The role of finance within organizations is undergoing significant expansion, driven by the increasing demands of a rapidly changing economy. This trend is particularly evident in midsize companies that are venturing into new markets and countries. Alongside their traditional responsibilities, finance leaders in growth-focused businesses are now tasked with addressing nontraditional concerns such as cybersecurity, supply chain fragility, resource scarcity, and talent shortages. Consequently, finance departments must reimagine their functions, encompassing everything from financial management and invoicing to regulatory compliance.
Driving Mission-Critical Improvements:
A survey conducted by the SAP Insights research center among midsize companies reveals that senior finance leaders are embracing their expanding role to spearhead mission-critical improvements aligned with their specific needs, operational gaps, and strategies. Participants in the survey expressed their goals of enhancing business processes through various means, including:
- Improved Flexibility and Adaptability to Change: A substantial portion (36%) of the respondents emphasized the importance of bolstering their organization’s flexibility and adaptability to navigate the evolving business landscape successfully. This focus on agility allows growth-focused businesses to quickly respond to market shifts, emerging opportunities, and potential risks.
- Optimized Overall Spending: Another key objective identified by 36% of the surveyed finance leaders was optimizing overall spending. By closely scrutinizing expenses and identifying areas where savings can be achieved, businesses can allocate resources more efficiently and effectively, ultimately bolstering their bottom line and competitiveness.
- Enhanced Monitoring and Analytics: Effective monitoring and analytics are paramount for growth-focused businesses. About 35% of the respondents recognized the need to improve their ability to gather, analyze, and interpret data, enabling them to make informed decisions and gain valuable insights into their operations, performance, and market trends.
- Reduced Cost of Operations: A significant number of finance leaders (34%) expressed the desire to reduce the cost of operations. By streamlining processes, eliminating inefficiencies, and leveraging technological advancements, businesses can achieve cost savings and improve their financial health, freeing up resources for strategic initiatives.
- Increased Automation: Automation emerged as a key priority for 34% of the surveyed finance leaders. By leveraging innovative technologies and intelligent systems, businesses can automate repetitive and time-consuming tasks, allowing their finance teams to focus on higher-value activities such as strategic planning, analysis, and decision-making.
As finance leaders in growth-focused businesses take on an expanded role, they are proactively addressing the evolving challenges and opportunities present in the modern economy. By embracing this broader scope, these leaders are driving mission-critical improvements within their organizations. Through a focus on flexibility, optimized spending, enhanced monitoring and analytics, reduced operational costs, and increased automation, finance departments are well-positioned to support and contribute to the growth and success of their businesses in a rapidly changing business landscape.