Long-Term Tech Investments Position Top Finance Organizations to Extract Maximum Value From AI, Extending Market Advantage
The Hackett Group's latest research reveals that Digital World Class® finance organizations are operating at 47% lower costs with 50% fewer full-time equivalent (FTE) staff compared to their peers. These organizations demonstrate superior value beyond cost savings, with 64% fewer FTEs in transactional roles, 32% fewer in financial planning and analysis, and 29% fewer in specialist finance roles.
Digital World Class® finance organizations are uniquely positioned to leverage generative artificial intelligence (Gen AI) for faster transformation and innovation. They close and consolidate financials 36% faster, complete forecasts five days sooner, and dedicate 82% more time to higher-value activities. This efficiency allows them to extract maximum value from AI and extend their market advantage.
La più recente ricerca del Hackett Group rivela che le organizzazioni finanziarie Digital World Class® operano con costi inferiori del 47% e hanno il 50% in meno di personale equivalente a tempo pieno (FTE) rispetto ai loro pari. Queste organizzazioni dimostrano un valore superiore oltre al risparmio sui costi, con il 64% in meno di FTE in ruoli transazionali, il 32% in meno nella pianificazione e analisi finanziaria, e il 29% in meno nei ruoli specializzati in finanza.
Le organizzazioni finanziarie Digital World Class® sono posizionate in modo unico per sfruttare l'intelligenza artificiale generativa (Gen AI) per una trasformazione e innovazione più rapide. Chiudono e consolidano i dati finanziari il 36% più velocemente, completano le previsioni cinque giorni prima e dedicano l'82% di tempo in più ad attività di maggiore valore. Questa efficienza consente loro di estrarre il massimo valore dall'AI e di espandere il loro vantaggio sul mercato.
La última investigación del Hackett Group revela que las organizaciones financieras Digital World Class® operan con un 47% menos de costos y tienen un 50% menos de personal equivalente a tiempo completo (FTE) en comparación con sus pares. Estas organizaciones demuestran un valor superior más allá de los ahorros en costos, con un 64% menos de FTE en roles transaccionales, un 32% menos en planificación y análisis financiero, y un 29% menos en roles de finanzas especializadas.
Las organizaciones financieras Digital World Class® están en una posición única para aprovechar la inteligencia artificial generativa (Gen AI) para una transformación e innovación más rápidas. Cierran y consolidan los datos financieros un 36% más rápido, completan pronósticos cinco días antes y dedican un 82% más de tiempo a actividades de mayor valor. Esta eficiencia les permite extraer el máximo valor de la IA y ampliar su ventaja en el mercado.
해켓 그룹의 최신 연구에 따르면 디지털 월드 클래스® 재무 조직은 동료들에 비해 47% 더 낮은 비용으로 운영되고 있으며 50% 적은 정규직 직원(FTE)을 두고 있습니다. 이러한 조직들은 비용 절감 이상의 뛰어난 가치를 보여주며, 거래 역할에서 FTE가 64% 감소, 재무 계획 및 분석에서 32% 감소, 전문 재무 역할에서 29% 감소를 이루고 있습니다.
디지털 월드 클래스® 재무 조직은 생성적 인공지능(Gen AI)를 활용하여 빠른 변혁과 혁신을 진행할 수 있는 독특한 위치에 있습니다. 그들은 재무 데이터를 36% 더 빠르게 마감하고 통합하며, 예측을 오전 5일 더 일찍 완료하고 더 높은 가치의 활동에 82% 더 많은 시간을 할애합니다. 이러한 효율성 덕분에 그들은 AI로부터 최대 가치를 추출하고 시장에서의 우위를 확장할 수 있습니다.
Les dernières recherches du Hackett Group révèlent que les organisations financières Digital World Class® fonctionnent avec 47% de coûts en moins et ont 50% de personnel équivalent temps plein (FTE) en moins par rapport à leurs pairs. Ces organisations démontrent une valeur supérieure au-delà des économies de coûts, avec 64% de FTE en moins dans des rôles transactionnels, 32% de FTE en moins dans la planification et l'analyse financière, et 29% de FTE en moins dans des rôles financiers spécialisés.
Les organisations financières Digital World Class® sont particulièrement bien placées pour tirer parti de l'intelligence artificielle générative (Gen AI) pour une transformation et une innovation plus rapides. Elles ferment et consolident leurs finances 36% plus rapidement, complètent les prévisions cinq jours plus tôt et consacrent 82% de temps en plus à des activités de plus grande valeur. Cette efficacité leur permet de tirer un maximum de valeur de l'IA et d'étendre leur avantage sur le marché.
Die neuesten Forschungen der Hackett Group zeigen, dass Digital World Class® Finanzorganisationen mit 47% geringeren Kosten und 50% weniger Vollzeitäquivalenten (FTE) im Vergleich zu ihren Mitbewerbern operieren. Diese Organisationen zeigen über die Kosteneinsparungen hinaus einen überlegenen Wert, mit 64% weniger FTEs in transaktionalen Rollen, 32% weniger in der Finanzplanung und -analyse und 29% weniger in spezialisierten Finanzrollen.
