When talking about what makes manufacturing innovation possible, it’s important to note how big of a role financial management can have, as increasing levels of automation, flows of real-time information, and unprecedented flexibility have the power to reduce time-to-market processes and contribute to smarter resource use at every turn.
Blurring traditional lines such as the ones between desktop and enterprise apps or real-time and siloed data, intelligent financial capabilities can provide the right impetus for progress and growth.
Cloud technology is driving financial performance
According to Nucleus research, cloud ERP systems deliver 43 percent faster payback than on-premise ones. As cloud capabilities continue to expand and add to the power of intelligent business processes, manufacturing CFOs are able to achieve better ROI and manage finances with increasing levels of control and higher quality forecasting.
The findings of the people at Nucleus also inform us that the Cloud delivers 3.2x the ROI of an on-premise enterprise solution, lowers initial and ongoing costs, leads to less disruptive upgrades, and paves the way for innovation.
Analytics are changing the game
A staggering 90% of analytics functionalities in enterprise systems will be embedded in the next five years, according to Nucleus. This is a promising stat for manufacturing productivity and the end user experience, as employees will spend less time going through siloed applications, juggling and synchronizing data sources in the future.
Business intelligence is set to become a self-service feature, enabling your workers to create their own queries and reports, and drill down into data whenever they need it, from virtually any device.
Low-code, self-service environments means manufacturing companies will have much faster time-to-decision processes, which could help employees ask meaningful questions on an ongoing basis, instead of having to deal with time-consuming tasks.
Data about increased productivity would immediately be aggregated into a real-time report CFOs could dissect and use to determine the next steps and action items.
Using AI to further end user productivity
AI for finance is essentially about enabling automation in finance management. With contextually based suggestions on what could be improved, finance leaders are able to have an ongoing overview into the consequences of every manufacturing process.
This gives them a cleared budgeting perspective and a chance to devise a prescriptive planning strategy for every possible outcome. CFOs will also be able to create forecast models – price change effects on revenue or how different net payments terms could impact cash flow.
The different collected data – whether from the sales transaction, logistics tracking, or customer interactions – can be recorded, aggregated and reported in the form of real time data and represented in role-based dashboards. This can help finance teams in manufacturing get much needed visibility into performance indicators across their enterprise. Aggregated data can also be used to identify patterns and trends which is useful in identifying new opportunities as well as potential risks.
It seems the days of disconnected finance are long gone. With increasing data availability and low-code environments, finance insights are now becoming clearer to non-finance users, making it easier to align cross-department efforts.
Intelligent finance is fueling manufacturing transformation
Intelligence-based efficiencies are creating valuable opportunities for finance professionals in the manufacturing industry – instead of crunching numbers, they are able to spend more time developing the strategies that will drive their companies into the future.
Improving financial performance, increasing profitability, helping manufacturers expand into unexplored markets and improving agility – these are some of the countless benefits brought about by the technological revolution of intelligent systems and apps.
If you wish to improve manufacturing efficiency, simplify resource management and accelerate time-to-market processes, you can rely on Merit Solutions’ expertise and the Microsoft Azure Business Platform to guide you on your path. Visit this page to start the journey of intelligent finance management.