Technology for Finance and its importance
Over a cup of coffee from the comfort of her home, this finance professional chats with her colleague on the nuances of working from home. She has started to miss office and is hopeful that the Indian summer restricts the spread of the virus. As she chats, her phone buzzes and she has a budget approval request from the facilities cost center for sanitizing the workplace. She logs in to the company’s mobile application and approves the request as a finance manager. The workflow is then triggered and the funds released, for the much-needed sanitization process. She can also access her company’s budget dashboard real-time and take proactive steps to reach out to respective cost centers ensuring the actual expenditures remain within the acceptable variances. She is a seasoned finance professional and has seen her field evolve from approving requests through memos to approving them with a touch screen. Though technology has made her job easier and faster, technology is continuously evolving. Technology has evolved from being an enabler of business to technology being the business itself. Today, technology permeates every part of the business across all industries.
ERP (Enterprise Resource Planning)
At the dawn of the new millennium, it was the ERP (Enterprise Resource Planning) wave, where enterprises leveraged technology by establishing systems of records to run their business processes. All the business functions – HR, Finance, Vendor Management, Facilities Management got linked through an ERP software (SAP, Tally, Oracle, Siebel, PeopleSoft, etc…) to drive efficiency and faster decision making. In this wave, our finance professional moved from approving budget requests over the paper to a workflow-driven ERP system. As the technology evolved further through faster speeds of computing, smarter phones, Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), businesses realized that actionable insights can be derived if they linked their systems of record (ERP) with their systems of engagement. The systems of engagement are customer-facing systems like mobile application, chatbots, etc., For example, a mobile application for a bank is the system of engagement, customers can log in to the app and do most of the banking transactions without having to visit the bank. As more and more customers are doing transactions online, gone are those days when banks used to lease large properties and hire a large workforce to serve their customers. Today’s banks are asset-light, thanks to technology they can offer more services at a much lesser cost. As the competition amongst banks increased, banks started to think about the next level for growth – either in terms of driving cost efficiency, grab market share from the competition, and last but not the least on how to add additional revenue channels. They realized “if I know my customers better, I will be able to custom stitch offerings for them” The challenge is how will they know the customer better? The answer is the digital footprint the customer leaves in her online transactions, can the data be fetched and analyzed to understand the customer spending and saving patterns? How much is the customer earnings (Credits) and how much is he spending (Debits) and how much is the saving (month end balances)? Where is the spending going? “Can the bank analyze the spending patterns by type – Is the customer spending more on consumer electronics or on travel or health care? Is the customer saving consistently month on month- Can the bank then advise investment-linked savings plans for the customer from its offerings” Any bank today will have a Data Analytics team which has in its charter to generate actionable insights for the business to drive growth in revenues and profitability. The Data Analytics team gathers and analyses streams of data from multiple systems of engagement and generates actionable insights for business users. Example: The relationship manager (business user) with a bank who has high net worth individuals (HNI) as his clients depend on the Data Analytics team to tell him the products that should be targeted to his clientele.
Technology for Consumer Goods and Services
Similarly, if we look at other industries like consumer goods – Often the biggest challenge the companies face is which of their products is in good demand and in what geography and more specifically in what store? Can I equip my salesman with intelligent information on what goods to sell to a retailer? There is more demand for coconut oil in the southern states than elsewhere is a no brainer, but can the data be analyzed more deeply to gain actionable insights for a salesman, when he goes and sells to the retailer? The answer is Yes, enter the data analyst who gathers reams of data on customer preferences, demographic spreads, and choices, geographic preferences, customer buying patterns at the point of sale (POS) terminals. They collect data from multiple sources like these, analyze them, and direct the salesman efforts to sell more wisely.
The scope of the Data Analytics
The scope of the data analytics is ever increasing as more and more enterprises across industries are linking their systems of engagement with their systems of records in what we call Digital. This Digital transformation has opened up a lot of opportunities for the finance professional, they no longer work in silos in a corporate finance team but are partnering with the business to drive growth and efficiency in the organization. The collaboration with the business has created more visibility for her in the organization and opened up an opportunity to understand the customer touchpoints through systems of engagement, She can now stitch her learnings from customer insights through systems of engagement to the systems of records to generate intelligent data and create compelling narratives of growth and opportunities for the business managers.
