| | October 20218IN MY OPINIONFinance Technology ­ Now a Global Impact?By Manav Mehra, Director Finance, Ericsson IndiaThe world around is changing rapidly. Businesses no longer can be conducted in the same manner they have been in the past. Some of the factors which are influencing businesses today are 1. Globalized Companies ­ Nowadays businesses are no longer competing with only companies in their country. The global enterprise has become a reality and businesses can no longer operate in isolation 2. Global Geopolitical Environment ­ Global events can no longer be ignored. Unlike the past when business only concerned themselves on local decisions, today no global event can be ignored. A recession in America is a significant event in India directly affecting businesses. Price rise of a commodity in China would affect businesses in India 3. Impact of Technology ­ Technology is changing the way businesses deliver products and services to the customer. Technology is a great leveler, directly affecting companies which had in the past relied on significant barriers to entry.4. Availability of Data ­ As the reliance on technology increases, the quantum of data available to businesses has increased manifold. Companies can use the data to provide personalized services and solutions directly to customers creating a new form of loyalty which did not exist before5. Impact of Regulation ­ As the way of doing business changes, there is a need for the laws and regulation to evolve to ensure that the rights of companies and individuals are affected. Data privacy and Intellectual property rights laws are critical in today's world.As businesses evolve, the finance function has to evolve along with the businesses. Finance has always been critical to the functioning of businesses. However, in the past a large portion of finance was focused on analysis and reporting. The analysis was mostly done on data generated from events which had already been completed. However, that way of working cannot serve companies operating in the current environment. The CFO needs to become a trusted business advisor. The CFO is unique in the sense that he is one of the few people who would be able to quantify the impact of ever-changing environments to the company's top line and the bottom line helping the company make the unique decision. Thus, it is imperative that the CFO moves from analyzing the decision post facto to becoming an integral part of the decision-making process. To achieve that end it is necessary that the finance function itself evolve.Finance Organization of the FutureToday most finance organizations are organized in line with the business units. Each division has people who perform functions such Manav is prolifically skilled in vendor management, finance management, receivable accounting, business analysis and financial analysis. He gives some precious insights on Manav Mehra, Director
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