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Looking for that guy in finance? I talk about tax and finance and the AI-finance juxtaposition in the MENA region
Alright. So, we're diving into this whole finance transformation thing today.
Speaker 2:Yep.
Speaker 1:And, you know, it seems like finance is changing. Mhmm. It's not just about crunching numbers anymore.
Speaker 2:Yeah. Definitely moving beyond that.
Speaker 1:We've got this document from OBCO. They're a consulting firm.
Speaker 2:Right.
Speaker 1:It's called what is finance transformation.
Speaker 2:Okay. Interesting.
Speaker 1:We've also got this really cool image
Speaker 2:Okay.
Speaker 1:Of a tablet
Speaker 2:Uh-huh.
Speaker 1:With some pretty intense looking financial charts on it.
Speaker 2:Yeah. And that visual really highlights how data is becoming so central in finance these days. Mhmm. It's not just about spreadsheets anymore.
Speaker 1:Right. So finance is becoming more of a strategic driver.
Speaker 2:Yeah. It's It's not just a back office function. Exactly. It's not just back office anymore. Yeah.
Speaker 2:The material really emphasizes this. Okay. It says that finance transformation is like a strategic rethinking of the finance function to improve its efficiency, effectiveness, and value contribution to the business.
Speaker 1:So they're really trying to rethink the whole thing. Mhmm. It's about shaping what will happen. Yeah. Not just recording what already did.
Speaker 2:Shaping the future. Okay. How does that actually play out in a company, though? Well, so imagine a company pretransformation.
Speaker 1:Okay.
Speaker 2:They've got all their finance people kinda stuck in these cubicles Wow. Buried under mountains of spreadsheets. You know? Yeah. Manually inputting data, verifying it, all that stuff.
Speaker 1:Oh, it sounds like a nightmare.
Speaker 2:It can be it's time consuming and prone to errors.
Speaker 1:Right. It's gotta be so inefficient.
Speaker 2:It can be.
Speaker 1:Yeah. Okay. So what about
Speaker 2:after? So now picture that same company after a successful transformation.
Speaker 1:Okay.
Speaker 2:They've got cloud computing. They're using automation, maybe even AI driven analytics. Wow. Information flows smoothly between different departments. Right.
Speaker 2:There are way fewer manual tasks.
Speaker 1:Okay.
Speaker 2:And all those finance professionals can actually focus on more strategic things. So what kind of things? Like forecasting, forging strong business partnerships.
Speaker 1:That's awesome.
Speaker 2:Yeah.
Speaker 1:So it's not just about getting new software. It's a total overhaul of how the
Speaker 2:whole finance function actually operates. Precisely. It really is.
Speaker 1:Okay. So the source material outlines 4 key aspects of this transformation. Mhmm.
Speaker 2:What are they? Restructuring operating models. Okay. Automating processes. Mhmm.
Speaker 2:Integrating new technologies and then upskilling finance professionals. That makes sense. It sounds like a pretty massive undertaking. It can be. What's the payoff though for companies that go through this?
Speaker 2:Oh, the benefits are significant. Like Well, for example, let's talk about organizational agility.
Speaker 1:Okay.
Speaker 2:In today's business world, things change so fast.
Speaker 1:Yeah. It seems like everything's changing faster than ever.
Speaker 2:It really is. Yeah. And companies need to be able to adapt quickly to those changes, to disruptions, to new opportunities. They need to be on their toes. Exactly.
Speaker 2:And finance transformation can help them become much more agile Oh. By letting them quickly adjust their forecasts, their budgets. So they can respond to all those changes. Exactly. And that agility can give them a big advantage over their competitors.
Speaker 2:That makes sense. Can you give me an example of how that might actually work?
Speaker 1:Sure. Imagine a company in the fashion industry. Okay. Let's say they're still relying on traditional forecasting methods.
Speaker 2:Okay.
