The current COVID crisis and the rapidly changing economy have exposed the limitations of existing tools for IT and finance departments and amplified the need to digitalize their office and processes going into 2021 and beyond. This includes replacing legacy systems that the organization has outgrown. According to Gartner, “Many have often found their legacy solutions to be too IT-reliant and a hindrance to enterprise collaboration within finance departments and other finance areas.” 1
Although many organizations may not be in the best position or have had to put digital projects on hold due to remote working and COVID-19-related issues, “As the pains and struggles of legacy solutions have been well understood and their weaknesses in current solutions becoming a hindrance, projects that have been slated for 2024-25 have been gaining support, with many organizations looking to bring these forward to 2023”. 1
Many organizations also see the opportunity moving to cloud based solutions can bring: “Organizations have found that the move from on-premises to cloud solutions is typically not a simple technical upgrade. It represents an opportunity to redefine and transform their finance organization” said Gartner1.
In this predictions report, Gartner presents recommendations and assumptions that finance application leaders should embrace so they can navigate the evolving financial management market now and in the future.
1 Source: Gartner Predicts 2021: Navigating the Evolving Financial Management Market in the Age of Economic Recovery by Analysts John Van Decker, Robert Anderson, Greg Leiter, 11 November 2020
Large-scale core financial management application projects have slowed as organizations struggle to execute major projects due to remote working and COVID-19-related issues.
Clients are looking to extend their financial planning and analysis (FP&A) solutions into operational areas
New deployments of financial management management systems (FMSs) are targeting best practice and finance process simplification.
AI is quickly finding its way into financial management business applications.