There’s no shortage of predictions and prognosticators when it comes to the future of finance, FP&A and the role of Capex in driving corporate growth.
But there is some consensus, which can be summarized this way: Companies need to move faster. Senior leaders must be more strategic. Digital transformation is here to stay. And, as the saying Arthur C. Clark made famous goes, “The future isn’t what it used to be.”
Here, then, is a roundup of such perspectives, and commentary of our own, to inspire your own views and choices.
Choosing, Consolidating, and Optimizing Technology Investments
Read more: Global Finance Magazine https://www.gfmag.com/magazine/june-2019/cfo-future
Our take: We agree. Choosing purpose-built solutions that are up to the task of meeting specific needs within a well-conceived framework is key. Which is why Finario is laser-focused on capital expenditures (Capex). https://www.finario.com
Reorganizing for Agility
Read more: McKinsey & Company https://www.mckinsey.com/business-functions/operations/our-insights/new-technology-new-rules-reimagining-the-modern-finance-workforce
Our take: Managing capital investments most certainly applies to this point of view. Capex is core to strategic growth and inve till reliant on manual tools on processes – are unable to react more opportunistically. https://www.finario.com/capex-resource-center/finario-capex-executive-briefings/
Real-Time Reporting and Rolling Forecasts
Read more: Deloitte / Forbes https://www.forbes.com/sites/deloitte/2018/12/05/what-will-the-finance-industry-look-like-in-2025-eight-predictions-for-the-digital-age/#d17fce067c52
Our take: Given the pace of business today, access to data, and competitive pressures, the move to rolling forecasts is inevitable. To make this possible, a Unified Capital Planning framework is essential. https://www.finario.com/capex-software/
Taking a VC Approach to Innovation
Read more: KPMG https://advisory.kpmg.us/content/dam/advisory/en/pdfs/2019/future-finance-report.pdf
Our take: This lies at the core of the strategic allocation of capital. It’s why Finario’s more advanced editions include portfolio views, with ROI analysis, and advanced planning features to make the smart reallocation of capital between budget planning cycles something you can do with confidence. https://www.finario.com/capex-software/
Consistency Counts
Read more: BCG https://www.bcg.com/en-us/publications/2017/corporate-development-finance-large-capex-three-ways-beat-odds-capex-investments.aspx
Our take: Barriers to the consistent approach described here are disparate approval requirements, lack of proper governance, and missed opportunities to conduct post-completion reviews of projects for valuable learning. https://www.finario.com
Buybacks vs. Capital Investment
Read more: PineBridge Investments https://www.pinebridge.com/insights/investing/2017/09/a-new-capex-implications-beyond-the-bottom-line
Our take: favoring buybacks to capital investments can be shortsighted and detrimental to innovation, competitiveness, and growth potential. Smart capital investment, incorporating a Unified Capital Planning framework, delivers true shareholder value. https://www.finario.com/capex-software/
Taking a Portfolio Approach to Capex
Read more: Strategy+ Business https://www.strategy-business.com/article/Theres-More-to-Earnings-than-Earnings-per-Share?gko=d1dc7
Our take: It’s difficult to imagine an allocation scenario like this being successful with manual processes and tools in place. With a system delivering a single source of truth across the capital planning lifecycle, however, anything is possible. https://www.finario.com/capex-software/
The Shift to Cloud-Based Solutions
Read more: CFO https://www.cfo.com/budgeting/2017/10/best-path-forward/
Our take: Choosing a cloud-based solution such as Finario not only future-proofs your technology investment, it also vastly simplifies the implementation process and (as a result) compliance/utilization. https://www.finario.com/technology/capex-cloud/
Data-Driven Decision Making
Our take: Providing the approval assumptions, forecasting histories, and essential reporting for post-completion review are all critical elements of an optimized capital allocation process. It’s why Finario is purpose-built for Capex, and provides all of these. https://www.finario.com/capital-planning-solutions/financial-planning-analysis/