The advent of Industry 4.0 is changing the way companies do business. Digital not only transforms systems and processes, but also brings changes within the various business management functions.In order to remain competitive, both SMEs and large organizations must turn to new technologies.
Financial management 4.0 is one of the key elements of a successful modernization process. This article introduces new trends in digital finance, and provides tools to help ensure business data cyber security and help companies take the next step toward Industry 4.0.
Digitization: the finance function redefines itself
CFOs expect the evolution of digital technologies to change how their finance department operates.
Digital finance improves the performance of a business. Thanks to new technologies, such as big data analysis, robotic process automation or cloud-based solutions, transactional operations and repetitive tasks are optimized, allowing the company to:
- to spend more time producing financial analysis and forecasts;
- put in place stronger, more effective business strategies and prospects that are valuable assets.
Discover the new trends
Here is an overview of new technologies.
Big Data Analysis
Big data analysis is used to study a large amount of data simultaneously to extract relevant information and to identify trends. It helps companies to make predictions about their products and their financial situation. Making assumptions and making projections that do not reflect their future can really affect the continuity of their business. The analysis of big data thus allows them to reduce the risks related to uncertainties.
Robotic automation is the creation of programs that are able to perform repetitive tasks, thus reducing human error. These programs follow an algorithm, a set of rules defined in order to enable them to accomplish specific tasks according to the needs of the company. These algorithms can also facilitate the automation of complex processes as well as the realization of audits.
Cloud-based solutions form the basis of several technology platforms, such as robotic automation and data analysis. The unprocessed data of the company is found in a cloud or, in other words, in the storage space of a cloud computing. Cloud computing supports the creation and innovation of new technology platforms. This computerized storage space allows companies to replace old work methods, which required manual database processing. This process offers a system that is both more flexible and more accessible to employees, who can be in multiple locations at the same time.
With the advent of these new technologies, businesses must ensure the security of their digital data. Cybersecurity allows them to protect themselves against computer threats. This element is essential for the development of innovation in both large enterprises and SMEs and their development. Although SMEs do not have access to the same expertise as large companies and do not process the same amount of data, they face the same threats to cyber security that they must address. to reinforce.
For increased cyber security, Deloitte advises following the 5 steps following:
- Identify the interactions and critical assets of the business.
- Evaluate cyber risk proactively.
- Focus on raising staff awareness to build a multi-level defense.
- Strengthen the protections of the company.
- Prepare for any possible threat.
How to prepare for the arrival of digital finance?
The digitization, and hence the automation, of the finance function within companies is only a matter of time. Companies must now think about how to change their way of doing things in order to adapt to this new era.
To ensure the effective digital transition of your business, you must first understand the different financial technologies available and anticipate the changes that apply to your situation. By having a deeper understanding of the benefits of Industry 4.0, you will be able to ensure a better transition of your company’s finance function.
It is also important to prepare a business plan to integrate Finance 4.0 into your business. The business world is rapidly changing under the pressure of the digital age.Effective preparation is necessary in order not to stand back from the competition.
In sum, the digitization of the finance function promises to generate better business opportunities and improve the efficiency of financial processes. The role it plays in business growth and continuity in a changing environment is of utmost importance.