Finance Challenges

State University of New York

Empire State College

Research Paper (Draft)

What challenges has finance and accounting departments within large corporations faced and overcame with the help of IS in today’s system?        

Demetrius Taylor

Management Information Systems

Course number SMT-273754

Professor Andres Fortino

Module 5

Executive Summary

What is a challenge? Most of us would define it as being something that needs a lot of skill, energy, and determination to deal with or achieve, especially something you have never done before and will enjoy doing. Well at least most of us may feel that way, the corporate world on the other hand would like as little challenges as possible. This is because it determines the success or demise of a corporation.

Introduction

 Some of the typical challenges faced by today’s corporate accounting organizations include erratic markets, disruptive technologies and the people who operate and interprets the outputs. All of which have forced the finance function to redefine its role in the organization. Long gone are the days of simply collecting, paying and reporting. For years, organizations have been struggling with their processes and models in an effort to deliver faster, more accurate and more insightful analysis and reporting while at the same time appropriately managing risk and reducing cost. Luckily, information systems have helped minimize and reduce many issues faced in a constant evolving system. In this essay, I will focus on the issues listed above and go into detail on how information systems have helped make a difference within corporations.

Erratic Markets

The past decade has not been easy for several organizations. Sudden market swings will disrupt the normal business routine and processes, but disruption can create opportunity both inside and outside of the organization. Finance transformation much like any other change agenda will also be disruptive. The difference is that transformation can be managed and contained with the help of the proper governance models, modular plans and vigilant monitoring. With transformation, change and disruption are not a reaction to uncontrollable external forces, but rather a proactive choice on the part of the organization to embark on a journey that will deliver measurable and recognizable benefits along the way.  At the same time, some disruptions such as leadership changes or sudden market reversals can also be a catalyst for change creating an environment under which transformation becomes not just a strategy, but a necessity. Indeed, in situations where external environments have changed, the disruption caused by transformation has often led to innovations of necessity in processes and services that in turn have resulted in unexpectedly efficient and effective finance functions. Rather than a sprint towards transformation, organizations may sometimes be better served by instigating a methodical and continuous change process that manages disruptions within a controlled environment. Either taking either incremental steps or giant leaps towards achieving their vision of transformation. Information systems will help with this transformation whether it’s changing your current team or retraining your existing staff, wholesale new system implementation or replacement, and even a complete overhaul process to achieve leading practices and exceed expectations.