Leverage ease of compliance, scalability to make the case for finance transformation

⇨ Only 25% of SAP customers globally have migrated to SAP S/4HANA Finance, although another 24% are currently implementing the solution

⇨ More than half of customers unable to upgrade cite competing priorities as a barrier to transformation

⇨ BlackLine’s Tammy Coley provides insight on how to build a business case for finance transformation for your organisation

Around 25 percent of SAP customers globally have moved to SAP S/4HANA Finance and around 24 percent are currently implementing the solution, according to research from SAPinsider (note: Mastering SAP and SAPinsider are part of the Wellesley group of companies).

SAPinsider’s Benchmark report, SAP S/4HANA Finance State of the Market 2024, surveyed 124 SAP customers on how they are deploying SAP S/4HANA and how it affects their financial processes.

The respondents’ top driver for upgrading was SAP S/4HANA Finance’s improved reporting, planning and insights (43 percent), followed by the upcoming end of maintenance deadline for core SAP ERP/SAP ECC (38 percent) and automating manual work and manual processes (28 percent).

SAPinsider also found that more than half (57 percent) of the respondents who have not moved to SAP S/4HANA Finance cited competing priorities as a challenge preventing them from enacting digital transformation.

The research is supported by a separate survey from financial software company and SAP partner BlackLine about having access to real-time data that can unlock business growth. BlackLine found 42 percent of finance and accounting professionals and C-suite executives do not entirely trust their data, and just 2% expressed complete confidence in their organisation’s ability to deliver real-time cash flow visibility.

Speaking on the research, BlackLine chief transformation officer Tammy Coley said digital transformation is about more than just the technology.

“In the finance profession, however, we generally don’t put enough emphasis on what it really takes to change,” Coley said.

“We often expect people to just do it and we don’t spend enough time thinking through the change, the impact it’s going to have on the people and how it will be received.”

Coley added that taking the organisation on a “transformation journey” is considered best practice in digital change and transformation plans.

“It’s also important to have a flexible plan with milestone wins along the way,” she said.

“The old approach to change management was to plan a huge project, work hard at it and then expect a big-bang benefit at the end, but it’s so important to set up your project differently to avoid fatigue. You need small wins along the way to keep the team pumped up.

“When you’re planning for change, you’ve got to be thinking about the people, allow them to see the progress that they’re making and celebrate their milestones.”

Other best practices for finance transformation include assessing current digital capabilities and identifying gaps and opportunities for improvement, as well as using cloud-based tools to ensure accurate data for informed decision making.

Coley added that partnering with key decision-makers across the organisation is just as important as technology in the transformation journey.

“They may be the people who say, ‘Finance is a cost centre, you’re not producing revenue, so why would we invest in transformation?’. That’s why you need to be able to connect what the finance function is doing to what’s driving the business forward,” she said.

“When decision makers can see the transformative value of accurate reporting and real-time, data-driven analytics, it’s easy to see the business case for finance transformation.”

Coley offered the following tips on how to build a business case for finance transformation and secure the necessary budgets and approvals:

• Paint the bigger picture – Decision makers want to see the strategic benefits to the business. Articulate the business problems you’re seeking to solve and show how real-time access holds the solution.
• Highlight the benefits – Consider factors like employee retention, ease of regulatory compliance and opportunities to scale the business.
• Measure what matters – Define measurable objectives, such as a percentage increase in operational efficiency or improvement in employee engagement, to encourage buy-in.
• Seek feedback – The case for change may be clear to you but may not be obvious to others. Seek feedback to identify any weaknesses in your assumptions and anticipate questions from senior management.