Speaker 1:They could easily get caught off guard
Speaker 2:By what?
Speaker 1:By something like a steady shift in what customers want.
Speaker 2:Okay.
Speaker 1:Like a shift toward more sustainable materials.
Speaker 2:Yeah. That could be a problem.
Speaker 1:It could be disastrous.
Speaker 2:Especially if they're stuck with a bunch of inventory that nobody wants anymore.
Speaker 1:Exactly.
Speaker 2:Okay. So what if they had done this transformation thing?
Speaker 1:Now imagine that same company after they've gone through a finance transformation.
Speaker 2:Okay.
Speaker 1:They're using real time data and predictive analytics to track trends Okay. To anticipate those changes in demand. Mhmm. And they can adjust their supply chain super quickly.
Speaker 2:So they're not just reacting to the market. Right. They're actually shaping it.
Speaker 1:Yeah. That's the power of using data.
Speaker 2:And that's just one example.
Speaker 1:Yeah. We've really just scratched the surface here.
Speaker 2:I bet. So what other advantages are there? Well, the source material lists 7 key benefits in total.
Speaker 1:Wow. Okay. Let's hear them.
Speaker 2:Let's dive into those next, starting with regulatory compliance.
Speaker 1:Alright.
Speaker 2:In today's global market, staying compliant with all those rules and regulations can be a real headache.
Speaker 1:I can imagine.
Speaker 2:But with the right systems and technologies in place
Speaker 1:Okay.
Speaker 2:Companies can make sure they're reporting everything accurately and on time. That's good. It takes a lot of the burden out of compliance. It's not
Speaker 1:just about efficiency then. No. It's about peace of mind too.
Speaker 2:It is.
Speaker 1:Okay. What's next?
Speaker 2:Next up is harnessing disruptive technologies.
Speaker 1:Okay.
Speaker 2:Things like AI and machine learning. Right. These technologies are changing everything in finance. Uh-huh. They can process huge amounts of data really quickly.
Speaker 2:Quickly. That's what they're good at. Exactly. Yeah. They can generate super insightful reports and automate a lot of those routine tasks.
Speaker 1:That sounds good for those finance professionals.
Speaker 2:It is. It frees them up to focus on more strategic work.
Speaker 1:So it's not about replacing people. Nope. It's about empowering them to do more meaningful work.
Speaker 2:You got it. Instead of getting bogged down with all those manual tasks Yeah. They can focus on analyzing data
Speaker 1:Okay.
Speaker 2:Identifying trends
Speaker 1:Mhmm.
Speaker 2:And contributing to big strategic decisions.
Speaker 1:This is fascinating. Yeah. I'm already starting to see how finance transformation can impact businesses on so many levels.
Speaker 2:It really can.
Speaker 1:What other benefits are there?
Speaker 2:We'll dive into those in a moment.
Speaker 1:Okay. Sounds good.
Speaker 2:But first, let's pause for a brief interlude. Okay. We'll be right back to continue our deep dive into finance transformation.
Speaker 1:Sounds good. Looking forward to it. We're back and ready to dig into those other benefits of finance transformation.
Speaker 2:Okay.
Speaker 1:We talked about agility and regulatory compliance.
Speaker 2:Yeah. We covered those.
Speaker 1:And how technology is a big part of it.
Speaker 2:Right. Technology is key.
Speaker 1:So what else is there?
Speaker 2:Well, a natural extension of leveraging technology is data driven decision making.
Speaker 1:Makes sense.
Speaker 2:That's the next benefit.
Speaker 1:So instead of just going with their gut companies, have a clear view of their finances.
Speaker 2:Exactly. They're not just flying blind anymore Right. With the right analytics in place. Mhmm. They can track all those important metrics.
Speaker 2:You know?
Speaker 1:The KPIs?
Speaker 2:Yeah. Exactly. The KPIs. They can monitor performance in real time. So they can see what's happening right now.
