Emerging Tech Trends and Innovations in Financial Management and CFO Strategies for 2018
2018 marked a significant year in the tech landscape, particularly for financial management and the increasing role of CFOs. This article explores the key tech trends and innovations that have and will continue to shape the financial management landscape, providing insights for CFOs and business leaders. This discussion touches on Artificial Intelligence (AI), Blockchain, and Virtual Reality, with a focus on their current state and future potential.
Artificial Intelligence: A Promising Frontier
The role of Artificial Intelligence (AI) in financial management is one of the most talked-about topics of recent years. While AI has made substantial inroads in domains such as marketing, its application in financial management and for CFOs is still in its infancy. The primary challenge lies in integrating AI to complement existing financial management systems and processes.
One of the most promising areas where AI can be applied is in detecting trends and consumer behaviors. By analyzing vast amounts of data, AI can help in onboarding new customers and retaining existing ones. This can be particularly useful for CFOs in understanding consumer preferences, planning for future financial strategies, and enhancing overall business impact.
Another aspect is the potential of AI in Financial Planning and Analysis (FPA). While AI shows promise, actual implementation and testing within FPA systems are still lagging. In 2018, the focus was on laying the groundwork for future AI integration, with many organizations beginning to pilot AI solutions within their FPA processes.
Blockchain: Integrating Across ERP Platforms
The technology landscape couldn’t be complete without a discussion on Blockchain. The integration of Blockchain across major Enterprise Resource Planning (ERP) platforms is an area of significant interest and potential. While many industries are grappling with how to integrate Blockchain, finance stands to gain from its ability to provide transparency, security, and efficiency in financial transactions.
ERP platforms can leverage Blockchain to improve supply chain management, secure financial transactions, and enhance the overall financial reporting process. As these platforms begin to embrace Blockchain, CFOs are expected to play a pivotal role in driving adoption and ensuring alignment with broader organizational goals.
In 2018, we witnessed an increasing number of companies exploring the integration of Blockchain into their ERP systems. This trend is expected to continue, with a focus on creating a seamless and secure financial management ecosystem.
Virtual Reality (VR): A Curious Case for Finance
The application of Virtual Reality (VR) in finance and financial management remains a point of curiosity. While VR is widely used in sales and marketing, its potential in finance is still being explored. The challenge lies in understanding how VR can add value to financial processes, particularly within top finance organizations globally.
One proposed use case for VR in finance is providing immersive training and simulation environments for staff. This can help in developing financial skills and understanding complex financial concepts. Additionally, VR can be used for financial planning and forecast scenarios, offering a more engaging and interactive approach.
However, the practical application of VR in finance is still in its early stages. As technology advances, we can expect to see more integration and innovative uses of VR in financial management, particularly in educating and training finance professionals.
Conclusion
2018 was a year marked by significant technological advancements in financial management and CFO strategies. The advent of AI, Blockchain, and VR present vast opportunities for innovation and improvement. As we move forward, CFOs and financial management teams need to remain open to new technologies and be proactive in embracing them.
While AI currently holds the most tangible benefits for financial management, Blockchain and VR are on the horizon, promising transformative changes in the years to come. It is crucial for CFOs to stay informed and make strategic investments in these technologies to stay ahead in an increasingly digital and data-driven world.