PPM priorities and challenges for finance in Asia in 2025

The role of the Chief Financial Officer (CFO) has undoubtedly moved outside the traditional accounting function and into a strategic leadership position. This evolution is particularly pronounced in Asia, driven by factors such as rapid economic growth, increasing regulatory complexity, and the accelerating pace of technological change.

Gartner defines "performance management" as the combination of methodologies and metrics that enables users to define, monitor and optimise outcomes necessary to achieve organisational goals and objectives. While not limited to the finance function, process and performance management (PPM) has become an essential toolkit for CFOs aiming to enhance efficiency, improve decision-making, and drive sustainable growth.

The evolution of process management

The pandemic of 2020-2022 has accelerated the digitalisation of workflows. Flowcharts, once the standard for mapping workflows, have proven inadequate for driving real process improvement. This has necessitated a shift towards a more dynamic, data-driven, and adaptable approach to PPM.

"The evolution of process management in recent years has been driven by rapid technological advancements, changing business needs, and a stronger emphasis on agility and customer-centricity," comments Pramod Kumar, head of APAC Business, Newgen Software.

"The limitations of traditional, siloed process documentation, often exemplified by flowcharts, and its infrequent application to process improvement, have necessitated a transition to a dynamic, data-driven, and adaptable approach." Pramod Kumar

Several key trends have shaped this evolution, most notably the rise of robotic process automation (RPA) and intelligent automation (IA). These technologies have revolutionised the automation of simple and complex tasks, going beyond basic automation to incorporate elements of understanding and decision-making.

RPA excels at automating repetitive, rule-based tasks such as data entry and report generation, freeing employees to focus on more strategic initiatives. However, IA leverages artificial intelligence (AI) and machine learning (ML) to automate cognitive tasks, enabling intelligent document processing, predictive analytics, and automated decision-making.

More recently, the introduction of low-code/no-code platforms has democratised process management, empowering business users to design and modify processes directly with minimal coding.

This agility allows businesses to react more quickly to changing market conditions and ensures that processes align with business needs. Process mining has also emerged as a powerful tool, providing data-driven insights into process performance and enabling informed optimisation.

Kumar notes that process management has accelerated rapidly in the past 12 months, with tools becoming more automated, intelligent, and user-friendly. He adds that cloud-based solutions, seamless integrations, and AI-powered features are commonplace, enabling organisations to manage processes and adapt to the ever-changing business landscape dynamically.

"This includes implementing AI-enabled risk management, providing real-time anomaly detection, fraud prevention, and enhanced decision-making insights within process workflows," he continues.

Key challenges for the finance function in 2025

One of the most significant challenges facing modern finance functions is the explosion of data from diverse sources, including internal systems, customer interactions, and market data. This deluge of information, while holding immense potential, often creates data silos, where departments store information independently, hindering integration and sharing and resulting in inaccessible or underutilised data.

Kumar explains that this explosion of data from diverse sources – internal systems, customer interactions, market data – presents a significant challenge for modern finance functions.

"This deluge of information, while holding immense potential, often creates data silos, where departments store information independently, hindering integration and sharing – resulting in inaccessible or underutilised data."

He argues that this data fragmentation makes gaining a holistic view of the business complex, hindering effective decision-making and increasing the risk of errors and inefficiencies. Moreover, finance functions are under increasing pressure to comply with tightening data privacy regulations, including the General Data Protection Regulation (GDPR), especially when processing customer data.

The complexity of managing diverse invoices, with multi-currency, continental tax variations, and format differences, further strains operational capacity. This is compounded by the complexities of cross-border compliance, such as anti-money laundering (AML), counter-terrorism financing (CTF), and Know Your Customer (KYC), which vary significantly across jurisdictions.

Priorities: Data integration and governance

Given these challenges, data integration and governance are paramount priorities for the finance function. This involves establishing robust processes, such as those facilitated by "data integration and governance" platforms like enterprise content management (ECM) and business process management (BPM) systems. These systems can integrate disparate data sources into a centralised platform, breaking down silos, providing a holistic view, and supporting compliance efforts.

According to Kumar, data integration and governance are, therefore, priorities for the finance function. This involves establishing robust processes, such as those facilitated by platforms like ECM and BPM systems.

He asserts that: "These systems can integrate disparate data sources into a centralised platform, breaking down silos, providing a holistic view, and supporting compliance efforts."

How design thinking impacts PPM

Kumar suggests that design thinking has the potential to revolutionise finance's approach to PPM by prioritising human-centred design, iterative development, and innovation. Instead of solely focusing on technical optimisation, it emphasises understanding stakeholder needs, including internal teams and other departments, to build a truly relevant and user-friendly PPM system.

He emphasises that "Design thinking can potentially revolutionise finance's approach to PPM by prioritising human-centred design, iterative development, and innovation. Instead of solely focusing on technical optimisation, it emphasises understanding stakeholder needs, including internal teams and other departments, to build a truly relevant and user-friendly PPM system."

Operational KPIs for best-in-class PPM

While best-in-class operational KPIs can vary depending on the industry and specific business goals, a general framework can provide a strong foundation.

"Building a best-in-class KPI framework is an ongoing journey, not a one-time achievement," advises Kumar. "A holistic framework can provide data-driven insights, enabling organisations to assess their programmes, identify areas for optimisation, and make strategic decisions."

"By carefully selecting and monitoring KPIs, organisations can unlock valuable performance intelligence and achieve operational excellence." Pramod Kumar

Aligning PPM with overall business strategy

Kumar reiterates the importance of "A deliberate and integrated approach that directly connects process design, performance measurement, and continuous improvement to strategic objectives."

Driving continuous improvement in PPM

"CFOs must champion strategic investments in technology and automation solutions to support this growth," asserts Kumar.

By embracing these strategies, CFOs can transform their finance functions into agile, efficient, and strategically aligned units, ready to meet the challenges and opportunities of 2025 and beyond. PPM has become inextricably linked with the modern CFO's mandate to drive value, manage risk, and enable sustainable growth.