SINGAPORE (Oct 10): As the fastest-growing and most dynamic region for business anywhere in the world, many Asia Pacific companies are now setting the pace globally in technology-led business transformation.
But while a recent report has revealed that an overwhelming majority, or some 94%, of finance leaders in large companies in Singapore are driving digital transformation initiatives, one in five of these leaders say their teams are unprepared to do so.
This is according to the “Finance Disrupted: The Impact of New Technologies on the Future of Finance” report released on Thursday, which polled 337 chief financial officers (CFOs) and financial leaders from large enterprises in Australia, New Zealand, Hong Kong and Singapore.
On the Singapore front, 73% of respondents say these digital transformation initiatives have generated positive results, 21% have seen no change, and 6% say their initiatives have failed.
“It is concerning that one in five finance teams leading digital transformation initiatives at some of the world’s largest companies feel unprepared,” says Lee Thong Tan, regional financials lead for ASEAN and North Asia at Workday.
“As a result, it is unsurprising that we see mixed outcomes emerging. Failed initiatives can see companies lose out on opportunities to gain new customers and build market share,” adds Lee.
Nevertheless, the report notes that there have been some positive impacts of digital transformation, with 82.3% of respondents noting an improvement in customer satisfaction, 79% citing the enhancement of availability of data and insights, and 72.6% identifying a spike in market competitiveness.
This, according to the report, reinforces the belief that companies use these cutting-edge, digital tools to improve user experiences and increase speed and agility in insights.
But Tan emphasises the emerging talent gap that the local finance sector is experiencing, especially as 87.1% of finance leaders believe that emerging technologies will increase the headcount of finance teams for the next 3-5 years by at least 20%.
Soft skills appear to be the most sought after, with analytical skills, risk management and leadership cited as the top skills for finance professionals to have in the future.
Singapore was also the only country surveyed where a slight majority (51%) believe that these technologies will affect the role of the CFO and the finance function.
“We are seeing a realisation that fears of technology and automation displacing people’s jobs in the future have been unwarranted. It is exciting to see finance leaders in Singapore embracing new technologies and recognising the growth opportunities these can offer for both their teams and businesses,” says Tan.
