Digital transformation has impacted how CFOs plan to boost savings, efficiency, and agility in the modern business world. According to a Grant Thornton report, CFOs must alter their mindset around technology investments, “willing to experiment—and incur failures along the way—or risk falling behind.”
Technology enhancements and improvements shift quickly, with new advances offering many benefits to companies. CFOs are already at the forefront of understanding and embracing technology that provides value to their employers, leading the charge on software solutions such as ERPs and automated reporting. Now it’s time to consider how blockchain, artificial intelligence (AI), and machine learning can positively impact labor costs and provide considerable return on investment.
New Kid on the Blockchain
Blockchain emerged in 2009 as a new method of safe, secure data transfer. Although perhaps best known as the system running cryptocurrencies such as Bitcoin and Ether, blockchain also promises to aid such diverse industries as travel, communication, real estate transactions, supply chain tracking, delivery monitoring, and more.
With blockchain’s cryptography, original data is secured, and new transactions are linked to previous ones. This increases security by making it nearly impossible to change older records without changing subsequent ones. CFOs who are looking to make back-end operations more efficient should strongly consider implementing blockchain.
There’s Artificially Intelligent Life Here
In addition to the blockchain, CFOs must know the latest advances in artificial intelligence (AI), and how this emerging technology impacts companies. AI systems use data to perform tasks once reserved for humans, applying logic rules to data to make pre-programmed decisions. For example, a manufacturing company using an ERP system with AI capabilities may program it to re-order steel when raw materials fall below a certain threshold.
AI plays another important role in business to monitor specified activities and adjust budgets and financing around them. AI can provide reminders to pay specific invoices on time, notes about receivables overdue, and more.
A Deeper Dive With Machine Learning
AI is compelling enough for promoting efficiency with minimal financial impact and maximum ROI. Machine learning takes AI one step further by enabling computers to “learn” from people as they go. The more data your systems obtain, the faster they learn, combing history for future predictions and actions. Early adopters of machine learning have found ways to automate machine learning by embedding processes into operational business environments and drive business value. Machine learning is virtually limitless, with systems constantly “learning” based on the most recent incoming data.
These three technologies are moving at the speed of light, entering the workplace in surprising ways. New ERP systems, accounting software, warehouse and inventory management, and other systems are all combining one or more of these new technologies to build exciting functionality into existing systems.
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Modern CFOs certainly benefit from being aware of—if not necessarily already implementing—the newest technologies. Small to mid-sized companies may especially find the efficiency of these technologies to be beneficial to their bottom line down the road.
Whether you’re just starting to research blockchain, AI, and machine learning and how they can connect with your current systems for maximum digital transformation and efficiency, or you’ve been driving the transformation already for months, having the right partner can make all the difference. With Accounting Solutions, Inc., you know you have a proven partner that will help accelerate business growth, freeing you up to focus on success.