Speaker 2:Exactly. And they can spot trends, potential problems.
Speaker 1:Before they become big problems.
Speaker 2:Exactly. It helps them be more proactive.
Speaker 1:Okay. But it's not just about
Speaker 2:reacting to what's happening right now, is it? No. It goes beyond that.
Speaker 1:So they can anticipate what's coming next?
Speaker 2:Yeah. Precise.
Speaker 1:They can see into the future.
Speaker 2:Kind of the source mentions predictive analytics.
Speaker 1:Oh, yeah. I've heard of that.
Speaker 2:That's where it gets really interesting. So tell me about it. Imagine being able to forecast future trends.
Speaker 1:Okay.
Speaker 2:Assess potential risks. Mhmm. Even spot new opportunities.
Speaker 1:Before anyone else sees them.
Speaker 2:Yeah. Before they fully emerge.
Speaker 1:Wow. So it's like having a financial early warning system.
Speaker 2:Yeah. That's a great way to put it.
Speaker 1:It helps you navigate those unexpected turns.
Speaker 2:Exactly.
Speaker 1:But this data driven approach isn't just for the finance department, is it?
Speaker 2:No. It's not.
Speaker 1:So finance teams can actually help other teams make better decisions.
Speaker 2:Right. They can analyze the financial impact of decisions across the whole company.
Speaker 1:So finance becomes like a strategic partner.
Speaker 2:Exactly.
Speaker 1:That's really interesting. Yeah. Okay. So what's the next benefit?
Speaker 2:The 5th benefit is all about efficiency. I was gonna say that's gotta be in there somewhere. Yeah. OBCO really emphasizes the time and cost savings
Speaker 1:Okay.
Speaker 2:That finance transformation can bring. I bet automation is a big part of that. It is automating all those routine manual tasks.
Speaker 1:Yeah.
Speaker 2:Not only saves a ton of time Mhmm. But it also reduces the risk of human error.
Speaker 1:Right. Because we all make mistakes.
Speaker 2:We do things like invoice processing, data entry Mhmm. Even some aspects of reporting. Okay. All of that can be streamlined and made more efficient.
Speaker 1:That makes sense. So it frees up those valuable resources
Speaker 2:Yeah.
Speaker 1:For other things.
Speaker 2:For more strategic work.
Speaker 1:Okay. What else?
Speaker 2:The 6th benefit is transparency and accountability.
Speaker 1:Especially with finances, transparency is so important.
Speaker 2:Yep. Absolutely. It's all about building trust. Yeah. And finance transformation can really help with that.
Speaker 2:Wow. It brings end to end visibility into financial operations.
Speaker 1:Okay.
Speaker 2:So it's easier to track everything and make sure everyone's on the same page.
Speaker 1:No more hiding stuff.
Speaker 2:Right. It promotes open communication and collaboration Okay. Not just within the company, but also with external stakeholders, like investors.
Speaker 1:So they can see what's going on too.
Speaker 2:Exactly. And that transparency builds trust. So it shows you're committed to
Speaker 1:doing things the right way.
Speaker 2:Exactly. And finally, we come to the 7th benefit.
Speaker 1:Okay. The last one.
Speaker 2:Enhanced collaboration.
Speaker 1:We already talked about how finance becomes a strategic partner.
Speaker 2:We did.
Speaker 1:It sounds like this transformation really breaks down those walls between different departments.
Speaker 2:Yeah. It does.
Speaker 1:Everyone's working together.
Speaker 2:Right. And that leads to better communication, more informed decisions.
Speaker 1:Across the whole organization.
Speaker 2:Exactly.
Speaker 1:This is really interesting stuff.
Speaker 2:It is.
Speaker 1:Finance transformation. It's a journey, not just a destination.
Speaker 2:You got it.
Speaker 1:And it's a journey that requires a lot of planning, the right technology, and a real commitment to change.
Speaker 2:It does.
