CFO Trend Radar 2024/2025

The Finance & Controlling sector was dominated by digitalization in 2024. Artificial intelligence (AI) for the automation of processes was THE TOPIC par excellence, with a general market size change of almost 35% according to Statista. Interest in AI support was particularly high for chatbots and forecasting models.

However, the focus was often one level deeper. This is because before AI can be used to improve processes, the four topics of data quality, data supply, planning and reporting must first be addressed. Due to the economic headwinds, comprehensible financial data and fast, adaptable forecasting were at the top of the agenda in controlling in order to be able to navigate the company financially through the turbulence.  

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Integrated planning approaches (such as xP&A) to break up planning silos and isolated solutions as well as software-supported processes therefore became increasingly important. To this end, assessments were often carried out to determine the maturity level of the current reporting and planning processes. The aim was to improve processes through "demand-driven finance" with the use of driver models and close integration of the finance department with supply chain management.  

However, the year also brought other challenges, such as new legal requirements for sustainability reporting.

The top three topics for 2024:

• ERP transformations vs. financial planning and reporting: Conversion processes, such as to S/4HANA with the ACDOCA financial table, have received a lot of time and attention. But what about other process improvements? How do you balance projects in such a way that you don't miss the boat on digitalization and can extract the important added value from financial data with lean reporting or planning processes?
• Wait and see with AI vs. getting started: Everyone is talking about AI - but does it really bring me added value in controlling? What are the consequences if I don't jump on board straight away? As the topic is so new, there were many questions and many opinions. Nevertheless, most of our customers agree that the topic of AI should not be put on the back burner.
• Compliance with CSRD directives vs. a generally sustainable focus: Many companies have had to ask themselves for the first time how they can comply with the new EU regulations and whether they can - or want to - become more sustainable. The key question: How can the existing system landscape provide support?

In the SAP environment in particular, many companies continued to be preoccupied with the switch to S/4HANA. Progress in the transformation process was very important - but came at the expense of other digitalization projects. The good news is that many long-standing and costly ERP transformations are coming to an end, meaning that resources will soon be freed up for other topics - such as fully integrated financial planning with or without AI.

Start new digitization projects

The use of artificial intelligence will continue to be one of the key trends in controlling next year. However, before jumping into AI projects with full focus, it is important to question where the really big pain points are in finance and whether the focus should not first be on lean reporting and planning processes.

The top 3 topics for 2025:

• Lean processes: Many companies still work in Excel and spend up to 80% of their time on data preparation and only 20% on creating added value. While dealing with AI, basic automated reporting and planning processes should be at least equally in focus. 
• Use of the newly available ERP data: The final switch to SAP S/4HANA or other ERP systems will free up resources for new topics that help to create added value from financial data. Suitable reporting and planning applications are needed to exploit the potential. 
• Artificial intelligence as a new supporter: How do I integrate AI into financial processes to make my processes more efficient? How can I get the best out of my available data? 

The new year therefore appears to be a consistent continuation of the topics started previously. This certainly also applies to sustainability and integrated xP&A planning. They will also accompany and further develop us in 2025.

Conclusion

Lean, integrated financial planning with dynamic forecasting capabilities is becoming increasingly important in today's fast-paced world. In our fast-paced world, staying on the ball with digitalization is becoming increasingly important to remain fit for the future. In the words of Canadian Prime Minister Justin Trudeau: "The pace of change has never been this fast, but it will never be this slow again." At the same time, however, companies must strive for high data quality and good data supply in order to benefit from the valuable data available.

We therefore recommend setting the guard rails of digitalization in the right direction and questioning historically grown silo processes and replacing them with modern, lean processes.  

Once you have created the right conditions, you can look forward to many exciting new developments and tools that will make your working life easier in the future. Then there will be time and space to concentrate on the essentials. We will be happy to support you from the initial planning stage right through to the go-live of your new solution - just get in touch!