In the world of business where change is constant, it is a given that the finance function rides on the waves to maximise benefits for their respective organisations.

According to Gartner, it is important that finance leaders fully understand the scope of changes that genuine transformation requires, as it observes that finance transformation efforts are falling short of CFOs’ objectives in large part.

For Ivan Phuah, Finance Transformation Partner, PwC South East Asia Consulting, finance transformation is increasingly important, not just within Finance teams.

“As the Finance function looks to become more relevant and value-adding to organisations, we see the function taking on greater roles in key areas of decision-making such as investments, CapEx projects and procurement—make or buy decisions.”

The factor that is technology

Ivan says the rapid adoption of technology is enabling transformation, and finance teams are increasingly finding themselves in a ‘constant flux’ of innovation and change.  

He points out on the importance of a culture of upskilling and adaptability that is embedded in the finance function to keep up and stay ahead of what is happening within the business.

Over the last few years, priorities within the finance team have inarguably changed as the business world recovers from the COVID-19 pandemic and other major technological breakthroughs.

“Transformation has become more technology-based,” Ivan says, “with any significant changes requiring some levels of investments in new tools and systems to really move the needle.”

He adds that organisations have shifted from just looking at transactional activities, such as Enterprise Resource Planning and Shared Services Centres, to progressively focus on the value-creation side of the business.  

This shift, Ivan views, has enabled the dedication of more resources towards better analysis and insight generation as part of their management reporting.  

“This may require more investment in new tools, as well as in the upskilling of teams in new areas such as data, analytics and AI; all of which may not have traditionally been on the radar of finance professionals,” Ivan explains.

A powerhouse for global shared services

As part of the transition journey towards a digital workforce, Ivan says finance leaders should anticipate a shift in culture to one that is more technically skilled.  

“This transformation will be initiated through the implementation of technology within shared services teams, which can serve as an incubator for the adoption of new tools,” he says.

Ivan notes that this increased capacity will enable shared services to herald more activities which are higher on the value chain and within a wider scope of functions, such as reporting, treasury, tax, and legal services.  

The PwC Southeast Asia finance transformation partner says teams within countries outside of shared services will also benefit as they are able to work more closely with the business and spend more time with them to provide data and input in key decisions for the organisation.

Challenges ahead

As for the hurdles that finance leaders must brace for in regards with the transformation in shared services, Ivan says there are a number of challenges to look out for—and most will revolve around the workforce.

“Firstly, this entails dealing with a workforce that is more remote than the current arrangement,” Ivan explains. “It’s becoming more common to leverage offshore teams—especially with greater demand now for virtual collaboration and flexible working environments.”

In light of this, and due to more varied activities being potentially delivered, Ivan points out that ensuring service quality across the board can be a challenge, which calls for the greater need for consistent levels of skills set, technical knowledge, such as deploying new tools and technologies across a diverse shared service team.

“It’s also important to keep in mind that the landscape for shared services becomes more competitive,” Ivan says. “Challenges can abound in retaining team members.”

He explains that as team members acquire more specialised skills, constructive career progression pathways will be needed to not only retain these talents, but also enable them to unlock new areas of professional growth.

Upskilling the finance team

Kanruthai Somchitrmool, manager of Commerce Finance at Robert Walters Thailand says there is a requirement for finance professionals who can successfully implement new finance systems and integrate them seamlessly with existing processes.

The demand for specific skill sets within the finance function is a response to the evolving needs of postpandemic businesses, as they strive for operational efficiency and effectiveness in the Southeast Asia region.

As the business world moves toward the era of artificial intelligence and machine learning, Ivan believes that it is without question that there is a need for the finance function to upskill.

This is especially given the fact that AI and ML will undoubtedly redefine finance teams.

“Firstly, new-frontier technologies will pave the way to certain job roles being executed by AI bots,” says Ivan. “Tellingly, these bots can do the job better, faster and can work within unstructured data to deliver.”

Ivan further explains that as what the world is already witnessing now, finance practitioners see the necessity to upskill or reskill themselves to stay relevant.

In addition, as AI starts to take over existing activities, Ivan says it will fundamentally mature over time and change the way finance outputs are delivered.

Hence, it is incredibly important for humans to find their niche in the redefined finance function.

“This will entail a stronger focus on crucial soft and transferable skills that cannot be easily automated,” says Ivan, “such as critical decision making, interpersonal skills, and conflict resolution.”