The story of The Tortoise and the Hare is a work of fiction. Especially when it comes to technology.
If you fall too far behind – and your competitors start to overtake you in your efforts to modernize and transform – there’s no catching up to do. You will be left in the dust.
Today, many CFOs know they are in a race for the future and are working tirelessly to take decisive (but sensible) action for what comes next. In a myriad of industries, it starts with one thing: embracing new business models. A recent IDC study found that new business models are currently the most impactful driver of change for CFOs, and one in two companies plan to change their business model by mid-2022. There are two main reasons for this emphasis.
One is survival. More and more companies are not only seeing existing business models challenged by innovative competitors and out-of-the-box disruptors, but are also seeing the market itself transform into something completely different (more on this shortly). The other reason is growth. Companies change because they want to expandwhether in the same market or in newer and more successful markets.
At this time, CFOs need to take a leadership role. Because a new business model without a new approach to finance is like planning a road trip without a vehicle. Your financial platform is the engine that drives things forward.
So how can today’s leaders ensure they are well positioned not only for tomorrow’s race to finance transformation, but also for its sprint to finance transformation? innovation? It starts with our service-centric present and the modern reality of the cloud economy.
Navigating the cloud economy
Earlier, I mentioned the complete market transformation that many companies are experiencing. Unsurprisingly, this shift has come about because of the COVID-19 pandemic, where emerging customer behaviors have gone into hyperdrive, causing a dramatic increase in things like online shopping, consumer expectations, and the desire to services.
New service models like curbside pickup and 15-minute grocery delivery have taken center stage over the past two years due to changing customer behaviors. Customers want more, faster – based on their specific needs and at any time of the day – and CFOs have been largely responsible for developing sustainable business models that support this trend. This is an important reason why the cloud has had its day. Today, the cloud has become a focal point for CFOs in virtually every organization as it supports product and service models characterized by surge, subscription, and delivery across various omnichannels that have become currency. common and which would otherwise overwhelm traditional systems.
The cloud provides flexibility for CFOs who see a growing trend of high-volume, low-cost structures and consumer calls for greater (and faster) personalization happening around them. The first step for CFOs is recognizing and mastering these market dynamics; the second step is to understand how this dictates the pace and scale of corporate innovation and creates a need for CFOs to develop a long-term strategic vision for innovation.
Keeping up with the speed of innovation
The foundation provided by this cloud-based, subscription-driven approach is also essential for innovation and growth in the future, as it positions companies to effectively drive and grow the business. By offering a single source of truth, harmonizing real-time data, and delivering accurate and transparent forecasts and processes, the company is poised to capitalize on next-generation ideas and opportunities.
I’ve seen this confirmed by some SAP customers who have modernized their finance and billing approach. On average, they saw:
- 95% faster overall time to market
- 25% fewer customer service calls due to more responsive systems
- Consistent and reliable price optimization for customers
And that’s only the beginning. Forward-looking platforms can also ensure harmonized customer profiles and improved data collection and analysis, which means increased cross-selling opportunities, better ability to analyze business fundamentals ( like real-time profitability) and a consistent and improved overall business.
Well, where to begin ? Let’s look at a concrete example of what I’m talking about.
Stay up to date, stay ahead
Throughout the pandemic, my team has worked with a global client who is one of the largest entertainment companies and brands in the world. Their goal was to implement and adopt an innovative and scalable approach to billing and revenue management, a project that was accelerated by the widespread shutdowns in early 2020 that affected much of the business. physical of the customer.
They were quickly able to forge their way into the future, launching a new global streaming service that brought together both new and old companies, allowing for better engagement with their consumers.
Ultimately, our platform enabled the client to scale globally, onboarding millions of subscribers while generating millions in net new revenue in a short period of time. Integration with upstream platforms with a number of localization requirements complicated the task, but the client was able to deploy the services as planned worldwide. In the future, it is planned to integrate cross-selling opportunities within the platform and truly develop a useful engine for the business. All of this was done with the project launching on time and on budget, with no downtime and near perfect match rate for cash reconciliation (over millions of transactions). And now, with a foundational platform that allows them to scale endlessly, they’re ready for whatever comes next.
Whatever your business and whatever your industry, a finance platform that helps you act quickly, act with agility, and make smart decisions is essential moving forward. The fact is, the path to gaining and maintaining success in today’s global economy – whether you’re a large tech organization, an e-commerce business, or an online gaming company – is one of a see and a source of truth.
It’s about business value, not buzzwords. It’s about letting machines do the work so humans can think. It’s about turning to technology that excels so we can make the decisions that matter.
It’s about winning the race to the future.