CFOs, Fight these Pitfalls of Transaction Processing by Digitizing your Finance Ops
As financial leaders strive to meet today’s diverse market demands, it is imperative to know transactions processing systems can be transformed and how they can deliver better information. A strategic focus on finance is the need of the hour. It will allow them to improve the capacity to deliver business insights, re-imagine customer experience, and deliver compelling services. Financial transformation can no longer depend on new reporting strategies and tools. They have to find a new way of approaching the financial service industry with renewed technological approach and start-over mindset.
Chief Executive Gary Simon in reference to a survey of 46,000 FSN members stated, “More than two decades after ERP systems first appeared in the business landscape, more than half of all CFOs say that they spend too much time on transaction processing.” Industry leaders have already identified the challenge— transaction processing has already taken up 50% of all the finance resources. In addition to this, transactions of inaccurate nature take up the maximum time to untangle, close to 80% than a transaction processed for the first time.
In fact, companies have been struggling with legacy complexities for a while now, impeding their business agility and retarding a possible competitive edge. Legacy system transactions were made to replicate the manual bookkeeping entries. However, when it came to providing the requisite amount of business insights, it was unable to deliver effectively. Here are a few more challenges encountered in this legacy system:
The account chart is based on outdated structured databases, incapable of managing the magnitude or range of data including products, customers, industries, channel, region, and marketing campaign.
Analyzing manual transactions
There is a need for enough business context to understand and analyze transactions.
There are tasks which traditional system cannot process. They result in the inefficient handling of transactions due to time spent on other operational exigencies.
It is clear that a system which provides limited business data and ineffective insights will no longer work. Data is the new currency of successful businesses, therefore businesses must do what they can to extract clear insights from every aspect of their businesses. Clearly, industry leaders must gun for an efficient transaction processing to facilitate successful financial transformation.