While financial concepts, theories, and principles remain relatively constant over time, the technologies and processes that companies use to implement these functions are constantly changing.
If you study the finance departments of the world's leading companies, you'll find that most use some form of innovative technology to help them do business
Five great technological innovations in the world of finance
Financial theory without a progressive technology strategy to back it up will likely leave you at a competitive disadvantage for years to come. Fortunately, you don't have to look far to see what works for others.
Here are some of the top trends and the ways they're driving savvy finance departments. Perhaps you could take advantage of some of them in your own organization.
1. Artificial Intelligence
Artificial intelligence is all the rage right now... and for good reason. When you study it in the context of finance, there are, among them:
- Automatic generation of contracts and legal documents
- Mining data to find new business opportunities
- Perform real-time analytics and robust reporting
Artificial intelligence doesn't necessarily eliminate finance jobs, an outcome fear mongers like to project, but instead changes the roles of finance department employees. It will be interesting to see the kinds of impacts it will have on various companies and industries in the near future.
2. Machine learning
Machine learning is another one of those buzzwords being thrown around flippantly in the business world. Most people have heard of the concept, but few understand what it is or how it differs from artificial intelligence.
Machine learning is best viewed as a type of artificial intelligence that gives computers the ability to grow from absorbing data and become "smarter" over time without having to be explicitly programmed.
In the world of finance, machine learning in terms of fraud detection and legal compliance (among other things). Companies that experimented with machine learning generally found that it helped them stay ahead of the curve.
3. Digitized hiring processes
It exists within the broader procurement management process and involves four key stages: selection of goods and services; enforce compliance and order; reception and reconciliation; billing and payment.
Leading finance departments are finding ways to digitize the procurement process with advanced procurement-to-pay software that strengthens compliance and eases some of the burden on accounts payable. This leads to fewer manual tasks and the headaches they create, while also generating savings on the bottom line.
4. Cloud data storage
But as business executives learned more about the cloud, they gradually realized that cloud data storage is more secure than traditional on-premises solutions.
The key to choosing a suitable storage provider is to find one that has been in business for a comfortable period of time and offers solid long-term contracts with other companies.
A good cloud provider will be quick to provide up-to-date compliance, security, and financial health audits.
5. Advanced cyber security
Companies are spending more than ever on cyber security… and much of the responsibility falls on the finance team. But the days of reactive cyber security are passing. If you want to stay ahead of attacks and data breaches, you need to be proactive.
implementations of general machine learning systems, such as Watson from IBM, or dedicated systems like Cy lance”, business journalist.
If you want proactive cyber security to work for your operation, communication between IT and finance is critical. The more you can optimize that relationship in both directions, the smoother the whole process should be.
Are you taking proper advantage
Does any of the aforementioned technologies catch your attention?
Sometimes it's the simplest adjustments that make a big difference. Try to zero in on one specific change you can make to improve your finance department in the coming months. It could be one of the biggest investments you make this yea
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