Perspectives Target tried-and-tested transformation

Your finance function might need to replace technology that’s coming up for retirement, prepare for regulatory changes, get ready for a divestment or set up for a merger. Whatever your immediate requirements, you can target proven long-term outcomes with your transformation.

Uncompromisingly fit for purpose

Instea d of starting with businessas-usual, successful transformations start with a tried-and-tested target operating model.

A model which defines the optimum way businesses can work in the future and sets out the potential consequences of decisions made along the way. This model must give a clear picture of what leading practice looks like across:

Process: How everything in your finance function is framed. The methods and procedures you use.

People: Who does what. Reporting lines, required skill sets, roles and responsibilities.

Service delivery model: What gets done and where. The capabilities you need to deliver and how you deliver them.

Technology: How you will enable and automate process. The way your environments, applications and integrations will work.

Performance insights and data: What will be reported and how. The information requirements, KPI framework, structure and master data governance that will help you drive business insights and optimize decision making.

Governance: How everything will be overseen. Your internal controls, your policies and how duties are segregated.

Changing the game for finance

Uncompromising standards across all of these layers is the key to successful transformation. It’s how KPMG “Powered Finance” enabled by Microsoft Dynamics 365 delivers reliable efficiencies.

By taking the direct route to KPMG’S target operating model and the “Powered Enterprise” approach to transformation in the cloud, businesses have seen:

45 percent cut in general accounting costs

15 percent improvement in working capital

20 percent saving in budgeting and forecasting expenses

50 percent reduction in manual reconciliations ( https:// home . k pmg / x x / en / home / in - sights/2020/08/powered-enterprisefinance.html)

The excerpt was taken from “KPMG Thought Leadership, Consumers and the New Reality.”

© 2020 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG network of independent member-firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the Philippines.

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