By fully embracing digital transformation typical finance
organizations can reduce costs by more than 40%, rapidly
accelerating their progress towards previously unattainable
world-class efficiency levels, according to new world-class finance
research from The Hackett Group, Inc. (NASDAQ: HCKT).
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20190919005062/en/
Finance Smart Automation Efficiency
Opportunity - By fully embracing digital transformation, typical
finance organizations can reduce costs by more than 40% (Photo:
Business Wire)
The research also unveiled The Hackett Group’s new “Digital
World Class” analysis, an estimate of the additional benefits that
world-class finance organizations can achieve through the
combination of operating model changes, full technology landscape
optimization, and the successful adoption of digital technologies.
Through digital transformation, world-class finance organizations
can improve efficiency by nearly 20%, making them 60% more
efficient than typical finance, the research found. This
‘breakthrough’ can free up staff and budget resources enabling
world-class finance organizations to further digital transformation
initiatives, engage in more value-added activity, or fuel company
growth.
The Hackett Group’s research also emphasized that in part due to
changes driven by digital transformation, next-generation finance
organizations are moving beyond the inward-focused metrics of
efficiency and effectiveness to also directly measure the
experience of key stakeholders. As a result, The Hackett Group has
added “experience” as a separate area of analysis, measurement, and
transformation focus.
Both typical and world-class finance organizations can
accelerate their digital transformation programs with smart
automation, including robotic process automation, cognitive
automation, intelligent data capture, and other leading-edge
technologies. These systems can often be implemented comparatively
quickly and easily, and can enable finance organizations to see
significant interim improvements in efficiency and effectiveness,
the research found.
The research includes a comprehensive look at the changes
required to finance’s service delivery model to fully realize the
benefits of digital transformation. The Hackett Group’s finance
service delivery model for the digital era incorporates six
interconnected capabilities: technology, service design, analytics
and information management, organization and governance, service
partnering, and human capital.
A public version of the research, “World-Class Finance:
Redefining Performance in a Digital Era,” which contains nearly 90
metrics detailing the performance of typical and world-class
finance organizations, is available on a complimentary basis, with
registration, at this link:
http://go.poweredbyhackett.com/wcfin1905sm.
According to The Hackett Group Senior Research Director Nilly
Essaides, “World-class finance organizations have maintained a
steady 40-45% efficiency lead over peers for the past decade.
Digital transformation has the potential to propel peers to today’s
world class levels, while at the same time redefining what ‘world
class’ means for finance leaders.”
“This transition won’t be easy or happen overnight,” said
Essaides. “To optimize the effects of digital transformation,
finance needs to modernize or eliminate legacy systems and embrace
a whole new IT delivery model, including the cloud. Expanding the
reach of digital solutions is essential if finance organizations
want to be able to more effectively compete in today’s
fast-changing and increasingly unpredictable business environment,
with its nonstop change and intensified competition.”
According to The Hackett Group Global Finance and GBS Advisory
Practice Leader Jim O’Connor, “Overhauling finance’s entire IT
architecture will take time and money. But our research shows that
by deploying smart automation tools -- which are faster to
implement and produce a quicker ROI -- finance can accelerate its
transformation pace. Smart automation can significantly reduce
manual work and free up staff time to focus on value-creating
activities such as providing insight to support critical management
decisions.”
“This is more of a tactical approach,” said O’Connor. “But in
many cases these systems can be implemented without wholesale
overhaul of the IT infrastructure, and companies can see real
benefit fairly quickly, as they continue the longer-term journey to
full digital transformation.”
Digital transformation is not solely about technology, The
Hackett Group’s research found. Digital world-class finance
organizations are also more effective and can provide their
stakeholders with a better experience, despite their optimized cost
model. For example, the most highly enabled finance functions
experience 60% fewer billing errors, close the books much faster
and can spend more time analyzing data than collecting it. One key
here is a focus on standardization of end-to-end processes.
