Drew Hofler, Director of Solutions Marketing at Ariba, an SAP company, discussed the implications of the networked economy on finance during his presentation at the 2014 Chief Financial Officer Think Tank in Atlanta on Dec. 3. In his presentation, Hofler noted that today’s organizations can leverage the networked economy to both share and protect critical data.
Hofler pointed out that connecting links in the value chain is important for organizations that want to optimize the value of the networked economy. If an organization breaks down the silos that often separate one department from another, Hofler said, it can ensure that all of its departments work together toward common goals. In addition, Hofler noted that social and business networks can provide organizations with access to valuable data that they can use to improve their operations: “We have access to information when we want, from whom we want. We can find what we’re looking for and it can be very personalized in that regard.”
Every organization has its own way of dealing with the networked economy, Hofler said. However, an organization that promotes collaboration can leverage the networked economy to improve its operations and ultimately boost its profits as well: “Nobody talks to the supplier unless they’re sending an order or paying them at that point; very siloed, very disconnected and this kind of disconnection, these collaboration inefficiencies between partners; where if you look at the groups, procurement and accounts payable are linked together in the procurement value chain.”