarily for forecasting, risk management, and process automation.
Why is Digital Transformation Key for Finance Teams?
Transformation is essential for every part of a business, but it’s especially critical for finance teams. They rely on huge volumes of structured and unstructured data, and technology can revolutionize how that data is processed, analyzed, and leveraged.
Data processing and manipulation are among the most important areas for transformation, especially given the sheer volume of information finance teams handle daily. Software upgrades can drastically improve capacity and speed, while AI can power faster, more detailed analysis than manual methods.
Alongside data, transformation also boosts compliance. With increasing complexity in global taxation and financial regulations, automation can handle many compliance tasks and improve transparency.
Another major driver is the finance department’s interconnectivity with the rest of the business. By enabling finance transformation, companies essentially drive digital transformation across the entire organization.
Finance Transformation Benefits
Finance transformation delivers tangible advantages that help teams thrive in a complex, data-driven environment:
Increased Efficiency: Automated workflows reduce manual tasks and free teams to focus on strategic analysis.
Improved Compliance: Real-time data validation and automated reporting keep your finance function aligned with evolving regulations.
Enhanced ROI: Better insights from analytics and forecasting drive smarter investments and sustainable growth.
Ensuring finance transformation drives value requires a clear, long-term strategy that outlines what the business wants from transformation. This strategy has to align with the organization's scaling plans and must factor in the right technology solutions for current and future integration.
To maximize value, stakeholders should identify which parts of the finance function will benefit most from transformation.
Ensuring finance transformation drives value requires a clear, long-term strategy of what transformation should achieve. It must align with how the business will scale and account for the right technology solutions.
To drive the most value, stakeholders must also pinpoint which parts of the finance function gain the most from transformation.
Where Can Finance Transformation Drive the Most Value?
1. Better financial planning through modeling and forecasting
Planning is a crucial finance function that can be dramatically improved through transformation. With advanced financial modeling, scenario planning, and rolling forecasts, teams can react to market shifts faster and keep everyone aligned with the organization's vision.
2. Utilizing more data, faster
Modern software can process more data than ever without slowing down. Enhanced data consolidation pulls info from vast data lakes for real-time visualization, letting decision-makers act faster and more confidently.
3. Faster analysis through AI
AI brings powerful, in-built insights into finance tools. While experts still validate findings, AI insights speed decision-making by providing baseline assumptions to refine.
4. Quicker collaboration, faster processes
Collective-based systems let multiple teams collaborate in real time. This speeds up processes and ensures time is spent on what's truly valuable.
Which Technologies are Driving Finance Transformation?
Technologies like AI, Robotic Process Automation (RPA), and cloud platforms are propelling finance teams forward. They automate repetitive tasks, enhance data handling, and provide real-time insights that boost decision-making and ROI.
Transformation through Planning and Analysis Software
One of the most effective ways to achieve value transformation is by introducing financial planning & analysis software. These tools offer improved planning and modeling, along with collaboration features that strengthen every part of the finance function—from planning and budgeting to headcount management and investor reporting.
As 2025 approaches, Abacum and similar solutions will keep driving value with more data, better decision-making, and greater efficiency.
