Five steps to the strategic digitalisation of the finance function

The business needs faster, better-informed decision-making, while systems and processes are becoming more complex. At the same time, standard tools are no longer meeting the demands for speed, transparency and decision-making power. This is the paradox many CFOs face today. In this article, we therefore provide five concrete steps towards a digitalisation strategy and offer financial sparring with real business value.

Digitalisation is not just about implementing new systems. It is about creating a finance function in which processes, data and technology work together to free up time for better decision-making. Here are five steps that can help you take the right approach to digitalisation and create real business value.

Many digitalisation projects begin with a desire to do what you already do, only faster. A little more automated. A little smarter.

But often, this means making a process more efficient when, in reality, it should be rethought. We therefore recommend that you first review your processes and consider what they would look like if you were designing them from scratch.

This requires you to put your existing Excel spreadsheets, ERP setup or historical workflows aside for a moment. Only when your ideal process is clear does it make sense to consider the solution:

• Is there a standard system that can address your challenge?

• Can your existing setup be adjusted?

• Do you need a custom solution?

Technology is ultimately just an amplifier; it cannot make a poor process good. It simply makes it faster. So remember that a technical solution is generally only as strong as the process behind it.

Do you have control of the fundamentals?

Everyone wants to work with the latest tools, and increasingly with AI in particular. But although it may be easy to jump straight into an AI solution, you will not experience its full potential unless your data foundation is relevant and sufficiently comprehensive.

If your contracts, invoices, supplier data and historical information are stored in separate, unconnected systems, AI will, for example, have difficulty accelerating your processes or ensuring that the right decisions are made.

The next step is therefore to connect, explain and understand your data silos – rather than starting with algorithms. When your organisation works from the same data and everyone has the same understanding, your automation will become more precise.

We often hear CFOs express concern that more structure and standardisation of data will make their business less flexible.

In practice, the opposite is actually true.

When everyone works from the same data foundation, you not only eliminate discrepancies concerning what is correct. You also enable your employees to focus on assessing the issue at hand, creating greater security and speed.

“We are completely unique, so we have to build something ourselves from scratch.”

Many businesses are tempted to jump on that bandwagon, but the truth is that not every challenge requires a custom solution.

Instead, ask: “Is there an app for that?”

If your processes are similar to those of many others in your industry, it often makes sense to rely on best practice in the market. Standard solutions are extremely strong when it comes to handling repetitive tasks – the day-to-day operational work that needs to function reliably every day.

Typical signs that a standard solution is the right choice for you include:

• The process is fundamentally similar to those used by others in your industry.

• The challenge is primarily about structure and discipline rather than technology.

• Excel is primarily being used as a workaround for a lack of structure.

Conversely, a custom solution makes sense when your process is part of what makes you different – and better. When the value lies in how you work, rather than simply in getting the work done.

This is often the case when:

• The process is business-critical and unique to your company.

• Multiple systems cannot be sensibly connected.

• Manual reconciliations and special cases account for too much.

So let standard solutions take care of everything that everyone needs to be good at. Use your resources to customise what is genuinely unique to your business – what is not standard.

When data moves from one department to another, from one system to another or from structured data to a spreadsheet, unexpected challenges can arise.

This is where manual “black holes” typically emerge: places where data loses its context, and where Excel spreadsheets, meetings and emails gradually complicate data flows and data interpretation.

Typical points where data flows become unclear include:

• Monthly closing and reporting

• Invoicing and purchasing processes

• Data matching between systems

• Manual processing of data

• Explaining discrepancies

This is where a custom solution can add real value by automating workflows, creating coherence and supporting the interpretation of data within the standard systems. In most businesses, it is the black holes between systems that create the greatest challenges.

As a CFO, you know that there is significant potential for improvement, but everyday operations rarely leave enough room to implement those improvements.

Therefore, view digital transformation not as a side task. It requires active prioritisation and a deliberate place in your organisation. This can be achieved through external consulting support or other solutions that free up time early in the process.

Otherwise, your good idea may remain just that. One of the most important tasks for a CFO is therefore to create room for reflection, brainstorming, follow-up and evaluation – because this is where real transformation can emerge.

AI and development tools have made it significantly easier to build software.

Writing code is almost free now. But delivering high-quality code that solves the right problem, is tested, maintained and secure still comes at a cost. The cost has simply shifted from building to understanding what needs to be built and ensuring the quality of the result.

This means that what creates value is the ability to understand the business.

What characterises a strong process? Where do the pitfalls arise? What creates real value for your business?

At Basico, we clearly see that the most successful projects arise when deep specialist knowledge from finance is combined directly with technical expertise. Technology must always be rooted in the reality of the business. This requires technical knowledge – and an open mind. And hopefully, this article has helped set you on the right path.