5 ways for finance leaders to get on board with the digital transformation wave

Going all digital has been happening—are businesses well equipped to ride this next wave? We share some pointers on where to start paddling.

Waves come in sets and can change our shorelines—some faster than others, depending on the storm that created them.

And much like those waves reshaping our coasts, the technology industry’s shoreline is experiencing wave after wave of change—and the key to ducking surprise sets and catching one is having the right knowledge and equipment.

Now more than ever, small and midsize businesses are investing in their company’s transformation to a fully digital operation. This may look like upgrading current technology, putting everything on the cloud and hiring professionals who know how to navigate these realms.

“The [customer] opportunities are limitless…look at how fast the world is changing; careers that exist that didn't exist 10 years ago that involve AI, [machine learning], financing solutions plus technology—that pace is accelerating,” said Eric Tapia, senior vice president of Global Commercial Finance at Ingram Micro.

Digital transformation is a big wave and catching it may look intimidating, but it doesn’t have to be. Surfboards come in all shapes and sizes for riding all types of swells and so do digital solutions for catching the tech wave you want.

And though digital transformation encompasses so many aspects of a business, for one to run, finance is the bedrock of every company, no matter the size. Here are five tips to help ease the change.

Start with a clear vision

Any successful transition to a fully digital operation begins with a well-articulated, clear vision. With any vision, it’s important to not only outline what digital changes will occur but also explain the “why” behind the transformation. For finance, this could mean sharing how the digital tools will drive value, whether by automating processes, improving reporting accuracy or enabling better decision-making.

“Think about if your change translates across various functions—it has to be well articulated and well thought out and prepared,” said James Agnew, senior vice president of Finance Operations at Ingram Micro.

Make this process relatable

From the CFO to the AP clerk, help everyone see the tangible benefits so they can embrace the change, said Agnew. Learn about the latest technologies like AI and how they might impact routine tasks like accounts payable or financial reporting.

“If you don’t make [digital transformation] relatable to the day-to-day people, it’s not going to click,” said Tapia. “Make it more efficient, deal with less ineffectiveness.”

Track financial and nonfinancial metrics

Start by tracking core financial metrics such as bottom-line performance, cost reduction, revenue expansion and working capital management. But it can’t all be numbers.

“The happier people are in general, the better we will perform as a company,” said Tapia. “If employee and customer satisfaction is not increasing, it begs the question ‘is managing digital creating that stickiness?’”

Invest with purpose

While investing in the latest technology is fundamental, maintaining profitability is just as important, says Agnew. Finance leaders should carefully evaluate where to allocate resources, and focus on high-return investments that align with long-term strategic goals.

“We have to be open to what’s new and viable in our industry but also take a little bit of risk because if we keep doing things the same old way, then the results are going to be the same old thing, which is exactly what we don’t want,” said Agnew.

But first, collaboration

Change doesn’t happen overnight and can’t be successful in silos. Finance teams should always collaborate with IT, operations and other business units to make sure everyone is on board with your company’s objectives. By providing a more collaborative environment, you open up the opportunity to catch the digital transformation wave with a collective, confident path forward.

The word “digital” may indicate technology, but it’s not just about that in digital transformation. It’s about changing mindsets, streamlining processes and driving sustainable growth. As a finance leader, you have the power to unite not only systems and processes but also your people, which is one of the best long-term investments your business can make.

Stock up on the right equipment to successfully catch the next tech wave with Ingram Micro.

Start surfing financial solutions

Jackie Connor is a writer with more than 15 years of experience contributing to news publications and marketing teams. Since joining Ingram Micro in 2022, she covers technology services, financial solutions, sustainability and DEIB.

Read the original story