I get asked by the finance fraternity to define Digital Finance Transformation.

There are 3 fundamental building blocks of any Digital Finance Transformation solution. They work together to create digital devices, solutions, and services.

Here are these 3 building blocks:

1. Data

Data is the lifeblood of digital. The digital device, solution or service uses and produces data in finance processes. The invoice, contract, and payment register provide data for use in the digital solution, device, or services.

2. Analytics

Digital solutions, devices, or services perform calculations and computations on the data. Analytics is the ability to perform calculations and computations on data. Financial analytics include financial models and complex formulas in spreadsheets.

3. Connectivity

Connectivity is of utmost importance in a globally dispersed world. A digital solution uses telecommunication networks to connect digital devices with each other. They exchange data and analytics with each other using network connectivity.

The internet and satellite allow the use of data and analytics across the globe to finance teams. Cloud computing, web-based ERPs, and data storage servers operate on network connectivity.

The Digital Finance Transformation solution has these elements operating together in some configuration.

The digital solution can be a digital thing, a physical thing, a process, or an operating model in the finance function.