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Driving efficiency through modernised financial systems
Modernised financial systems are essential to organisations aiming to achieve greater efficiency, improved processes, better-integrated financial information, enhanced visibility, and better decision-making. Berkeley’s Ben Wildman contributed to The Harvard Business Review report, Driving Efficiency Through Modernised Financial Systems, examining the current state of organisations in this process, identifying pain points with their existing financial systems, and exploring the opportunities provided by modernised financial solutions.
The report also highlighted the challenges faced in updating financial systems and the considerations organisations should keep in mind when exploring and integrating these solutions. Follow the link to read the full report here.
Driving the need to transform
The structure of the financial systems that many organisations rely on today is predominantly a result of their growth over the years—an amalgamation of bolted-on piecemeal solutions, clunky legacy systems, and various technologies acquired through mergers and acquisitions.
Fragmented systems landscapes can be common where businesses have to deal with disruptive events—such as moving to digital, transitioning to new ways of charging or recognising revenue, or mergers and acquisitions where businesses just don’t take the time to integrate systems.”
Ben Wildman, Partner
Businesses often struggle with outdated and complicated systems that are no longer fit for purpose. A survey conducted by Harvard Business Review identified several key challenges, including:
- Inefficient workflows
- Reliance on manual processes
- Fragmented information across platforms
- Integration issues
- Poor user experience
- Limited visibility into financial issues
Several barriers prevent organisations from transforming these systems:
- Budget and cost constraints
- Competing priorities that overshadow modernisation efforts
- Lack of executive buy-in
- Operational disruptions
- Data migration challenges
However, businesses are still motivated to undertake the upheaval of modernising their financial systems because they see the benefits of enhanced efficiency, a better user experience, and improved overall functionality. The sum of these benefits results in an enduring advantage - the elevation of finance from a back-office function to a business partner.
Taking action
As organisations begin to assess and plan for the modernisation of financial systems, there are several things they should consider.
Organisations should start by setting clear ambitions and objectives for modernising their financial systems. This involves conducting a comprehensive assessment of the current systems to identify pain points and areas for improvement. Gathering feedback from users across various departments helps in understanding their needs and challenges, allowing organisations to prioritise the most critical issues and create a clear roadmap for modernisation, including which elements are in play – and which are not.
Securing the right blend of finance and technology leadership and building the will to modernise is crucial. Leaders need to recognise the strategic importance of updating financial systems and how it can enhance efficiency, decision-making, and overall business performance. Presenting a compelling business case that outlines the long-term benefits and potential return on investment can help gain the necessary support and resources from top management.
In implementations that go well, businesses put their most talented people on it. They understand how important it is to make compromises with their operation to get the right people involved, and they give it the time and attention it requires to get it right.”
Ben Wildman, Partner
Selecting the appropriate technology is essential for meeting organisational requirements. Organisations should evaluate various financial systems and solutions to determine which best align with their needs. This involves considering factors such as integration capabilities, ease of use, scalability, and cost-effectiveness. Choosing the right technology ensures that the modernised systems will effectively support the organisation's goals and operations.
Effective change management helps in addressing potential challenges proactively and ensures that employees are well-prepared to adapt to the new systems, leading to a smoother and more efficient transition. Organisations should plan for a phased implementation to minimise disruptions, set realistic timelines, allocate sufficient budget, and ensure proper training and support for users.
As with any major modernisation effort, there are challenges that some organisations will need to overcome throughout the process. For some, those barriers—cost constraints, lack of focus, inadequate executive buy-in—are enough to suspend any action on modernising financial systems. Awareness of these challenges—and understanding how to overcome them—is key to success.
