Digitization is the process of converting information into digital formats that can be processed by computers. Text, pictures, audio, and video are examples of digitized information that we consume daily on our smartphones.
COVID-19 has accelerated digitization but also exposed those organizations that haven't fully embraced the digital exchange of information. For each business that has failed to adapt, many have emerged with proven digital business models, such as telemedicine. The digitization of the finance function is essential for all businesses to remain competitive, which is why digitization is a central CFO mandate. See Table 1 for a few comparisons between digital and nondigital business models.
Legacy finance and accounting activities have been hampered over decades by inefficient and ineffective data aggregation methods to improve decision making. Organizations have hired people to try to overcome these operational hurdles associated with the data-to-information conversion process. These individuals hailed from across the spectrum of financial disciplines such as in financial reporting, financial planning, financial operations, and so on. The digitization of finance has put many of these legacy roles at risk, but...