Die Digital World Class® Finanzorganisationen sind einzigartig positioniert, um generative künstliche Intelligenz (Gen AI) für eine schnellere Transformation und Innovation zu nutzen. Sie schließen und konsolidieren Finanzen 36% schneller, erstellen Vorhersagen fünf Tage früher und widmen 82% mehr Zeit hochwertigen Aktivitäten. Diese Effizienz ermöglicht es ihnen, den maximalen Wert aus KI zu ziehen und ihren Marktvorteil auszubauen.
- Digital World Class® finance organizations operate with 47% lower process costs
- 50% fewer full-time equivalent (FTE) staff compared to peers
- 64% fewer FTEs in transactional roles
- 32% fewer FTEs in financial planning and analysis roles
- 29% fewer FTEs in specialist finance roles
- Close and consolidate financials 36% faster
- Complete forecasts five days sooner
- Dedicate 82% more time to higher-value activities
- None.
Insights
The Hackett Group's research highlights the significant advantages of Digital World Class® finance organizations, demonstrating their superior efficiency and value creation. Operating with 47% lower costs and 50% fewer staff while maintaining high performance is remarkable. These organizations are leveraging technology, particularly AI, to streamline operations and focus on high-value activities.
The 64% reduction in transactional roles indicates a strong shift towards automation of routine tasks. This allows for more resources to be allocated to strategic functions like financial planning and analysis. The ability to close financials 36% faster and complete forecasts five days sooner provides a competitive edge in decision-making and market responsiveness.
For investors, this research suggests that companies adopting Digital World Class® practices in finance could see significant improvements in operational efficiency and cost reduction. This may translate to better profit margins and potentially higher stock valuations in the long term. However, it's important to consider the initial investment required for digital transformation and the potential short-term impact on earnings.
The emphasis on long-term tech investments and AI integration in finance is a game-changer. Generative AI, in particular, is poised to revolutionize financial operations by enhancing predictive capabilities and automating complex tasks. This shift towards AI-driven finance goes beyond mere cost-cutting; it's about creating a more agile and forward-looking financial function.
The 82% increase in time dedicated to value-added activities is particularly noteworthy. This suggests that AI and automation are not just replacing jobs but are enabling finance professionals to focus on strategic initiatives that drive business growth. For tech-savvy companies, this could mean a significant competitive advantage in areas like risk management, strategic planning and real-time financial insights.
Investors should watch for companies making substantial investments in AI and finance technology. While these investments may impact short-term profits, they could lead to substantial long-term gains in efficiency and market positioning. The ability to extract maximum value from AI could become a key differentiator in company valuations within the finance sector.
Digital World Class® Finance Organizations Operate With
The latest research from The Hackett Group, Inc. (NASDAQ: HCKT) reveals that Digital World Class® finance organizations are now operating at
These organizations have fewer total FTEs per billion in revenue than peer group organizations in transaction processing roles alone, with
Remarkably, finance is the only back-office business function that reduced costs as a percentage of revenue from 2023 to 2024 while investing more in technology. Consistent investment in technology is a crucial driver of finance’s efficiency. Their technology costs are
The gap between Digital World Class® and typical finance organizations continues to widen. Digital World Class® finance functions are:
-
59% more likely to have automated customer-to-cash processes, enhancing scalability and freeing up staff for higher-value activities -
Generating
95% of customer invoices electronically, improving efficiency and reducing manual errors -
Delivering
11% longer days payable outstanding and48% shorter days sales outstanding -
19% more likely to use standard data and coding definitions, reducing complexity and improving data accuracy - Providing 2X greater online access for management information report users, offering real-time visibility into operating performance
“After years of strategic technology investments, Digital World Class® finance teams have mastered optimization. This frees them up to focus more on predicting, preparing, and adapting for the future, putting them in the best possible position to fully leverage AI without having to play catch up,” said Vince Griffin, principal and Executive Advisory Finance and Global Business Services practice leader.
Gen AI is poised to further expand the Digital World Class® advantage, boosting staff productivity by
The Hackett Group defines Digital World Class® finance organizations as those that achieve top-decile performance in business value and operational excellence. The 2024 research includes benchmarks, performance studies and advisory insights from global companies engaged in procurement transformation A public version of the report – “Insights From Top Performers: How to Level Up With Gen AI” – is available free, with registration, at: https://go.poweredbyhackett.com/dwcfin2406nr.
About The Hackett Group
The Hackett Group, Inc. (NASDAQ: HCKT) is an IP-based, Gen AI strategic consulting and executive advisory firm that enables Digital World Class® performance. Using AI XPLR™ – our AI assessment platform – our experienced professionals guide organizations to harness the power of Gen AI to digitally transform their operations and achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.
Our expertise is grounded in unparalleled best practices insights from benchmarking the world’s leading businesses – including
For more information on The Hackett Group, visit: https://www.thehackettgroup.com/ or email media@thehackettgroup.com.
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Source: The Hackett Group
FAQ
What cost savings do Digital World Class® finance organizations achieve according to The Hackett Group's research?
How much faster do Digital World Class® finance organizations close and consolidate financials?
What is the reduction in full-time equivalent (FTE) staff for Digital World Class® finance organizations?
How does The Hackett Group (HCKT) research show Digital World Class® finance organizations leverage AI?
