Understanding how to Drive Financial Transformation

As companies move to SAP S/4HANA, CIOs and other business leaders must ensure that the project delivers the desired results. This is easier said than done, as quantifying what success means and delivering on those metrics is a complex, in-depth process. While most projects will eventually reach a go-live date, this is not always an indication that a financial transformation project is successful. In fact, more than two thirds of digital transformations fail to meet expectations, accounting for over $2 trillion in wasted spending.

Finding a Path to Success

To help companies find the roadmap to success for digital transformations Sumit Johar, Chief Information Officer at BlackLine, highlighted some of the biggest issues in these projects are and how to avoid them:

Lack of Vision and Alignment – Many companies invest in technology without a clear strategy or understanding of how it will affect multiple business functions. For example, a new billing platform may seem perfect for streamlining subscriptions, but if finance and revenue teams aren’t aligned, operational disruptions will occur. Early stakeholder involvement and alignment are essential.

Cultural Barriers – Resistance to change is a common obstacle. Even employees frustrated with inefficient processes may resist adopting new tools due to fear of disruption. Understanding company culture and driving a change-friendly mindset are crucial to overcoming this barrier.

New Technology, Old Processes – Migrating legacy processes to new platforms without redesigning them leads to automated inefficiencies rather than improvement. Companies must embrace process innovation instead of replicating outdated workflows.

The Need for Innovation and Digital Ambition

Rapid innovation is reshaping industries at an unprecedented pace. Organisations must be prepared to seek out and adopt new technologies. This responsibility often falls to finance leaders, as they must future-proof finance operations and drive financial transformation.

Johar says that some of the best ways to accomplish this are:

Invest in Change-Friendly People – Transformation requires internal buy-in. External consultants can support, but internal readiness and capability are essential for success.

Set a Digital Ambition – Define how your department will operate in 12–24 months, including changes in tools, processes, and workforce needs.

Choose the Right Technology Partners – Select partners with expertise in security, data privacy, and compliance to build a roadmap aligned with business goals.

Partner with IT – Collaborate with IT teams to align short-term needs with long-term strategic goals.

What This Means for SAPinsiders

Digital finance transformation is no longer optional. It’s essential for survival. Success lies in clear vision, internal alignment, cultural adaptability, and strategic technology adoption. Finance leaders who embrace innovation and anticipate change will gain a competitive edge in a rapidly evolving market.

Create a culture that embraces innovation. Companies should not see emerging technologies as a threat to the status quo, but rather an opportunity to bolster operations, maximise efficiency, and free up workers to drive innovation. Businesses should adopt a mindset that is excited to leverage new technology. This should start at the top, with CFOs and CIOs. That way, this attitude can trickle down throughout the rest of the organisation.

Technology and processes must work together. Companies that try to leverage new technologies with outdated processes are essentially trying to fit a square peg in a round hole. Automating inefficient processes cannot deliver the desired results. Companies must adopt a holistic approach to financial transformation, improving their outdated processes and equipping teams with the technology they need to thrive.