Julie Devoll
Welcome to the HBR Video Quick Take. I’m Julie Devoll, editor for particular initiatives and webinars at HBR. Today we’re with Eric van Rossum, chief advertising and options officer for SAP Cloud Enterprise Resource Planning. We’re right here to discuss what midsize firm finance leaders want to succeed. Eric, thanks a lot for becoming a member of us in the present day.
Eric van Rossum
Thanks for internet hosting me; I’m excited to discuss what all this implies for midsize firms.
Julie Devoll
To kick us off, what are a few of the points maintaining CFOs up at night time?
Eric van Rossum
Great query. At the tip of the day, what retains the CFO up at night time, with all of the matters all through the day, and what’s prime of thoughts? CFOs are in a troublesome spot. We’re in a low-growth, inflationary financial surroundings. But stakeholders and shareholders nonetheless anticipate income progress.
CFOs are pondering: “How do I set the right strategy and roadmap for growth in this volatile and uncertain economy?” And they face some challenges from that perspective. First, they want to create dependable monetary forecasts and fashions when issues are so unpredictable. And second, there’s a want to guarantee the supply of sufficient capital to assist the expansion technique, in addition to the day-to-day operations, which with rising rates of interest, means conducting a extra centered overview of various monetary devices, alternative prices, and time horizons.
Julie Devoll
How can finance leaders at midsize companies leverage applied sciences like Cloud ERP to handle in the present day’s wants? But additionally, drive in the direction of future progress?
Eric van Rossum
I feel there are three issues: One, Cloud ERP isn’t restricted to only a second in time. Two, Cloud ERP places firms on a journey of steady innovation. And lastly, three, Cloud ERP gives standardization.
And let’s begin with that first level, that Cloud ERP isn’t restricted to a second in time. Solutions like S/4HANA Cloud, public version, develop with you. They permit firms to undertake the capabilities they want as they develop. And notably for midsize firms, they’ll get began with the necessities they want to function in the present day and construct from there.
Speed is the secret. It’s about going stay in two to three months and iterating from there. And this tees up that second level—that Cloud ERP places firms on a journey of steady innovation. Companies can leverage quarterly innovation cycles to deploy new capabilities. And that is how we ship software program in the present day, on common intervals.
And then lastly, there’s standardization. Midsize firms will get the identical time-tested processes as their bigger opponents out of the field with Cloud ERP with out costly customization. And SAP is understood for outlining the business finest practices in ERP, and we’re engaged on defining the next-generation ERP finest practices as nicely. And as I discussed, clients get these out of the field, driving a fast time to worth primarily based on these business finest practices.
Julie Devoll
You’ve talked about how a company’s finance and accounting groups can paved the way in making certain progress and resiliency, each for in the present day and tomorrow. But what can finance do to get essentially the most highly effective social and environmental outcomes?
Eric van Rossum
For finance leaders, they’ll do three issues. First and foremost, perceive their position. Finance leaders play a key position in driving social and environmental outcomes. They’re going to be stewards and determination makers who assist set targets and KPIs for his or her enterprise, whether or not that’s carbon accounting or key metrics round social commitments, variety, inclusion, or environmental impacts.
Second, they’ll lead by instance by incorporating sustainability into the discussions round monetary planning, bringing the rigor they’re recognized for in finance and accounting and making use of that to ESG necessities and companywide controls as nicely. And thirdly, they’ll accomplice and collaborate. As ESG necessities evolve from voluntary to necessary throughout the globe, standardization and transparency are wanted.
That’s going to work finest when firms get collaborative and accomplice with like-minded organizations inside and past their very own requirements.
Julie Devoll
Eric, is there something you’d like to say in the present day in closing to our viewers?
Eric van Rossum
Absolutely. At SAP, we’re taking a really energetic position in supporting efforts to deliver extra standardization to sustainability. We not too long ago introduced plans to introduce what we name a inexperienced ledger, which is ledger-based accounting for carbon. Companies can handle carbon getting into and leaving their programs and stability their duties to society and the surroundings, aka their “carbon books,” the identical means we do monetary books.
ERP has at all times been the system of document for finance, and with this inexperienced ledger, we’re working to make it the system of document for sustainability as nicely.
Julie Devoll
Eric, this has been a terrific dialog. Thank you a lot for becoming a member of us in the present day.
Eric van Rossum
Likewise. I loved it very a lot and hope to discuss with you once more quickly.
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Eric van Rossum is chief advertising and options officer for cloud ERP at SAP.
