Platform and Technology Capabilities
Data-Driven Business Transformation: Hear From the Experts
AI, ML, DL, and Generative AI Face Off: A Comparative Analysis
ITaaS Suite Helps a Non-Profit Health and Welfare Agency Accelerate Mental Healthcare Delivery and Achieve Savings of Over $250,000
Everything You Need to Know About Managed IT Services - A Comprehensive Guide
Home / Insights / Blog / Demystifying Transformative Financial Planning
May 4, 2023 - by Synoptek
Digital transformation has become an integral part of businesses worldwide. However, it is also financially demanding, requiring businesses to invest in new technologies, software, and personnel. Read on as we demystify financial planning for digital transformation!
Digital transformation can be an expensive undertaking. To ensure that businesses get the most out of their digital investments, they need to have a solid transformative financial plan in place. Financial planning involves creating a roadmap to outline how a business will use its financial resources to achieve its digital transformation objectives. It is an ongoing process that considers changes in the business environment and adapts to meet the evolving needs of the business.
Businesses that want to get the most out of their digital transformation efforts need to have a clear financial roadmap in place that outlines key investment areas. Here are some key considerations when creating a financial plan for digital transformation:
The first step in transformative financial planning is to identify the objectives of the transformation. What are the business goals that digital transformation is expected to achieve? Are you looking to improve operational efficiency, increase revenue, or improve customer experience?
Once the objectives have been identified, the costs associated with achieving those objectives need to be estimated. These include both direct and indirect costs.
After the costs have been estimated, the next step is to develop a plan to identify funding sources and decide how resources will be allocated. This involves deciding how much money will be assigned to each area, such as software and hardware, personnel, and training. Funding sources may include:
Financial planning is an ongoing process that requires constant monitoring and adjustment. This involves tracking progress toward achieving objectives, measuring KPIs, and adjusting as needed to stay on track.
A well-executed financial plan can help companies to achieve their transformation goals and objectives in time and within budget. Engaging with a Technology Consulting Services Provider can aid in making strategic decisions that can impact the organization’s operational and financial stability in the long term. In addition, CXOs need to ensure:
According to a survey by McKinsey, 92% of executives believe that their business model will not be viable in the next five years if they don’t undergo digital transformation. This underscores the urgency and importance of digital transformation for businesses of all sizes and sectors.
But, more than $1.5 trillion is at risk when the wrong combination of strategies for digital transformation is implemented. For transformative financial planning, you need to have the necessary budget and a clear financial roadmap in place.
Opting for Technology Consulting Services is a great way to get help in prioritizing your digital transformation investments, identifying areas where cost optimization is possible, and ensuring your transformation initiatives are financially sustainable in the long run.
© 2023 Synoptek, LLC. All Rights Reserved.