Digitalization and Digital Transformation in Finance Operations

Abstract

The aim of the Master Thesis is to present the challenges companies face when going through a Digital Transformation, and how companies can utilize Digitalization tools to boost their transformation efforts in the Finance Operations. All companies that were not born in the Digitalization hype are going through a Digital Transformation in order to leverage new business models. Customer expectations are shifting, and companies have to change from the roots to fully benefit of the Digitalization advantages. But Digital Transformation is not about the Digitalization tools and globally leaders agree that a successful transformation looks at the existing operations how can be improved and then what are the tools that can facilitate better performance. And, to succeed in the shift of operations, addressing the company culture is paramount. However, many large companies are struggling with the transformation and very few can see exactly a Return on Investment for the big budgets the transformation needs. The present Thesis will present what are those areas where companies struggle. This Thesis is looking at the Finance Operations a company has around their Receivables and Payables, and proposes a methodology how to improve the processes, starting with using Digitalization tools to analyze existing performance, combined with hands on activities and create a strategy that an entire organization can follow. The Thesis is showing how Digitalization tools act as an enabler for the Digital Transformation of the existing operations, and not the goal. The research questions are looking to clarify what the terms Digitalization and Digital Transformation actually represent for a function that until recently was considered a back office activity, and how the transformation can improve their performance. Based on participating in a transformation project in a traditional Oil and Gas company, the author is bringing feedback and hands on understanding about the effects and challenges of Digitalization. It was observed that, besides a good training and corporate communication done at company level, participants in the transformation need upfront involvement, hands on training and clear strategy to which they participated and brought contributions. The most important feedback and opinions come from the people that are working on processes day-by-day. Also, key for the transformation is to take the time and deep dive in the operations so that accurate and personalized solutions are found and addressed. The transformation has to be specific to the organization and with a clear scope and purpose.