Corporate Controller & CAO Hot Topics: Managing Transformation

Technological transformation is an essential, continuous journey requiring Finance to critically evaluate costs, ROI, and strategic rationale.

The new Corporate Controller & CAO Hot Topic: Managing Transformation, delves into the critical role of corporate finance leaders in navigating large-scale technological transformations, particularly those involving ERP systems. It highlights that such undertakings require not only a sharp focus on costs and ROI but also an understanding of the underlying business imperatives. Finance's central position in monitoring costs and tracking efficiencies makes it a key collaborator with IT and operations teams to ensure successful implementations.

It emphasizes that while cost savings—often through automation or offshoring—are a primary driver for investment, the ROI of technology transformations extends to new capabilities, increased efficiencies, and accelerated processes like forecasting. Many finance leaders are also adopting a mindset of continuous improvement rather than viewing transformation as a one-time project, constantly adapting systems to changing needs. This includes upskilling teams or hiring new talent with a blend of finance, accounting, and technology backgrounds.

Beyond technology alone, successful transformation necessitates changes in company processes and structures, with shared services models becoming common for optimizing functions. The report also addresses the impact of generative AI, noting its potential to accelerate digital transformations, especially in data parsing and analysis. While concerns about data privacy and the need to demonstrate ROI exist, finance leaders are exploring AI for tasks such as contract reviews, automating accounts payable/receivable, revenue recognition, and scenario modeling. Critical steps for success include comprehensively inventorying existing processes, redesigning inefficient workflows, and prioritizing data cleanliness before implementing new systems. Ultimately, leaders must develop strong business cases that combine quantitative and qualitative benefits, emphasizing improved data quality, enhanced control, faster cycles, and strategic talent redeployment. The risks of not upgrading are significant, making continuous transformation essential for companies to remain competitive.