Featured Content

Finance on the eve of transformation to the cloud

Now, human capital management (HCM) has taken flight to the cloud, finance is also increasingly interested in bringing their data to the cloud, says Hette Mollema, Benelux Regional Director at Workday. According to him, security is hardly an issue anymore and weighing the benefits to be able to act real-time on numbers can be heavy. Incidentally, by bringing together HR and financial data, companies can only really drive on performance and improve their business.

Gartner analyst Nigel Rayner said it during Workday Elevate in the Netherlands: Human Capital Management (HCM) has taken a huge flight to the cloud. From a system perspective, traditional systems can hardly support HR processes, as contact with the staff is difficult. Think of processes such as employee assessment, performance management, talent development, learning, recruitment and succession, “says Het Mollema.

Cloud became a hunter of transformation within HR. On the one hand, as a facilitator, because employees were far easier to reach. On the other hand, as delivery mechanism. ‘The processes became transparent. Suddenly, it became clear who involved in what processes and how they walk. When customers get started with Workday, it sometimes leads to a call for standardization, because it seems that processes are not as good as they were devised. ”

Finance was long alone for ledger accounts

Now that cloud has been embraced by HCM professionals, the next group of professionals also wants to go to the cloud. According to Rayner, in 2018, 25 percent of the financial systems in the cloud will run. According to Mollema, the fact that the corridor to the cloud goes slower than HR is logical: “On the one hand, traditional systems met. For a long time, finance turned into the establishment of the ledger accounts system and the creation of the annual figures. On the other hand, most companies around the millennium have invested in financial software. ”

The investment around the year 2000 was done to continue to work through after the Millennium Exchange. Nevertheless, the investments were also used to enrich data so that multiple reports could be made. However, after that investment, seventeen years ago, there has been little change, and from a system perspective it has become a complex landscape. Not least by acquisitions and searching alternatives in, for example, Excel, according to Mollema.

Realtime close the books

“We are on the eve of the transformation. The systems are providing the correct data, but it takes a long time. By the time data is brought together for an analytical report, it is already outdated and no longer relevant. Companies that join us have grown out of their old system or want to respond faster to data. They do not want fast closes but real-time closes . They have no longer two weeks. If the competitor is a quicker one week, you’ll already be behind. ”

The reports that managers ask for are no longer just a matter of fiscal closure fiscal year by year. It concerns business-related and related data. “If an invoice arrives, for example, of the costs we incurred during our Workday Elevate event, we would like to identify that amount later: what event did it take? What market? What target did it get? Which people in marketing have worked on it? ”

The main question that can be answered with the enriched and assigned data: was the event worthwhile? “There are marketing systems that can handle this information. Discussions can only arise if two systems of financial information run side by side. The numbers can be against each other and who is right: the marketing director or the CFO? Therefore, there is a growing need for an unambiguous truth of the figures. ‘

Marketing, HR and financial data from a source

The marketing manager will have access to his part of the financial system and the same applies to other departments, such as R & D. ‘All cost centers have access to their part of the system and are responsible for their cost and revenue. By recording data at the source there is only one version of the truth and reports can be set up quickly and efficiently. You do not need to spend two more weeks. ”

Another department where the link with financial data benefits is of course HR. “It’s crazy that financial data is not linked to employee-related costs. Certainly in the service, where seventy percent of the costs are related to employees. Take Netflix, a customer of us. This company combines financial and HR data to make connections between well-performing teams and employee characteristics to be able to send. ”

Incidentally, it is not always possible for all data to be recorded in Workday, such as Netflix’s sales specific data. “Netflix data comes from its own subscription systems, but can easily be combined. There is also more need. That’s why we took over about three quarters of a year ago Platfora to safely combine data that is not in Workday. It’s all about raising silos. ‘

High ambitions or smaller steps

Given the opportunities that arise from the combination of HR and finance data, Workday does not offer Workday in addition to a HR solution. Their vision and ambition for this market is therefore appointed by Gartner through the placement of Workday in the Leadership Quadrant of the Gartner Magic Quadrant for Cloud Core Financial Management Suites for Medium, Large and Global Enterprises. In other words, Workday has long been ready for the transition from finance to the cloud.

Customers of Workday are also on the eve of the financial transformation, says Mollema. Not everyone is as far away, but customers have the ambition to get there. ‘Any company that chooses for Workday is looking for change and improvement. Some companies have high ambitions and others take a little lesser steps. The first phase is often the normalization and standardization of processes to eliminate global differences and to get one global overview. ‘

It is also HR that has taken the lead in cloud adoption, but finance is careful to take its first steps. ‘Finance is quite conservative, but it is now being broken. The fear of cloud has almost disappeared. It makes much less of what the data is for financial professionals, if it’s safe. As long as they can send on real-time numbers and as long as data is no longer in a silo, for it is the competitive advantage for them. ”

Also this year are Dutch IT-channel and Executive-People media partner from Gartner.
You can register and use the special Executive-People code  MPSYM1  which gives a discount of € 600 euro.

Leave a Reply

Your email address will not be published. Required fields are marked *