Throughout this article, we will be addressing and developing a deeper understanding of digital financial transformation. We will be looking at key examples and benefits for organizations as well as important considerations for organizations to take forward. Finally, we will provide a detailed view of why Vine Advisors is the perfect strategic partner to help make these changes.
Introduction
Digital Transformation is a globally recognized term that spreads itself over pretty much every industry. For certain individuals, it can be seen as a buzzword that is often discussed but rarely given the chance to be fully researched, planned, and executed. In the financial sector, Digital Transformation is the reimagining of a business’s financial data and information, digitally.
This business practice is much more than just moving files and numbers online or speeding up invoicing by going paperless. The idea is not to just streamline or replicate everyday organizational actions digitally but to re-tool the process entirely into something with a much more efficient workflow.
In recent years, financial processes have been increasingly completed in decentralized, digitally connected spaces. This has given rise to the transformation of working practices and meant that companies have been pressured to reassess their place in the digital world.
Benefits of Digital Transformation
Instead of approaching Digital Transformation from a silo point of view, it’s vital that organizations should ensure that they are taking a fully holistic approach to the situation. As the implementation of Digital Transformation can be seen to affect more than first meets the eye.
Managing security risks.
Since lockdown, we have all become far more dependent on digital communications and work practices. This has meant paper processes have started to become inefficient, and notably more vulnerable to fraud.
This has been particularly common in commodity trading transactions, where there have been instances of fraudulent activity in recent years. Taking commodity trading online helps to make everything more secure. By working with (or developing) an efficient digital platform, companies can better manage risk, ensure accountability, and give their customers confidence and comfort when trading.
Turning data into insight.
The process of data management has never been more fruitful for organizations than it is now. By effectively managing the collection of data, it allows a business to totally reimagine how they translate raw data into bite-sized insights that can be used strategically to better understand their partners.
Furthermore, by using AI to scrape data from internal systems like CRMs, spreadsheets, and other applications. It is then analyzed and presented in a simple, goal-focused format that helps to discover opportunities, avoid threats, and increase profits.
Improving the customer journey.
A question that many companies may ask is how the customer experience can be improved with digital transformation. Will it become more efficient? Does it give customers a more appealing user experience? In these times, it’s vital to think about a customer’s needs, wants, pains, and goals. Knowing all these aspects, it ensures we can meet their expectations.
On the other hand, changes can be less dramatic such as investing in customer service software or implementing a commodity trading system, also known as a CTRM. At Vine Advisors, we are in the process of executing a project for a US flour manufacturing business where we are implementing the Ag-Tech product that is an element of the ION family of risk management tools.
Key considerations
The strategy
Prior to undertaking digital transformation, it’s vital to agree with the organization’s stakeholders on what the broader strategy is aiming to achieve. We must make sure we ask the correct questions such as finding out our audience’s preferences or what platforms are going to be used? Where do we aim to be post-transformation? All these questions help inform the wider strategy and hopefully allow a seamless and successful transformation to a digital world.
The technology
Technology is the backbone of the transformation process. Certain platforms naturally suit certain companies due to the infrastructure that they have in place. Some platforms may well be the cheaper option however will require more technical work. In circumstances like this, it’s very important to ensure that you have experts in the organization who can work with a trusted 3rd party to select the correct product to implement.
Working with a partner like Vine Advisors, you will get an experienced, agnostic perspective that works for you, not us. We have proven experience finding cost-effective, bespoke therefore saving clients time and money.
The People
Put simply, digital transformation is all about change, and it is key to understand your company’s appetite for change. Implementing new systems, processes and technologies requires guidance, both in terms of systems training and educating everybody on why something they have grown comfortable with is changing. Making sure the wider team is all on the same page is the first step as everyone having the same direction provides a much more fluid transitioning process.
Summary
In summary, when companies undergo major organizational change, may that be internally, structurally, logistically or any other for that matter, having a deep-rooted strategy that is the anchor of which all the following actions stick is the most important thing. Of course, it’s understandable that obstacles may come up along the way, however a directional strategy it provides everyone with the same forward-thinking mindset that is highly important throughout the process.
Ensuring that all the potential talking points can be fully addressed is something business leaders must expect to have in their armory. What business areas need reviewing? How can we further train staff? How do we ensure the customer journey is kept efficient? Knowing these it allows organizations to carry on moving forward with the transformation without the need to halt.
Vine Advisors help to answer these questions and make informed, strategic decisions – acting as a trusted and impartial partners. We partner with businesses of all sizes and sectors to assist in the implementation of digital transformations. Whether it’s creating the strategy up front, developing customer intelligence platforms, or implementing a strong and secure risk management plan alongside the change, we’ve got you covered.
