Digitalization: The key to survival

by CRMT | Jan 13, 2021 | Blog

The digital transformation used to be a long-term development goal for companies, but in 2020 the COVID-19 changed everything and no industry was immune to the effects that the pandemic had. Consumer goods industry had to immediately pivot to digital commerce, there was a big shift to a remote workspace, global supply chains were disrupted, sales started to plummet and costs started increasing. Even before the pandemic many organizations already had certain IT challenges, but COVID-19 forced everyone to a new digital reality that highlighted the lack of digital abilities organizations had. Since then digitalization is no longer a buzzword but a necessary investment on which the future of a company stands, which means the management is faced with overwhelming challenges to navigate through the impacts of the COVID-19 pandemics. 

Resetting priorities.

In October 2020 a survey conducted by Gartner showed that the priorities of organizations have switched, with the implementation of advanced data analytics and robotic process automation (RPA) technologies high on the priority list of 173 CFO's that were interviewed. And although digitalization is high on the priority list, so is the expectation of difficulties for completing the set goals.

Alexander Bant, chief research in the Gartner Finance practice recommends starting with reviewing the RPA technology. With short implementation time, low starting costs, and fast return on investment it's no surprise that software robots are the next big thing in the industry and most notably – they are completely global pandemic-proof. At the end of the day, software robots are computers and they require minimum maintenance and human intervention. The ideal candidates for starting your pilot project are simple processes based on clear rules with high repetition rate.

Another priority that is high on the priority list is accelerating digital skills in finance. Cash flow is one of the primary concerns as business survival and continuity rest largely on this. That is why leaders (especially CFO's) must have the tools that will support them in making appropriate long-term financial decisions. 

Plan like a Pro

Top 3 budgeting and planning tools that are a must for any CFO to make the right decision at the right time are:

  1. Cash flow planning: Companies need to review cash flow and working capital forecasts, prepare profit and loss scenarios, balance sheets, and cash flows with varying levels of interruption. Planning for expected receivables and liabilities is just as important as planning for money. Positive cash flow is, however, the main prerequisite for the implementation of other necessary measures to maintain a healthy business and financial core of the company.
  2. Scenario modeling: The ability to model alternate scenarios is critical to a rapidly changing situation in a flexible way. This is because any plan built today could be ignored tomorrow because of the still too uncertain and evolving situation. The standard scenario is a reference point that we can try to get back to as soon as possible after these conditions have passed.
  3. Profitability optimization: Profitability optimization is a process that incorporates revenue and total costs (direct and indirect) into analysis to better understand the margins of business at highly detailed levels. Profitability management can be a feasible but simplistic approach that seeks to increase revenue and reduce costs.

Get back on track with best-of-breed technologies and CRMT implementation dream team

In these turbulent times it is more vital than ever that the leaders act quickly, are driven by

data, and powered by technology and at CRMT we always provide our partners the most innovative, reliable, and consistent results on every project.

We are a leading consulting and system integration company working with state-of-the-art solutions that can accelerate your digital transformation. We specialize in data management, regulatory reporting, corporate performance management, and robotic process automation and provide end-to-end services from data architecture, implementation, project management, long term support, and training. We have an enviable track record of client success due to its unique ability to deliver solutions on time and within budget.

Contact us at info@crmt.com to accelerate your digitalization journey.

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*Sources:

https://www.gartner.com/en/newsroom/press-releases/2020-11-12-gartner-cfo-survey-reveals-a-dramatic-digital-acceleration-since-covid19

https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/accelerating-analytics-to-navigate-covid-19-and-the-next-normal

https://www.tagetik.com/en/blog/authors/aida-viertel/2020-11-the-importance-of-forecasts-in-times-of-uncertainty#.X_1zbdhKhPY