Why finance transformation matters in global manufacturing |
The investments in business transformation have been vast. For a decade and more, manufacturers have implemented better management practices, processes and technologies. Yet, according to a new study by Deloitte Research based on in-depth research and benchmarking of the world's largest manufacturing companies, the results, for most companies, have been less than stellar. Many struggle to create value for shareholders and other investors. Furthermore, changing business drivers and the ever-increasing complexity of global operations are making business improvement and transformation even harder year over year.
How should companies respond? While there is rarely one recipe for successful business improvement or transformation, there is a growing recognition that finance is an indispensable, and often missing, ingredient. Finance transformation focuses on improving the performance, stewardship and control of the company and enabling chief financial officers (CFOs) and their organizations to have a greater impact on strategy formulation and execution across the enterprise.
This study suggests that financial management holds the key to resolving some of the most intractable problems facing
manufacturers today, while capitalizing on its most valuable opportunities, including:
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Meeting investor expectations for profitable growth
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Reaping the rewards of globalization
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Profiting from innovation
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Transforming through services
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Coping with structural costs
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Making mergers and acquisitions work
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Realizing returns on risk
Without effective finance support in driving performance in those areas, companies will face an uphill and often losing battle in transforming their business. Much as the caterpillar morphs into a butterfly, financial management is transforming from an uninspiring albeit necessary function of doing business to one of the most promising levers of enterprise transformation. Learn more from the full report, available in PDF format below.
Why finance transformation matters in global manufacturing
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