Digital Transformation Improves EfficiencyBy
A recent report from The Hackett Group states that finance organizations can reduce costs by more than 40% by fully embracing digital transformation, accelerating their progress toward previously unattainable efficiency levels.
The Hackett Group’s “Digital World Class” analysis, which is described as an “estimate of the additional benefits that finance organizations can achieve through the combination of operating model changes, full technology landscape optimization, and the successful adoption of digital technologies,” suggests that organizations can improve efficiency by nearly 20% through digital transformation. This can free up staff and budget resources, which the analysis says could enable organizations to expand digital transformation initiatives, engage in more value-added activity, or fuel company growth.
“World-class finance organizations have maintained a steady 40-45% efficiency lead over peers for the past decade,” said Nilly Essaides, The Hackett Group’s senior research director. “Digital transformation has the potential to propel peers to today’s world class levels, while at the same time redefining what ‘world class’ means for finance leaders.”
The Hackett Group’s research also reflects movement of next-generation finance organizations beyond metrics focused on internal efficiency and effectiveness to include direct measurement of the experience of key stakeholders.
The methods presented for accelerating digital transformation programs include robotic process automation, cognitive automation, intelligent data capture, and other leading-edge technologies. The research found that these systems provide finance organizations with significant interim improvements in efficiency and effectiveness.
The publicly available report, called “World-Class Finance: Redefining Performance in a Digital Era,” can be downloaded at bit.ly/32lrgy7.