The business of manufacturing is undergoing a sea change with the adoption of the digital factory. With this change comes several challenges that finance must be prepared to tackle.
Challenge #1: Justifying investment in the digital factory
Finance personnel need to take a deep dive into operations and gain a firsthand understanding of the inevitability and massive benefits of investment in the digital revolution in the factory, or the CEO needs to put down the hammer and require it.
Challenge #2: Adapting to a new business model
The nature of production will dramatically change as digital factories become able to reconfigure rapidly and allow much greater customization and range of products. Factories will produce more “smart” products able to connect to the Internet of Things (IoT), which not only makes these products more complex and specialized, it also creates the potential for downstream services that change up the revenue model.
Challenge #3: Adapting the organization’s performance management information and supporting systems to the digital factory and its new business model
Real-time information is required – especially when virtually every component of the of the digital factory is geared to support predictive analytics and automated decisioning to anticipate and resolve problems. Correspondingly, finance will need to operate in real-time, aligning cost information with operational data, to enable rapid decisions and projections in this highly fluid, fast-paced environment.
This is necessitating finance organizations transform to be more real-time, agile, data-driven, and empowered to make the best decisions quickly to optimize cash flow. Inspyrus, with its innovative approach to invoice automation, is giving finance organizations the ability to drastically reduce costs and generate new sources of cash to help fund and fuel innovation in all areas of the organization.
Photo credit: Siemens