New finance trends sparked by digital disruption several years ago have only amplified with COVID-19. In 2018, we presented eight predictions on how the finance function will change by 2025. Our new Crunch time report revisits those predictions and where CFO trends and challenges stand today.
Finance faces new realities
COVID-19 sped up business innovation and stress-tested the concept of 100% remote work. Industries are converging, with global M&A activity in the first five months of 2021 reaching a record $2.4 trillion, and companies have raised more capital in the past year than at any time in recent memory. At the close of Q1 2021, nonfinancials in the S&P 500 held more than $2 trillion in cash reserves.
In 2018, as digital disruption was prompting its own new realities, we predicted eight finance trends in our Crunch time report, Finance 2025. Now that we’re halfway there (and everything’s changed), the time feels right to revisit those predictions and see where these trends stand today.
Tomorrow’s winning organizations
In taking a fresh look at our 2018 publication, one insight stood out: Doing just one or two things exceptionally well probably won’t cut it. Nor will working in isolation. The future of Finance is all about managing across functions, building the right combination of capabilities, and establishing a strong data foundation. That’s what will distinguish tomorrow’s winning organizations.
Excelling in multiple areas can sound like a tall order, but it may be easier than it appears. Gains in any one area can create a multiplier effect, facilitating progress in others. The key is knowing where to place your bets (based on evolving business needs and existing finance capabilities), then managing change holistically. With steady progress, you can get where you need to be.
Deloitte can help
Our Finance Labs explore the “art of the possible” and define your Finance Transformation strategy, bringing to life potential use cases, road map priorities, and future-state benefits. Contact us to learn more.