Speaker 1:But the rewards seem worth it.
Speaker 2:They are. But before we wrap things up Okay. Let's take a step back and think about what this all means for the listener.
Speaker 1:Right.
Speaker 2:Even if you're not a finance professional Yeah. Understanding the shift toward a more data driven strategic approach to finance, understanding the shift toward a more data driven, strategic approach to finance is incredibly valuable.
Speaker 1:Okay. So why should we care?
Speaker 2:We'll dive into that right after a quick break.
Speaker 1:So we're back, and, you know, I know, I was thinking about what you said
Speaker 2:Yeah.
Speaker 1:About how even if we're not finance professionals
Speaker 2:Mhmm. We
Speaker 1:should still try to understand this whole finance transformation thing.
Speaker 2:You got it because think about it. Okay. Every business you interact with
Speaker 1:Okay.
Speaker 2:The store where you buy your groceries, the streaming service you use.
Speaker 1:Right.
Speaker 2:All of them are probably going through some kind of finance transformation. Yeah. I guess I never thought about it that way. And all those changes behind the scenes Okay. They can actually impact you as a consumer.
Speaker 1:Really?
Speaker 2:Their efficiency, their ability to adapt to changes their customer service. Okay. It's all influenced by how well they've embraced this data driven approach to finance.
Speaker 1:So a company that's done this whole transformation thing,
Speaker 2:Right.
Speaker 1:They might be able to offer lower prices
Speaker 2:They could. Develop new products faster Mhmm.
Speaker 1:Maybe even personalize their services in a way that they couldn't before.
Speaker 2:Exactly. They can use all those data insights
Speaker 1:Okay.
Speaker 2:To really understand what their customers want and need. It's like they have a secret weapon. Kind of. It's all about using information to create a better experience for everyone.
Speaker 1:That's pretty amazing.
Speaker 2:It
Speaker 1:is. Something that seems so technical. You know? Yeah. All this behind the scenes stuff
Speaker 2:Right.
Speaker 1:Actually affects all of us in a very real way.
Speaker 2:It does. And this is just the beginning. Really? This deep dive has given you a little glimpse into the world of finance. Okay.
Speaker 2:But this transformation is still happening. It's evolving.
Speaker 1:It's not over?
Speaker 2:No. There's always more to learn and explore.
Speaker 1:That's exciting.
Speaker 2:It is. This has been really eye opening. Good. I'm glad. I feel like I'm not just keeping up with finance now.
Speaker 2:Mhmm. I'm actually starting to understand it. That's great. And that understanding is really important
Speaker 1:Okay.
Speaker 2:Because as finance becomes more data driven and integrated with everything else, it's gonna have an even bigger impact on our lives. Okay. So what should we do? Pay attention. To what?
Speaker 2:To the businesses you interact with. Okay. Look for signs of this transformation. K. Are they using more technology?
Speaker 1:Okay.
Speaker 2:Are they responding faster to things? Mhmm. Are they offering more personalized services? Okay. Ask yourself how they're using data to improve things and make your experience better.
Speaker 1:That's a good idea. Yeah. I feel like I have a whole new way of looking at the business world now.
Speaker 2:Good. That's the power of knowledge.
Speaker 1:Right. It helps you see things differently.
Speaker 2:It does. And this deep dive has given you some valuable insights into how finance is changing.
Speaker 1:It has.
Speaker 2:Now it's up to you to use this knowledge. Right. Engage with the world around you and maybe even be a part of this transformation yourself. This has been a really great deep dive. I'm glad you enjoyed it.
Speaker 1:Thanks for explaining all
Speaker 2:this to me. You're welcome. Remember, the future of finance is being shaped right now.
Speaker 1:It is.
Speaker 2:Stay curious. Stay informed. And who knows? Maybe you'll be part of driving this transformation forward. That's a great thought to end on.
Speaker 1:Thanks again.
Speaker 2:My pleasure.