SERIES OF MEETINGS ON THE MEANING OF MEASUREMENT
» DIGITALIZATION IN THE FINANCE FUNCTION:
TRANSFORMATIONS IN THE SERVICE OF CORPORATE STRATEGY »
Report / Publication
This article was published in the print edition of Finance&Gestion magazine in February 2020.
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Organized in collaboration with Walter France and BSI Economics (Knowledge Partner), this event served as a platform to bring together economists and a panel of CFOs and management controllers from the region to discuss the challenges of digitalization for the finance function, particularly in the Lyon area.
Pierre-Michel Becquet (Economist, BSI Economics), Philippe Brun ( Deputy CEO and CFO, Serge Ferrari), Samuel Bizouard (Finance & Accounting Recruiter, Hays), and Pierre-Yves Hentzen (President, Stormshield) came to discuss the impact of digital transformation on finance departments. The round table was moderated by Christophe Velut, Partner and Managing Director of ORFIS, a member of Walter France in the Rhône-Alpes region.
Key takeaways:
– The digital revolution is transforming the finance function by strengthening its strategic role within senior management.
– Agile, uniform, and rapid access to company data allows the finance function to align itself with commercial functions.By guaranteeing the quality of information, key indicators will become increasingly accurate, further enhancing the credibility of the finance function.
With the widespread adoption of digital transformation, all corporate finance departments are facing profound changes in their business lines. This is rapidly disrupting practices and customs. This dynamic transformation represents a revolution comparable to the emergence of computers and the internet in businesses, with the difference that the pace of these changes has accelerated significantly.
More than an opportunity, digital transformation is a necessity for businesses. Expertise is now giving way to data analysis, which must be interpretable, reliable, and immediately available to everyone, everywhere. Beyond the increasingly rapid obsolescence of tools and skills, there is the issue of change management, with the guiding principle being that the employees concerned must have a perfect command of the tools.
Digital technology is doing more than transforming; it is revolutionizing.
All areas of the finance function are currently undergoing profound and cross-functional change. In addition to the simple automation of accounting entry, many professions are being transformed, including human resources management, financial forecasting, and inventory management. Pierre-Yves Hentzen, President of Stormshield, points out that digitalization enables the finance function to get back in tune with the company’s business, i.e., its commercial and production functions, by improving the reliability of information and guaranteeing free and unrestricted access to it. With the rise of digitalization, « fast closing » has become a reality, with multiple strategic implications. For example, income statements are now available at the end of the first week of the year, rather than at the end of the first quarter. Philippe Brun, Deputy Director and CFO at Serge Ferrari, also emphasizes the ability of managers to standardize practices around the use of information in order to ensure good communication and highlight key messages by standardizing Key Performance Indicators (KPIs).
Fast closing has become a reality!
Pierre-Yves Hentzen, President of Stormshield
There are many challenges associated with digitalization, but one of the most important remains information security. This appears to be a prerequisite for the in-depth digitalization of companies. « We always see the same rates, i.e., 30% of phishing tests are successful, where people open attachments in a suspicious email, » claims Philippe Brun. Other challenges also remain, such as change management and team buy-in for the various transformations, as well as ongoing communication to garner team support while reassuring them about the objectives. Rigorous communication is imperative to reassure all stakeholders aboutthe presumed impact of digitization on employment. Before enabling savings to be made, digital transformation replaces low value-added tasks with new functions that are more analytical in nature. In short, digitalization is synonymous with cross-functionality, as it requires increased collaboration between different teams, leading to a better overall understanding of how the company is managed and operates.
Perceived as a global process, the digital revolution requires change and adaptation of HR functions in terms of supporting new profiles. According to Samuel Bizouard, Finance & Accounting Recruiter at Hays, attracting talent is crucial to the success of digital transformation. Attractiveness depends in particular on the tools made available to teams, which guarantee the employee experience. Samuel Bizouard points out the demands of new entrants, who are ready to leave the company if disappointed and are characterized by a strong appetite for rapid mobility, whether geographical or sectoral. Above all, they seek to enhance their human capital by developing their knowledge of the latest tools. Indeed, expertise in statistics, IT, and data science is transferable to many fields, such as industry, financial services, and non-profit organizations.
The round table concluded with the following question: « Will the CFO be a data scientist? » Pierre-Michel Becquet, an economist at BSI Economics, is opposed to this development, although he will need to surround himself with new, reliable employees in the fields of data science, data management, and IT security. According to the economist, ensuring the sustainability of commercial and back-office activities will require a significant level of investment.
Pierre-Michel Becquet. Economist, BSI Economics
Caroline Perrin. Head of Communications, BSI Economics
Photo credits: Finance&Gestion, DFCG (February 2020)