New technologies are also permitting world-class companies to
gain greater visibility into customers’ needs. Finance
organizations that are digital leaders are 2.7x more likely to be
seen by stakeholders as having a strategic vision, 2.1x more likely
to be perceived as a valued business partner, and 44% more likely
to be seen as agile in meeting business challenges, The Hackett
Group’s research found.
According to The Hackett Group Finance Transformation Principal
Jeff Nourie, “It’s also important to note that while technology may
be a major catalyst, it is only one of the enablers of world-class
performance. As our world-class service delivery model details,
it’s critical for finance organizations to focus on other
improvements simultaneously. For example, human capital is key.
Finance organizations need to understand how their skills needs are
changing, and appropriately align their talent management strategy
and skills development plans to match the pace of change and
innovation. Organization and governance are also critical, with a
focus on standardization and migration of services into global
business services organizations – and to offer specialized and
differentiated services migrate activities into specialized centers
of excellence to more effectively perform knowledge-based
activities such as decision support.”
World-class finance organizations are those that achieve top
quartile performance in both efficiency and effectiveness across an
array of weighted metrics in The Hackett Group’s comprehensive
finance benchmark. Digital world class is The Hackett Group’s
estimate of the additional benefit that world-class finance
organizations can derive from full technology enablement of
execution of finance work and optimization of the finance
technology landscape. The Hackett Group’s world-class finance
research is based on an analysis of results from recent benchmarks,
performance studies, and advisory and transformation engagements at
hundreds of global companies.
About The Hackett Group
The Hackett Group (NASDAQ: HCKT) is an intellectual
property-based strategic consultancy and leading benchmarking and
best practices firm to global companies, with offerings that
include smart automation and enterprise cloud application
implementation. Services include business transformation,
enterprise analytics, global business services, and working capital
management. The Hackett Group also provides dedicated expertise in
business strategy, operations, finance, human capital management,
strategic sourcing, procurement and information technology,
including its award-winning Oracle and SAP practices.
The Hackett Group has completed more than 16,500 benchmarking
studies with major corporations and government agencies, including
93% of the Dow Jones Industrials, 89% of the Fortune 100, 83% of
the DAX 30 and 57% of the FTSE 100. These studies drive its Best
Practice Intelligence Center™ which includes the firm's
benchmarking metrics, best practices repository and best practice
configuration guides and process flows, which enable The Hackett
Group’s clients and partners to achieve world-class
performance.
More information on The Hackett Group is available at:
www.thehackettgroup.com, info@thehackettgroup.com, or by calling
(770) 225-3600.
Cautionary Statement Regarding “Forward Looking”
Statements
This release contains “forward looking” statements within the
meaning of Section 27A of the Securities Act of 1933 as amended and
Section 21E of the Securities Exchange Act of 1934, as amended.
Statements including without limitation, words such as “expects”,
“anticipates”, “intends”, “plans”, “believes”, seeks”, “estimates”
or other similar phrases or variations of such words or similar
expressions indicating, present or future anticipated or expected
occurrences or outcomes are intended to identify such forward
looking statements. Forward looking statements are not statements
of historical fact and involve known and unknown risks,
uncertainties and other factors that may cause the Company’s actual
results, performance or achievements to be materially different
from the results, performance or achievements expressed or implied
by the forward looking statements. Factors that may impact such
forward looking statements include without limitation, the ability
of Hackett to effectively market its digital transformation and
other consulting services, competition from other consulting and
technology companies who may have or develop in the future, similar
offerings, the commercial viability of Hackett and its services as
well as other risk detailed in Hackett’s reports filed with the
United States Securities and Exchange Commission. Hackett does not
undertake any duty to update this release or any forward looking
statements contained herein.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190919005062/en/
Gary Baker, Global Communications Director - (917) 796-2391 or
gbaker@thehackettgroup.com
Hackett (NASDAQ:HCKT)
Historical Stock Chart
From Jul 2024 to Aug 2024
Hackett (NASDAQ:HCKT)
Historical Stock Chart
From Aug 2023 to Aug 2024