What are today's expectations on the finance organizations of Life Sciences companies?
What must finance organizations of Life Sciences businesses do to manage finance function effectiveness, corporate governance, information management challenges and more? What do finance organizations need to do to optimize operational performance to provide better data?
In a word, transform.
Transformative finance organizations, whether in pharmaceutical giants or mid-size biopharma organizations, are increasingly utilizing analytics to drive every day operations for the business and enable faster, better decisions to propel sales, reduce costs or acquire business lines.
Today's Life Sciences organizations are pushing to optimize the performance of their finance teams, with structural, tactical and technological strategies leading a finance transformation.
- The goals for this transformative push include the need to better leverage technology to enhance accounting, reporting and FP&A capabilities without diminishing strong financial controls, as well as optimizing finance teams, implementing a strong governance structure, investing in data security and gaining efficiency with access to better data.
- Pressures on biopharma companies to embrace digital transformation in the face of increasing regulations and stakeholder expectations are on the rise. Finance organizations, in particular, shoulder a considerable role in how rapid the digital transformation will be for Life Sciences firms striving to increase revenue, market share and industry growth.
Over the next few years, Life Sciences organizations will enter a truly transformational era of technology driven finance. As we move rapidly into the digital age, finance technology is evolving to support the essential characteristics of Life Sciences organizations.
Key drivers of the digital transformation impacting finance teams include:
- Reducing administrative/accounting tasks related to monthly/quarterly close to free up finance resources to provide business insights that improve operations and customer satisfaction.
- Data security to thwart criminal efforts to harm brand, reputation.
- Streamlined and automated processes, strong information governance and effective policies that reduce finance costs and use assets to enable business value added activities.
What does optimizing a Finance team mean?
- Does it mean finance teams need to eliminate using Excel spreadsheets for analysis and the associated risk potential for spreadsheet errors?
- Does it mean analytics technologies must be researched and implemented?
- Does it mean change management must be incorporated to present a seamless transition to more optimized day-to-day practices?
- Is transformation all about enhancing reporting?
- Is the goal of transformation to shorten close cycles or deploy cost cutting measures to enable acquisition of new lines of business?
The answer to all of the above is YES.
To meet rising demands for transformation, Life Sciences organizations are striving to align financial strategy with enterprise-wide business requirements, allowing more effective management of assets, extraction of pertinent analytics from financial and operational systems and improved operational efficiency.