Key Drivers of Evolving the Finance Function
The Importance of a Data Strategy for Modern Financial Management in Financial Services
Finance teams in financial services have traditionally focused on compliance, routine accounting, and static reporting. But with the introduction of autonomous finance—using modern technologies like AI to automate financial operations and decision-making—their role is changing. Finance teams are now expected to offer deeper insights, partner with business units, and leverage technology to automate mundane tasks, thus freeing their resources for more strategic activities.
The key to fulfilling those expectations is data. Data strategy sits at the heart of evolving the finance function into a proactive, strategic partner for business growth. Firms that fail to integrate their data strategy with financial modernization efforts risk falling behind in a rapidly changing industry.
Modernizing your data strategy
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AI’s Prominence
AI is redefining the finance function. AI can automate variance analysis, reconcile data, detect anomalies, and even draft customer communications—all with unmatched efficiency.
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Data as the Foundation
AI applications require clean, well-curated data. Even the most advanced AI solutions are ineffective without a solid data strategy. CFOs must prioritize data governance and hygiene to maximize ROI.
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Evolving Finance Functions
Using tools like Microsoft’s Copilot AI for Finance, finance professionals can streamline workflows, automate repetitive processes, and gain actionable insights, enabling them to shift focus to decision-making and strategic planning.
Bridging the Gap Between ERP and Data Strategy
Too often, organizations treat ERP upgrades as isolated projects, neglecting the broader data ecosystem. This siloed approach undermines the potential of AI and automation. CFOs must align their data strategy with ERP modernization to realize the following benefits:
- Integrated insights: A comprehensive data strategy ensures finance teams can aggregate and process data from multiple sources, enabling real-time insights and predictive analytics.
- Cost efficiency: By modernizing ERP systems while embedding a data strategy, companies can avoid redundant investments and realize faster time-to-value.
- Risk mitigation: Unified data and finance strategies reduce fraud, compliance issues, and data breaches.
Autonomous Finance is the Goal
Autonomous finance, driven by AI and a strong data foundation, is the future of the industry. It empowers organizations to move from reactive to proactive decision-making, offering predictive insights that support growth and agility. The key to achieving autonomous finance is embracing technology while rethinking traditional processes.
This means that CFOs must consider:
- Time to value: Modern tools like Microsoft Copilot for Finance demonstrate immediate ROI by automating time-intensive tasks like reconciliations and reporting.
- Strategic collaboration: CFOs must collaborate with CIOs to ensure that ERP modernization includes a robust data strategy.
- Cultural shift: Autonomous finance requires a mindset shift within finance teams. It’s not about replacing jobs but enhancing roles to focus on high-value activities.
Autonomous finance, driven by AI and a strong data foundation, is the future of the industry.
Changing the Focus to Business Outcomes
Rethinking the Buying Model for ERP and Data Solutions
The traditional ERP buying models, which often focus on features rather than business outcomes, must change. To thrive in today’s environment, organizations must adopt a new approach to buying an ERP. By shifting the focus from legacy approaches to a more strategic, data-driven mindset, financial management teams can unlock unparalleled opportunities for growth and efficiency.
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Prioritize business outcomes over feature checklists.
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Consider your ERP as a platform that serves as the central hub of all business activities rather than a standalone application.
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Consider the long-term strategic value of data integration and AI capabilities.
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Engage in meaningful conversations with vendors to explore innovative solutions.
Gain a Competitive Advantage with HSO
The path forward is clear: data must be central to an organization’s transformation efforts. By aligning data strategy with ERP modernization and embracing the potential of AI, finance teams can evolve into dynamic, value-adding partners within their organizations.
HSO can help your financial team leverage data and technology to redefine the finance function and give your organization the strategic insight and agility needed for success.
Ready to talk data strategy?
Contact us today to learn how we can help you modernize financial management with a strong data foundation.
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