Why Finance Transformation matters in Global Manufacturing
Business transformation in pursuit of performance improvements are nothing new. Despite large-scale investments in management practices, processes and technologies, however, results for most companies have been less than stellar. Our analysis of 500 of the world’s largest manufacturing companies shows more than 30 percent had negative average economic margins over the last five years. In effect they were destroying capital.
Moreover, our ongoing global benchmark research, involving more than 860 companies to date, shows that changing business drivers and the ever-increasing complexity of global operations are making business improvement through transformation even harder year over year.
How should companies respond? While there is rarely one recipe for the “secret sauce” that goes into a successful business improvement and transformation, there is a growing recognition that finance is an indispensable ingredient. Financial management holds the key to resolving some of the most intractable problems and capitalising on the valuable opportunities facing global manufacturers today. This process often known as “finance transformation.”
Learn more from the full report: Why Finance Transformation matters in Global Manufacturing (PDF 353KB)