So, what does it take to reinvent herself to the new world of digital? Working in the age of Digital demands that she equips herself with key concepts of data analytics leveraging programming languages like Python, R. These programming languages will help her examine, extract and analyze large streams of data to fetch intelligent insights for the business. But what good is an intelligent data if not presented in a way the business understands? Ergo she also needs to devote time to learn visualization tools like Tableau, Microsoft Power BI. These tools transform intelligent data into compelling dashboards for businesses to act upon.
They say change is inevitable – Now is the time that she embraces the fact that she has to reinvent herself – may be unlearned and learn a few things. Fortunately for her, just like the banks and consumer goods companies that are embracing digital transformation, many top universities and business schools are imparting courses on data analytics specifically tailored for finance professionals through online mediums. It’s time she explores these opportunities to be a digital-ready finance professional.
62 thoughts on “Technology for Finance Professional and it’s Changing Landscape”
Data Analytics & modern world is something, we totally can’t ignore after this pandemic ends, to help make the business upscale.
Technology has evolved from being an enabler of business to technology being the business itself. Whereas ERP helps in faster decision making. So in a country like india, with this much of population, can’t ignore the data analytics for the growth and efficiency of business.
This blog involves technology for Finance and Professional and it’s Changing Landscape, Enterprise Resource planning, technology for consumer goods and services, scope of data analysis.
Technology and Data Analytics for sure are taking over the business world like a tsunami but in a country like India, what about existing small businesses which yet are far away from technological transformation?
It is a big opportunity for all finance professionals. Very informative blog and very much helpful.
The different technological changes and growth being seen in the Financial field are explained very well. A good read for new employees entering the job market!
Data Analytics & modern world is something, we totally can’t ignore after this pandemic ends, to help make the business upscale.
Technology is something which has taken over all the job sectors. It is very important to stay educated, updated and aware of the uses and affects of technology in our professional life.
Technology is for sure helping the businesses grow and expand and helps in managing the resources and workforce accordingly.👍
A pretty delightful and fun article to read which gives us a view of today’s technology in comerce world and how it helps the professionals.
Great insight of the changing financial technology. And moreover a bigger challenge and opportunity for the finance professionals.
Modern Technology and Data Analytics is so much needed in this growing world. India needs to buckle up after this pandemic ends. We’ll written!
It is very informative blog it gives a good idea of changing the technology niw a days for financial professionals.
Very helpful..
Data analytics and technology is for sure the base of every business and even after this pandemic it is going to fe very effective in helping the business grow..
With the changing business environment the businesses has to adopt the technology for making the business funtion & work easy. This blog tells vital importance of technology in finance department.
Even in this quarantine we are getting to know all this things. There is lot to learn.
With Technology and use of finance and accounting in today’s world with the help of ERP is so useful for every organisation.
Technology changes the infrastructure of a business. Data analysis is the pillar of any business. Now and in the future it will help the business to expand more.
Today Technology changes the infrastructure of a business. Data analysis is the pillar of any business. Now and in the future it will help the business to expand more.
Technology and Data analytics connected to each other. Technology and Data analytics help the business. Business easily grow help for Technology.
Since the invention of the wheel to the use of microchips in computers and mobiles, technology has come a long way. Today, technology is indeed a very integral part of the day-to-day life for each and every one of us. Therefore, it is one of the must-read blog post in order to gain deeper insights about the scurrying technological advancements and the scope of Data Analytics in today’s tech-driven business world.
The impact of information technology on financial services also allows customers to be able to easily complete online transactions, which creates a better convince in finance, allowing for the development of information technology and initially create a more fast and efficient service.
In this time Technology and Business are very well interconnected . Today technology permeates every part of business across industry . So technology and and analytics are very important part of business now a days.
Technology has really changed the face of the world. The digital transformation has really helped change the financial profession around us this content is really interesting.
In the dynamic environment, technology is changing rapidly. Technology is also changing day by day for finance professional. In India also, we have to use technology to improve our growth.
In today’s world, technology & data analytics is the most important aspect in the commencement or development of any type of business and it will be very effective even after this Pandemic.
