LEGACY VS MODERN FINANCE PLATFORMS: FINANCE LEADERS ADOPT ADVANCED ANALYTICS FOR STRATEGIC FINANCIAL INSIGHTS

The use of analytics has gained tremendous significance in business today for making data-driven decisions, forecasting trends, and identifying growth opportunities. It not only provides deeper insights into customer behaviour, market dynamics, and operational efficiencies but also helps optimise resources and reduce risks.

Importantly, by predicting future scenarios and financial outcomes, organisations can create more accurate budgets, improve cash flow management, and enhance overall profitability.

Various market reports predict the global financial analytics market will grow by a compound annual growth rate of around 12 per cent from around $10-11 billion last year to approximately $22-23 billion in nearly a decade.

The round table discussion on the topic Harnessing Advanced Analytics for Strategic Financial Insights at the second edition of the Finance Leadership Dialogue in association with Oracle further emphasised how AI and instant data access are transforming India’s financial sector, emphasising the need for investment, data integration, and a modular approach to adopting new technologies. It also explored the practical applications of AI and the future of data analytics in enhancing strategic decision-making:

Demand for Instant Data and AI Integration: Panelists discussed a growing expectation for instant access to data and information, driven by everyday technology experiences like instant messaging and smartphones. This shift is impacting how businesses operate, with employees and management expecting immediate answers from systems such as payroll applications, often using chatbots. Traditional dashboards and email reports are no longer sufficient.

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Investment and Adoption of New Tools: Experts also discussed that implementing new technologies requires significant investment and a structured approach. Organisations need to develop roadmaps and timelines to integrate predictive and faster analytics tools that provide insights not only based on historical data but also future predictions.

Challenges in Data Integration: Integrating data from multiple sources and using different technology systems poses a challenge. Experts said there is a need for customised and modular approaches to adopt new tools, ensuring mindful automation and aligning data insights with business objectives.

Practical Applications of AI: AI is being used in various practical ways, such as sending customised messages to patients based on their medical history, optimising logistics through geotagging, and offering interactive reporting, the round table noted. The use of AI helps organisations make more strategic decisions by converting data insights into actionable steps.

Modular Approach and Licensing Issues: Another point during the discussion was that a modular approach is recommended for implementing new tools, starting with one module and gradually building upon it. However, there are challenges with integrating additional modules, such as licensing costs and system upgrades. It is suggested that new modules be bundled with existing licenses to make them more accessible and affordable for clients.

Future of Data Analytics: Lastly, experts agreed that the future of data analytics lies in combining AI with traditional data analytics to provide more precise and predictive business insights. For instance, tools like Oracle’s Fusion Data Intelligence Platform offer a fusion of data analytics with AI-enabled applications for smarter decision-making. However, organisations need to balance the benefits of these new technologies with the challenges of adoption and integration.

Transition from legacy systems to modern financial platforms

While it is an already established fact that the world is becoming increasingly digital and new-age technologies and AI has taken centre stage across functions, the financial industry has found itself grappling with a particular challenge – how to modernise legacy systems.

Experts at a roundtable discussion on the topic “Transitioning from legacy systems to modern finance platforms”, emphasised on why this transition is essential, the obstacles companies may encounter while making the transition, and strategies for a smooth migration.

What plays in the favour of modern financial platforms, experts said, is increased efficiency and automation. Advanced automation features streamline repetitive tasks, reduce manual errors, and accelerate processing times and this not only improves accuracy but also allows professionals to focus on strategic activities, moving away from routine manual data entry while also keeping overall operations across departments interconnected.

The modern financial platforms also offer analytics tools that provide real-time insights and predictive analysis, which helps companies take more learned decisions which are driven by data, help identify trends and also respond swiftly to market changes.

Further, per experts, modern platforms are designed to keep pace with the changing regulatory requirements. It offers security features and compliance tools that help organizations manage risks and adhere to financial regulations, while also helping mitigate risk of cyber attacks and ransomware.

Also, modern platforms are built with scalability in mind, allowing organizations to add functionalities and integrate with other systems as needed.

Now, throwing light on the challenges that companies face while making this transition, experts said that one of the major challenges in migrating from legacy systems to modern platforms is ensuring compatibility and integration.

Legacy systems for many organisations rely on a complex web of interconnected systems, and migrating to a new platform requires careful planning and time, while ensuring that operations are not hampered, one of the panel members suggested. Ensuring data integrity and accuracy during the migration process is critical. Besides, another roadblock is managing and training the employees who are accustomed to legacy systems, and most often, resist such changes. Comprehensive training and support are essential to facilitate a smooth transition, experts opined. Another major issue is the cost that comes with this transition.