Data analytics ans technology will surely create lot of opportunities and make a difference
Data analytics and technology has its great importance and this blog highlights them so well . This Digital transformation has opened up a lot of opportunities for the finance professionals too.
Great blog, very informative.
This blog is very informative and helpful. Data Analytics and Technology are, I think, very much important right now. This blog says everything about it. Thankyou.
Data Analytics and Technology are something big current and future investment avenues for different utilities and businesses.
This blog has explained or mentioned different aspects of Data Analytics along with technology in short and simple manner.
In today’s scenario, it is a kind of Must read blog for all
Data analytics is something that we cannot ignore this was very helpful
Miles provides the best platform to deliver quality content and imparts knowledge and info like no other.
Technology is the new era for Accounting in this world!!
Miles Education has done it right by upstanding with this technology world in accounting one step ahead in finance !!!!
This sort of blog proved to be very helpful to me as it cleared all my doubts relating to why the technology is so important for the finance professions.
In today’s situation technology, finance and data analytics are the departments or sectors required by all the business so we can’t avoid to run a successful business. we need to upgrade and evolve in these feilds.
Yes. After reading this blog, I know technology is important for finance profession. This blog is very informative and helpful. It cleared all of my doubts regarding technology in finance profession
Technology is Changing in a rapid pace. and this blog’s gives information about the technology which can be used in finance
A very informative blog with all the required information regarding data Analytics and all the technological aspects in the world of finance
Technology and its integration in all activities has definitely helped in improving efficiency.
Integration of operations has simplified task and reduced duplication of work.
This blog beautifully summaries the positives of the same.
Miles education are doing great job by providing useful content to students as well as professionals. All these information are very valuable.
Yes, Technology is truly changing the face of a finance all over the world.
Indeed technology and finance will change the world. Miles education is on the right track.
Technology is the new way to change the world. This blog is very informative and innovative.
It’s a sure thing that data analytics and modern developing technology is going to bring a magnificent change in the business world. This blog is very informative. Miles always help us to get updated with valuable information regarding the field of business and it’s latest technologies.
According to the U.S. Bureau of Labor Statistics (BLS), personal financial advisors, also referred to as financial planners, assist clients in investments, tax laws and other finance issues (www.bls.gov). These professionals interview clients and make recommendations depending on their goals. Financial advisors may educate their clients on financial terminology, investment strategies and other topics. The BLS indicates that, although many financial advisors work as generalists, some specialize in certain areas, like investments and retirement.
Both self-employed financial advisors and those who work with firms often have to recruit their own clients. To do this, advisors need strong sales and customer service skills. In addition to staying current on financial regulations, financial advisors must be aware of economic situations around the world. Those who buy or sell certain commodities may be required to obtain licensure.
Technology has played an important role in improving accounting techniques to another level and made it more simpler. This blog is making it more simpler to understand.
It is a big opportunity for all finance professionals. Very informative blog and very much helpful.
This really was a very interesting read, well done
technology and analytics have now evolved now to be as an integral part of any business activity.
it is very essential for all aspiring candidates to learn and develop in skills of technology and analytics.
Change is envitable and business should adapt to it. Enterprise resource planning has always been backbone of accounting and now with the help of Data Analysis tools like Tableu and R, it’s going to create more potential.
It is hard to belive that most of jobs will be gone in future, how ever jobs like CMA will survive?
It’s pretty helpful how to use technology as it’s new generation time in accounting as well it’s great to learn more things related.
This blog was not just informative but also apt.
Very good read, informative.
This blog is very informative for the scope of analytics as well as finance professional in the changing environment, with new challenges for all finance professional.
This blog is very informative for the scope of analytics as well as finance professional in the changing environment, with new challenges for all finance professionals.
I can say this blog was a result of numerous research & analytics. Technology will surely transform finance field.
Very informative 👍🏼👍🏼 Useful for finance professionals. Thank you!
Very well explained and very helpful
This blog proves that digital transformation in any field is inevitable. The field of Finance, Accounting and Data Analytics are converging together.
I was actually looking for this . Thank you so much for this information!
Such a well written blog. Data analytics and technology is the key to a successful and modern world. Every country needs expertise in such fields for better commencement after these touch times.